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As technological advancements increase each year, it allows e-commerce and logistics businesses to experiment with new methods in order to simplify and streamline their operations. The flow of goods from manufacturers, merchants, or wholesalers is consistently being modified due to modern-day advancements, and the e-commerce and logistics industry has been impacted by the switch from manual to automated technology.
Enhanced Supply Chain Management
AI (or artificial intelligence) has played a dominant role in supply chain management which includes the development of forecasted optimization, which is expected to become one of the biggest drivers in the logistics industry moving forward to 2023 and beyond. AI forecasting helps narrow the gap between supply and demand, enabling effective last-mile delivery, ETA prediction, and route optimization.
Artificial intelligence is destined to improve the supply chain experience, with both front and backend operations. AI is already proven to bolster the shopping experience with personalization – encouraging customers to purchase online with a system catering to their needs and wants via data-driven AI.
An “automated warehouse” uses advanced software and technology such as a WMS for streamlining the fulfillment service or uses the likes of robotics and sensors to automate the overall processes. With automation, the most significant savings are made on labor costs, which can represent between 50% and 70% of the warehouse’s operating costs. Automation of the picking process allows for minimal mistakes and in some cases, erases any risk of potential errors. This means higher throughput and a much shorter order-delivery cycle, leading to further profits. This process of using AI automation will slowly be implemented by large manufacturers and fulfillment centers beginning in 2023.
Digital payment transactions have grown rapidly in emerging markets during the past two years, especially as the pandemic has shifted to contactless payments (due to the pandemic). Some of the fastest growth in digital payments has occurred in Africa and Southeast Asia, where low banking penetration gives payment providers opportunities to capture untapped potential and reach new demographics.
The digital payment method encourages real-time payment liquidation, one of the most significant industry-wide solutions. Future purchases made by consumers will also rise as digital payments become increasingly popular, and newer, simplified versions of payments are distributed (such as digital wallets via smartphone tapping). This promotes industry growth as logistics businesses will utilize these strong points as increased ease and decreased friction in supply chain transactions are the direct results of improving payment technology.
Global e-commerce and logistics businesses must invest in modernizing technologies to develop innovative and efficient solutions – with the utilization of AI, to automate warehouse and transportation tasks. As fulfillment and supply chain becomes more complex, companies will look to robotic and AI (WMS) assistance to comply with their ever-increasing demand.