How to Digitally Transform Your Logistics Business in 2024?

In this rapidly evolving digital age, staying updated with the current technological trends isn’t just beneficial; it’s imperative.

Recent years have witnessed a meteoric rise in technological innovations, shaping our lives in ways previously confined to science fiction. Global digital transformation spending in the logistics industry is projected to reach $84.6 billion by 2027 from just 3 billion in 2020.

The year 2024 promises to be a groundbreaking chapter in the realm of implementing logistics technology solutions in business processes. The pace of innovation is accelerating, and new technologies are emerging at an unprecedented rate. With that, here is a look at some of the most anticipated technological innovations that are anticipated to envelop the business landscape next year.

Internet of Things (IoT)- Anticipating Demand Fluctuations

Internet of Things (IoT) is a connection of physical devices that monitors and transfers the data without any need for human intervention. In times of economic uncertainty and demand fluctuations, forecasting future sales and fulfilling them through an increasingly complex supply chain model based on customer demand can help improve product availability and reduce overstock.

According to the Fictiv 2022 State of Manufacturing Report, 88% of manufacturers sought to reduce their number of suppliers for tighter integration of their operations and “to gain control and predictability over their supply chain.”

IoT has emerged as a game-changer in supply chain visibility, providing real-time data and insights, and revolutionizing the way businesses handle logistics and operations.

Asset Tracking and Monitoring

IoT-enabled sensors and GPS trackers allow real-time tracking and monitoring of assets such as vehicles, containers, and packages. This enhances visibility and accountability throughout the supply chain.

Inventory Management

IoT devices in warehouses and storage facilities provide real-time inventory data, enabling businesses to optimize stock levels, reduce stockouts, and improve order fulfillment efficiency.

Temperature and Environmental Monitoring

IoT sensors can monitor temperature, humidity, and other environmental factors during the transportation and storage of sensitive goods like pharmaceuticals or food, ensuring product quality and compliance.

Condition Monitoring

IoT devices can track and monitor the condition of goods during transportation. For example, sensors can detect shock, vibration, tilting, humidity, temperature, luminosity, pressure, etc. helping to prevent damage and ensuring the integrity of products.

Route Optimization

IoT data combined with analytics and AI algorithms allows businesses to optimize routes and transportation schedules, leading to reduced fuel consumption, lower transportation costs, and faster delivery times.

Supply Chain Analytics

IoT-generated data offers valuable insights into supply chain performance and potential areas for improvement. Analyzing this data can lead to better decision-making and enhanced operational efficiency.

Demand Forecasting

IoT data can be integrated with demand forecasting models to predict customer demand accurately. This helps businesses optimize inventory levels and production schedules, reducing costs and waste.

Cold Chain Management

In industries like pharmaceuticals and food, IoT ensures the integrity of the cold chain by monitoring temperature and humidity during transportation, preserving product quality and safety.

Incorporating IoT into supply chain management offers numerous benefits and as the technology continues to evolve, the IoT’s role in supply chain management is expected to expand, creating even more opportunities for innovation and optimization.

Combatting Organizational Complexities with Robotics and Automation

According to the MHI Annual Industry Report, the Robotics and automation industry remains the leading innovation with the potential to either disrupt the industry (17%) or provide a competitive advantage (39%). The infusion of robotics and automation directly increases the speed and accuracy of supply chain processes and reduces human error.

Stacker Cranes (for pallets and boxes) pick up the products at one end of the storage aisle and move them to the corresponding position.

Autonomous Mobile Robots (AMRs) are equipped with advanced sensors, AI software, and a digital layout of the installation. It allows them to interpret their surroundings as they move the lightweight unit loads to their place and identify and sidestep any obstacles they come across.

Goods-to-person Method is an automated system that brings the products to the operators so that they can put together orders without having to travel.

Automated Truck Loading Systems (ATLS) incorporate rollers or chains, extendable forks, and skids to move materials with minimal operator intervention.

In all robotics and automation expedites the flow of goods in logistics facilities, streamlining storage tasks and maximizing operational efficiency and safety. It will further enable businesses to focus on strategic efforts and minimize risks in hazardous environments.

Creating New Experiences with Augmented Reality

Opening new possibilities for logistics businesses, Augmented Reality (AR) completely immerses the user in the computer-generated environment. Businesses can now streamline their businesses to improve the efficiency and accuracy of operations and provide better customer experiences.

Within the logistics industry, more and more companies are increasingly utilizing augmented reality devices to make operations more efficient and cost-effective.

Optimizing the product-picking process, with a tangible AR solution requires expensive training for efficient data handling. Portable AR systems such as head-mounted displays, cameras, portable computers, and batteries can be utilized for a single shift. Real-time object recognition, barcode reading, in-store navigation, and seamless information are integrated with the in-house warehouse management system.

Improving the transportation network has the potential to optimize completeness checking, international trade, on-road navigation, and freight loading.

Global trade service providers prove helpful to ensure that shipments comply with the relevant import and export regulations. They can scan trade documents and goods for keywords, auto-suggest changes and make changes to the commodity code classifications.

Real-time data provides dynamic traffic assistance to optimize routes and indicate alternatives. It also offers drivers vehicle and cargo information, improving overall logistics efficiency.

In all, augmented reality has the potential to revolutionize the way logistics operates on a large scale and handle shipments faster.

Cloud Computing- Fostering a Globally Connected Digital Realm

The emergence of cloud computing enables the acquisition and installation of digital programs either internally or through a service provider, hosting them on their own servers.

According to Data Bridge Market Research, the cloud supply chain management market is projected to achieve a market value of USD 71.93 billion by 2030, with a CAGR of 16.10% during the forecast period.

Organizations that embrace cloud logistics in the logistics industry experience the following advantages:

Automated order processing minimizes errors and delays and ensures efficiency and accuracy.

Real-time stock visibility provides your business with constant visibility of product availability.

Microsoft Azure, a cloud-based solution is scalable and adaptable to accommodate varying workloads, product seasonality, and the complexity of warehouse operations.

Ensuring strict security standards by simplifying data management and ensuring secure communication processes.

Uninterrupted 24/7 operational continuity with automatic software updates.

Facilitating stock and operation management across multiple locations.

3PL (Third-party Logistics) Integration to outsource transportation, warehousing, and order fulfillment tasks. This allows businesses to focus on core competencies while benefiting from the expertise of logistics professionals.

In all, cloud computing facilitates efficient logistics and data management, while supporting data storage, organizational scalability, and cost reduction.

Does Your Logistics Meet the Global Competition?

The ever-increasing global competition, new and changing business models, and greater customer expectations of businesses mean that today the demands of product-oriented companies are high. In such a scenario, there is a high probability that the current logistics management system of any organization may require some update to meet the current needs of the growing business.

Microsoft Dynamics 365 Supply Chain Management is a simple, flexible, and integrated business solution for SCM and logistics, with the necessary capability to optimize your processes to overcome logistical challenges and gain competitive advantages and savings.

Grow Rapidly with Microsoft Dynamics 365 Supply Chain Management

The inventory and logistics capabilities of Dynamics 365 Supply Chain Management enable businesses to manage their sales and fulfillment processes effectively and efficiently while ensuring inventory availability that matches the desired service levels. Investments in this area continue to focus on helping businesses gain more visibility, efficiency, and resiliency in their supply chain operations.

• Manage attribute-based omnichannel sales pricing to effectively plan and manage omnichannel sales prices with price attributes on customers, products, and order segments.
• Evaluate costs in discrete manufacturing using standard cost with the Global Inventory Accounting Add-in for Microsoft Dynamics 365 Supply Chain Management.
• Calculate available to promise (ATP) up to three months in advance with Inventory Visibility for future inventory statuses and order-promising capacity.
• Use Inventory Visibility to make soft reservations directly from a sales order, thereby maintaining a sole source of truth for omnichannel fulfillment and inventory inquiries.
• A reimagined Inventory Visibility user experience lets you manage and update data more efficiently and provides near-real-time insights into current and projected inventory levels and availability.
• Prospect-to-cash scenario enhancements across Supply Chain Management and Dynamics 365 Sales enable true end-to-end process integration in the prospect-to-cash flow.
• Businesses running large databases can establish rules for archiving data from their day-to-day working environment into a data lake, which allows for historical reporting, auditing, machine learning, and more.

Dynamics 365 Supply Chain Management essentially remains a transformative tool for logistics management in the wake of the technological advancements of the year ahead. With the goal of eliminating any complexities of your logistics business, D365 is an end-to-end solution for your business growth.

Dynamics Solution and Technology | Simplifying Logistics Management

Digital transformation has rapidly progressed to a stage where complexities are directly addressed and eliminated. However, as industries evolve and progress, they are increasingly optimistic about implementing the above-mentioned technological trends in their business landscape.

While there is a plethora of benefits attached to it, there continue to be hurdles in the deployment stage. Therefore, it is imperative for businesses to collaborate with Dynamics Solution and Technology, a Microsoft Gold Partner, and let them implement it.

Having worked with esteemed global clients, here is how we continue to be a roadmap for your success:

• Provide tailored solutions for your unique business needs
• Seamless customer service and support experience
• Greater value through customized offerings
• Direct access to customer-focused experts
• Solutions designed with customer success in mind

With a team of Microsoft-certified experts, we aim to create an agile, resilient, and sustainable data infrastructure across your ecosystem to identify and predict issues and optimize performance.

Digitally transforming your logistics business was never this easy. Contact us today and get started!