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Top 3 Logistic Trends for 2020

2020 is here and now it’s more appropriate than ever to study up on the most popular trends to prepare for possible new challenges within the new year.  We are currently in a highly transformative era in which experts are dubbing, “The 4th Industrial Revolution”.  Technology is advancing in an exponential rate and businesses are shifting priorities to keep up with the competition and the ever changing landscape of this industry.  In this post, we will explore the top 3 logistic trends for 2020.

#1 Sustainability and Visibility

More and more logistics companies are integrating sustainability efforts into their overall strategy.  Climate change has become a popular public concern, and everyone wants to do their part especially since the logistics industry plays a large part in greenhouse gas contributions right next to energy/power plants.  The idea of “going green” has embedded not only the minds of consumers, but political, economic, and financial leaders as well.  While green logistics is ideal, it is not an easy feat.  Not everyone has the resources to become net zero carbon which is why visibility and sustainability go together in this trend.  Logistics companies are providing more visibility in their operations so everyone—inside the company, and out—has access to information that would reveal issues that may otherwise remain hidden.  Things like empty miles, dwell time, trackability, etc. 

Related articles: The Impact of Weather and Climate on Logistics; Visibility is the Master Key to Solve Most Challenges in Logistics.

#2 Utilization of Advanced Technology

Technology has been advancing at an exponential rate.  We already have drones and self-driving semitrucks making deliveries.  Soon, everything that we can automate and digitalize will be automated and digitalized.  Robots are becoming more intelligent.  Not only can they perform simple tasks, but they now have the capabilities to learn, recognize patterns, make decisions, and adapting independently.  The developments on artificial intelligence (AI) are particularly important in the logistics industry because eventually, it’ll become and important tool for efficiency.  It will be no surprise to us when AI dramatically influences the transport industry and change the traditional processes of freight forwarding. 

Related articles: Advancement in Logistics: Technology vs Humans

#3 Managing Customer Expectations and Partnerships

With the implementation of advanced technology, many companies will be looking for ways to minimize freight costs while still being efficient in their operations.  In 2020, companies will be seeking out effective partnerships that can help reduce costs, minimize risks associated with shipping cargo, decrease delays in delivery, and enhance customer value and satisfaction.  Customer expectations will be shifting due to the advancement of technology.  Not only will customers become data-enabled but they will also be wanting to associate themselves with a business that aligns with their individual ideals.  Catch-all solutions will be obsolete, and companies would have to rely on transparency and technology to give them that competitive edge. 

Related articles: What’s the Difference Between Customer Experience and Customer Expectations?; Is Customer Experience Growing in its Importance in Differentiating Brands?

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We offer competitively low prices, end-to-end solutions, and one-on-one attention for every client– large or small. Contact us today to see how we an fulfill your logistics needs!

Visibility Is the Master Key to Solve Most Challenges in Logistics

Last week, we explored the 2019 study conducted by the Council of Supply Chain Management Professionals (CSCMP) on Supply Chain Priorities and Investments.   It concluded with an assumption that customer experience will be the top differentiator between brands over the next five years.  Whether or not you agree with this trend, the study offered simple recommendations any supply chain could adopt to improve on their customer experience.  One of them being having real-time visibility.

Traditional logistics has been challenged with the trending shift towards sustainability priorities, faster shipping, and new complexities with variability.  Nowadays, logistics experts have been crediting visibility as a master key of sorts to solving all supply chain challenges.

It is a known fact that the largest source of carbon dioxide emissions in the United States comes from the logistics industry.  Transportation has surpassed power plant emissions in 2017 for the first time since 1978.  Though the number of trucks in fleets has increased by 4.6% in the past decade, their greenhouse gas emissions have grown more than eight times the rate of lighter vehicles giving a rightful growing cause for concern. 

Now, policies that enforce sustainability are providing companies a competitive advantage whereas before, the stance may have been viewed as a corporate responsibility initiative.  It is becoming more and more of an asset to be environmentally conscious and taking the steps to achieve climate positive, or at the very least—net zero carbon.  For example, Qantas Group recently announced their goal of being net zero carbon by 2050.  Amazon earlier this year announced they want to be net zero carbon by 2040.  IKEA wants to be climate positive by 2030. 

Not every company has the means to tackle such a difficult, expensive, and timely task.  This is how visibility can be a simple solution to provide that competitive edge everyone wants.  Visibility software can assist with tracking progress on sustainability initiatives by providing information that can help reduce dwell time, improve traceability, and eliminate empty miles also known as, “deadhead”. 

Some companies may lack the actual resources to provide faster shipping to their customers making it difficult to keep up with the competition.  However, implementing a visibility software that allows customers to track their shipments as it goes through the supply chain process can still give a company the leg up on their competition.  Through visibility, customer requirements can be addressed in real-time and provide greater responsiveness to customers. 

As supply chain evolves to be more and more complex filled with variability, visibility can assist in many ways.  Overall, visibility can provide transparency and reveal supply chain blind spots that would otherwise remain unnoticed like more efficient ways to manage stock.  It makes monitoring business metrics and outcomes much easier. It allows anyone, including the customer, to instantly access vital information. 

Don’t forget to sign up for our e-newsletter so you can get the best of our blog on a monthly basis straight to your inbox!.

We offer competitively low prices, end-to-end solutions, and one-on-one attention for every client– large or small. Contact us today to see how we can fulfill your logistic needs!