Amidst global disruptions, including the impact of the COVID-19 pandemic, logistics and technology played pivotal roles in stabilising the situation. Now, businesses are re-engineering their supply chains for resilience and growth. According to a report by global logistics technology company Locus, a pivotal shift in the business landscape while embracing generative AI and cloud-based technologieswill revolutionise the global logistics landscape.Global research indicates a shift in the generative AI logistics market. This is poised to surge from its current valuation of $412 million to $13,948 million by 2032, which demonstrated a CAGR of 43.5%.
How these technologies will improve logistics
Generative AI promises a transformative impact on logistics, from minimising stockouts to optimising delivery routes and risk management. Its advanced capabilities will empower logistics teams with real-time communication enhancements, powered by AI-driven chatbots and virtual assistants. This advanced technology tackles labour-intensive tasks, like report generation and forecasting, elevating productivity benchmarks for professionals in the field.
According to a recent report, the logistics and supply chain industries are expected to witness substantial growth in the adoption of AI in the years leading up to 2025, with 55% of businesses having already integrated AI. Notably, a substantial gap exists, as less than one-third employ AI across multiple functions. Addressing this, generative AI emerges as a game-changer, particularly in predicting and managing supply chain disruptions.
Generative AI’s predictive prowess offers a transformative solution, minimising human intervention and introducing unprecedented visibility. For example, in cases of route deviations, unexpected weather anomalies, or potential breaches of Service Level Agreements (SLAs), technology like a control tower application, with its 360-degree visibility, can swiftly identify these issues. This enables operational managers and on-ground teams to efficiently address and manage them. Control tower applications and real-time tracking promise a future where logistics embraces efficiency and innovation.

In the present business landscape, logistics professionals face unprecedented pressure to enhance profitability and streamline operations amid the first, mid and last-mile logistics challenges. Cloud-based solutions emerge as a transformative force, digitally revolutionising logistics. Beyond addressing inefficiencies and mitigating risks, these solutions provide businesses with advantages like speed, cost-effectiveness, control, scalability, and security, ushering in a new era of efficient and resilient logistics operations.
A report projects that within the next five years, 86% of supply chain-based companies will incorporate cloud computing into their operations. This is a substantial leap from the current 40% adoption rate, highlighting the growing recognition of cloud-based solutions’ value. Another research study predicts that the global cloud supply chain management market is set to skyrocket from $21.79 billion in 2022 to an estimated $71.93 billion by 2030, driven by a robust CAGR of 16.10%.
As the adoption of cloud-based solutions in logistics skyrockets in 2024, building an in-house solution offers the advantage of customisation and complete control over data handling and storage costs. However, it comes with significant downsides such as potential production delays, steep maintenance and upkeep costs, and lack of market expertise to facilitate upgradations.
On the contrary, investing in a cloud-based logistics solution offers scalability in infrastructure to meet increasing demand, all while remaining cost-effective by eliminating the need for hardware infrastructure. Importantly, businesses can seamlessly integrate these cloud-based solutions into their existing applications, avoiding the need for complete replacement.
Enterprises are set to significantly increase their investments in cloud-based logistics solutions in 2024 in pursuit of enhanced agility, efficiency, and cost-effectiveness, signifying a transformative revolution in reshaping the logistics industry.