Supply Chain and Logistics: Trends You Need to Watch Out For This Year
The advent of technology and digitization has given a complete makeover to the logistics and supply chain industry. In addition, changing consumer preferences and the increase in purchasing power has led to the exponential growth of e-commerce in developed and developing markets – giving rise to several advancements in logistics techniques to meet the rising […]
The advent of technology and digitization has given a complete makeover to the logistics and supply chain industry. In addition, changing consumer preferences and the increase in purchasing power has led to the exponential growth of e-commerce in developed and developing markets – giving rise to several advancements in logistics techniques to meet the rising demand. Companies implementing well-designed supply chain practices can meet consumers’ needs in a more efficient and timely manner. This also strengthens customer relationships and loyalty, which subsequently aids in the acquisition of new customers through positive word of mouth. Here’s a look at the trends that will revolutionize the logistics industry in the years to come:
Perfect order deliveries
In a nutshell, perfect order deliveries refer to the percentage of orders delivered to the right customer, the right location, at the right time, in the right package, in the proper condition, in the desired quantity, and with the correct invoice. The perfect order rate has become an important indicator in measuring supply chain performance. By minimizing imperfect orders, companies can achieve greater efficiencies and increase customer satisfaction. In the coming years, logistics companies are going to be more focused on delivering perfect orders.
Blockchain technology offers a great deal of security and transparency. It provides an impenetrable way to store and share transactional data while improving credibility with foolproof transactions. Several industrial experts predict that by 2021 large global companies will be piloting or using AI and blockchain-based automation in transactional procurement.
Elastic logistics is the opposite of a “one size fits all” solution. Elastic logistics refers to the flexibility to expand and shrink capabilities that align with the demands within the supply chain during a given period. Flexible automation solutions raise the agility and elasticity of the logistics infrastructure to meet market fluctuations cost-effectively. More number of logistics companies are expected to increase their investments in such practices as it’ll help enhance their supply chain and reduce the cost of operations.
Rising demand for data-driven logistics
In the highly dynamic logistics business, companies will continue to adopt big-data algorithms, smarter analytics, and data-visualization techniques to boost process efficiency and shorten the delivery times. A significant change we can expect to see in the coming years is that the companies are will start using geography-specific data to anticipate demand for specific products in a region and ship in advance.
Drones and smart glasses
Logistics companies are exploring ways in which they can integrate more drone services and smart-glasses into their operation. Smart glasses will make deliveries easier through hands-free route searches, facial recognition for error-free deliveries, and personalized deliveries. With the rise in drones and smart glasses adoption, the operational efficiencies of first and last mile logistics are expected to increase along with flexibility and speed of deliveries, especially in congested cities.