After 2021, while the processes managed by Artificial Intelligence, IOT and Robots that I mentioned, blockchain and/or cloud-based payment methods are expected to become widespread, it is predicted that this will cause a change in startups.
Of course, the transition to the digital age and rapid developments in technology have also caused a change in the way the whole industry does business. These developments also affect the behavior of us consumers. As consumers, we have demanded the best and highest quality products at the most affordable and lowest prices as soon as possible. As a sector, logistics is affected by the changes in both production and consumption due to its location. For this reason, new concepts that are born every day are starting to be mentioned in logistics.
It has become mandatory for logistics service providers to implement new logistics trends developing on a global scale. In this direction, new trends in logistics should be handled today and work should be done to adapt. While some of the other concepts are expected to have an impact on the Logistics industry in the short or long term, some of them will not be worth the effort and will not materialize.
What are these concepts?
- Omni-channel Logistics
- On-demand Delivery
- On-demand Warehousing
- Green Energy Logistics
- Supergrid Logistics
- Tube Logistics
I want to give some information about these concepts.
Omni-Channel Logistics
In an omnichannel approach, the physical store has become a core element that needs to be rethought as a result of digital channels. In fact, the “click and collect” method of buying is becoming more and more frequent. It’s an action that allows you to buy products online, enjoy convenience and greater variety, and then haul them to a physical location, avoiding shipping costs and possible delays in delivery. Hübner, A., Wollenburg, J. ve Holzapfel, A. (2016).
On-demand Delivery
One of the solutions for this need, where the customer needs to receive the goods at the desired time, is delivery on demand.
This means that the customer can choose when and where they want the products delivered! The shipper usually chooses the available methods to offer to the customer so they can choose from. Usually, delivery is made the same day, the next day, or within five days of purchase.
The customer decides according to the preferred program. Not only that, with some on-demand delivery solutions, the customer can choose where they want their product delivered. Now they can deliver goods to their doorstep, to their neighbour’s house, or even to their resorts.
This means that the customer can choose when and where they want the products delivered! The shipper usually chooses the available methods to offer to the customer so they can choose from. Usually, delivery is made the same day, the next day, or within five days of purchase.
The customer decides according to the preferred program. Not only that, with some on-demand delivery solutions, the customer can choose where they want their product delivered. Now they can deliver goods to their doorstep, to their neighbour’s house, or even to their resorts.
On-demand Warehousing
Growing e-commerce operations, changing customer demands, higher expectations for product availability and fulfillment times, and shrinking last-mile delivery space…
They all affect storage needs.
Small and medium-sized businesses with growing business and space demands often can’t afford to set up a warehouse. Even if they can, there is a shortage of land to expand due to new developments. Many businesses have seasonal fluctuations in demand and fulfillment or needs that vary by scale. They don’t want to be locked into rigid warehouse lease agreements that have no place when storage space requirements are low. This business model has the advantage of giving businesses looking for warehouse space a model where they only pay for what they use. International, vacant or underutilized spaces within shopping malls and retail lanes and other properties strategically located near high-density consumer populations are deployed for storage functions. This trend could cause the traditional large-section, large-square-meter warehouse existence to be abandoned worldwide. Tornese, F., Unnu, K., Gnoni, M. G., & Pazour, J. A. (2020)
Green Energy Logistics
A sustainable strategy is required for global shipping or cargo transportation. With the clean energy process, serious investments in air, sea and land transportation become mandatory.
- In Air Transport; Emission reduction studies at the source of the process continue by the companies through operational measures such as rejuvenating the fleets, purchasing and using low-emission aircraft models, reducing weight in aircraft, and optimizing routes.
- In Sea Transportation; Sulfur content in marine fuels has been limited by the International Maritime Organization (IMO). Since heavy fuels are cheaper, sulfur separator systems (scrubbers) have started to be installed on existing ships. The use of this system has become mandatory. This was the first solution. The second solution is to use fuels with low sulfur content, for example; LNG liquefied natural gas, such as Liquidated Natural gas (LNG).
- “Green warehouses” use smart electricity for lighting. In addition to areas in use, intelligent motion sensor systems are used for charging forklifts during off-peak hours of operation. The use of clean energy is increasing by investing in automatic systems and robots in warehouses.
- Green highways are becoming a reality. Trucks use environmentally friendly fuels to reduce emissions and noise levels are reduced.
- With increased battery access and faster battery charging technologies, e-trucks are becoming an attractive option. Established automotive manufacturers (e.g. Volvo, Navistar), as well as new market players (e.g. Tesla, Thor), are currently working to develop hybrids, and all-electric trucks will be available in the next 5 to 10 years (if fossil fuel can be abandoned). E-roads equipped with overhead lines are an option for transmitting electrical energy to trucks. Electric last-mile vehicles are promising for electrification in the field of road transport.
- Solution to reduce local emissions in cities (no limits to creativity for the electric fleet); medium and large wheelbarrows and tricycles, delivery trucks, etc. An advantage is that these equipment only charge overnight from renewable sources. Environmentally friendly vehicles will become increasingly popular due to city centre tolls and vehicle bans. In some European countries, cargo bikes are already used for around 60% of urban delivery.
- How logical are electric vehicles?
- Nickel, a key component in the manufacture of ion batteries for electric vehicles, stores more energy in batteries. However, due to the war between Russia and Ukraine, the costs increased a lot. This increase has also led to an increase in vehicle prices. https://shiftdelete.net/elektrikli-otomobil-fiyatlari-artacak-mi
- Another problem is that the batteries run out quickly in winter conditions due to the cold. Due to the global climate crisis, summer and winter have clashed in the countries of the world. How long will these batteries last in severe winter conditions? It can be a solution to this problem; Heating systems can be placed under the roads and solar panels can be placed on the roads. In this way, icing and cooling of the roads can be prevented. These are just ideas. It is known in some countries where trials have been carried out in practice.
- Eco-sustainable facilities are finding the key to improving the ecological footprint in new ways: measures and adjustments will start to be used for hydroelectric sources or state-of-the-art solar, high-frequency battery chargers and panels. Zaman, K., & Shamsuddin, S. (2017)
- KEY OPPORTUNITIES
- Increasing sustainability in reducing emissions and creating greener fleets,
- Fuel and power saving and other economic factors (e.g. maintenance, wear and tear costs),
- Quiet, electric fleets can enable night-time deliveries,
- KEY CHALLENGES
- Fragmented e-infrastructure and limited e-vehicle manufacturers
- Supply chain complexity with high capital investment costs and additional micro warehouses
- Internationally defined e-highway standards (e.g. voltage level, height/spacing wire lines)
- Government and regulatory support are needed, to invest in freight e-vehicles and charging stations https://www.dhl.com/content/dam/dhl/global/core/documents/pdf/g0-core-green-energy-logistics.pdf
- Increasing usage rates in rail transport also contribute to the reduction of carbon footprint. Europe’s Transport Network Project (TEN-T) and China’s “One Belt One Road” (OBOR) Silk Road projects bridge the gap between Europe and Asia.
- After Turkey takes its place in this project, there will be a noticeable decrease in carbon emission rates. The expansion of the railway network in Turkey is important in freight transportation. Due to the Pandemic that surrounded the whole world in the first quarter of 2020, humanity was closed within itself, and the Earth was made available to all living things except humans for a while. This situation allowed the world to breathe a sigh of relief.I believe that people should question humanity itself. Agreements made and signed signatures should not remain only on paper.
Supergrid Logistics
Going beyond the 4PL (fourth party logistics) logistics and logistics markets, supergrid logistics represents the next dimension of consolidation, regulation and optimization of global supply chain networks by integrating swarms of different manufacturing enterprises and logistics providers.
The logistics super-grid concept involves the establishment of a single global entity or platform that can seamlessly and flexibly integrate all parties across multiple supply chains, enabling the creation of modular services for all customer types, maximizing efficiency and reducing costs.
It will create an entry point for customers to take advantage of the supergrid and provide a new level of market transparency that gives local companies access to the global market. Global players will primarily focus on cross-border integration, premium market segments, and regulation of regional and service providers that would normally compete.
Next Generation Digital Shippers will offer end-to-end logistics services through brokerage platforms or similar concepts to connect shippers. As basic logistics services such as supply, transportation and delivery become commodified in the supergrid; World-class digital services such as customs clearance, risk management, security protection, insurance and compliance checks will provide critical added value and differentiation for players participating in the logistics supergrid. AYLAK, B. L., KAYIKCI, Y., & TAŞ, M. A. (2020)
Tube Logistics / Hyperloop
About 20% of the world’s energy is used for transportation (International Energy Agency, Key world energy statistics, 2016) and this is predicted to increase by 31% by 2050. (Oswald, Y., Owen, A., & Steinberger, J. K. (2020)) Also, taking Europe as an example, transport is the single largest emitter of greenhouse gases (30.8%) and the only sector that has experienced growth in emissions since 2007. (European Environment Agency, Annual European Union greenhouse gas inventory 19902014 and inventory report 2016 , EEA Report, 2016)
When considering approaches to reduce energy consumption and emissions in transport, rail is attractive compared to road and air transport, as the rolling friction between steel wheels and rails is low. This situation creates new trends together with technology in constantly developing logistics (Zhang, Y. (2010, February). In-tube transportation method has started to be used in enterprises for the purpose of carrying documents etc. between units.
This method was later used by China as an urban underground logistics system for intra-city cargo deliveries over short distances. It is questioned how safe and reliable it is.
Given the difficulties associated with transporting people/goods over long distances in near-vacuum conditions at high speed, a challenge with the most current regulations of vacuum transport is that they propose to levitate vehicles magnetically. This complicates interoperability between vacuum transport and existing transport infrastructure.
This transportation method has also been the subject of movies and has started to be used, but how possible is it to be adapted to reality?
We don’t know when it will go live. Everything is created by human needs and imagination.
This is a fantasy and I see no reason why it shouldn’t be a reality.
