Collaboration and innovation drive the future of transportation in supply chains

Assessing what the future of transportation will look like has been a popular topic of discussion for several years, and 2025 will be no different. Whether it is automation, electrification or alternative fuels, the ideal path forward has never been a certainty — though that is not to say the options available are not viable.

However, to move forward with anything new, there must be a collaborative effort from everyone involved, which Vijay Cherukuru and Dr. Yanfeng Ouyang underscored during the NextGen Supply Chain Conference in Chicago this past October.

During a presentation on the future of transportation and logistics in relation to the movement of goods, Ouyang, a professor at the University of Illinois Urbana-Champaign, said collaboration between communities and urban planners is essential if the necessary infrastructure is to be incorporated.

“In some cities, there are new planning codes requiring developments to accommodate new technologies, such as infrastructure for drone deliveries,” he said.

Ouyang said cities play a crucial role in adopting new technologies, particularly those related to electric and autonomous vehicles, adding that governments and urban planners are becoming key partners in shaping the future infrastructure needed to accommodate these innovations.

Urban infrastructure also plays a role in the efficiency of freight delivery. How cities redesign their infrastructure — such as curb management and accessibility — will help spur the rise in autonomous vehicle delivery systems.

“The design of curbs and parking for delivery vehicles will change as autonomous systems become more prevalent,” said Ouyang. “Autonomous vehicles will likely reduce the need for traditional parking spaces, allowing for more development in central areas. It’s crucial to work closely with local governments in defining standards and policies to ensure that both community needs and business goals are met.”

Ouyang said it’s important to engage with government on infrastructure projects, but that requires a strategic approach: understanding the local government’s priorities, aligning community interests with business goals and considering challenges and regulations.

Integrating new technologies can also be challenging when it comes to public acceptance, especially with autonomous vehicles. Not only are there concerns surrounding driverless vehicles, but these kinds of technologies and the infrastructure they require impact how people live and the way businesses operate.

Warehouse operations and delivery schedules are also affected by the integration of autonomous and electric vehicles. Cherukuru, director of product for Walmart, said companies must make adjustments to accommodate new technologies, particularly around weight distribution and operational software.

“As new technologies are implemented, delivery operations must be adjusted to handle changes in weight distribution and scheduling,” he said. “Software and human factors need to evolve to support new operational models, and companies must ensure the stability of their supply chains.”

Cherukuru added that although alternatives like hydrogen and electric — including battery-swapping — have promise, barriers remain that hinder widespread adoption.

“Battery swapping is an interesting technology, but it faces challenges around standardization and inventory management,” he said. “Swapping batteries may introduce risks to operational safety and could be logistically complicated, especially with the large size of truck batteries.”

Despite the challenges, both Cherukuru and Ouyang see the future of the logistics industry heading toward electric and autonomous vehicles.

“We envision a future where electric vehicles have longer ranges,” said Ouyang, “and the cost difference between electric and traditional vehicles is negligible.”