Factors That Changed Logistics in 2018

Truck for a hero section
Written by Mike Skliar

With digitalization developing, logistics is getting a big step forward. Technology is involved in every industry and transport industry isn’t an exception. In 2018 we saw a complete makeover of supply chain and logistics. The business world relies on transport. Logistics is a backbone of many industries, such as healthcare, retail, e-commerce, consumer goods, food chain, etc. Companies aligned their business strategy with trends and innovations that led them to success.

The primary goal of every logistics company is to offer flexible, cost-effective and efficient services. That’s why many drivers and companies paid attention to every trend and delivery strategies. It helped them to compete with their rivals. So let’s get to the exciting part and see what changes 2018 brought to logistics.

#1 Blockchain

Most people think that the blockchain technology is only bounded to cryptocurrency. It’s not true. AI and blockchain have already made their move in this year’s logistics development. It offers a transparent, secure and impenetrable way to save and share the data inside the company.

There are two simple examples of blockchain usage:

  1. Trustworthy history records. When the truck gets sold, the customer may have a question about vehicle usage. Because all the data about the truck is in the blockchain system, they’re transparent and immutable. So a client can be sure that information is direct.
  2. Cargo volume monitoring. Shipping cost depends on the capacity of freight. Usage of highlighting IoT sensors is helping to determinate needed space amount. With that data, the calculation of delivery cost is more efficient. Storing data in the blockchain system, and combining them with smart contracts, allows making direct payments based on the amount of taken space.

#2 Address Delivery

As the E-commerce business grew, the demand for address deliveries is growing too. A company must provide better services to be more competitive. At this point, even heavy trucking companies were considering to add a few small vehicles. It helped to conquer a more significant piece of the delivery market. Last-mile delivery has become profitable, although it sometimes led to tight schedules and supply chain risks for heavy vehicle business.

#3 The Perfect Order

Let’s return to last-mile delivery. There was a trend that called “the perfect order.” It is the ultimate measure of customer satisfaction. And the complexity of last-mile delivery is the best for fulfilling a perfect order overwhelming.

Perfect order is a percent of orders that include:

  • Delivery to the right place;
  • Right product;
  • Right time;
  • Proper condition of the cargo;
  • Right package;
  • Right quantity;
  • Right documentation;
  • Right customer;
  • Correct invoice.

In 2018 shipping perfect orders became the most important thing.

#4 ELD’s

Electronic Log Devices was big news, and all transport companies had to implement them by April 2018. ELD’s impacted the logistics industry significantly. They were created to hold drivers from overtime allowed 50 hours of service (HOS) per week. This innovation aimed at making roads safer, because drivers will have enough rest. Although, it lead to shipments decreasing on familiarization period.

#5 Drones and Smart Glasses

With expenses increase (fuel, vehicle service, auto parts,etc.), transport companies started to consider applying a new strategy for mobility and efficiency improvement. Some of them invested in new equipment that complemented their fleet. Such smart devices as drones began to facilitate deliveries.

As for smart glasses. This technology isn’t yet implemented entirely but will make delivery easier because it provides hands-free route searchers and face recognition that increases error-free deliveries and last-mile deliveries.

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Author Mike Skliar

As the truck driver recruiting agency's CEO, I deeply understand the unique challenges and demands truck drivers face.

Drawing from my extensive work experience, I bring knowledge in truck driver recruitment, logistics, and transportation management. I possess a comprehensive understanding of industry regulations, safety standards, and best practices, ensuring that the agency adheres to the highest standards of professionalism and compliance.

Now, looking back and remembering my path from the very beginning, it seems to me that this story is a lifetime. During all these years of development and growth of our agency, I took part in no less interesting projects in which my experience, knowledge and vision were needed. And I was also able to gain new skills, contacts and experience by participating in the development of these projects from various fields, such as cargo transportation, trucking companies, e-commerce, parcel delivery and much more! But the best is yet to come!

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