Pre-emptive logistics – the road ahead

What’s driving change in the logistics industry?

Digitalization activities are transforming enterprises and industries around the globe. The logistics industry is no exception. This report takes a closer look at the future of logistics and explores the viability of pre-emptive logistics.

Report
Divey Gulati, COO, ShipBob, Chicago –

“Amazon changed consumer expectations: now everyone wants everything within two days, or the next day if they’re in the US. Amazon came in and changed the game for everyone.”

Introduction

This report takes a closer look at the future of logistics and explores the viability of pre-emptive logistics. To what extent can a more efficient and sustainable logistics system be achieved by use of digitalization technologies such as IoT and 5G? Will this industry sector be ready to take the necessary steps, such as connecting all the parts and sharing information between all parties, in order to allow for pre-emptive logistics? To what extent will efficiency gains drive transparency in a sector that, today, is characterized by silo-oriented operations? This report tries to answer these questions.

Pre Emptive Industry Lab Graph.gif

The development path for predictability and pre-emptive logistics goes via connecting operations to establish visibility, sharing to get transparency across the whole system, and optimizing for efficiency.

Key findings

1. One-third of decision makers say that being unable to easily exchange information with customers and suppliers is an obstacle for improving their companies’ logistics operations.


2. The lack of good digital track and trace tools, tools for visualization etc. and reliable mobile connectivity are key barriers for two out of five logistics companies today.
Additionally, three in five strongly agree that better logistics tools would improve their companies’ capability to deliver on time.


3. Almost 7 in 10 of the surveyed decision makers say it will be very important for their companies to be part of logistics information sharing systems in the next 3–5 years.


4. Two-thirds of the studied companies will use AI and data analysis to match logistics needs with capacity within the next five years, and one in five are already doing it.
More than 6 in 10 companies will ship pre-emptively in the next 3–5 years.

5. Globally, more than one in three consumers either began or increased online grocery shopping compared to before the COVID-19 outbreak, causing significant challenges to existing logistics flows.


6. Pre-emptive logistics does not mean the death of warehouses and fulfillment centers. Cross-competitor information sharing and collaboration, including shared warehousing between many actors, could lead to more resilient future logistics solutions.


7. Sustainability is quickly becoming an additional driver for logistics enhancements.

Sixty-seven percent of decision makers agree that customer sustainability requirements will change the way their companies handle logistics in the next three to five years.

Pre Emptive Industry Lab Truck.gif

Logistics systems typically has the characteristics of nested objects. In order to know the condition and whereabouts of Package A, you need to know that it is on Pallet B, which is located inside Container C, being transported by Vehicle D.

Want to find out more?

Further reading

The power of easy: connected logistics

What will drive connected logistics? Hear from one of our Tech heroes.

IoT for industries

Read more about how Ericsson enables industries to launch connected products anywhere in the world.