Global logistics spending expected to touch $10.6 trillion in 2020, Frost & Sullivan

by Autocar Pro News Desk , 12 Jun 2018


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Digital technology and solutions are driving the businesses globally, and no longer any industry ignore the importance impact of investing in digital tech. The global logistic industry is expected to see spending of around $10.6 trillion (Rs 7.1 crore crore/Rs 714.9 trillion) in 2020, says a report by Frost & Sullivan.

The report titled 'Urban Logistics Opportunities — Last-Mile Innovation' finds that globally transportation accounts for the majority or 70 percent, in logistics industry. And emerging technologies such as cloud computing, big data, and crowdsourcing, coupled with an influx of tech-savvy start-ups, are unbundling the value chain and transforming delivery models.

According to the report, about two-fifth of the overall logistics costs are associated with the last mile that are forcing providers to come up with newer innovative solutions to deliver packages within cities. Frost & Sullivan predicts that the market will rapidly move toward mobile freight brokerage-type, on-demand deliveries and autonomous technology, such as the use of drones and delivery bots which are set to solve the last mile delivery challenge by being more cost-effective to end users with lesser regulatory mandates.  

“Spiraling last-mile delivery costs and changing customer demands are causing retailers to rethink their strategies and look toward new business models such as click-and-collect, locker boxes, on-demand, and autonomous solutions,” said Frost & Sullivan’s Visionary Innovation analyst. “Moreover, the influx of start-ups in logistics has enabled innovative solutions that not only provide value-creation customised solutions for the consumer but also tackle the inefficiencies currently witnessed.”

The report states that the digital freight brokering platforms are reducing the empty miles by around 8 to 10 percent. There is a drastic shift towards low-emission and zero-emission solutions, such as low-carbon vehicles or bicycles. Even fleet operators are developing urban distribution centres for effective logistics management.


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