The cry for efficiency, precision, and innovation has never been so greatly heard. With the interconnected web of global supply chains, tangled among human labor shortages and the relentless churning of technological advancements, the logistics landscape has never looked so foreign.

As a revolutionary leap in computational power, quantum computing is a frontier technology that aims to address challenges that classical computing struggles to overcome.

This game-changing innovation is on its way to redefine logistics as we know it, equipping supply chain professionals with the tools to navigate the challenges of today and tomorrow.

But what exactly is quantum computing?

What’s in a name?

Quantum computing is a revolutionary approach to computation that taps into the unique properties of quantum mechanics —the branch of physics that investigates the behavior of particles on a microscopic level. Unlike classical computers, which process information through bits of 0 or 1, quantum computers make use of quantum bits, or “qubits”. These can exist in multiple states simultaneously, while also remaining interconnected through another quantum property known as entanglement.

In layman terms, quantum computers can perform complex calculations at speeds beyond the capabilities of classical computers. While classical computers can only address problems one step at a time, quantum computers explore countless possibilities in parallel.

This represents a significant leap forward for logistics, as calculations involving vast amounts of data, such as route optimizations, inventory management, and supply chain forecasting, have the potential to be faster and more accurate.

Routing for success

Utilizing classical computing algorithms to determine the optimal delivery routes for large fleets could take hours, or even days, just to compute. With quantum computing, the “traveling salesman problem” is solved. With quantum algorithms, this process is exponentially accelerated, resulting in reduced delivery times and fuel consumption that translate to cost savings and lower carbon emissions, bringing the industry closer to meeting its sustainability goals every day.

While this technology is still in its early stages, companies like Volkswagen have utilized quantum algorithms to optimize taxi routes in Beijing, and Mitsubishi has similarly optimized waste collection routes in Tokyo, leveraging the collaboration of artificial intelligence (AI) and quantum computing.

Balancing the scales

Quantum computing also optimizes inventory management. Stock levels must remain balanced across multiple locations to meet fluctuating demand, while costs must remain low.

TexTracer, a retail supply chain data provider, makes it possible to look at every point of a garment’s life cycle by using AI. Using a QR code, users can find out where the original material was sourced from, how far it travelled, and where it was imported from, ensuring the authenticity of products. If partnered with quantum computing, the industry can better detect counterfeit goods and maintain industry standards.

Furthermore, quantum computing can better prevent cyber attacks, tightening the overall security of supply chains.

Predicting the unpredictable

Additionally, quantum computing enables logistics companies to simulate potential scenarios based on real-time smart data pipelines. This ensures that logistics planners are equipped with actionable insights into supply chain disruptions as a result of various, unpredictable factors.

Quantum-powered profit optimization

Logistics pricing can be elastic at times, affected by multiple factors such as market demand, customer behavior, or competitor pricing strategies. This delicate balancing act can be hard to carry out at times. Still, quantum computing’s ability to process vast datasets in real-time ensures that dynamic pricing strategies can optimize revenue while staying ahead of competitor pricing.

Logistics providers can tap into quantum algorithms to adjust prices based on factors like fluctuating fuel costs, seasonal demand, and the urgency of delivery. Through transparent pricing, consumer satisfaction is assured, while logistics providers are still able to maximize profitability.

Fueling a greener future

As consumers become more environmentally conscious, the logistics industry is always working to reduce its environmental impact. By calculating the most carbon-efficient delivery routes, reducing fuel consumption and lowering emissions, while not compromising on delivery timings, unnecessary mileage is minimized while resource allocation is improved. Quantum systems can contribute directly to the reduction of greenhouse gas emissions without sacrificing performance or service quality.

Toridoll, a Japanese restaurant chain, engaged Fujitsu to develop an AI forecasting technology to optimize its energy and water consumption. By using historical data to predict customer traffic and sales patterns, they can predict how long their ovens need to run, how much water needs to be used, and when. This model, when combined with quantum computing, can lead to significant strides in energy savings for the logistics sector.

Groovenauts, a Japan-based company, has experienced a nearly 60 percent reduction in carbon emissions through its new and improved waste routes, calculated using quantum computing. The logistics sector has the potential to experience the same, maybe even on a larger scale.

Global trade 2.0: quantum solutions for cross-border efficiency

With international trade comes the consideration of international borders, and quantum computing can help in navigating the complexities of such global movements.

With its tight turnaround timings, the logistics sector is dependent on fleet reliability. Unexpected equipment failures in the warehouse or on the roads can lead to costly delays and decreased consumer satisfaction.

Quantum computing is able to solve this problem by enhancing predictive maintenance, through analyzing sensor data from vehicles and facilities that can identify potential issues before they develop into full-fledged encumbrances. Logistics companies can proactively manage fleet health while minimizing downtimes. Disruptions are avoided and maintenance schedules are optimized, ensuring the continuous flow of goods.

Warehouse wonders

Warehousing is half the battle won when it comes to supply chain management, and quantum computing poses the ultimate weapon for logistics companies to further dominate this area. It can identify optimal layouts for space utilization while minimizing worker and robot travel time, calculating variables such as storage capacities and warehousing routes. The workflow of autonomous robots is also coordinated based on real-time data and dynamically adjusted workflows, handling resources more efficiently, on top of more rapid product- transfers.

Hyper-personalization

A good logistics provider knows what consumers want, but a great one knows what you want. Personalization is a key differentiator within the logistics landscape, and quantum computing has the potential to aid this by processing vast amounts of consumer datasets to predict preferences, and tailor services accordingly.

Mastercard taps on this technology to transform the world of client-facing commerce. Similarly, these quantum-powered insights can enable logistics providers to offer customized delivery schedules and routing options, alongside customized communication preferences. These bespoke experiences meet individual customer needs to improve customer retention.

Partnering with technology-driven logistics leaders like DHL offers access to the latest advancements. Having partnered with technology company Honeywell on their breakthrough quantum computer, the System Model H1, the logistics company ensures it stays ahead of the technology game, ready to unlock new levels of operational efficiency and customer satisfaction, and guide its partners into a future built on innovation and dependability.

Quantum mechanics, with its vast potential, can empower human labor and optimize operations, providing value-added services like never before.

By aligning with partners like DHL, businesses can harness the power of quantum computing to revolutionize supply chains and stay ahead in an ever-evolving industry.