Innovation and advancement are fast becoming imperative for most industry verticals in order to stay competitive, and the logistics industry is also experiencing the same. At present, the 3PL industry is at a crucial juncture where all its stakeholders are required to mull over the way they do business and innovate in their business practices. The decreasing costs of logistics coupled with the advancements being made in cutting-edge technologies such as drone delivery, 3D printing, augmented reality and much more are opening newer avenues and opportunities for generating revenues. As a result, companies who do not adopt the latest changes face the danger of getting left behind in the wake of rapid development. Let’s have a look at the current state and the future of the logistics industry.
Logistics Industry to Grow in the Coming Years
After a disappointing 2014, it is being expected that the 3PL industry will witness rapid advancements and growth in the years to come. The industry experts are optimistic about the business prospects which the industry will attract in the future. It is being expected that from 2016 to 2019, the logistics industry will grow with a projected rate of 2.5% per year.
While the future holds a lucrative set of opportunities for the logistics industry, logistics outsourcing companies are required to analyse the market closely and invest in new technologies & emerging markets in order to make maximum profits.
Technology: A Driving Factor That Will Help the Logistics Industry to Grow
The role played by technology in supporting the 3PL industry and driving growth cannot be underestimated. Some of the technologies which will help to transform the market in the coming future include driverless vehicles, drone delivery, 3D printing, augmented reality and IoT (Internet of Things).
These technologies will become quite helpful in cutting storage, transportation, labour, documentation, and other costs by a great extent. As a result of lower costs, the companies will be able to make better profits by leveraging these evolving technologies. Furthermore, these technologies will also prove quite supportive in enabling logistic providers deliver better quality and faster services, thereby, resulting in a higher number of satisfied customers. For instance, delivery drones can be used to deliver important goods to remote areas which are quite difficult to be reached through physical paths such as roads, air, or water. Thus, delivery drones will not only help in saving transportation costs, but also drastically reduce the time & effort needed by the delivery staff to reach a remote place. Such technological advancements will eventually lead to faster delivery, efficient service, much lower costs all the while allowing for incredibly higher customer satisfaction numbers.
Some of the technologies which are currently being used by the logistics outsourcing firms include sophisticated GPS (Global Positioning Systems), TMS (Transportation Management Systems) and WMS (Warehouse Management System) etc.
However, in order to get optimum benefits, it is vital that the logistics outsourcing companies not only adopt the emerging technologies, but also innovate with them, and find out even more pioneering ways to deliver the services efficaciously.
Flatworld Solutions is a top-notch service provider that offers unmatched logistics services. Our cost-effective logistics support with an array of advanced logistics and freight services portfolio ensures enhanced client satisfaction. If you are seeking a reliable outsourcing firm for quality focused and cost-efficient logistics services, feel free to contact us. You can share your logistics requisites by leaving a comment in the box below and our executives will contact you in as short a time as possible.
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