OpScoop Issue 19: New disruptions which will drive major changes in the Transportation and Logistics landscape.

This piece will let you know how digital is transforming the way businesses deliver and track goods and people, from the point of initiation to the final destination, and will also walk you through the top 5 important trends that will drive major changes in the field of Transportation and Logistics.

  • Amazon’s Whole Foods Acquisition Will Accelerate Omni channel Fulfilment In Retail:

Amazon’s new acquisition of Whole Foods will drive a change in the contemporary competition as other significant retailers will try to accelerate their last-mile delivery and Omnichannel fulfilment strategies. The whole foods store network will enable Amazon same-day and time-window deliveries, hence creating more pressure for competing retailers. This is because customers already expect their orders to be delivered as fast as possible. Other retailers are already acting to speed up their own delivery times by leveraging their store locations, new technologies, and new delivery models. Target announced plans to acquire Grand Junction which will help it to expand a pilot test it’s been running in New York City that allows shoppers to get same-day delivery from Target store locations. Walmart is also into the competition as it has been testing its in-store pickup options.

  • Congress Will Pass Self-Driving Car Legislation In The Next Year, But The Actual Rules Will Take Much Longer:

Currently, the House and Senate have introduced new legislation regarding self-driving technology with bipartisan support, indicating that there’s wide acceptance among legislators that this disruptive technology must be addressed as soon as possible. This will also mean that there will be an overhaul the nation’s motor vehicle safety standards to account for autonomous technologies. The success of this will require extensive field testing and reach a common ground among various stakeholders, including car companies and consumer advocacy groups. National Highway Traffic and Safety Administration (NHTSA) will almost take a minimum of 5 years while automakers will have to wrestle with the confusing patchwork of state regulations around self-driving cars that have emerged in recent years as many states have conflicting regulations. However, the current scenario is futuristic and will encourage automakers to put far more self-driving cars on the road for testing purposes over the next few years.

  • Machine Learning Will Enable On-Demand Route Optimization for Deliveries:

Route optimization is heavily relied on by logistics companies and organizations to deliver goods. It is also a pressing issue for these players. To counter this, an increasing list of companies has already begun adding more sophisticated technologies to help optimize routes for speed and fuel efficiency. On time delivery is the basic need and it will force companies to generate more optimized routes more quickly to enable faster pickups and deliveries. A wide range of both historical and real-time data on weather, traffic, and construction delays, as well as historical data regarding demand for pickups and drop-offs, will be used as a courier’s route for a late afternoon last-mile package delivery could be redirected through an area where there’s typically high demand for package pickups during that time of day. Hence, orders will be delivered more quickly while operations cost will be better managed.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s