Untact & Digital Transformation – New normal for logistics industry

The aftermath of COVID-19 had an adverse effect on overall production, distribution, and logistics, including the suspension of supply of raw and subsidiary materials, operation of factories and logistics. Accordingly, as the untact (Korean invent for off-contact) trend spreads, the era of smart logistics, represented by systems and economies of scale, is expected to arrive faster in the logistics industry.

Experts predict that logistics warehouses will improve service and productivity at the same time through the integration of ICT (Information Communication Technology), thereby realizing a virtuous cycle of sustainable investment, and manpower-dependent delivery will turn into unmanned delivery due to rapid increase in delivery, service sophistication, manpower shortage, and aging of drivers. The components that will enable smart logistics include robots, unmanned vehicles, artificial intelligence, and IoT (Internet of Things), and the use of data according to the connection between logistics devices and objects has become a new competitive edge in the logistics industry. have.

For example, “Ocado,” a UK distribution company, is an online grocery distribution business established in 2000 and is considered one of the leading examples of distribution innovation using robots and AI. By designing a business model with differentiation through large distribution centers and delivery networks, the complex distribution process of existing hypermarkets was simplified, and by focusing on fast and accurate delivery with a system delivered directly from large distribution centers, profits were made only online without offline stores.

Source: Engineering Journal (http://www.engjournal.co.kr)

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