What's putting you at risk?

We surveyed over 2,000 business leaders like YOU to identify the key risks you’re facing and created the UK Business Risk Report - full of practical insights to help you tackle them. Download your FREE copy today.

Sunset over a transport and logistics dock with shipping containers

Automated logistics technologies - the future is here

Automation technology is increasingly being integrated in global transportation systems, impacting every stage of the goods flow from a point of origin to a point of consumption.

The COVID-19 pandemic has exposed the vulnerabilities and fragilities of the global supply chain and, at the same time, accelerated the adoption of automated logistics technologies1 that enable more secure and efficient cargo transportation, as well as contactless delivery.

The way in which technological advances, such as artificial intelligence, machine learning and autonomous control technologies are being integrated and complemented with one another are helping many companies remain competitive. But it is also revealing vulnerabilities across different industry sectors.

What do automated logistics look like?

Some of the most recent developments in automated logistics include2:

The use of drones in aerial freight

In aerial freight, we are seeing the deployment of drones with an easy-to-use interface for sending and receiving packages 24/7/365, designed to carry payloads of about 4.5 pounds and deliver packages over distances of up to 12.5 miles.

Large-scale aircraft drones, with a wingspan of 30 feet and a cargo capacity of 700 tons, are also being designed for intercontinental cargo delivery services. Large, remotely operated and heavy-lift freight airplane prototypes, powered with turbo-electric propulsion, are being tested for carrying even larger payloads.

Autonomous shipping technologies 

On the sea, autonomous shipping vessels are being equipped with advanced sensors that allow them to build a detailed picture of their surroundings in real time and with a level of accuracy well beyond that of humans. A combination of sensor fusion and artificial intelligence provides the vessels with object detection and collision avoidance for navigation and automated berthing.

Autonomous trains

Autonomous freight trains are the third leg of the stool. They are currently operational and being used to deliver iron ore in Western Australia. The locomotive unit is fitted with an on-board module that sends automatic reports on its position, speed and direction of travel to the control centre located more than 1,500 km away. The locomotives and all public crossings are also fitted with cameras, allowing for constant monitoring.

The benefits of automated logistics

Automated logistics systems are built to achieve high efficiency. With a highly efficient system, logistics companies are capable of achieving:

  • Time savings in terms of performance, which can translate into improve profit.
  • The ability to meet peak demands
  • Increased efficiencies in delivery
  • Lowered transportation costs.

But the technology can have little effect in the long term if other parts of the value chain, such as contract manufacturers, third-party logistics providers, warehousing firms, resellers and retailers, are unable to form partnerships. Automation can help suppliers and retailers to speak the same business language, with both being able to identify risks early so supply chains can be fine-tuned in real time.

The risks of automated freight technologies

Automated freight is still in development. Bringing autonomous vehicles, especially on the road, remains an enormous challenge for companies. For automated freight to reach its full potential, governments and the public will need to be ready for mainstream use, and regulations will need to address data privacy and security concerns. With the responsibility to regulate the future of automated technologies, governments will have to create policies that ensure the safety and functionality of autonomous vehicles, establish protocols that can guarantee that data can be managed safely and securely, and help to gradually integrate the new systems into the existing ones.

There is also a need to consider that goods are transported not only within but also across national boundaries. Cooperation in the development of international policies could help to address a system with a wide perspective. Finally, technology developers need to provide flawless operational and mechanical safety records that can help to prove that the implementation of technology is not only efficient, but is secure anywhere, so that the public can be assured that the adoption of automated technologies offers more benefits than problems.



1. https://www.prnewswire.com/news-releases/automated-guided-vehicle-market-to-reach-13-52-bn-globally-by-2027-at-16-6-cagr-amr-301243250.html
2. https://www.prescouter.com/2021/01/automated-logistics-the-future-of-freight/

This article first appeared at www.brinknews.com. Read the full, unedited article and subscribe to get BRINK in your inbox.

Marsh Commercial is part of Marsh & McLennan Companies. BRINK combines knowledge and expertise from across Marsh & McLennan and is managed by Atlantic Media Strategies, the digital consultancy of The Atlantic. The content is subject to BRINK’s Terms and Conditions of Use.