14 March, 2021

How digitalisation is transforming the logistics sector - Trends for 2021

The aim for many businesses, post-Covid-19, is to simply get back on their feet and drive growth in the coming year. A direct route to success is in the adoption of innovative solutions in the aims of reigniting markets. Digitalisation is the key to unlocking the future.

2021 will see huge strides being made in this regard, below are the trends we predict for the upcoming year.

The Growth of Tech

Although the pandemic has had adverse effects on so many, the tech boom is one positive to be found in its wake.

Digital platforms and online enabling technologies have flourished as main requirement for life in lockdown. The pandemic has forced tech innovators to discover new ways of encouraging productivity and connectivity. Applications like Zoom and Skype have risen exponentially in the last 18 months, with the former reporting a 169% increase in revenue compared to that of 2019.

Logistical Innovations

Contactless delivery is one facet of the last mile delivery process that has been amped up to satisfy the new health and safety regulations in operation in the UK. This new way of delivering parcels to the customer is being aided by the introduction of new software functions, which keep the consumer updated of the package’s location at all times.

To support this, the industry is integrating the use of IoT technology within the supply chain. Sensors provide highly accurate data which can provide real-time tracking information to the customer, as well as integrity and loss prevention data to the supply chain manager. Aramex utilises industry-leading technology to pinpoint individual assets, their integrity and the exact co-ordinates of each individual package.

Shifting Shopping Habits

The market size, in 2020, for ecommerce in UAE was 4.5 billion USD. This combined with the rest of the Middle East region equates to a 17.1 billion (US) dollar industry. The pandemic has done little to quell this rapidly swelling market; as predictions show that by 2025, e-commerce in the middle east region will be worth 27.8 billion. Ecommerce in this area of the world is one of the fastest growing markets in the world, the entire MENA region is expected to continue with a growth rate of 25%. The MENA region isn’t the only e-commerce market that has skyrocketed during the pandemic. 19% of the UK have reported purchasing more arts and crafts, and more and more are turning to indoor fitness equipment goods. Peloton, the self-improvement exercise bike company, reported a 66% rise in revenue since the outbreak of the pandemic. Home improvement and online fashion houses have embraced augmented reality technology to overcome the challenges of store closures by showcasing what new furniture, or new apparel looks like in consumer’s homes and on their bodies. This new digitalisation technology is one that has contributed to the surge in online retail sales, as shoppers can get an accurate picture of the product before buying it.

Cracking the Vaccine Code

2021 is one of the most important years in history for healthcare and drug development. The life science boom is necessary to counteract the devastating effects of the pandemic. Digitalisation is driving the rapid implementation of the vaccine; the advancement of cold-chain technologies has allowed governments to order mass rollouts worldwide. Supply chain management has never been so crucial in this regard, and with the innovations made in recent years, the eradication of the Covid-19 virus with a worldwide vaccine rollout, could be possible in months rather than years.

IoT technology will be invaluable during the transportation of the vaccine. This technology sends temperature readings from within the package to ensure that the product never varies from a strict pre-determined threshold, which can range from room temperature controlled (20 °C to 25 °C) all the way to cryogenic (below 0 °C to -150 °C). Nonetheless, the Covid-19 vaccine has its own temperature threshold as the molecules are highly unstable. This highly sensitive consignment cannot function outside this range, and any deviation can disrupt the goods at a molecular level rendering the vaccine unusable and costing the logistics firm thousands in damages.

Aramex and Digitalisation

Our logistics solutions are designed to fit your needs; we utilise bleeding-edge technology within our infrastructure to accomplish this. We pivot and adapt to suit your individual needs and to do this, we must combine a variety of tools to best suit your logistics requirements. Our 360-degree solution takes advantage of the latest innovations to achieve your supply chain growth.

Digitalisation is high on our list of priorities in 2021, as is sustainability. Aramex is continually seeking ways to reduce our energy consumption, like the 1.2MW solar farm in Amman that powers 90% of Aramex Jordan’s electricity needs. Alongside this innovation, we have enjoyed an electricity consumption reduction of about 29% in 2020.

Source: Aramex