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Disruptive Technologies in the Logistics Industry are Not Only Transforming the Commercial Vehicle (CV) Ecosystem But Also Creating Increased Demand with the Evolution of Innovative Business Models
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The logistics industry is inundated with challenges which have given rise to disruptive technologies to overcome them. Key challenges faced by the supply chain logistics industry are: (1) Increasing carbon footprint from transportation (2) High level of transport vehicular emissions (3) Lack of visibility in the supply value chain (4) Increasing human capital expenses (5) Increased urban restrictions which hinder the movement of freight in the urban environment. The supply chain logistics industry is undergoing a transformation with the help of disruptive technologies such as autonomous transportation, Internet of Things (IoT) & telematics, data analytics and blockchain. Increasing supply chain complexity and service requirements are leading to innovations in last-mile delivery. These technologies and trends are shaping the commercial vehicle ecosystem as well to meet the new requirements.Demand for electric and fuel cell vehicles will increase drastically in the long term, aided by technology development and incentive programmes addressing the emissions issue and a reduction in the dependence on fossil fuels used for transportation. A combination of technologies such as IoT, augmented reality (AR), artificial intelligence (AI), data analytics and blockchain is creating a connected supply chain with greater transparency which addresses critical issues such as low asset utilisation, empty miles and demand-supply mismatch. New business models have also evolved due to digital proliferation in the supply chain logistics industry. Growth of telematics services which aid driver comfort and behaviour addresses driver retention problems. Level 5 autonomy has the potential to completely eliminate driver costs; however, the impact of this will only be felt beyond 2030.The convergence of disruptive technologies is enabling new concepts such as Digital Freight Brokerage, which not only optimises the brokerage process but also opens up new revenue streams and business opportunities. Logistics 4.0 is another concept which is enabled through the connectivity of the entire value chain. A connected supply chain, in addition to minimising the disruptions and associated losses, also maximises efficiency and throughput by improving operational KPIs.Last-mile delivery is also undergoing a paradigm shift with the emergence of innovative business models. Usage of aerial drones and ground bots along with electric urban delivery vehicles is on the rise with a number of start-ups providing technologies in these areas. Light commercial vehicle (LCV) manufacturers are collaborating and partnering with technology companies and logistics providers on urban delivery innovations. Commercial vehicle OEMs are working double time towards bringing futuristic technologies more quickly. A number of collaborations within OEMs, technology providers and logistics companies are among the key strategies being adopted to stay relevant.Author: Vineeth Purushotham
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