Connected logistic is an integrated system that integrates planning, materials management, and other key operational components to provide a complete and flexible logistical solution. A connected logistics system aims to reduce costs while improving the quality of services, while maintaining or improving upon the security of shipments. Moreover, a good connected logistics system offers the companies easy access to information and enables better collaboration among employees and partners.
Connected logistic provides various benefits to logistic businesses by providing improved productivity, real-time access, and improved operational efficiency through integration of multiple connected platforms such as smart devices, cloud computing, and Internet of Things (IoT). Communication technologies, such as Wi-Fi and Bluetooth, are used to improve logistic support. Connected logistics an important business strategy, as it is more adaptive, automatic, sophisticated, and an intelligent system.
Market Dynamics:
Increasing adoption of the cloud-based solutions in the connected logistics is expected to propel the growth of the connected logistic market. For instance, businesses will spend around US$ 191 billion on cloud services by 2020, according to International Trade Administration report. Moreover, the increasing demand for operational efficiency, decreasing cost of communication devices, and the increasing adoption of IoT across various industries is expected to fuel the growth of the connected logistic market.
Increase in number of high-tech vehicles, increasing innovation in mobile technologies, and increasing logistics transparency is also expected to augment the market growth. Furthermore, increasing adoption of smart devices worldwide and increasing consumer awareness among people about advanced technology and their benefits is expected to drive the connected logistic market growth.
Asia Pacific is expected to hold the largest share in the connected logistic market due to high investments in the research and development of connected logistic in the region. In January 2021, the World Bank announced that it will provide Bangladesh with US$ 500 million for developing rural connectivity, market, and logistic infrastructure in light of the economic prospect created with the construction of the Padma Bridge. Moreover, in January 2021, the Gujarat government and Adani Ports and Special Economic Zone Ltd. (APSEZ) signed a memorandum of understanding (MoU) to set up India's largest multi-modal logistics park.
Competitive Analysis:
Major players operating in the connected logistic market are GT Nexus, ORBCOMM, Zebra technologies, Cloud Logistics, oracle, Microsoft, Eurotech, HCL Technologies Limited, Cisco Systems Inc., Infosys Limited, SAP SE, Intel Corporation, IBM Corporation, and AT&T Inc.
In January 2021, Oracle announced new logistics capabilities within Oracle Fusion Cloud Supply Chain and Manufacturing (SCM) to help customers reduce costs, make better planning decisions, and improve customer experience.
In January 2021, Mahindra Logistics Limited (MLL) announced the launch of its cargo last-mile delivery service under the brand name ‘EDel’. The company also planned to establish a network of dedicated charging infrastructure for its EV operations under EDel with a connected telematics platform to enable customer experience, vehicle and battery utilization, and network management.
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