Improvements in artificial intelligence, self driving technologies, and machine learning are set to change the logistics and transport sectors. BI Intelligence gathered a number of research reports on the statistics and opportunities in the logistics and transportation industry and came up with a brand new T&L vertical. The topics covered include connected cars, AI and machine learning in logistics, same-day deliveries, freight trucking, and drone delivery and how these technologies will transform the logistics and transportation industry.
These are interesting areas in technology today and will have a huge impact on many industries. Jonathan Camhi, a BI Intelligence research analyst, collected these reports, and here is what he had to say about the future of these novel technologies.
What Is Logistics And Transportation?
BI intelligences are focusing on how digital technologies are transforming transportation as well as delivery. BI is analyzing how newer business models and technologies such as autonomous and connect cars, AI, drones, on-demand deliveries, and ride hailing are transforming B2B and freight logistics, fleet management, auto manufacturing industry, and e-commerce fulfillment.
What’s The Basis of Launching the Transport and Logistics Vertical?
Drones and self-driving vehicles have a bright future in the mobility industry. However, their impact on business is not yet fully understood. However, they are set to transform daily business operations. These novel business models and disruptive technologies will surely have huge impacts across the aforementioned industries.
For instance, fast and free shipping are some of the most crucial aspects that consumers seek when shopping online. Hence, suppliers in industries such as agriculture and manufacturing are under intense pressure to make faster deliveries. In turn, logistics and automotive firms that enable cheaper and faster transportation stand a better chance of winning more business. This would translate into more revenue. Hence, this is an ideal time for BI to launch its T&L product into the market.
How Will The Disruption Affect Businesses?
Just like in any other industries, there will always be losers and winners. This will translate to massive changes in profits and value. For instance, by 2030, newer digital entrants into the automotive industry may capture 20 percent of the annual profits (around $120b annually) that are generated by traditional automakers.
The logistics sector will even witness a greater shift where digital entrants may create at least $1.5 trillion extra value by 2025. Legacy providers and new digital firms will be competing for this additional value.
Who Is At Risk Of Being Endangered By The Transformation?
Legacy players across industries will be endangered if they don’t go a step ahead of the transformation. This shift is already been seen in the retail sector. For instance, Amazon is now leveraging digital tools that are giving them competitive advantage by offering fast and free shipping. Similar transformation will be witnessed in other sectors such as freight brokerage, trucking, last-mile deliveries and the auto sector.
Companies that are leveraging digital technologies for moving goods cheaper and faster will win in the future. Those that are not embracing digital technologies in transportation and logistics may end up struggling to survive in the retail industry.
Source BusinessInsider
