7 Interesting Facts You Probably Never Knew About Logistics

Logistics is a complex and intricate system that supports the complex supply network of goods, services and information from point of origin to the point of consumption. Although it may seem like an obscure and little-known process for some, it’s actually one of the most important components of the global economy. Here are seven interesting facts about logistics that are beneficial to know.

1. Logistics is estimated to grow by 8 percent per year by 2020.

Analysts from GlobalData have been able to conclude that the global logistics industry is estimated to grow by at least 8 percent each year to 2020. This is a major development that highlights the continuing need for efficient and optimized logistics systems. With this consistent increase in growth, it's safe to say that the industry will need to continue to develop and develop new ways to better serve its clients.

2. Logistics and supply chain management accounts for 2-3 percent of the global GDP.

The global GDP is the sum of all economic activity and it is not an insignificant sum either. According to a report by the World Bank, logistics and supply chain management currently accounts for between 2 and 3 percent of the total GDP. This is a huge industry, with billions of dollars of investments and shipments occurring daily.

3. The shipping industry accounts for close to 90 percent of global trade.

According to the World Shipping Council, close to 90 percent of the world's trade is carried out via shipping. This means that the logistics system is crucial to moving goods from one area to the other. Without efficient methods of transport, global trade would be severely limited.

4. Automation is increasingly used in the transportation of goods.

One of the ways that companies are looking to improve the efficiency of their logistics is through automation. Technology such as data-management systems, automated trucks, warehouse robots and drones are being used to streamline the transportation of goods. This automation helps to reduce the cost and time taken to get items from point of origin to the point of consumption.

5. Delivery drones are becoming popular.

Delivery drones are the most visible application of logistics automation. These drones are capable of delivering items within a certain radius of their takeoff point and can be programmed to autonomously fly to their destination. In addition, delivery drones have the capability of tracking the delivery package and updating customers on the delivery status.

6. Logistics automation is still in its early stages.

When discussing the benefits of automation it is important to remember that the technology is still in its early stages of development. While many companies are looking to automate as many processes as possible, there is still much uncertainty surrounding the technologies and its ability to fully streamline processes.

7. Logistics AI is the future.

AI is a technology that is rapidly becoming a major part of the logistics industry. AI-based logistic systems are emerging which are capable of automatically predicting the most efficient way of transporting items from one place to the other. Additionally, AI can also be used to constantly monitor the transportation processes to make sure that everything is running smoothly.

Conclusion

Logistics is an ever changing field. With new technologies, processes and systems being developed, the field is always advancing and finding ways to improve itself. While it’s unknown what the future will bring for the logistics industry, we know for sure that it’s going to play an increasingly vital role in global trade. As mentioned above, the logistics sector is estimated to grow by 8 percent each year to 2020 and this means that there will be plenty of changes and advances made in the industry. For companies working in logistics, it’s important to stay up to date with the developments within the industry in order to remain competitive. At QikTruck we handle everything so that small business owners can get their cargo delivered quickly and impactfully. Our AI-driven logistics solution is customized to ensure that no matter the need, your shipments get to their destination on time. We focus on providing a seamless, fast, and cost-effective delivery experience for both shippers and carriers.

 

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