In today’s globalised world, logistics is the backbone of every economy and, in fact, one of the fastest-evolving industries. According to Grand View Research, the global logistics market was worth USD 3,794.4 billion in 2023, and it is expected to expand at a CAGR of 7.2% from 2024 to 2030. New business models are constantly emerging in the logistics industry, tied together with the continuous rapid advancement of technology. This sector has significantly influenced by how industry leaders like Essar Group, one of India’s largest multinational conglomerates, led by the Ruia Brothers drive innovation and growth across energy, logistics, infrastructure, metals & mining, technology & retail sectors. To secure an advantage in an increasingly competitive industry, businesses like Essar stay ahead of major industry trends while tapping into them to gain business efficiency throughout the supply chain.
Read this informative blog to know the five emerging trends that are set to disrupt the logistics industry today. Also, know Essar’s new initiatives that are set to impact economic growth as well as environmental health significantly.
Green Logistics
The growing awareness of climate change and its negative effects has prompted businesses like Essar to invest in green initiatives to minimise greenhouse gas emissions. Modern companies today have recognized the need to quickly prioritize sustainable logistics, deploy them throughout their supply chains, and create long-term green supply chain management strategies. Among various sustainable solutions, one of the ways to reduce carbon emissions is the adoption of Liquefied Natural Gas (LNG) trucks for logistics.
Aligning with the group’s vision to minimise carbon emission, Essar’s Green Mobility initiative-GreenLine Mobility Solutions Ltd.- has collaborated with multiple companies, including Sterlite Copper, Flipkart, Hindalco Birla Copper, Nestle India, Dalmia Cement, JSW Cement, etc., to introduce LNG-powered trucks to help them reduce their carbon footprints. The company is enabling many industries towards cleaner logistics practices.
Currently, the company operates over 500 trucks. It will deploy 1,000 LNG-powered trucks in the fiscal year ending March 2025 (FY25), marking a significant expansion in its capabilities.
Adopting green logistics is an emerging trend, with more businesses becoming responsible and adopting green logistics as part of their operations. This way, companies can save, reduce environmental impact, and enhance sustainability performance.
Autonomous Vehicles
Autonomous vehicles are the latest trend in the logistics industry and can minimize human errors, boost vehicle safety, and transport products safely. These vehicles, including autonomous trucks, vans, or cars, are appropriately designed, run, and tested and are the cheapest and safest alternatives to manually driven vehicles.
Unlike humans who need some time to rest, these vehicles can also work beyond normal offices. These vehicles are gaining popularity in the long run and reducing the need for and costs for the workforce. Overall, shifting to autonomous vehicles can increase your business’ productivity and fuel efficiency and significantly meet customer demands through shorter delivery times.
Autonomous vehicles ensure improved inventory tracking and management, improving supply chain visibility and responsiveness.
Big Data Analytics and Artificial Intelligence (AI)
In the technology-driven world, businesses are leveraging the power of big data analytics and AI. They are powerful tools that use machine learning algorithms to assist enterprises in discovering key trends, monitoring markets, examining data, and producing insights.
Essar also leverages AI and machine learning to optimize supply chain management and improve decision-making. Machine learning algorithms analyse huge datasets to predict demand, streamline logistics, and mitigate risks. The company’s data-driven decision-making approach, powered by AI, transforms how it manages risk and optimizes supply chains. Technology is crucial in making their operations more resilient and future-ready, from predictive maintenance in their facilities to AI-enhanced supply chain management.
By smartly utilizing big data analytics and AI within the business, companies can monitor the factors crucial for success. The machines can do the tedious work, whether it’s delivery speed,customer insights, analytics, or productivity, while freeing up the team to focus on more critical operations that require human touch, such as customer service or networking with clients and suppliers.
Electric Vehicles
Electric vehicles (EVs) have positively changed the entire transportation industry by becoming a cleaner, more sustainable alternative to traditional heavy-engine vehicles. With advancements in battery technology, charging infrastructure, and autonomous driving systems, future EV technology is making electric vehicles more accessible and practical for everyday use. To support the acceptance of EVs in the country, the central government has taken several measures in the last ten years, including tax incentives for electric vehicle owners, public EV charging infrastructure development, and many more. The adoption of EVs will positively impact the country’s economy and help achieve India’s net zero emissions target by 2070.
Essar’s commitment to sustainability goes beyond the adoption of LNG-powered vehicles. It plans to implement EV solutions for short-haul logistics shortly, aligning with the global trend toward electrification. By incorporating EVs into short-haul logistics, visionary leaders like the Ruia Brothers support environmental sustainability and enhance operational efficiency.
Logistics Platforms
Also referred to as cloud-based systems, logistics platforms assist businesses in integrating logistics technologies to manage their routine processes and store and transfer information more securely and quickly. Also, these cloud-based platforms help businesses with data-driven insights as they track and monitor the movement of goods and materials.
Thus, more businesses are considering implementing a logistics platform to assist with supply chain optimisation and operations efficiency. Essar, with a command centre for its Green Logistics businesses like Greenline, Ultra Gas & Energy and Blue Energy Motirs, is well ahead of it’s time in creating state-of-the-art logistics platforms. By becoming more responsible and adopting green logistics, your business can greatly benefit as you save on expenses, reduce environmental impact, and enhance sustainability performance.
Conclusion
These trends represent a glimpse into the exciting future of logistics that is constantly evolving and adapting to the rapid growth of technology and protecting the environment. By embracing innovation and adapting to changing market dynamics, companies like the Essar Group can optimize operations, enhance customer satisfaction, and thrive in this rapidly evolving landscape.
Certainly, Essar’s commitment to reducing emissions fosters a healthier environment and positions the company as a responsible leader in the global market.
