LONDON, Jan. 3, 2017 /PRNewswire/ -- Increasing technology integration is reshaping logistics. By 2025, value capture and creation will steer the industry as innovative start-ups unbundle the existing logistics supply chain, focusing on certain aspects of it and breaking down the value chain. Using novel business models that are app- or marketplace-based with online brokerage services and aggregated end-to-end visibility across the supply chain, these firms will displace some of the more established market participants.
"The supply chain market is becoming more complex in a time-constrained environment as speed of delivery and user experience emerge as critical factors," noted Frost & Sullivan Visionary Innovation Group Senior Research Analyst Vijay Natarajan. "In fact, instant and same-day delivery solutions are now key service differentiators. Firms must rethink their strategies and devise more agile models that leverage economies of scale and still meet consumer demands."
Future of Logistics is part of Frost & Sullivan's Visionary Innovation (Mega Trends) Growth Partnership Service program, which examines the Mega Trends shaping the world, highlighting macro-to-micro implications on business and society. This analysis explores the impact of technological intrusion on logistics. It clusters emerging market scenarios by technology, business and market, covering innovations, new business models, and emerging routes and regions that are expected to create a multitude of opportunities.
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Technology and convergence are creating on-demand, real-time and last-mile delivery solutions. Major disruption will include:
"Firms must now look at which part of the logistics stack they can address to potentially create value for end users by aggregating and offering current services through more efficient means," noted Natrajan. "Eventually, technologies such as Blockchain will transform the industry, creating a single ledger for all logistics participants with automated agreements, payments and contracts at every stage, thereby substantially reducing payment costs and widening customer reach."
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Future of Logistics
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