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The Crucial Role of Technology in Increasing Logistics Efficiency

In many logistics businesses, the management finds it difficult to manage the orders, communicate with their riders, track consignments to give visibility to consignees, and reduce logistics costs. So, what if all of the logistics industry’s pain points could be solved simply by integrating a few pieces of software into logistics systems and digitizing first- and last-mile delivery operations? The logistics industry has a wide range of volume and market share, but due to the complex process and the traditional way of the operating system, the operational cost is 60 to 65 percent.

Role of Technology in Logistics Industry

This does, in fact, result in a pricing gap in the market. As a result, technologies are being used to revitalize the logistics industry in order to overcome these challenges. The most important role of technology in logistics industry is to increase transparency and efficiency.

The solutions that technologies provide to logistics firms are as below:

  1. Digitizes the order allocation process.
  2. Automatically allocates new pickup requests for the riders.
  3. Automates route optimization.
  4. Offers dedicated rider applications.
  5. Enables consignment tracking for both the consignor and consignee.
  6. Facilitates contactless delivery and digitized proof of delivery collection.
  7. Allows customers to share delivery feedback.
  8. This indeed leads to creating a gap in the market in terms of pricing. Hence to overcome these challenges technologies are used to revive the logistics industry.
  9. The biggest importance of technological influence in the logistics industry is to bring out transparency and efficiency.

These Technologies Are Modifying The Logistics Industry In A Phenomenal Way:

There are plenty of technologies available in the market and they are giving tons of benefits to the logistics industry but in this blog, we have picked two technologies from among them all.

1. Artificial Intelligence

AI is directly related to the logistics industry and it infuses with the e-Commerce industry as well. The reason for this is that the logistics industry is inextricably linked to the eCommerce industry; thanks to artificial intelligence, the logistics industry can predict future reports based on past customer orders. The advantages of implementing AI technology in logistics are not limited to the courier sector, but also to providing assistance in the efficient processing of workflow.

The benefits of implementing AI technology in logistics are not only limited to the courier sector but also enable in assisting to process the workflow efficiently.

2. Blockchain

Blockchain is one of the most important inventions after the internet.  This technology has entirely revolutionized the logistics and supply chain industry. The most important part of blockchain technology is that it is a decentralized public ledger which means it is accessible and easily visible across the public.

It solves the biggest problem of the logistics industry. The problem of time optimization for example: if a truck travels from Delhi to Mumbai, then it means that the truck needs to pass several states on its way. In the meanwhile, blockchain helps in time stamping of the current location of the truck and it helps in giving information of certain documents to the third party required to clear the checkpoints during the travel. Hence, by implementing blockchain technology operational costs get reduced.

In the logistics industry, there are a lot of unknown parties involved and at some point, these parties try to manipulate the data according to them but because of blockchain technology, these parties fail to do so.


To sum up, it is appropriate to state that the world of technology is revolutionizing the world of logistics in an astonishing way. Still, there is a lot more to know about the role of technology in logistics and supply chain.

Are you looking to automate your warehouse? If yes so please feel free to contact us at support@aeologic.com

Manoj Kumar

Manoj Kumar is a young blogger and digital marketing manager at Aeologic Technologies. Covering topics related to emerging technologies - AI, IoT, Big data, Cloud Computing, Cyber security, RFID and industrial automation. You can find Manoj on LinkedIn & Instagram.