An article on the topic Technology adoption in logistics and Multi-Modal Transport.
The article is divided into the following sections-
1) Logistics Industry in India
2) Upcoming Trends in Logistics
3) Technology Adoption
4) Technology in Multimodal Transport
5) Conclusion
6) References
7) About the Author
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
[Article] Technology adoption in logistics and Multi-Modal Transport
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Technology adoption in logistics and Multi-Modal Transport
Logistics throughout the world is primarily done via three main channels- Air, Water and
Roadways. With increasing globalization, these three modes of transport now intermingle with
each other to form a combined system of transportation called the Multimodal Transport.
With the advent of e-commerce all over the world, Multimodal Transport is quintessential for
the effective transport of goods & services all over the continent.
The article is divided broadly into six sections-
I) Logistics Industry in India
II) Upcoming trends in Logistics
III) Technology Adoption
IV) Technology in Multimodal Transport
V) Conclusion
VI) Reference
Logistics Industry in India
Logistics is India is still largely unorganised and inefficient when looked at from a
microscopic point of view. This section describes the condition of the Indian logistics industry
with the help of a few parameters.
Logistics Performance Index (LPI) is a tool to benchmark the logistics industry, which is
developed and maintained by the World Bank to identify the potential opportunities and
challenges faced by countries in the domain of logistics. The list is maintained for 160
countries across the globe. The graph below shows India’s ranks and LPI scores on a
maximum of 5.
44
35
54
46
47
39
3.18 3.42
3.08
3.08 3.12
3.07
0
10
20
30
40
50
60
2018 2016 2014 2012 2010 2007
LPI Rank LPI Score
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Source: - https://lpi.worldbank.org/
India’s LPI rank and scores over the years show a fluctuation with the highest score and
subsequently best rank captured in the year 2016. To improve the overall logistics of the
country, India should aim to rank below 20. Almost all developed countries rank low on this
scale.
Airports in India (2020) by volume of freight (in 1,000 metric tons)
Source:- https://www.statista.com/statistics/589187/indian-airports-freight-traffic/
Cumulative Cargo Capacity at Major Ports (in Million Tonnes) [CAGR- 18.4%]
28.18
37.99
72.14
103.74
143.88
153.47
355.19
374.06
863.78
955.86
0.00 200.00 400.00 600.00 800.00 1000.00 1200.00
Trivandrum Airport (Calicut)
Pune Airport (Pune)
Cochin Airport (Cochin)
Sardar Vallabhbhai Patel (Ahmedabad)
Rajiv Gandhi (Hyderabad)
Netaji Subhas (Kolkata)
Chennai Airport (Chennai)
Kempegowda (Bangalore)
Chhtrapati Shivaji (Mumbai)
Indira Gandhi (Delhi)
871.52
965.36
1065
1451
1514.09
0
200
400
600
800
1000
1200
1400
1600
1800
FY'15 FY'16 FY'17 FY'18 FY'19
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Cumulative Cargo Traffic at Major Ports (in Million Tonnes) [CAGR -18.4%]
Source (for both)- https://www.ibef.org/industry/ports-india-shipping/infographic
These Logistics providers are at the forefront of organizing the largely unorganized sector
in the country. These and many other provide a steady source of employment to many.
606.37
647.43
679.36
699.05 704.82
47.42
0
100
200
300
400
500
600
700
800
FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 (f)
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Source- https://en.wikipedia.org/wiki/State_highways_in_India
The graphs and the excel image paint a clear picture of the country’s logistics performance that
it still has ample room to improve. The visible drop in Cargo traffic at major ports is due to the
detrimental effects of COVID-19. The average State and National Highway Length is 7,069
Kms. Most of the States or Union Territories from Assam till Chandigarh all have below-
average lengths. Since, the ports, cargo airways and road networks are developing and
growing stronger; logistics is following suit.
STATE/UT
State+National
Highway (in Kms.)
Maharashtra 37,881
Tamil Nadu 31,447
Karnataka 24,581
Gujrat 23,006
Andhra Pradesh 14,990
Uttar Pradesh 14,306
Madhya Pradesh 13,398
Rajashthan 11,769
Odisha 7,510
Bihar 7,408
Assam 5,970
Kerala 5,781
Chattisgarh 5,603
West Bengal 5,368
Haryana 4,035
Jharkhand 3,691
Uttaranchal 3,567
Telengana 3,260
Himachal Pradesh 3,032
Punjab 2,950
Manipur 2,096
Meghalaya 1,944
Jammu & Kashmir 1,312
Mizoram 1,186
Tripura 1,089
Nagaland 898
Pondicherry 690
Goa 548
Arunachal Pradesh 392
Andaman and Nicobar 300
Sikkim 241
Delhi 72
Chandigarh 24
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Upcoming Trends in Logistics
Upcoming trends in Logistics (2020 and beyond)
Technology is making its effect felt in all domains of our lives, and Logistics is no stranger to
this phenomenon. Technology is rapidly changing & will continue to change the future of
logistics for the years to come. The 10 top technologies that will have the most impact in the
coming years are-
i) Internet of Things (IoT)
ii) Artificial Intelligence (AI)
iii) Robotic Process Automation (RPA)
iv) Last-Mile Delivery
v) Warehouse Automation
vi) Data Analytics
vii) Cloud Computing
viii) Blockchain
ix) Autonomous Vehicles and Drones
x) Elastic Logistics
Trends
Internet of
Things (IoT)
[5G]
Artificial
Intelligence
(AI)
Robotic
Process
Automation
(RPA)
Last Mile
Delivery
Warehouse
Automation
Data
Analytics
Cloud
Computing
Blockchain
Autonomous
Vehicles and
Drones
Elastic
Logistics
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Percentage breakdown of the trends in 2020 and beyond
Technology Adoption
This section will talk about the various advancements in technology and how it is married to
logistics to provide value addition to all its stakeholders. Since it is difficult to cover all the
ten key trends, only the five most important are covered -
1) Internet of Things (IoT)- Internet of Things simply means the provision of and the
ability to control and connect a wide variety of physical objects (which are meant for
normal day-to-day usage) with the help of internet, sensors and software.
a. Proposal- Since IoT devices need an underlying internet connection all the
time, a strong Wi-Fi in the surrounding environment is preferred. Speed of data
transfers with the advent of 5G would significantly decrease latency. This
technology would be particularly helpful in the logistics of perishable
products.
b. Usage- Sensors built onto containers or RFID tags that help monitor the product
throughout the entire chain of the journey, thereby helping achieve Supply
Chain Visibility (SCV). Fully integrated logistics companies see a 20% rise in
efficiency than non-integrated ones.
c. Start-up in the field- Fleetroot is a UAE based start-up which offers companies
an IoT platform for effective fleet management. It provides fuel management
solutions by generating detailed reports about fuel wastage and consumption.
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2) Artificial Intelligence (AI)- AI has made huge leaps in recent years, and companies
have leveraged it well to their advantage. Artificial Intelligence (AI) is most likely one
of the key buzzwords of the present times and is thrown around a lot.
a. Proposal- AI algorithms juxtaposed with Machine Learning (ML) helps
companies in a plethora of ways. Artificial Intelligence & Machine Learning is
being used wherever possible by companies. The high cost of the initial
investment is easily justified by the cost savings and returns in subsequent
years.
b. Usage- Demand Forecasting, optimized routes with the help of Google
Maps, Process Automation are some of the ways AI and ML can be used
c. Start-up in the field- Adiona is an Australian based start-up that helps other
companies improve their logistic processes and reduce overall costs. It also
optimizes delivery routes and supports complex decision making.
3) Blockchain- Satoshi Nakamoto’s creation is finding new uses and can be used
ingeniously in logistics management as well. In spite of the fact that the workings of
Blockchain is largely unknown by the general public, due to its complicated
technicalities, it is still in industries used all around the globe.
a. Proposal- The open ledger system can be appropriately used in sharing
sensitive data across the logistical journey of the product/asset. No third-party
software or companies would be needed to interface at multiple points; instead,
a network of seamlessly updating ledgers would take the place.
b. Usage-From enabling card-less B2B payments to tracking of perishable items,
to tackling the influence of counterfeits in pharmaceuticals, blockchain is
definitely a boon for the logistics industry.
c. Start-up in the field- The USA based start-up, ShipChain manages end to end
shipping process by leveraging the power of blockchain. The platform provided
by the start-up allows its customers to track shipment locations at every step of
the logistical journey.
4) Robotic Process Automation (RPA)- RPA helps in eliminating the need for humans to
do repetitive tasks completely thereby saving precious resources thus enabling
increased productivity, efficiency and reduced overhead costs and errors
a. Proposal- There is a lot of manual, repetitive tasks in logistics, and that can
easily be tackled by implementing RPA. It is worth noting that RPA includes
human processes and intervention as well as amalgamated with technology.
b. Usage- There are many examples-
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i. Using RFID tags within the logistical process to locate a product
instantly
ii. Automatic invoicing, automated inputs of purchased orders
iii. Prevent the counterfeiting or smuggling of important assets using
appropriate sensors
c. Start-up in the field- Actimai combines big data, AI along with RPA to
provide customized solutions that are optimizable, manageable and
deployable to its customers
5) Autonomous Vehicles and Drones- One of the most anticipated technologies for
logistics and warehousing companies is the autonomous vehicle and drone technology.
Once mainstream, this technology would help reduce human errors and also help
connect to hilly or inaccessible terrains of any country to the mainland.
a. Proposal- Drone enabled delivery would increase the efficiency of logistics
companies and would tie in with the overall technological strategy of the
organization. Amazon has even patented the idea of a floating warehouse which
would have its own set of drones for easier accessibility and fulfilment of orders.
b. Usage- Drones, Unmanned Vehicles and Trucks, Driverless Shipment
Transport
c. Start-up in the field- A start-up from Germany called Spring offers an
autonomous fleet of vehicles for transportation of goods along with analytics
and intelligent systems
Technology in Multimodal Transport
Multimodal Transport uses current as well as upcoming technological trends. Multimodal
Transport, by virtue, uses technology and some of the technologies used are-
1) Intelligent Transport Systems (ITS)-
a. Traffic Management and Information Services- provides real-time traffic
management offering increased efficiency and transparency.
b. River Information Services- RIS is used for the smooth and effective
optimization of traffic in the inland navigation and helps in the real-time
exchange of information between shore and water.
c. Freight response management system- This is a kind of ICT (Information and
Communication Technology) that improves operational efficacy, reduces
empty runs with the help of better planning of routes, improves utilization
of infrastructure leading to customer satisfaction.
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d. Terminal & Port ICT- This technology reduces the unloading and loading times
at terminals, improves the utilization of the terminal infrastructure, achieves
the seamless transfer of cargo through efficient interfaces between
transhipment points and reduces operational costs.
Conclusion
The future of logistics depends as much upon development in the channels (air, water and
road) as development in technology. Although covering each and every aspect of these
technologies is outside the scope of this article, it tried to at least give a preliminary view of
how technology is currently changing or in the few will continue to change the face of logistics
management all over the world.
References
https://en.wikipedia.org/wiki/State_highways_in_India
https://www.shapiro.com/how-technology-is-changing-the-future-of-logistics/
https://www.sciencedirect.com/science/article/pii/S0925527314002837
About the Author
Biswadeep Ghosh Hazra, 27 years of age has graduated in
Electronics and Communication Engineering from Haldia Institute
of Technology, Haldia. He has worked as a Software
Tester/Quality Engineer in Tech Mahindra, Hyderabad, and as a
content writer & manager in a company called ExamFocus. He is
now studying Business Management (BM) at Xavier Institute of
Management, Bhubaneswar.
Biswadeep has a deep passion for writing poetry, novellas, short
stories, & plays and has published his works in various national &
international magazines, books and journals. He has more than eight years of content writing
almost any kind of articles, web contents, brochures, marketing materials, for a multitude of
companies, websites and people alike.
He can be reached at-
Facebook: - https://www.facebook.com/biswadeep.g.hazra
Email: - biswadeep93@gmail.com