Now, moving into 2020, companies must keep up with increasing customer expectations to ensure their presence in the market. These expectations are impacting every part of the supply chain in the complex business environment. At the same time, improving logistics and supply chain management has become equally important to make supply chains faster, more customer-centric, and sustainable. The range of new technologies such as AI, machine learning and blockchain are disrupting the supply chain management process and it can be challenging for companies to enhance processes. Here are the top trends that are anticipated to impact the logistics and supply chain management during 2020.
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Trends Impacting Logistics and Supply Chain Management
Logistics and supply chain management trends #1: New technologies go mainstream in 2020
In the last few years, technology has enhanced significantly. Companies have numerous technologies available on hand. With the arrival of 5G, firms can expect immense opportunities as it will seamlessly connect a massive number of embedded sensors. Companies will require data management capabilities to mine the data and derive actionable insights. Artificial intelligence will be extensively used in every industry and predictive modeling will become even more accurate. This will allow businesses to apply technologies in more effective ways and create value for customers.
Logistics and supply chain management trends #2: Inventory positioning becomes paramount
Consumers now have a plethora of options to get the products they want at the earliest. This has increased their expectations and forced e-commerce companies to maintain the right items in stocks to meet two-day or one -day orders. Also, it has made them realize the importance of inventory positioning. According to our experts, the new decade can see the rise in the number of micro-fulfillment centers in different industries.
Logistics and supply chain management trends #3: Gender diversity at the portfolio level
This decade will witness a steep rise in women entering the supply chain. One-third of the new associates will be women. Researches have shown a clear link between increased gender diversity and return on investments (ROI). The higher a company’s gender composition, the better it performs in average relative returns. Overall, companies demonstrating a commitment to corporate gender diversity are expected to outperform against the cumulative performance of major North American companies.
Logistics and supply chain management trends #4: Dropshipping will increase manifold
The rising e-commerce and direct-to-consumer growth will impact the supply chain operations significantly. Companies and wholesalers will start dropshipping and disintermediate their retail partners. The trend will accelerate due to its ability to improve profit margins and create direct customer relationships. It will empower logistics service providers as they will obtain business from retailers looking to outsource direct-to-consumer fulfillment.
Inability to adopt new age methods in the business will make it difficult for retailers to ensure their presence in the market. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to devise effective logistics and supply chain management strategies.
Logistics and supply chain management trends #5: Reverse logistics will become prominent
Companies who are facing difficulties in reverse logistics management must gear up to ensure their presence in the market and have a robust reverse logistics process. Consumers will make more impulse buys as social media sites make it easier to buy products directly through in-platform selling tools. Such impulse shoppers will end-up returning their purchases to retailers.