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Improvements to self-driving cars, GPS tracking, and other intelligent solutions for vehicle management were seen in 2022. With more and more real-time data and data analytics tools, most operations in supply chains are becoming more innovative. More companies are prioritizing sustainability as a critical component of the future of logistics.
Moving to 2023, data still play an important role in decision-making in transportation management. Furthermore, other technologies are constantly evolving and becoming more effective in logistics in general and transportation in particular. Abivin has done a lot of research and helped you understand the top 5 technology trends for transportation in 2023.
1. Autonomous Vehicles
The development and deployment of self-driving vehicles is expected to be a major trend in transportation management. These vehicles have the potential to significantly improve safety, as they do not suffer from the same distractions or impairments as human drivers. Autonomous vehicles can also reduce congestion, as they are able to communicate with each other and with traffic infrastructure to optimize routes and minimize disruptions. Typical autonomous vehicles such as drones or subway trains can carry cargo in other depths and reduce the amount of cargo circulation on the ground.
With more than 740000 autonomous-ready vehicles to be added to the global market in 2023 [1], the question is if the technologies are ready for such a huge demand. There are still significant challenges to overcome before autonomous vehicles can be widely adopted. One major challenge is the development of robust and reliable sensors and software systems that can safely navigate complex traffic environments. There is also the question of how to handle liability in an accident involving an autonomous vehicle. Additionally, there are concerns about the potential impact on employment, as self-driving vehicles could displace human drivers.
2. Cloud-based Transportation Management System
A cloud-based transportation management system (TMS) is a system that uses the cloud to store and manage transportation and information, rather than using on-premises servers.
There are several benefits to using a cloud-based TMS. Firstly, it provides greater flexibility, as the data and information can be accessed from anywhere with an internet connection, making it easy for businesses to monitor their transportation operations from multiple locations. Additionally, it allows for greater scalability, as the system can be easily expanded or contracted based on business needs.
Another advantage of cloud-based TMS is the cost-effectiveness, by eliminating the need for expensive IT infrastructures, which allows businesses to access the data they need at a lower cost. It can also reduce IT staff cost as well. Additionally, with the use of advanced analytics, machine learning, and artificial intelligence, cloud-based TMS can enable businesses to make more informed decisions by providing real-time visibility into transportation operations
TMSs also provide a real-time visibility solution. By using this feature, a planner could know the location of products, the status of orders, the speed and location of vehicles, the operations of drivers. With real-time visibility tools, TMS, for example, Abivin vRoute, could help the company have a quick decision based on the current condition of transport, and reduce the cost of accidents or unexpected circumstances.
History has shown that TMS has offered a strong ROI [2]. In the future, it is likely that more transportation companies will turn to cloud-based TMS to manage their operations and gain a competitive edge. This is due to the increasing adoption of technology and the shift towards digitalization in the transportation industry. Cloud-based TMS is easy to implement, cost-effective, and provides real-time visibility and insights, making it an attractive option for businesses looking to improve their transportation operations.
3. More focus on Last-Mile Delivery
Last-mile delivery refers to the final leg of the delivery process when packages are transported from a transportation hub to their final destination.
In recent years, there has been a growing emphasis on improving last-mile delivery, as e-commerce and online shopping have become increasingly popular. According to the Economic Forum, demand for last-mile delivery and its market is soaring and is expected to grow by 78% globally by 2030 [3]. Consumers are increasingly expecting fast and convenient delivery options, and retailers are under pressure to meet these demands. As a result, many companies are investing in new technologies and strategies to improve last-mile delivery.
Some examples of transportation trends for last-mile delivery include:
the use of electric and autonomous vehicles for deliveries
the use of drones for deliveries in rural or hard-to-reach areas
the use of lockers and other secure delivery options for packages
the use of real-time tracking and visibility tools to monitor package progress and improve customer service.
In addition, many retailers and logistics companies are also experimenting with new ways of integrating last-mile delivery into their existing supply chains. This includes partnering with local businesses, such as convenience stores and gas stations, to serve as delivery hubs, and exploring new ways to use technology to optimize delivery routes and reduce costs.
4. Artificial Intelligence (AI)
In recent years, there has been a growing trend of using AI in transportation management systems. In 2023, some trends continue to be strong and remarkable:
Route optimization: Using AI algorithms to optimize routes for delivery trucks, taking into account factors such as traffic, weather, and road conditions, to improve delivery times and reduce fuel consumption. Abivin has noticed this trend for a long time and has had an AI platform to minimize costs while maximizing productivity. Optimization is a huge trend and is expected to come to life in 2026 [4]
Traffic flow management: Using AI algorithms to analyze traffic data and make predictions about traffic flow, in order to improve traffic flow and reduce congestion.
Advanced logistics: Using AI and machine learning techniques to optimize operations and services for logistics, for example real-time optimization and forecasting demand to enhance the efficiency of supply chain and logistics operations.
Smart parking management: Smart parking systems enable cars to find and reserve parking spots on their own, which can reduce traffic congestion and pollution. Another important issue is Time Slot Management. The warehouse needs to know who is coming and when they will arrive, which starts with the ETA. Aside from that, warehouse workers require updates on what dock the truck will arrive at, when the truck will be loaded, what papers they will pick up, what must be signed, and when the truck will leave the warehouse or yard.
5. Internet of Things and Blockchain
The Internet of Things (IoT) and blockchain technology can be used together in transportation management systems to improve the efficiency and security of the transportation process.
IoT devices such as GPS sensors, cameras, and RFID readers can be used to collect data on the location, condition, and movement of vehicles and cargo in real time. According to [5], IoT can be applied to obtain these information:
Information about the engine
Data on fuel
Geographical information
Auxiliary data and driver behavior data
This data can be used to optimize routes, improve the scheduling of vehicles and cargo, and prevent theft and fraud.
Blockchain technology can be used to secure and validate the data collected by IoT devices. The decentralized nature of blockchain ensures that the data is tamper-proof and can be easily audited, making it useful for tracking the movement of goods across supply chains. Smart contracts can also be used to automate and execute actions based on the data collected from IoT devices.
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