Digitalization has played a crucial role in remodeling the logistics industry from the ground up. Also, the surge in online shopping has created immense pressure on the shipping and logistics industry to meet the increasing demand. Therefore, logistics companies are forced to step up their game with ground-breaking strategies. The trends in supply chain logistics are rapidly shifting and are expected to witness a revolution by the end of 2025.
So, what will the logistics industry look like in the next five to ten years? From warehouse automation to last-mile deliveries, here are the top 5 trends that will dominate the shipping and Logistics (S&L) industry in 2025.
Futuristic Trends in Last Mile Logistics
Technological breakthroughs will change every aspect of how S&L companies operate. Digital fitness will become a prerequisite for success. The following trends are expected to change the whole paradigm of logistics in 2025:
- Robotics-led warehouse operations
- Elastic Logistics: The future of supply chain
- Autonomous vehicles, trucks, and drones for delivery
- The model of RaaS
- Temperature controlled smart lockers
Robotics-Led Warehouse Operations
Currently, the warehouse robot market and global logistics have reached almost USD 14.43 Billion. As per McKinsey, the warehouse automation investment will continue to grow by 2025. As a result, a new generation of robots will be seen in warehouses collaborating with humans to perform different tasks. Robots will be deployed for unloading, picking up containers, and deliveries. In this way, the efficiency and productivity in the warehouses will be boosted.
Elastic Logistics: The Future of Supply Chain
Elastic logistics model will be used to tackle the unpredictable fluctuations in consumer demands. This model will facilitate demand-driven capacity planning, supported by real-time visibility. Also, advanced analytics, the internet of things (IoT), artificial intelligence (AI), and machine learning will further allow supply chains to expand the limits of elasticity. Some significant benefits of the elastic logistics model include reduced turnaround time, lead time, and quick movement of shipments.
Autonomous Vehicles, Trucks & Drones
Waiting for the mailman to deliver your parcel?
How about receiving the parcel by a drone or a robot? Yes, you can expect that in 2025!
Autonomous vehicles (AVs) and trucks (AT) would revolutionize the future of logistics. These self-driving trucks, drones, and robots will increase last-mile delivery options, making same-day deliveries possible in rural and urban areas. It will not only reduce the operating costs but will also improve the reliability of parcel delivery.
The Model of RaaS
By 2025, the logistics industry will completely fall into the “Everything-as-a-service (XaaS)” category. The scalability will no longer be a challenge for logistics companies. They will be paying for what they use and won’t be risking huge investments in expensive technologies. For instance, logistics providers will adopt Robotics-as-a-Service (RaaS) model. It will enable them to hire robots for handling seasonal peaks without making huge investments upfront.
Temperature Controlled Smart Lockers
In 2025, the concept of temperature-controlled smart lockers for parcels will be prevalent. This technology will help secure parcels at the perfect temperature. In this way, the logistics companies can reduce the costs associated with returned parcels due to the customer’s unavailability. It is another last-mile initiative beneficial for packages containing food and medicine.
Logistics Industry is Changing: Are you Prepared?
Technology is revolutionizing the logistics industry every year. By 2025, the winners will be the ones who will understand how to use modern technologies, automation, and data analytics. You will witness exciting things in last-mile logistics. Also, the complexity of the technology level leveraged to extend the limits of last-mile delivery will increase. Therefore, shippers should stay up-to-date on the ever-changing trends in logistics to secure a competitive advantage.