Advent of Digital in Logistics Industry
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Advent of digital in Logistics industry[pic 1]Submitted to: Prof. Jaydeep Mukherjee[pic 2]Group 8Anurag Dang 17P187Madhur Vashist 17P203Sarvagya Kala 17P223Vipul Gupta 17P235ContentsLogistics Industry: Introduction 2Technological Innovations in Logistics 2Consumer behaviour and Impact: Overview 5Behaviour of B2B customers and Implications 6Behaviour of B2C Customer and Implications 6Experience 6Speed 6Agility 6Pricing 6Security and Privacy 6The evolution of business models for logistics industry 7Different Logistics Business Models 7B2B Logistics 7Companies causing disruptions in the B2B logistics domain 8B2C Business 8E-commerce retail logistics activities 9Companies causing disruptions in the B2C logistics domain 10Evolution of Marketing strategy and implementation 10Spotlight on Indian Logistics industry 10Technology to the Rescue 11Platform based solution 11Spotlight on Rivigo 11Possible developments in near future 12Industry Outlook 13References 15Logistics Industry: IntroductionLogistics is concerned with effective and well-organized movement of semi-finished or finished goods from one point to another and from manufacturers/businesses to the consumers through the distributors and retailers. The Council of Logistics Management (CLM) defines logistics as:“The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information and financials from point of origin to point of consumption for the purpose of conforming to customer requirements.”Logistics include the following: freight transportation, warehousing, material handling, packaging, inventory control, order processing, marketing, forecasting, and customer service. Hence, logistics is that part of supply chain that plans, implements, and controls effective flow and storage of goods, services, and related information from origin to consumption point in order to meet consumer demands. Logistics market is very huge and it contributes to all 3 sectors of the economy: Agriculture, Manufacturing and Service. Logistics is estimated to be around US$ 4 Trillion worldwide. North America is the leader in the global market, with a share of $ 4 Trillion, India on the other hand has a logistics market of about $250bn.
Logistics has seen several new advancements due to the introduction of Industry 4.0 and Industrial Internet. Logistics has also been tremendously been impacted by social media sites like Facebook, Google, Twitter, etc. and also Mobile Phones and Cloud computing has had a huge impact on logistics. There has been a tremendous impact on the consumer side of logistics in terms of home delivery, product returns and order cancellations due to the big data analytics and e-commerce. Resource shortages is having an influence on logistics costs in a big way. Big impact has been there on logistics due to the emission of greenhouse gases, carbon trading, etc. The developments in Internet of things in particular, sensors for monitoring the health of equipment in critical network industries such as power and airline transport is changing the maintenance process from scheduled to predictive maintenance. The availability of 3D printing is changing the way spare part logistics is organized. While these developments increase the technology analytics contents in logistics operations, they reduce the downtime of equipment and trucks, inventory requirements and also the energy intensity in operations.Technological Innovations in LogisticsThere have been several innovations in logistics due to technology. Internet of Things, Mobile, Augmented Realty, Social Media, Cloud Storage and Computing are some technological developments which have improved the efficiency of logistics operations. Though globally present, they are not present in India but India can easily adopt these in their supply chains. [pic 3]Figure: New technologies in logisticsAs age-old processes begin to shift to meet the demands of the internet age, logisticians and executives alike should understand the ways that these seven technologies are beginning to transform the industry.1. AutomationAutomation uses data-driven software which helps in improving efficiency in machines, offers a variety of solutions for the logistics industry which include advancing package labeling to streamlining warehouse sorting systems.2. RoboticsRobots are planned to perform numerous jobs at once, making their applications in the logistics industry nearly endless. This is mostly true of e-commerce operations, which require an intensified level of speed and productivity to see the rapid growth of online sales. Amazon raised the bar in 2012 when it acquired a monopoly on Kiva robots, starting what Bloomberg calls a “robots arm race”. The robots, which accomplish “one-click” orders in less than 15 minutes — a task that naturally takes humans 60-75 minutes to complete — have reduced the company’s operating expenses by up to 20 percent. To stay competitive, other companies are now racing to fill their warehouses with similar models.3. Wearable technologyWearable technology has become a normal “must have” in the logistics industry. A success story is German Logistics Company DHL, which carried out a pilot project at its warehouse in Bergen op Zoom to assess the ability of wearable technology to surge speed and decrease human error in warehouse order picking processes. Results of the pilot established that smart glasses like Google Glass improved efficiency by 25 percent, and also significantly increased employee satisfaction.