Quantum Computing Will Transform the Logistics Industry Within the Next Decade

In recent years, supply chain and logistics industries have faced growing challenges. From labor shortages to unpredictable weather and shifts in supply and demand due to the pandemic, logistics has become far more complex.

To tackle this complexity, a different approach is needed. Traditional methods of optimizing individual functions or the entire business no longer suffice. What businesses require now are logistics solutions that consider the entire complex system.

This is where quantum computing comes into play.

What Is Quantum Computing?

Quantum computing, a super-fast type of computing, has the potential to greatly speed up various processes. It can solve problems much faster, up to 100 million times, compared to regular computers.

However, it's important to note that quantum computers are currently expensive to make and not ready for widespread use. Still, their potential to solve real-world supply chain issues is significant. Quantum bits, or qubits, are the building blocks of quantum computers.

They can exist in multiple states simultaneously, allowing for more complex calculations, unlike traditional bits. Qubits are interconnected, similar to how various factors affect a complex supply chain. This interconnectedness is a unique feature of quantum computing.

Although there's more work to be done, many tech companies are already offering access to quantum computing features. Tech giants like Microsoft and IBM, are leaders in quantum computing development. For example, IBM delivers quantum computing solutions useful for supply chain efficiency challenges.

How Can It Benefit Logistics?

I believe that the growth and progress of quantum computing could have a substantial impact on the logistics and supply chain sectors. With improved sharing of information and collaboration among transportation providers, regulators, and customers, quantum computers have the potential to enhance operational decision-making.

This could lead to smoother service and improved results for the entire supply chain, benefiting society as a whole.

Here are the 3 most promising use cases for quantum computing.

Last-Mile Delivery

Quantum algorithms can be a game-changer in the world of last-mile delivery. By enabling global routing optimization and more frequent re-optimization, quantum computing could decrease door-to-door freight transportation costs, all while enhancing customer satisfaction.

A good example here is IBM's collaboration with a commercial vehicle manufacturer. They used a mix of regular and quantum computers to figure out the best way to deliver packages to 1,200 places in New York City, considering the need for 30-minute delivery time windows and truck capacities.

The result? They found a way to make deliveries cheaper and more efficient with quantum computing.

Contribution to Supply Chain Visibility

Supply chain visibility is crucial today, with 92% of global companies investing in it to become market leaders. Quantum computing can help in this aspect of the supply chain as well, processing vast amounts of data at incredible speeds, and enabling real-time insights and decision-making.

Quantum computing's ability to handle complex calculations and simulations makes it ideal for optimizing supply chains. It can assess multiple scenarios simultaneously, taking into account various factors and variables.

Quantum computing empowers businesses to make smarter decisions, manage risks effectively, and enhance customer satisfaction, ultimately staying ahead in the competitive market.

Disruption Management

Traditional systems for dealing with disruptions often rely on a set of rules, manual interventions, and a step-by-step process. These systems, while tried and tested, have limitations. They are usually isolated and can't provide a deep understanding of how to handle disruptions effectively.

Quantum computers can improve decision-making by running simulations of various disruption scenarios and measuring their impact on different parts of the network. Which results in quicker recovery times, cost savings, and fewer hiccups for both operations and customer service.

Moreover, quantum ML classifies and predicts disruptions, making the process even more precise.

Sustainable Maritime Routing

When it comes to planning maritime routes for sustainability, it's not a straightforward task. Large fleets, unpredictable weather, and shifts in demand make it tough to find precise solutions using regular computers.

Quantum technology can simulate and analyze many different maritime route options all at once, considering lots of factors. The tech handles the complicated math needed to make routes more sustainable, makes shipping better for the environment, and changes the whole maritime logistics system to work better.

What’s the Future of Quantum Computing?

With the ability of quantum computing to quickly run complex plans and simulations, it can make the decision-making process much more efficient and easier.

By embracing quantum techniques, we can make our current computing systems better while we await the future of logistics and supply chain optimization. I am confident that quantum computing is set to shape the future of supply chains.