How IT Solutions Are Revolutionizing the Logistics Sector in E-commerce
Published: 2023-09-26 11:30:43

As the e-commerce industry continues to expand and evolve, logistics follows. New tech helps it change quickly, creating new ways to work faster and making old ways better. 

From fast deliveries to better stock control, new solutions are helping to solve big problems in the logistics industry. Under the weight of rising consumer expectations and tightening delivery schedules, the sector is seeing a revolution, steered by the creative integration of technologies.

_Now, autonomous vehicles can complete last-mile deliveries, consumers' smart fridges become parcel recipients, and an Uber-like model of crowd-sourced delivery offers a new alternative to traditional courier services. Additionally, the use of artificial intelligence for improved supply chain management and the application of blockchain for enhanced transparency promise further potential._


Below, we will take a closer look at each of these advancements and the future perspectives of the logistics sphere. 

## Autonomous vehicles
 

Self-driving technologies are becoming more and more common in the logistics industry. By using them, one can improve efficiency and reduce costs, so this is a win-win situation for both businesses and customers.

From a cost perspective, autonomous vehicles provide serious savings over time. They help reduce labor costs, as well as expenses related to human error. While the initial investment in self-driving tech may be high, the long-term cost-effectiveness may be a solid argument for many companies.

Autonomous vehicles shine in consistency and round-the-clock productivity. Unlike human drivers, they can operate without breaks, enhancing delivery speed and service availability. Moreover, the use of sophisticated algorithms and sensor systems helps optimize routes and reduce delivery times.

There are already a number of companies using this technology. For instance, e-commerce giant Amazon is testing delivery robots, nicknamed Scout, in several American cities. In turn, Waymo, Alphabet's self-driving technology subsidiary, has been conducting pilot programs for the last-mile delivery services.

Russian tech giant Yandex has also been making noticeable progress in the autonomous vehicle scene. By now, their self-driving cars have been tested in various environments and conditions. The company has also launched an autonomous delivery robot named Rover. It is designed to navigate sidewalks and deliver small packages straight to customers' doors. 

## Direct delivery
 

Direct delivery advancements offer e-commerce businesses another innovative way to deliver goods. These innovations are transforming our homes and vehicles into active participants in the logistics process, which makes receiving deliveries more convenient than ever.

Companies like Home Connect and Samsung develop fridges that can receive grocery deliveries. When an order is delivered, the courier can open a compartment of the fridge to store perishable goods. This not only ensures fresh delivery of food items, but also eliminates the need for customers to be physically present to receive deliveries.

Similarly, there is an option to deliver directly into consumers' cars. Companies like Amazon and Volvo have led the way with services such as Amazon Key and Volvo's In-Car Delivery. This way, delivery personnel are granted temporary access to a customer's vehicle to deposit packages securely, if the car is located within a specified radius.

Such services eliminate the need for a customer to adjust their schedule for deliveries. From the company’s perspective, these solutions can reduce the number of missed deliveries and lower redelivery costs. Also, they're still fairly new, so they can give you a unique selling point that will help you stand out in a crowded market.

## Flexible delivery models

Today’s businesses are increasingly moving from traditional hired courier models to an Uber-like way of delivery. Understanding this change requires a closer look at the unique aspects of this model and its impact on the logistics industry.

In a traditional courier system, businesses usually maintain a fleet of hired workers to handle their delivery needs. This model offers a degree of control and predictability, but it comes with considerable overhead costs, including salaries, vehicle maintenance, and insurance.

In contrast, the Uber-like model, often referred to as the “gig economy” model, relies on a network of independent contractors who use their own vehicles to make deliveries. Platforms like Uber Eats, Postmates, and Instacart operate on this principle, connecting businesses with a vast pool of couriers based on their proximity and availability.

This shift is transforming the logistics industry by providing a more flexible and potentially cost-effective approach to delivery. With this model, businesses can scale up or down on demand, avoid the fixed costs of maintaining a wide delivery fleet, and expand their reach without making large infrastructure investments.

At the same time, this model offers couriers more flexibility with an option to choose when and how much they work. However, this approach also comes with challenges, such as less job security for couriers and potential quality control issues for businesses.

## AI prediction and automation
 

Artificial Intelligence is already making a huge impact on supply chain management. Gradually, it becomes an indispensable tool for improving efficiency and reducing costs. By using AI capabilities, businesses are streamlining their supply chain processes and making more informed decisions.

For example, AI can be used in predictive analytics for demand forecasting. Tools like Google Cloud's AI Platform, Microsoft's Azure Machine Learning, and IBM's Watson offer sophisticated algorithms that analyze historical sales data, trends, and market factors to predict future demand. This information allows businesses to optimize their inventory: reduce the likelihood of overstocking or stockouts, and make sure that products are available when customers want them.

Automated sorting and inventory management is another area where AI can make a difference. Solutions like Geek+'s AI-powered robotics and GreyOrange's Ranger MoveSmart robots offer automated picking and sorting, reducing human error and speeding up warehouse operations. Similarly, AI-driven platforms such as Inventoro and EazyStock help manage inventory by providing insights into stock levels and recommending reordering points.

In short, AI can help you transform the traditional supply chain into a more dynamic, responsive, and efficient process. An e-commerce business can stay far ahead of its competitors by using predictive analytics for demand forecasting and automated solutions for sorting and inventory management. This way, you no longer respond to the market's needs — you anticipate them and plan accordingly.

## Blockchain for tracking and security
 

Blockchain technology, mainly known for its role in supporting cryptocurrencies, can also be really useful in delivery. It provides a new level of security and transparency that is crucial for online shoppers and sellers alike.

Simply put, blockchain is like a digital notebook. It's spread across many computers and keeps a record of transactions that, once written, can't be changed afterwards. This immutability makes it a formidable tool for securing transactions and ensuring authenticity.

Solutions such as IBM's Blockchain Platform and VeChain provide businesses with the ability to track and trace products in real-time across their supply chains. Every touchpoint from production to delivery can be recorded. This kind of visibility is especially needed in industries where authenticity and traceability are non-negotiable, for example, the pharmaceutical sector.

Today’s consumers seek more and more transparency. They want to know where their products come from, how they're made, and when they will arrive. Implementing blockchain technology can help businesses meet these demands.

Apart from that, businesses themselves can improve their efficiency by relying on blockchain. This technology can help you find bottlenecks in your supply chain, validate the authenticity of your goods, and even simplify administrative tasks such as invoicing and payments.

## ***

It is clear that change and improvement in e-commerce logistics will be ongoing. The focus, though, will remain on creating new solutions, keeping customers happy, and making operations more efficient.

A key trend is the increasing personalization of delivery services. As businesses strive to provide seamless customer experiences, the delivery process is becoming more customer-centric. We're likely to see more options for customers to tailor their delivery times, locations, and methods, much beyond the current next-day or same-day deliveries.

The development of more advanced autonomous vehicles is another anticipated trend. While self-driving solutions are already transforming the logistics industry, future tech advancements will likely push it even further. This could involve fully autonomous drones for last-mile deliveries or self-driving trucks for long-haul freight transport.

Moreover, the integration of the Internet of Things in logistics is expected to grow. Devices connected through IoT can provide real-time tracking, monitor the condition of goods, and even automate warehouse operations.

In addition, there is a clear trend on sustainable practices, and their role will likely increase in the coming years. Elements like green packaging and carbon-free delivery will matter even more than today. Companies will be expected to follow these practices: not just to comply with regulations, but also to serve the growing number of eco-aware customers.

There are a lot of possibilities in the future of e-commerce logistics. As tech developments keep coming and as consumer desires keep shifting, this sector will keep evolving, with new ideas and more efficient processes. It's clear that the evolution of e-commerce logistics is just warming up.