How has technology has made logistics more effective?

While some markets have collapsed as a result of the coronavirus pandemic, others have experienced exponential rates of growth.

Take the courier industry in the UK, for example, which has boomed alongside an ecommerce market that saw £5.3 billion added to its coffers in 2020 as a direct result of Covid-19.

This sector has also become increasingly reliant on new technologies in recent years, with this borne out by the growth of the global courier management software market. This reached a cumulative value of $392.5 million in 2019, and is expected to grow at a CAGR of 11.6% through 2027.

In this post, we’ll look at the technologies that have made logistics and courier firms more efficient throughout the world.

  1. The Rise of Tracking Software

Logistics tracking has become a significant segment of the courier industry in the digital age, particularly in an age of next-day deliveries and increased consumer demand.

Most recently, development in consignment tracking technology has afforded businesses access to far greater volumes of information in real-time, pertaining to both distribution and live stock data.

Real-time delivery data is now more accessible than ever before too, with key service providers such as Parcel2Go also offering a simple tracking tool that can monitor deliveries across an array of different couriers.

With state-of-the-art tracking systems now widely available to both businesses and end users, there’s no doubt that logistics have become more efficient and transparent at various stages of the consumer journey.

  1. Improved Vehicle Efficiency

We’ve also seen significant improvements to the efficiency of vehicle fleets, which are now often required to make more frequent deliveries in residential areas or along multi-drop routes.

This is thanks largely to the aforementioned rise of ecommerce, which has increased the demand for courier services and the sheer volume of products being delivered on a daily basis in the UK.

As operations have also adapted to facilitate same and next-day deliveries, fleet owners have been compelled to create more efficient routes while simultaneously reducing emissions where possible, generating financial savings that are subsequently passed to customers.

This trend is likely to continue in the near-term, particularly with the advent of more fuel-efficient cars and improved vehicle technology.

  1. The Use of RFID for Inventory and Stock Control

The use of RFID (radio frequency identification) has become widespread in logistics, particularly in the fields of inventory management and stock control.

In simple terms, RFID uses electromagnetic fields to automatically identify and track tags that are attached to objects, creating an accessible system that allows for the tracking of individual items in real-time.

In theory, this system enables businesses to track products and their components at every stage of the supply chain, from their initial production to the ultimate point of sale.

As this technology becomes even more sophisticated, brands can check on the real-time status of products and shipment with the click of a button, allowing for more efficient communication with stakeholders and customers alike.