Cloud Logistics Market Trends

Growth Drivers

• Shifting pattern in logistics & transportation management systems (TMS): The supply chain is changing rapidly and is moving toward ERP to provide control over logistics and visibility in supply chains. It offers resources and tools to all the supply chain stakeholders including suppliers, dispatchers, transportation, warehousing, finance, sales, purchasing, customer service, and executive management. An effective TMS facilitates immediate access to customer orders, helps in better decision-making, freight audits and payments, strategically managing costs, and mitigating the risks in the supply chain. The cloud-based logistics are online platforms that run on the provider’s cloud or single server and are used by multiple dispatchers.
  
  Customers gain insights into ocean LCL/FCL, air LTL/FTL, road, and railways freight rates ascribed to visibility in outbound and inbound activities in supply chains with these multi-tenant solutions. Modern technology including Radio-frequency Identification (RFID) consolidates real-time tracking of cargo and inventory and cargo. In November 2023, Seagull Scientific launched BarTender Cloud, a de facto standard for RFID label production in the warehousing, manufacturing, logistics, and retail sectors. It has eliminated the on-premise hardware and associated support costs, thereby, aiding in cost management.  
• Product innovations led by a highly competitive landscape: Transportation and logistics (T&L) is presently witnessing significant evolution owing to the penetration of new technology, market entrants, customer expectations, and new business models. The emergence of startups is exploring technologies such as platforms and crowd-sharing solutions to mitigate costly last mile of delivery. The market is fragmented with the entrance of startups and their collaboration with incumbents to diversify their service offers.
  
  The current industry leaders compete for a dominant position by strategically acquiring smaller players and achieving scale by striving to consolidate with mergers. For instance, in April 2024, Titan Cloud acquired TRUEFILL to increase fleet utilization, reduce fuel supply costs and runouts, efficient carrier management, and lower freight costs. The acquisition solidifies Titan Cloud as a prominent player in the downstream fuel cloud logistics market and integrates end-to-end real-time monitoring of supply chains. 
  
  Furthermore, in March 2022, FedEx and Microsoft collaboratively introduced a cross-platform cloud logistics solution for e-commerce. The Dynamics 365 Intelligent Order Management leverages FedEx Surround solution, Microsoft Azure technology, and AI, catering to rising global trade and e-commerce. In October 2020, e2open and Uber Freight entered into a partnership to launch an application programming interface (API) for digital freight brokerage rates and streamline TMS. Major players are innovating machine-to-machine parcel-station unloading/loading for last-mile delivery. Rampant development of autonomous vehicles and emergence of virtual freight-forwarding business model is set to support the adoption of crowd-sharing platforms during the forecast period.

Challenges

• Increased dependency on the internet: Companies relying on Internet connection for cloud logistics solutions are vulnerable to inherent risks associated with network outages and connectivity issues. Organizations may be reluctant to fully adopt cloud logistics solutions because they are concerned about the dependability and the potential negative impact of system downtime on their logistics operations and overall corporate success.
• Standardization and interoperability issues: Cloud logistics adoption is restricted due to the lack of common protocols and interoperability since logistics stakeholders use different technologies and systems. This hinders capitalization on cloud-based logistics' potential by making it difficult to unify communication and data interchange across platforms.