Global Digital Logistics Technology Outlook, Top 5 Companies and Trends: What You Need to Know in 2025 and Beyond
RELEASE DATE: Sep 2024 Author: Spherical Insights Request Free Sample
What is digital logistics?
The foundation of digital logistics in the supply chain is traditional data collecting, which is frequently done by hand and is subject to delay or human error. It is digitalized to enhance and expedite systems, tactics, and procedures related to logistics. Put differently, it streamlines the logistics chain's standard components that can be automated. In addition to providing businesses with new avenues for cost savings, productivity gains, and the avoidance of inaccurate order fulfillment, this digital strategy also improves data transparency for all collaborators and vendors associated with operations management and the supply chain.
What are the purpose and importance of digital logistics?
1. Simplified Handling of Inventory
Businesses may maximize their inventory management using digital logistics. Businesses were unable to make knowledgeable decisions regarding their inventories due to traditional logistics. Logistics teams were unable to enhance their order fulfillment workflows, storage and stocking procedures, or warehouse reception procedures due to the lack of sufficient access to how their warehouses functioned.
2. Automation of tasks
Businesses may automate crucial procedures, such as ordering inventory to prevent stockouts, with digital logistics operations. Because they do not have to enter the same information in various systems, as is the case in traditional logistics, they can also automate repetitive processes including data entry.
3. Constant enhancement
Companies conducting digital logistics operations can detect bottlenecks and main causes and devise strategies to address them by having visibility into every phase of the logistics process. Identifying bottlenecks and devising strategies to eliminate them is more challenging in traditional logistics due to its categorization.
4. Decreased expenses for fulfillment and shipping
DTC brands were unable to locate locations for inventory storage that would enable them to transport products to clients more quickly due to traditional logistics. This reduced their level of client satisfaction and raised their working capital expenses.
Key Market Insights:
The global digital logistics market size was valued at USD 27.13 billion in 2023 and is projected to USD 138.13 billion by 2033, exhibiting a CAGR of 17.67% during the forecast period 2023-2033. Several prominent companies within the global SpaceTech industry are Oracle, SAP SE, Tech Mahindra Limited, Honeywell International Inc., AT&T Intellectual Property, Infosys Limited, HCL Technologies Limited, WebXpress, IBM Corporation.
Regional Market Expansion
- North America commanded a sizeable portion of the market. One important factor in the expansion of this region can be attributed to the large IT companies that were among the first in the logistics industry to embrace digital technologies. Such solutions can be developed and implemented by vast, highly qualified workforces in North America. In the field of automation research and development, North America is home to a large number of universities and research centers. This encourages a constant flow of talented people who actively contribute to the industry's groundbreaking breakthroughs.
Growth Factors and Future Prospects in the Digital Logistics Industry
1. The digitalization of logistics enabled by generative AI's advanced capabilities drove market expansion.
Logistics companies can benefit from generative AI as it enhances their operations and boosts client satisfaction. It can enable firms to operate on a predictive and progressive paradigm while automating traditional activities. In several applications, including labor management, transport management, warehouse management, and others, generative AI can help transform logistics. Using chatbots and virtual assistants driven by AI, logistics workers may improve real-time communications through the use of generative AI.
2. Growing the Number of Internet Users and Online Shopping to Support Market Growth
The rise in online purchasing and the expansion of internet users have been the main drivers of the e-commerce sector's exponential growth during the last ten years. Utilizing digitization technologies helps businesses adapt to growing consumer demands in the e-commerce space, optimize supply chain processes, and increase visibility. Because of this, the market is expanding quickly to boost business profit margins and streamline delivery methods. In addition, the e-commerce sector is motivated by speed, cost, convenience, and transparency.
List of Key Companies in the ERP Software Industry
- FedEx
- DHL
- Nippon Express
- Project44
- JD Logistic
- AutoStore
- IBM Corporation
- Advantech Corporation
- Oracle Corporation
- Samsung Electronics Co. Ltd
Top 5 Players in the ERP Software Industry
1. FedEx
Headquarters: Tennessee, United States
The FedEx Corporation, formerly known as the Federal Express Corporation, is a worldwide holding company based in Memphis, Tennessee, that specializes in commercial services, e-commerce, and transportation. The term "FedEx" is a syllabic contraction of Federal Express, the name of the company's initial aviation branch that was in use from 1973 to 2000. One of the first significant shipping businesses to provide overnight delivery as a flagship service was FedEx Express, which is currently the company's most well-known air delivery service. Ground delivery services for small packages are the main focus of the FedEx Ground division. Across all haul lengths, the FedEx Freight division provides less-than-truckload freight services.
2. DHL Group
Headquarters: Bonn, Germany
German international package transportation and supply chain management firm Deutsche Post AG, doing business as DHL Group, is based in Bonn, Germany. It is among the biggest courier services in the world. With 61 million letters delivered daily in Germany, Deutsche Post is the largest postal service provider in Europe. DHL's package division is a fully owned subsidiary that reportedly operates in more than 220 nations and territories. Offers logistics and expedited delivery services with the goal of serving Germany. Packages and items are picked up by DHL Express at the customer's door and delivered to the location of customer's choice. Through almost 4,500 locations, the company offers door-to-door delivery services to more than 220 nations and territories worldwide. It has more than 62,000 cars and roughly 350 airplanes in its fleet. DHL Express enables business and individual clients to track shipments online and provides same-day worldwide delivery.
3. Nippon Express
Headquarters: Tokyo, Japan
A Japanese logistics and shipping company is called Nippon Express. The business is divided into several geographically and functionally focused areas, including security transportation, heavy haulage and construction, heavy haulage and Oceania, the Americas, Europe, East Asia, South Asia, and Oceania. The main source of income for Nippon is logistics, which is the subject of each segment bearing a region's name. These regional divisions provide warehouse, marine and seaport transportation, and air freight forwarding services. With more income than all other regional categories combined, Japan is the largest. The second-highest paying category is logistics support, which sells things like trucks, packing supplies, distribution equipment, and fuel.
4. XPO
Headquarters: Connecticut, United States
In North America, XPO is the second-biggest supplier of less-than-truckload services. The company has only been operating in North America with an emphasis on LTL freight transportation since November 2022. LTL is a freight concept that entails sending several customers' lesser quantities of goods simultaneously. Cold chain alternates, value-added storage, transportation, management of inventory, the omnichannel approach and online shopping fulfillment, reverse shipping, packaging and labeling, factory assistance, aftermarket assistance, and customer personalization solutions are all included in the logistics area. With 1,440 facilities across 33 countries and a highly integrated network of over 87,000 employees, XPO provides services to over 50,000 customers. XPO has its European headquarters located in Lyon, France, and its corporate headquarters located in Greenwich, Conn., USA.
5. JD Logistics
Headquarters: Beijing, China
Supply chain solutions and logistics services are offered by JD Logistics Inc., a Chinese company. The company uses five segments to run its operations. Corporate clients can obtain comprehensive, integrated, and personalized warehouse and distribution services from the warehouse and Distribution Services sector. The Express and Freight Delivery Services category offers express and freight delivery services to both individual and business clients. The Bulky Item Logistics Services division offers comprehensive bulky item warehousing, transportation, delivery, and installation services to both individual and corporate clients.
Recent Development
- In January 2024, NIPPON EXPRESS HOLDINGS, INC. announced its third investment through the NX Global Innovation Fund, a corporate venture capital (CVC) fund founded in January 2023, purchasing a minority equity share in Wiz Freight (hereafter "Wiz"), a prominent digital transportation service provider in India.
- In May 2024, C.H. Robinson offered computerized transactions, although numerous shippers still prefer to communicate via email. It removes a long-standing obstacle to automation, providing email shippers with the same speed-to-market and cost reductions as more digitally connected shippers.
- In October 2023, FedEx Corp. established the FedEx Innovation Lab (FIL) to support and work with emerging early-stage digital start-ups in the region's largest market, India.
- In April 2023, FedEx Corp. announced at its DRIVE Investor Event that it combined its operational companies into a single organization. By doing this, the firm aimed to increase efficiency, better serve its customers’ changing demands, and grow into a stronger, more lucrative business.
- In May 2022, the contemporary automotive digital logistics marketplace Autosled said it has formed a board of directors and concluded its Series A investment round. The report that Leon Keshishian, a former Tesla executive, has joined the business as chief executive officer before the announcement.
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