By Rahul Mehra
The logistics sector has witnessed accelerated innovation and growth post-pandemic, fuelled by the urgent need for resilient supply chains. E-commerce expansion, increased demand for contactless delivery, and adoption of advanced technologies, including AI and robotics, have driven transformative changes, ensuring adaptability and efficiency in the face of global disruptions.
As one of the backbones of international trade, the logistics industry worldwide was worth over 8.4 trillion euros in 2021 and is expected to exceed 13.7 billion euros by 2027 (source – https://www.statista.com/topics/5691/logistics-industry-worldwide/?kw=&crmtag=adwords&gclid=CjwKCAiA1-6sBhAoEiwArqlGPhwxWKocdOM5VyO9DqW36EA8Vkai0LMcrM8hyjsmfmk-5BeoslE06xoCb7MQAvD_BwE#topicOverview )
With digitisation witnessing a decade’s worth of technological innovation in just a couple of months, it has become imperative to focus on inclusive innovation going forward.
CSR –
Inclusive innovation within the logistics sector is gaining momentum as businesses and governments are collaborating to address challenges and bridge technological gaps. According to a report by the World Bank on “Digital Dividends,” the rapid expansion of digital technologies presents both opportunities and challenges, with a potential for increased inequality if not managed inclusively. It emphasises the importance of ensuring that the benefits of digital technologies, particularly in logistics, reach all segments of society. (Source – https://www.worldbank.org/en/publication/wdr2016#:~:text=Digital%20dividends%E2%80%94that%20is%2C%20the,short%20and%20is%20unevenly%20distributed. )
Business Aspect –
Corporations, with their extensive reach and technological prowess, have the potential to bring life-changing benefits to millions who have been marginalised by the global economy. This collaborative effort is crucial for inclusive innovation in logistics, where corporations play a pivotal role in extending the benefits of their innovations to underserved populations.
More than ever, businesses are well-positioned to utilise their tools and expertise for inclusive innovation. This involves not only making technologies more affordable but also creating collaborative ecosystems that drive meaningful outcomes at scale. Inclusive innovation in logistics goes beyond extending the benefits of technology; it involves creating partnerships with research institutions, academia, governments, and NGOs to address the complexities of the industry. In practice, collaborative ecosystems are indispensable for developing sustainable solutions.
A study conducted by the International Transport Forum (ITF) highlights the need for inclusive innovation in the logistics sector to enhance global connectivity. The report stresses that adopting advanced technologies, such as IoT and AI, can significantly improve efficiency, but there is a risk of leaving smaller players and developing regions behind. Inclusive innovation becomes crucial to ensuring that the digital transformation in logistics benefits a broad spectrum of participants.
Holistic Industrial Growth –
Beyond fulfilling corporate social responsibility, there is a compelling business case for inclusive innovation. Building solutions for pressing global problems provides the industry with new avenues for investment and the creation of scalable platforms. Inclusive innovation and access to technology for a wider base ensures that the industry grows as a sector.
Building solutions for the most intractable problems will create a new channel for the industry to invest in and build new platforms that have scalability and effectiveness. This can be very effectively monetised for the industry as a whole and benefit all players.
Building the next generation of skilled workforce –
The Global Innovation Index 2023 underscores the role of collaborative ecosystems in fostering inclusive innovation. It emphasises the need for partnerships between businesses, research institutions, and governments to drive innovation that addresses societal challenges and prepare the next crop of workforce in the logistics sector. These collaborative efforts will be essential for developing solutions that can be beneficial for all participants in the supply chain.
Initiatives like the World Economic Forum’s New Logistics Champions project exemplify the power of collaborative innovation. The project brings together stakeholders from different sectors, including technology providers, logistics companies, and policymakers, to create inclusive solutions for global logistics challenges. Such initiatives showcase the positive outcomes that arise when diverse entities collaborate to drive innovation at scale.
Reports from the World Trade Organization (WTO) highlight the economic impact of inclusive innovation in logistics. By addressing the technology gap, smaller businesses can become more competitive in international trade. In turn, this contributes to economic growth and resilience, aligning with the WTO’s emphasis on creating an inclusive and sustainable global trading system.
Inclusive innovation in logistics is essential for addressing the challenges posed by the digital divide and ensuring that the benefits of technological advancements are shared across the entire logistics ecosystem for the industry to grow holistically.
(The author is Rahul Mehra, Co-Founder at Roadcast talks about Inclusive Innovation and Bridging the Technology Gap in Logistics, and the views expressed in this article are his own)
