5 Innovative Logistics Startup Trends Changing The Industry

With the rise of ecommerce and online sales, the logistics industry has experienced waves of disruption. Logistics businesses are growing by providing services and partnering with enterprise clients. These large companies need to deliver products at lower costs than ever before. Material sourcing, distribution management and shipping contribute to the high costs of delivery. On top of that, customers expect to have their products faster too.

In response, many startups are introducing new ways to lower the costs to deliver supplies and products. With more options available, enterprise companies are investing in e-commerce services and delivery partners to gain an edge over the competition. Here are some of the major logistic startup trends that are impacting the industry at large.

1. Warehouse automation

Warehouse management is a major cost in the supply chain. The labor and administration required to operate the warehouse can cut into company margins. Innovative startups have created new warehouse automation tools to lower these costs. These startups provide systems and robots to complete routine warehouse tasks.

In more complex setups, the robots can perform complex tasks such as retrieving items and packing shipments. Companies are willing to make the upfront investment in technology to lower their ongoing payroll costs. Consequently, warehouse automation startups are growing at a disruptive pace.

2. Agile business processes

Agile consulting startups are helping enterprise clients adopt an e-commerce focus. While many retail giants were brick and mortar stores first, they are now changing business models to keep up with the competition. Agile implementations allow companies to turn around order faster, keep inventory levels stocked and delivery shipments in record time.

According to McKinsey, these services lead to higher service levels and lower inventory costs. Logistic startups that specialize in agile business processes are in a unique position for growth. They are providing agile implementations that change traditional retail companies into dynamic omnichannel sellers. Of course, agile business logistics leads to highly efficient ecommerce companies with competitive sales.

3. Autonomous transportation

In addition to changes in the truck booking industry, autonomous transportation startups are re-inventing the trucking industry. Currently, there is a massive shortage of truck drivers due to the high fatality rate and modest wages. This drives up the costs of transporting goods and services.

These startups are setting up their own private highways where self-driving trucks are already running. In the US, driver-less trucks are running on over 650 miles of road way in Texas and California. When this innovative transportation solution will take time to increase routes available, it could dramatically lower the cost to transport products by truck. On top of that, it could increase the safety of driving with less truck drivers on major highways.

4. Package consolidation services

Many international companies have to pay shipping, taxes and customs charges for importing goods. These costs are draining on small and large businesses. In response, startups like BluePostal are providing package consolidation services. This gives businesses a free address in the US where they can ship multiple items.

Then, the service consolidates the packages and ships directly to the international business. This innovative approach to international shipping saves companies millions of dollars each year. Moreover, it streamlines the logistics operations for working with international suppliers.

5. Online shipment marketplaces

Startups are creating new online marketplaces to decrease supply chain costs. For example, you can find ocean freight marketplaces to get multiple quotes quickly. This gives enterprise companies the opportunity to receive transparent pricing. A company could easily get pricing on various services including freight forwarding on less-than-container loads or full-container loads.

This service is compared to other large tech platforms that provide online pricing options. On a large shipment, the cost savings could add up to millions of dollars. Additionally, it simplifies the procurement of shipment services. These types of logistical startups can charge to access the service, eventually becoming an essential shipment service for large corporations.

These logistic startup trends are changing the supply chain industry. For many e-commerce and online businesses, we can expect to see fully automated warehouses in the future. Next, we will continue to see agile business implementation for companies that need to pivot their company. Autonomous vehicles are in their early stages.

However, fortune 100 companies are investing in these startups with confidence. Meanwhile, package consolidation startups are lowering costs and increasing productivity for international businesses. Online platforms are providing companies full pricing transparency and options for ocean shipments too. These startups are all making a significant impact on the logistics industry overall.