Logistics and transportations are the fundamental drivers of any nations' economy. Apart from supporting several jobs and productivity within their industry, the industry enables other sectors such as the retail and manufacturing sectors to produce and distribute supplies and products within the country and across the world creating prosperity through exports (Rose, Ralston, & Autry, 2020). The evolution of transport and logistics has been growing exponentially. This is due to the high speed with which technology modifies the world around us, as well as the increased demand regarding the quality of service that customers demand. Although it is always difficult to make future forecasts, we can foresee that the evolution of transport in the coming decades will be marked by an even greater increase in the digitization of processes, as well as by their greater efficiency in all their aspects.

Technological innovation in transport and logistics has made supply process faster, safer, with better consumption, more comfortable, able to reach anywhere and with greater capacity to reach many people. All of this contributes unquestionably to the economic growth of companies and governments and even to individual well-being, which also translates into greater profits for companies and governments through taxes (Prentice & Russell, 2009). Efficient transport and logistics significantly increases consumption and consequently economic stability, and also generate more money directly or indirectly from taxes, something that, unequivocally improves the economy.

Various in transportation and logistics and their economic implications

Technological advancement evolves with time, and therefore the supply and chain sector must always be prepared for changes brought about by innovations. Major unpredictable transformations are emerging due to technological advances on the logistics and transportations industry creating tech of everything, and these advances are evident in many ways. The following are some of the technologies in transportation and logistics & their potential implications to the economy: 

1. Digital supply chains

Logistics has experienced incredible changes over the past decades, from production to warehouse and end-user as a result of digital transformations. Industry 4.0 forms a huge impact in the industry as much as it reduces the rate of employment, it allows for significant penetration and hence huge influence on the economy. Amazon is a clear example of the potential offered by the use of technology in logistics, as it is strengthening its market share and investing in specific computing tools for the mobile phone. Digitalization enables the firm to address the customer’s new requirement, expectation inefficiency improvement as well as challenges on the side of supply. Thus, reduction in price points and minimal working hours for workers within the economy while the level of consumption is kept constant.

1. E-commerce 

The development of e-commerce, the most basic economic transactions constant changes impacts the way firms manages their supply chain. Electronic has changed the technology, practice and timing of business-to-consumer (B2C) and business-to-business (B2B) commerce. This transformation has changed the pattern in transportation, product availability, pricing and behaviour of the customer on the developed worldwide economy. Growth in the in ecommerce industry signifies economic as it stimulates circulation of money in many ways.

1. warehouse robotics

For the benefit of the business, many companies are investing in robotic technology. Warehouse robotic can cut expenditures such as the packaging cost and increasing efficiency of the company’s productivity. Therefore, the logistics sector can transform resources into goods, theoretically improving the efficiency of productivity. The increased productivity can effectively raise the standard living through reduction of financial investment in the daily monetary requirement, making businesses profitable and consumers wealthier, which in turn boosts the country's economy. 

1. Digital twins

Logistics firms can create digital twins and use different test scenarios to increase the efficiency of the firm. The innovation of digital twins’ possible use can be enormous. For instance, digital twins can be used in shipment sector to collect products, package data and use the obtained information in identify the likely weakness and make a decision to improve development in the future (Rose, Ralston, & Autry, 2020). The digital twin innovation drives business by offering a powerful way of monitoring and controlling processes and assets. Regarding economic development, business partners must develop a business model for the benefits against maintenance and development costs. Reduction is logistics cost allow manufacturing companies to produce more and meet the demands of many and thus stimulating the economy.

1. Advanced analytics and Standard data.

Following recent years, logistics has always been storing data manually in different ways and different places, which in turn created a scrappy network. As a result of technological advancement, the logistics industry will no longer be storing data manually. The Digital Container Shipment Association (DCSA) initiated in 2019 has made it possible for standard data creation in the shipping container.  Therefore, with DCSA creating digitalization for information technology, the shipping industry is becoming more efficient for both shipping lines and customers. Data value is getting more evident as we continue approach towards a digitalized information-driven economy where data equates to money. Thus, data helps in the process of decision making, enabling the company to monitor and evaluate its progress and policies, and provides a company with precise economic performance.

1. Logistics start-ups from enterprises and Venture Capital investment.

Venture capital has become one of the best innovative logistics technologies through investing in the logistics start-ups. Therefore, following this part, several companies have spent a lot of capital on innovative start-ups new developed technologies. Through this, companies in the supply chain can obtain best world force capabilities when driving (R&D) through their partners, and giants like UPS will benefit sealing partnership raising the economic growth which also generates tax revenue for the government. In turn, permits the government to invest more on infrastructure and social services. 

1. Applications, social networks and sharing economy

The great penetration of smartphones in society in recent years has transformed users into hyperconnected entities, which are increasingly demanding with information.  This degree of connectivity is also an opportunity in the transport industry to promote and offer products and services, whether through applications, social networks or personalized and geo-segmented ads. In the heat of these technical developments, the large amount of information available and the advances in IOT, new business models have emerged to satisfy user demand, based on collecting and / or offering all this information. But without a doubt the most relevant aspect of the application of the use of this granularity of information is if you doubt the different models of sharing economy that, as it could not be otherwise, have also been adapted to the transport and logistics sector (Ocicka & Wieteska, 2017). This is how new concepts such as Car as a Service, carsharing or crowdparking and companies specialized in this type of services such as Uber or Glovo emerge. This are opportunities that stimulate the economy in the positive way.

Conclusion

While technological advancement in the logistic sector has been massively evolving in areas such as advanced analytics, venture capital investment, automation augmented and artificial intelligence, digital supply chain and other logistics innovations. There has been a rapid growth in these technologies with start-ups innovations and newer solutions steadily rising at a higher rate. Logistic industry is likely to adopt or to fall out following the latest standards and expectations that come along with technological advances. According to Karia (2020), most increases in the standard of living have not resulted from more working hours, either from using more capital nor other resources but from increased productivity. In turn, higher productivity comes from emerging technologies and innovations in the production and distribution sector, leading to growth in the economy.

References

Karia, N. (2020). Green Logistics Practices and Sustainable Business Model. In Handbook of Research on the Applications of International Transportation and Logistics for World Trade (pp. 354-366). IGI Global. 

Rose, W. J., Ralston, P. M., & Autry, C. W. (2020). Urbaneness and Its Implications for Logistics Strategy: A Revised Perspective. Transportation Journal, 59(2), 165-199.

 Prentice, B. E., & Russell, S. (2009). Competing technologies and economic opportunities for northern logistics: The airship solution.

Ocicka, B., & Wieteska, G. (2017). Sharing economy in logistics and supply chain management. LogForum, 13(2).