Future of Logistics

Summary

The future of logistics is shifting towards non-asset-based models, with technology and big data driving major changes. Companies like Uber for cargo are leading the charge by connecting available transport capacity to those in need, while predicting demand through user behavior and advanced connectivity. E-commerce is rapidly growing, and logistics costs are becoming crucial. Autonomous driving, intelligent transport systems, and urban logistics are emerging as key trends, especially in regions like Japan, Europe, and North America. The industry is being disrupted by digitalization, with rapid advancements expected within the next few years.

Takeaways

• 😀 The supply chain is increasingly moving toward non-asset-based models, where logistics providers may not own vehicles like trucks or delivery vans.
• 😀 Companies like Uber for Cargo are already showcasing a shift toward information-based logistics, connecting cargo providers with available capacity in real-time.
• 😀 Big data is being seen as the 'new oil' for the logistics industry, driving innovation and enabling better predictions and services.
• 😀 Logistics companies are focusing on anticipating shipping needs, predicting demand based on customer behavior, such as online browsing patterns.
• 😀 Connectivity and faster payment systems are transforming the logistics industry, making it more responsive and efficient in managing goods transportation.
• 😀 The shift towards more efficient cargo use means fewer empty trucks and better capacity utilization, reducing inefficiencies in the system.
• 😀 E-commerce sales are projected to grow significantly, from 4% of global retail sales in 2009 to over 20% by 2025, with the impact on overall purchases exceeding 40%.
• 😀 Key drivers of e-commerce growth include high-speed connectivity, affordable mobile devices, new marketplace models, and the reduction in logistics costs.
• 😀 Autonomous driving technology will play a role in logistics, but the logistics industry itself remains challenging due to the need for physical movement of goods.
• 😀 Urban logistics and intelligent transport solutions are crucial for modernizing the transport system, which has been relatively slow to adopt digitalization and connectivity.
• 😀 Japan, Europe, and North America are the leaders in the global logistics race, with these regions likely to drive advancements in the industry by 2019 and beyond.

Q & A

What is the key trend in the logistics industry mentioned in the transcript?

The key trend is the unbundling of the supply chain, with a shift toward non-asset-based business models where logistics providers may not own their own trucks or delivery vans.

How is big data expected to impact the logistics industry?

Big data is expected to play a crucial role by enabling logistics companies to anticipate demand, improve shipping accuracy, and enhance the efficiency of transport and delivery services.

What does the speaker mean by logistics companies referring to big data as 'the new oil'?

The phrase 'the new oil' refers to the immense value of big data in the logistics sector, which will drive innovation and fuel many new services and products in the industry.

How is online shopping affecting the logistics sector?

The rapid growth of online e-commerce, which is expected to represent over 20% of global retail sales by 2025, is driving the need for faster and more efficient logistics solutions, including anticipating shipping demands.

What role does behavior tracking play in logistics?

Behavior tracking, such as analyzing how long a customer stays on a product page, helps logistics providers predict demand and optimize inventory and delivery processes.

What is the significance of connectivity and faster payments in logistics?

Connectivity and faster payments enable quicker reactions within the logistics industry, helping companies manage goods transport more efficiently and reduce empty cargo transport.

What does the speaker mean by 'anticipating shipping'?

Anticipating shipping refers to predicting and preparing for shipping demands based on customer behavior and other data points to ensure rapid delivery, potentially even before the customer places an order.

What is the expected impact of autonomous driving on logistics?

While autonomous driving technology holds promise, the speaker highlights that logistics operations still require human management and intelligent systems to move goods effectively and efficiently in urban environments.

Why is urban logistics considered a challenging but crucial area in the transport sector?

Urban logistics is challenging because it involves managing complex physical and software systems to move large volumes of goods through crowded, often congested, cities. It requires advanced technology and operations to be effective.

Which regions are leading the way in the development of intelligent transport solutions?

Japan, Europe, and North America are identified as the leading regions in the development of intelligent transport solutions, with other regions likely to follow later with a significant lag.