How Innovation has Impacted Shipping and Logistics

Updated on November 07, 2023

Shipping and Logistics Innovation

Innovation is a success key to growth in any industry or field. Innovation when combined with anything can take your service to a whole new level. Advanced technologies, new inventions, smarter process systems, and even new innovative channels to deliver. The constant advancement and new innovations in logistics services make your operations faster, hassle-free, efficient, and even reduce shipping costs. There have been huge innovations in the shipping services and logistics industry that have provided new edges in this industry. 


No matter how small or big the innovation is, there will always be some impacts that will take a step forward in creating a new definition of smart shipping!


The rate of innovation in the logistics and shipping services was quite slow but after this pandemic, things have drastically changed as eCommerce has increased and offline retail has decreased.  Companies were facing huge troubles in scaling their businesses, predicting demands, and used to rely heavily on manual labor or workforce.  

But the digital transformation and new innovative techniques have changed the traditional supply chain methods. 

Let’s take a look at all the aspects where Innovation has impacted shipping and logistics:-

  1. Innovation in Logistics
  2. The most common areas impacted by the advancement in Logistics
  3. Major trends and market analysis 
  4. Importance of Innovation for Logistics companies

Innovation in Logistics 

The evolution of technology and new innovations is pushing the boundaries and shaping the logistics industry to a whole advanced level! Today we have everything available online and companies can promise their clients the fastest deliveries that can even take place less than an hour after ordering, though it also depends upon where you live. Innovation in logistics services has improved productivity in the supply chain, lessened costs, and errors.


Innovation in the Logistics industry can benefit all areas like trucking transportation, international transportation, supply chain management, and tracking systems. So, what exactly are innovations in shipping, logistics, and the supply chain? Is it about faster trucks? Trucking facilities with better miles per gallon? Or something else?


Well, not really as it is actually much more than what you are thinking. The trucks play a crucial step but there is a lot more to logistics than just the supply chain or shipping.

One of the biggest innovations in this sector is IoT(Internet of Things) and Radio Frequency Identification (RFID). 


The easy access that we have to wifi and the internet connects people to everything. IoT is bringing so many opportunities in the supply chain that reduces costs and delays. Sensors are built into the cars, cargo ships, trains, etc. connected to a system so as to easily monitor the tracking. This technology provides logistics by improving visibility in almost every corner where the goods are being shipped.


Although the Internet of Things is not a new technology, it will continue to impact the next generation of logistics with the help of new advanced technologies like AI systems, etc., that will allow you to get a more accurate in-transit visibility and delivery of goods.


RFID technology has been in practice for a few years and is a popular labor-saving method as companies can track their inventory. What is exactly done in this technology is that a tag/ a sensor is attached to the product and radio waves are sent out. The data is further received, processed, and sent by the company.


RFID tags are somewhere similar to barcodes, but the difference is in the higher level of the speed that transfers the signals or information about delivery moreover, the data processing of RFIDs is more engaging and attractive to businesses and the way technology is advancing and the role innovation is playing today, many companies are using RFID tags in their distribution warehouses to monitor their goods. Most of the other industries apart from logistics are already using RFID tags, like the apparel industry and the majority of the theme parks.

Advanced GPS Accuracy

There used to be days when you may print out directions from the computer before you start your shipping journey. But now with the innovations and the technology that is enhancing day-by-day, almost everyone is using GPS, either built-in on their vehicles or on their smartphones. The accuracy of these devices has rapidly increased as it is not only helping and navigating frustrated or lost drivers but also upgrading the supply chain of logistics. The precision and accuracy of GPS increase efficiency and provide customer satisfaction as they can track trucks’ locations and improve hauls by accessing the updated traffic data.


Smart Ships

When we live in a world having smart gadgets like smartphones etc., smart homes, and even smart cities, then why should ships lack behind? Ships are all set to become smarter, and automatic soon.

Automated ships will add technical value to the logistics and shipping industry by improving productivity, efficiency, and capacity to carry goods. These ships will revolutionize the shipping industry as you can remotely manage them and the fear of loss of crew members at the sea will be eradicated.


The Most Common Areas Impacted by the Advancement in Logistics

The most common areas impacted by technology and innovation in logistics are:-

  • Visibility

Earlier what the shippers used to do is, load up their goods and then hope that they made it to the destination on time without being damaged. If something went wrong, you might hear about it after a few days or ever. But now, due to great innovations in logistics, everyone right there involved in logistics can do their package tracking and get to know exactly where the freight shipping is. Also, not only do you see where your package is, you can check the temperature, humidity, and even a live view of it.

Along with the visibility of freight shipping, innovations, and technology in logistics have provided clarity on the data. Companies like FreightMango provide a complete dashboard to track all the things right from order, transportation management systems, anything that you want to see can be tracked, and analyzed. Also, with Artificial Intelligence and machine learning, various trends can be determined in the patterns and this will result in newer ways for the shipper to save time and get clearity.


  • Flexibility

Innovation and technology in logistics and shipping have opened a gateway for more and more options. You get options in facilities, processes, and even get more options in business models. You can imagine, before we had refrigerated trailers, it was certainly impossible to ship certain food items that require proper temperature. But now, with the robust supply chain we are having today, maximum companies and industries are existing that otherwise wouldn’t be able to survive because of the technology.


  • Less cost

Innovation and technology in logistics lead to better and finer engines, clarified processes and routes, and more streamlined operations. All these facilities save time and money. Savings is the major driving factor behind innovations in shipping and logistics. Maximum shippers look for cheap and sustainable ways to cut down the budget spent on shipping.

The best way for a shipper to save is to partner with a transportation provider like FreightMango that can provide you an ‘all in one' solution when it comes to the supply chain. The big innovations in shipping and logistics are certainly known and have been already implemented, but there are always hundreds of new ones to come. 


Major Trends and Market Analysis 

There are major trends that can boost innovation in the shipping and logistics sector. Technologies like the Internet of Things which is a huge thing to digitalize the freight marketplace. It helps companies to enhance visibility and improve locations and management. Cloud computing has been a buzz for some time and now the logistics and shipping industry is finally accepting it! It serves as the backbone of modern and virtual technology. The rapid growth and development of machine learning, computing power, and data analytics has made operations simple and functional. The algorithms used are becoming more and more popular across the globe. 


Technology has increased so much that a digital copy of a physical object or process is created. Warehouses use this technology to create a 3D model of their storage facilities and then can experiment with the layout changes and can provide real-time information.

To remain competitive and enhance the performance, we need to keep up with the latest technology. The technology is benefiting immensely and will continue to grow to a higher extent.


Importance of Innovation for Logistics Companies

The importance of Innovation in logistics brings new roads to achieve new milestones. Over the years there have been many technologies that are connecting the world. These new ways that bring more opportunities to the supply chain make the shipping process more efficient and effective.


There has always been a deep focus on technology in shipping and logistics in international shipping services because of all the impact it has on all businesses.  All containers depend on the supply chain in one way or another.  As we know that logistics and shipping are the backbones of the entire operation. So, when some new innovation comes into the market to improve logistics and shipping, they are the tip of the iceberg as along with that there are more segments that get an edge of advancement.


FreightMango brings simplified shipping for all with this latest tech as it is the first freight management that ultimately lets you search and compare quotes, book, pay, or even finance your imports/exports in just seconds and that everything is done online. You get automated reports from a pretty advanced system that will help you to track everything you want to in just one dashboard. Contact FreightMango for shipment quotes now.

So, we hope you are ready to ship your goods and take advantage of all these technologies to make your customers happy.

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