The symbiosis between algorithms and people will create opportunities to improve the logistics industry.
The logistics industry has changed dramatically over the past 10 years and is now in the midst of its digital transformation. The main drivers of supply chain growth have been the boom in e-commerce and the impact of the Covid-19 pandemic.
From cloud computing, robotics and AI (artificial intelligence) to the IoT (Internet of Things), logistics professionals need to understand the wave of breakthrough technologies that is pushing innovation forward ever faster. Even as global e-commerce booms, blockchain continues to be seen as a driving force for supply chains and logistics.
A successful logistics business depends on reliability. AI is able to tackle the most complex operational challenges, such as route optimisation, accurate capacity and demand forecasting, and intelligent physical automation. The logistics industry is also embracing robotic process automation (RPA).

AI enables RPA to handle complex, unstructured data formats and processes. According to a study by MHI, the logistics trade association, 79% of experts expected AI to become a core supply chain capability by 2022, and 88% believed it would improve risk management and forecasting.
In a PwC survey, 37 of the 80 chief financial officers (CFOs) who responded said that accelerating automation would be part of their post-Covid-19 strategy. As logistics companies digitise their processes, they find that greater transparency and flexibility drive the demand for further digital transformation.
At the same time, when AI is applied to day-to-day operations, customers appreciate the benefits of faster deliveries and better service from their logistics provider. This encourages companies to adopt even more new technologies to strengthen and improve their processes.
As digital approaches become central to supply chain and logistics processes, companies are paying more attention to the human side. Digital systems need people to build, maintain and improve them, and supply chain operations require close, continuous collaboration between people and machines.
Conversely, logistics businesses that neglect the human factor will face many problems, from a shortage of skilled staff to being completely unable to make use of new technologies. In the years ahead, companies need to adopt a people-centred approach to innovation.
Leaders of logistics companies are focusing on fostering a digital mindset: establishing positive cultural norms, standardising processes and continuously retraining their workforce.
The most important thing in digitalisation is to keep a balance between work and people’s lives. The logistics industry and its stakeholders should work together to create a connected business environment with realistic and humane expectations. This requires a new mindset that captures the benefits of digitalisation and creates more sustainable, flexible workplaces.
The logistics industry must adapt to the era of digital transformation in order to grow. Companies need to do this not only because of the threats ahead, but also to strengthen their competitive advantage and make the most of new opportunities.