Join us and celebrate National Logistics Day - June 28, 2024

Logistics have evolved significantly over the past couple of centuries. Initially described as a military activity that coordinates the movement of people and goods, the concept of logistics has evolved to become an everyday part of life for commerce and consumers.

The importance of modern logistics

Many aspects of logistics aren’t obvious to the general public, so it’s often perceived as a simple movement of goods between two points. On closer inspection, logistics includes inventory management, warehousing, distribution, order fulfillment, transportation, and the coordination of multiple resources. When you peek behind the curtain, the complexity and importance of logistics becomes clear.

People who live in advanced economies get easier access to a myriad of important goods and creature comforts because of modern logistics. Advanced medicine, high-quality cuisine, the latest technology, and fast fashion are all enabled by sophisticated supply chain networks supported by logistics.

What are the origins of logistics?

Ancient trade routes, such as the Silk Road, could be considered some of the earliest examples of logistics that support business activity between individuals and groups of people. Logistics have also supported militaries for thousands of years, such as the conquests of Alexander the Great and Hannibal.

The modern definition of logistics started in the mid-19^th century, when the English term was popularized in the writing of a Swiss military officer. This early definition described “the art of well-ordering the functionings of an army”, including a plan, a schedule, and a means of communication that helps to ensure a timely arrival at a specific destination.

Logistics have now expanded to encompass a global supply chain economy that efficiently moves a wide range of goods across the Earth. If you order sushi on a delivery app, both the screen in your smartphone and the salmon in your sashimi are easily available because of complex logistics.

What’s driving the future of logistics?

Logistics constantly evolves towards driving greater efficiency and providing more value for supply chains, businesses, and organizations. Since the industrial revolution, technology has been the primary factor that propels the future of logistics. Mass production, assembly lines, and the steam engine coincided with the explosion of logistics activities.

Over the next half-decade, it appears that automation, AI, digitization, and sustainability will determine the future of logistics.

Four key innovations for the future of logistics

1. Automation

Automation, including software and robotics, will be applied to nearly all aspects of logistics to help reduce human error and improve overall efficiency. Automation can help to streamline order processing, picking and packing, delivery, and decision-making.

2. Artificial intelligence (AI)

Logistics is in the midst of the AI revolution. AI can analyze a vast amount of available information, leading to improvements in route optimization, demand forecasting, and risk management. The first set of AI-driven vehicles are currently on the road, with the expectation of large fleets of vehicles coordinated by advanced AI trained on massive amounts of data.

3. Sustainability

As climate change and environmental issues continue to unfold, the logistics industry will be expected to embrace policies that outline sustainable business practices. Reducing carbon emissions is an important goal of sustainable logistics. Electric vehicles, energy-efficient warehousing, and route optimization are examples of sustainable initiatives.

4. Blockchain transactions

The blockchain is much more than cryptocurrency. Digital blockchains offer a transparent, secure, and traceable method to track materials, parts, labour, and goods through the supply chain. This technology can help to reduce fraud, improve data accuracy, and promote greater trust among multiple stakeholders across the supply chain.

The value of advanced logistics and freight forwarding 

National Logistics Day 2024 is a great opportunity to consider the importance of logistics for businesses and consumers. Everyone from importers to online shoppers benefit greatly from the rapid advances in logistics processes and technology over the last couple of centuries. The ability to quickly and efficiently move all types of goods around the world has created immense value.

At Cole, we’re proud to have been freight forwarders for more than a half-century. Freight forwarders are at the frontlines of today’s global supply chain and logistics challenges. Connect with a seasoned professional who can guide you through all the steps of your shipment’s journey.

Freight forwarding. It's what we do.