Global logistics spending set to soar to $10.6trn by 2020

Global logistics spending is expected to reach $10.6trn in 2020, with transportation accounting for the majority at 70%, according to a new report. Research by Frost & Sullivan predicts that technologies such as cloud computing, big data, and crowdsourcing, coupled with an influx of tech-savvy start-ups, are unbundling the value chain and transforming delivery models. About two-fifths of the overall logistics costs are associated with the last mile that are forcing providers to come up with newer innovative solutions to deliver packages within cities. Frost & Sullivan predicts the market will rapidly move toward mobile freight brokerage-type, on-demand deliveries and autonomous technology, such as the use of drones and delivery bots which are set to solve the last mile delivery challenge by being more cost-effective to end users with lesser regulatory mandates.