BI intelligence is a research service that focuses on digital disruption. Now, it intends to expand and incorporate transportation and other industries. The new research will focus on how digital is rapidly modifying the manner in which businesses track people and goods and how they deliver from the starting point the final. The research coverage will extensively cover points such as application of artificial intelligence in logistics, last-mile deliveries, delivery robots and drones, self-driving trucks and cars, etc.
BI intelligence makes predictions on the basis of their continuing research that involves tracking of data, interviews with industry executives and forecasts. According to predictions by BI intelligence, there are five of the most crucial trends that will enable major transitions in transportation and logistics industry in the next five years:
- The acquisition of Whole Foods by Amazon has compelled other competing retailers to advance their omnichannel fulfilment strategies and last-mile delivery. Amazon can benefit from Whole Foods’ wide store network. Time-window and same-day deliveries will be possible as the new and adopting locations will reduce the proximity between Amazon and its customers. Other retailers are prepping by incorporating newer technologies and better delivery models. For example, Target plans to acquire Grand Junction, which introduces a software platform that works to co-ordinate last-mile deliveries across 700 local and regional carriers and more. Walmart has been thinking of broadening its grocery delivery and curbside pickup services, and it has been experimenting with new pickup options inside a store (Walmart derives 56% of its revenue from groceries).
- By the next two years, automated platooning software will make its way into long-haul trucks for commercial use. This software will enable trucks to follow each other autonomously while forming a closely clustered convoy. Peloton—a start-up—has planned to release its platooning solution. Platooning software is expected to cause a boom in trucking industry. It helps to reduce the fuel consumption cost by ensuring that trucks encounter minimal wind resistance; this happens because the trucks closely follow each other.
- Senate as well as House have introduced legislation with regards to autonomous technology. Department of Transportation will be directed to draft regulations for autonomous cars. However, regulators will consume a lot of time in drafting safety standards and requirements as it requires extensive field work. According to former NHTSA administrator Joan Claybrook, the National Highway Traffic and Safety Administration (NHTSA) has a dearth of resources and staff needed to administer this wide-ranging field. NHTSA is not likely to win the support from White House, hence will be unable to release self-driving regulations by 2020.
- In order to optimise routes for fuel efficiency and speed, leading companies have started to try out newer, sophisticated technological approaches. UPS, for instance, has recently introduced its ORION route optimization algorithm in the United States. As on-demand deliveries increase, companies all around the world will be compelled to optimise routes as quickly as possible to ensure quicker deliveries and pickups.
- Voice will preferably be the interface for services and apps in cars over the next couple of years. Voice assistants such as Siri, Google Assistant and Alexa will assume a larger role. However, consumers generally don’t use these voice assistants while driving as they don’t use Android Auto CarPlay apps. This happens because they are still accustomed to using apps by swiping and tapping. But, over the years they will get conditioned to use their voice to interact with apps.