It is well known that all logistics operations require rigorous monitoring and agility to run efficiently, from supply chain management to last mile distribution. For this, one of the most popular solutions is IoT and digitization of certain operations in the logistics department.

In this case, in which logistics operations is IoT technology used specifically? If you want to find out how IoT and AI are used in logistics, read on:

Predictive analytics

It is one of the best known tools where both AI technology and IoT are used. It consists of using previously collected data to forecast future results and, to do so, it organizes the data obtained, preprocesses them and develops predictive models so that the results can be validated later.

The advantages of applying predictive analytics to the logistics sector are varied. Some of its most frequent uses are:

• Demand forecasting: We analyze the sales history together with the market and estimate the sales that would be generated on the products.
• Supply chain planning and optimization: Thanks to a prior analysis of the demand, the right quantity and timing of the production of the goods can be calculated.
• Inventory optimization: Demand estimates help in making decisions about optimal stock levels for each type of inventory.
• Improved resource management and savings: By applying current data taking into account constraints and other characteristics, it is possible to optimize resources and reduce operating costs.

In general, predictive analytics act as a guide for decision making and to give us a more accurate estimate of future activities. In this way, a clear view of the current and future situation of the supply chain and company is obtained.

Real-time shipment tracking

The most important and essential thing that customers ask for today is transparency in reporting the status of the order in real time to ensure that it arrives at its destination at the agreed time without incident. Today it is possible to receive all the data thanks to geolocation algorithms received by sensors via wireless networks.

The advantages of order tracking focus on estimating delivery times and detecting and solving problems. For example, if an order is not going to arrive on time or has been lost due to a wrong address or accident, the incident can be solved as soon as possible or an alternative can be offered to the customer.

IOT and Blockchain

One of the rising trends in the logistics and transportation sector is the use of Blockchain technology in the supply chain. And this is because, together with IoT and AI, a digital bill of lading (BOL) can be created that provides traceability of products along the entire supply chain.

The combination of Blockchain and IoT can bring many advantages to any sector that distributes products, especially when it comes to quality items such as wine. For example, with BOL, a smart contract can be created to know the origin of the product and its path to the end customer. You can also apply GPS trackers that can calculate temperature, humidity, among other things to ensure compliance with the contract.

It should be noted that Blockchain technology allows stored data to be more secure because they are decentralized, have irreversible transactions and are highly encrypted. For these reasons, the probability of being stolen or suffering cyber-attacks is reduced. 

Route optimization and fleet planning

One of the most important aspects of route planning is traffic patterns, i.e., the flow of traffic on certain roads and other public roads. AI, thanks to its learning capabilities, can study such patterns to detect peak traffic hours, maintenance works, among other features. IoT devices can also add more information by tracking and collecting data for future analysis and better planning.

It should be noted that the main objective of a route optimization solution is to save fuel, other related resources and costs. However, greater efficiency in the distribution of goods translates into a more satisfactory and competitive service, especially in the case of last-mile distribution.

Safety of personnel and property

Safety within logistics operations can be improved through IoT or AI solutions. On the one hand, predictive maintenance can be performed on trucks and other machines using IoT devices to detect potential problems and prevent accidents. On the other hand, cameras and other AI-enabled systems can detect suspicious movements of potential thieves in warehouses and alert those responsible, while IoT-enabled sensors can automatically lock connected doors.

It is worth mentioning that the estimated useful life of a truck is approximately 10 years, however the average age of trucks circulating in Europe is 14.2 years and in Spain the average is slightly higher at 14.3 years. Therefore, predictive maintenance of vehicles not only prevents breakdowns, but is also very useful to carry out good practices and extend the useful life of the fleet.

Conclusion

It is clear that AI and IoT technologies are often merged for the technological advances needed by the logistics and transportation sector to meet the current needs of the industry. Such as meeting increased demand, bringing order transparency to customers or cost reduction in the face of an uncertain situation.

At Hedyla our software relies on AI to analyze common routes, traffic patterns and other characteristics to generate various planned route models and choose the most optimized result that fits the customer's needs.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

This year in particular, the logistics sector has been the focus of public attention, due to the numerous challenges it has faced: the shipping crisis, the lack of vehicles, the shortage of certain basic necessities, the calls for strikes by carriers in Spain, among others.

What are going to be the key points that will mark the logistics for the next year? If you want to know the logistics trends for 2023, take a look!

Green logistics

It is well known that sustainability is the order of the day in the logistics sector due to its considerable impact on CO₂ emissions, which account for 8% of global emissions. Initiatives are already being put in place to reduce the environmental impact of this industry.

Among the solutions that will continue to be relevant to emissions reduction are software that assists in improving planning and operations, such as the route optimizer. However, there is a growing trend towards the circular supply chain, which aims to encourage companies to reuse certain waste and products returned by customers to recondition them and bring them back to the market.

While reverse logistics is costly because of the resources that have to be invested in returning the product to the warehouse, refurbishing merchandise contributes to reducing the carbon footprint. This is because it reduces the production of new items and gives a second life to refurbished products.

Logistics professionalization

There is a constant evolution occurring in the logistics sector, whether in the implementation of new technologies and the practice of new strategies. This field requires more and more talent capable of understanding how logistics works and its needs in order to implement better strategic and operational processes.

Currently, the most in-demand professions in the logistics sector require specific training in this field, whether it is a course to become a warehouse worker or a university degree or master's degree in Supply Chain for the position of Supply Chain Manager. In other words, the sector is becoming more professionalized with a more specialized educational offer to cover a high demand for personnel.

Transparency through Blockchain

In recent times, the benefits and opportunities that blockchain technology provides in various sectors, especially those with IT, have been on everyone's lips. So advantages have also been found when applying blockchain technology in logistics.

What the blockchain allows is to trace the product from its place of manufacture to delivery to the customer. Thus, the designation of origin of the product can be transparently and securely verified, which is especially important for luxury and high-end items such as wine.

Automation and AI for Flexible Logistics Strategies

These last few years have been marked by a great economic impact due to the pandemic in which the flow of goods and demand forecasts are often difficult to predict due to multiple factors that have affected consumer habits. Therefore, in a landscape of increased uncertainty, the supply chain must gain agility with flexible logistics strategies.

Flexible logistics seeks to see how capable a company or business is in adapting warehouse and transportation processes to unforeseen events and changes with minimal impact on performance. This strategy is becoming increasingly accessible to more companies thanks to automation and the use of artificial intelligence in software such as demand forecasting. 

These trends, which will continue to be relevant in the coming year, prove to be of great help in using time to make better decisions and provide quality service to customers as demand and competition becomes more demanding.

Conclusion

Logistics trends for 2023 remain similar to those of other years in terms of industry digitalization, sustainability and optimization of logistics processes with, for example, AI-enabled software. However, both new and well-known trends aim to make the industry more adaptable in the face of the challenges of today's economy and current demand.

At Hedyla we are aware of the latest trends in the logistics sector, therefore, we have our own engineering team that develops new functionalities and modules that help professionals in their logistics operations.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

However, for people who are not deeply involved in the industry, it is not very clear to them what specific operations AI is involved in. What are the current supply chain issues for the supply chain to be optimized with AI? And what advantages does this technology confer over the competition?

If you want to learn how AI is being applied in supply chain management with these examples of artificial intelligence in logistics, take a look!

Warehouse automation

Sectors such as e-commerce have gained much relevance in recent years, so the increase in demand and the need for a more efficient storage management call for a solution. For this reason, there has been a notable trend in warehouse automation as one of the notable examples of artificial intelligence in logistics.

Warehouse automation encompasses various operations, from the application of automated storage systems with stacker cranes to warehouse management software. Within it, they use data analysis and demand forecasting to coordinate various processes in the warehouse.

And not only do they perform this step, but they synchronize the tasks of both the operators and the automated systems. In this way, personnel can focus on other tasks.

Inventory control

This operation usually goes hand in hand with warehouse automation and, it seems, is going to be an essential element for companies. Currently, it is known that the volume of shipments is dropping considerably due to inflation, as a result of which stock is accumulating and will take longer than desired to accumulate in the warehouse.

First, the warehouse is stocked with the right amount of inventory according to demand prediction based on previous sales, market analysis, among others. Then, automation systems would be unified with catalog control to improve stock visibility by alerting on low stock levels and detecting defective products and packaging before they are shipped via AI cameras or sensors.

Thanks to one of the examples of artificial intelligence in logistics, it is possible to reduce error margins and time spent on tasks, obtaining high customer satisfaction and competitive advantage over other companies where logistics plays a crucial role.

Route optimization

One of the most popular solutions within the logistics and transportation industry is to optimize delivery routes using AI software. It is also one of the most important in order to ensure on-time deliveries at the most economical price and fuel cost possible.

Among the functions of a route optimizationsoftware is to integrate data from various sources and use algorithms to plan routes according to the constraints to be applied at the time of deliveries. In this way, resources (vehicles and carriers) can be optimally organized, costs can be saved, and competent customer service can be provided.

Predictive maintenance

One of the current problems in the transportation sector is the lack of new vehicles on the market that can replace the old ones, thus requiring constant repairs to be operational. However, predictive maintenance is not as well known as one of the examples of artificial intelligence in logistics.

Using past and present data collected with IoT devices, machine learning algorithms can create predictions and maintenance recommendations for trucks, vans and other vehicles. In this way, the service life of vehicles is increased and further damage can be prevented thanks to these indications.

Conclusion

Several logistics processes are already being successfully automated and optimized thanks to AI. These solutions are key to overcoming the current challenges facing the logistics sector and offering a competitive and efficient service that responds to current trends and needs.

At Hedyla we offer several products and services developed with AI by our in-house engineering team that seeks to respond to the logistics needs of any sector.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

There are currently many options and tools with AI on the market that, rather than offering a magic solution to all problems, help in the management of the most complicated processes and assist in making decisions in the face of difficult challenges to solve. Some of them have already been heard a lot about due to their recent use in large companies, but others are not so well known.

The following are the types of logistics decisions that Artificial Intelligence will make in both operations and strategy.

Demand forecasting

It is no mystery to know the most popular peak demand times such as Christmas or Black Friday, when most industries are affected. However, each sector and, in particular, each company knows its own order increases in more or less detail depending on the times and data from previous years, among other aspects.

Despite this, the optimal number of stock is not always right in order not to suffer losses due to excess or broken stock due to its incredible complexity determined by both external and internal factors. That is where AI comes in to plan demand based on algorithms that calculate previous years, marketing campaigns and even taking into account some external circumstances such as changes in laws.

Reverse logistics costs

Reverse logistics is known to be one of the biggest challenges for a company running a supply chain. This is because the cost of a return is much higher than that of a shipment because it is not only a matter of bringing the product back to the warehouse. It is not only a matter of bringing the product back to the warehouse, but also a rigorous administrative management to reintroduce it to the active stock, repair it if necessary, or destroy it if the previous steps cannot be applied.

At this point is when Artificial Intelligence comes in to make decisions based on several criteria, but whose main objective is to assess whether to process the return of the order or not. To do this, the AI takes into account such obvious factors as the cost of the refund, but also other not so obvious ones such as the condition of the product to consider its resale and even the buyer's history to analyze his behavior with the brand.

Once these facts have been analyzed, the AI can make two decisions: either not to process the return, but to pay the customer if the costs are not profitable, or to process it when the losses are not so serious for the company's economy. Not forgetting that the dissatisfied consumer is also analyzed in terms of his brand loyalty and whether he will be penalized for processing too many returns.

Traceability

Given the complexity and relative length of a supply chain, it is often very difficult to keep track of stock status, slowing down the identification and verification process due to tedious tasks. In addition to the fact that there are multiple factors that obviate some errors and then it is more costly to remedy how to manage the returns of a defective product line.

A traceability system with artificial vision assists in the streamlining and operation of identification and verification. This is thanks to cameras with image processing and analysis software that verify the identity of the merchandise and its current status. They can even monitor the moments in which the supply suffers any damage in order to speed up the processes to remove the product.

Route optimizer

Among the logistics decisions that Artificial Intelligence will make, there is no doubt that they are those that optimize more or less complex operations. These programs aim to save time and resources, especially when increasing demands and rising prices are not in their favor. In particular, the route optimizer stands out.

Apart from automating the cumbersome task of planning the routes your fleet of vehicles will take on a daily basis, it uses its algorithms to search for the best routes to take based on a series of parameters and restrictions applied by the same staff. These limits can range from the size and number of the fleet to the time slot of the carriers, adapting to any situation.

Conclusion

AI is increasingly present in the logistics sector, both in process automation and decision making. These are necessary technological advances in important processes such as in the streamlining of tasks and in the strategy directly focused on customer satisfaction, among others. In fact, there are companies that already rely on the logistics decisions that Artificial Intelligence will make.

At Hedyla we understand the current need in logistics to optimize operations such as picking or transport management.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

One of the most important initiatives is to promote smart cities in cities. It consists of managing all the usual things that are taken into account in a city but adding the plus of sustainability.

Here are some examples of how to promote sustainable mobility applied to logistics:

Electric vehicles

Given the increasing traffic restrictions on distribution vehicles in terms of number allowed, length, capacity, vehicle model, level of congestion and other aspects, it is becoming increasingly common for companies to renew their vehicle fleet to pursue an ideal level of sustainable mobility.

Among the most notable changes are electric or hybrid trucks that significantly reduce CO₂ emissions and minimize noise pollution.

Some last mile companies have also opted for more unusual vehicles such as scooters and electric bicycles because of their ability to access difficult urban areas that even a van could not enter, thus considerably reducing the impact of the carbon footprint.

DUM monitoring and optimization

Given the increasing difficulties faced by last-mile distribution (LMP) due to the growth of large cities, the increase in traffic restrictions and the great momentum of e-commerce, solutions to these problems are becoming increasingly complex.

Among the initiatives to reduce these inconveniences, deliveries are made during off-peak hours to avoid congestion.

Además se están planteando estrategias de estacionamiento y de tráfico mediante el control sobre ellas para gestionar la carga local y ahorrar costes. All this thanks to optimizers and route tracking.

It is even considering monitoring the charging of electric vehicles to guide them to the charging points as efficiently as possible.

Delivery points

Another solution that largely avoids the complexity of last-mile deliveries is pickup points. This initiative nips in the bud one of the most common last-mile problems: access to residential districts with very complicated routes.

However, it also has advantages for the consumer, since it is not necessary for him to be present at his home or office, as he can pick up his order within 14 days.

There are already several stores that use their physical premises as collection points, such as Inditex, as well as courier offices in the case of Correos. Apart from that, it is worth mentioning the lockers that some companies have implemented to deposit orders securely, among which Amazon's stand out.

Robots

One of the sustainable mobility ideas that seems very futuristic, but is currently being studied is the implementation of scout robots. These automatons will be able to deliver orders like any other delivery driver thanks to their small size, ideal for moving around pedestrian areas.

Through the sensors and cameras previously implemented, they receive all kinds of information and their advanced AI is responsible for making complex decisions to ensure last mile delivery and road safety. There are already several companies that are carrying out tests, such as Glovo , which has recently been acquired by Delivery Hero and Amazon in Europe

As we have seen, there are already several projects and initiatives that pursue sustainable and cleaner mobility through new technologies: from the implementation of AI to the replacement of fuels with electric energy.

At Hedyla, we also pursue sustainable mobility along with cost and time savings through the route optimizer and the fleet management.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

It is known that the pandemic has greatly affected the logistics sector, either because of the problems with transport vehicles or because of the constant growth of e-commerce due to mobility restrictions and confinement. Here are the most important trends in logistics for 2022:

Green or sustainable logistics

One of the biggest concerns in recent years is the great environmental impact that logistics has on CO₂ emissions, as they account for 27% of total emissions in Spain (MITECO, 2020).

To this end, they have mobilized to use technological tools to help them reduce carbon dioxide emissions and more environmentally friendly materials such as the following:

• Route optimizer
• Cargo bags to avoid empty kilometers
• Biodegradable packaging

More and more companies are looking to the future and opting for tools that help them to be more sustainable and reduce emissions that harm the planet.

Blockchain

Along with the high demands on delivery times, it is also very important to maintain the security of logistical data. Blockchain, or block data, is used to keep all the numbers in one place.

Apart from that, the blockchain makes sure to keep a real-time tracking of all logistic operations in order to plan processes in warehouses and vehicles.

Robotization and Automation

Among the trends in logistics for 2022, robotization and automation of operations stand out. They are intended to meet a level of streamlining operations within warehouses that are gradually becoming more demanding. As a result, more warehouses have already implemented or are considering automating processes.

Robotic Forklifts

Rather than replacing human workers, such robots are intended to assist warehouse personnel in storing, stocking and unloading products with the goal of minimizing performance limitations and human error.

Smart trucks

The transportation sector is known to have a high incidence of workplace accidents and, therefore, they have been researching for years the invention and creation of intelligent and automated vehicles that promise to greatly help the logistics sector.

These autonomous driving trucks can be driven and monitored remotely without the need for a driver behind the wheel in order to minimize accidents, optimize operations and increase road safety.

Drones

One of the biggest challenges in terms of logistics trends for 2022 is how to solve common problems in last-mile delivery due to increasing traffic restrictions in large cities.

Among the solutions employed to this problem, one of them is the use of drones, which are already capable of delivering packages weighing up to 3 kilos. However, they are still being tested and are proving to be very useful for shipments in the pharmaceutical sector.

Internet of things

It is obvious thanks to new technological advances that we live in an increasingly interconnected world. More than 90% of the Spanish population is connected to the internet and more than 97% own a smartphone (Source: Hootsuite, 2021). That is why the trends in logistics for 2022 also have relevance in our devices that are connected to the internet.

5G

One of the trends that has been the talk of the town in recent years is 5G networks, which will multiply the speed of data transmissions. As for the logistics and transport sector, given its growing demand for the implementation of quick commerce, it will be a great ally to meet a new demand.

In just a few clicks, businesses in other sectors will be able to order parts, place orders, authorize with their signature and receive them at a speed never before imagined. For warehouses and distribution centers, staff will be able to be in control and send large amounts of data without interruption, making operations much more streamlined.

Digital Professionalization

Seeing how the trends in logistics for 2022 are heavily focused on technology, it is not surprising to contemplate that to meet the growing demand to apply such technological advances, more and more specialized professionals in the industry will be needed.

AI

Elon Musk has already said that one of the most sought-after technological profiles for the coming years will be programmers and experts in Artificial Intelligence that can be integrated into other sectors to be applied and make important advances.

Therefore, logistics is not going to back down either and more companies are hiring AI experts to find different types of solutions. Some of the most sought-after resolutions for the logistics sector are inventory management in warehouses and transportation routes, based on actual data provided.

Big Data

Big Data is also growing in popularity because more and more data is fluctuating and it is difficult to handle a large amount of information. For this reason, Big Data can analyze and interpret this amount of data to be aware of what is happening and improve decision making.

Conclusion

Trends in logistics for 2022 point to conducting operations more efficiently thanks to new technologies along with being increasingly sustainable given the growing concern about global warming.

At Hedyla, to take logistics to the next level, we apply AI in our functionalities to streamline operations such as route optimizer and plan optimal strategies.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

With an increasingly demanding customer and the constant advancement of technology, a simple mistake in delivery can have serious consequences for the company.

The focus of organizations is now on the end customer. A satisfied customer is a sure value. 

If we want to provide a last-mile service in line with demanding customers, we must consider the following strategies:

• Implement the use of artificial intelligence. Both AI and machine learning son dos herramientas fundamentales en la gestión de las plataformas de logística. Con ellas la mejora de precisión en el pronóstico de envíos es de hasta un 90%. En temporada alta, ya sea Navidad o fechas señaladas como el Black Friday, las ventas pueden aumentar hasta un 300% y tanto los procesos como los equipos deben agilizarse más que nunca. Gracias a las previsiones inteligentes se puede mejorar la organización de las rutas, la optimización de los vehículos y qué repartidores hay disponibles. Invertir en Inteligencia Artificial merece la pena, ya que también su uso conlleva una reducción de los costes.

• Use of mobile technologies. The interest on the part of companies in performing tasks easily and quickly is booming. The use of mobile technologies greatly simplifies work, making it much more fluid and efficient, as well as providing real-time information on the location of packages. To give just one example, mobile technology has supplanted the obsolete scanners in warehouses. Manual processes are outdated. It is now possible to modify and control any last-mile process from any device with an internet connection.

• Route planning and fleet management. Today there are still companies that use excel templates to manually control the processes in the supply chain. This can slow down the delivery process because it takes more time to organize resources. Automating these tasks saves time in route planning and shipments are almost done online. The customer expects to receive his order ASAP and only efficient companies will be able to keep the customer satisfied.

Real-time tracking during the last mile is of vital importance to optimize delivery routes

• Tracking the product to the customer's door. We have already emphasized the importance of real-time tracking during the last mile and how it directly influences customer satisfaction. Monitoring the route, the status of the vehicle fleet, the shipping time or obstacles encountered along the way are decisive factors in obtaining a satisfactory delivery. Any unforeseen events that may arise due to traffic, weather conditions or other factors can alter delivery times. Having real-time visibility into the situation can help resolve these unforeseen events quickly and efficiently.
• Improved customer experience. The implementation of communication channels that allow us to have a constant relationship with the customer is an indispensable tool for customer loyalty. Letting the customer have control of their shipment at all times makes the feeling of security greater and even more so today, when online shopping continues to grow at a dizzying rate.

• Reduced pollution. As the law is made, so is the trap. The customer demands faster deliveries and the race to be the first to reach the destination has begun. What the customer does not know is that the faster the speed, the higher the CO2 emissions, the higher the CO2 emissions. Logistics companies can take a number of actions that will enable them to be more environmentally sustainable. How? By optimizing delivery routes to reduce distances traveled and fuel consumption. By centralizing deliveries and thus reducing the number of trips. By controlling the loading of trucks and using less polluting vehicles.

At Hedyla we are proactive and grow with the needs of our customers and the industry. We offer the necessary tools to take your logistics to the next level.

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Multimedia Technical Engineer.  Working 11 years in the Audiovisual and Communication Department of a multinational company. Responsible for the Marketing and Communication Department in several companies in the technology sector.

Designing digital strategies. Innovating and adding value to communication.