Tag: logistics industry

IR23

Top Logistics Trends for 2019 That Category Managers Need to Know | SpendEdge

Companies in the logistics industry are facing unprecedented changes with automation and the internet of things coming to the fore. Such technologies are not only enabling greater and more collaborative operating models but they’re also re-shaping the logistics trends in ways that are only just beginning to become apparent.

The value of logistics, at present, has also grown significantly with the rise of e-commerce. And with the change in consumers’ expectations and new technologies, logistics trends are now more dynamic than ever before. Companies can no longer go about standard operations without improving the efficacy of their organizations.

At SpendEdge, we understand that companies nowadays cannot excel without adopting the latest logistics trends. Therefore, in this blog, our team of experts has highlighted four key logistics trends that are crucial for companies to survive in the global logistics market.

Want to know how following logistics trends can help you address rising customer expectations? Get in touch with our experts today!

What are the latest logistics trends?

Automation

Automation is one of those decisive logistics trends that allows firms in the logistics industry to offer better services and save money at the same time. Automated solutions are being implemented by the best in class companies and processes such as automated loading and unloading are already available.

Warehouse management

The demand for faster deliveries by consumers has increased substantially, especially after the introduction of Amazon Prime. Customers want their products to be delivered within 48 hours of ordering. This is making it vital for companies to localize warehousing construction and improve warehouse management as having two or three major distribution centers can no longer ensure faster delivery of products. With effective warehouse management, companies can successfully address customer demands.

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Shipper-3PL Relationships

As the demand for third-party logistics (3PL) is growing day by day, companies in the logistics industry are facing the dire need to improve shipper-3PL relationships. They need to consider logistics providers as strategic partners of the company to meet customer expectations. Moreover, logistics companies need to follow logistics market trends and start offering services such as invoice auditing and automated freight classification to compete with bigwigs of the industry.

Internet of Things (IoT)

Internet of things is one such technology that is majorly impacting the logistics trends. Placing an IoT device on containers and shipments enables companies to avail supply chain insights in real-time and provide their customers with accurate updates. Furthermore, the internet of things can help track weather conditions such as temperature and humidity of the air and prevent goods from spoiling.

Ever thought how these logistics trends are impacting your organization. Request a free demo and know from our experts now!

 

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Why E Commerce Companies Need to Invest More in Reverse Logistics

What is reverse logistics?

Reverse logistics in ecommerce refers to the return process involved wherein the goods are moved from their point of consumption back to their point of origin. Two key reasons for using reverse logistics in e commerce could be either for disposal or for recapturing value. Making the purchase as well as the return process easy and hassle-free plays an integral part in ensuring customer satisfaction. This consequently results in repeat purchases and loyal customers. To ensure this, several companies are now even hiring third-parties to handle their reverse logistics processes.

Benefits of reverse logistics in e commerce

When it comes to an e commerce business, placing the order is one part of the customer’s encounter with the company and order fulfillment is the other. Online shoppers often don’t shy away from returning products that don’t meet their expectations and making them jump through hoops in order to get their money back on a dissatisfying sale is a great way for e commerce companies to lose their business forever. Here are some of the key benefits of reverse logistics in e commerce:Contact US

Customer retention

In the modern world, having a functional and efficient logistics system is imperative to thrive in the e commerce market. A major drawback of e commerce business is the lack of tangibility of products, and customers often tend to bank on the pictures/videos displayed on the e commerce site. Once the product reaches the customer it might not match the customer’s expectations. One of the key benefits of reverse logistics is that customers would choose the company that offers them the safety net of being able to return products without too much of a fuss.

procurement risks

Leveraging Supply Market Intelligence to Develop a Future Proofed Sustainability Strategy for a Break Bulk Cargo Shipping Company

Engagement Overview:

The client, a pioneer in offering break bulk cargo shipping services, wanted to offer its customer a value proposition on sustainability that could not be matched by their peers operating in the logistics industry. To do so, the client was focusing on achieving breakthrough value by leveraging supply market intelligence.

To identify and focus on the development of a sustainability strategy, the logistics industry client approached SpendEdge to help them leverage it’s strong expertise in market intelligence to address challenges arising due to their inability to study the supply market. This engagement entailed the use of a detailed quantitative analysis of various categories within the supply chain to develop and future-proof the best strategy.

About the Client:request proposal

One of the world’s largest cargo shipping company, offering break bulk cargo shipping services.

Business Challenge:

The logistics industry is a volatile one due to which new challenges emerge every year. Confronting such immense transformations pose several challenges for players in this industry. Such market disruptions have different implications for individual organizations based on the segment in which they operate.

This engagement deals with the challenges faced by the client operating in the break bulk cargo shipping segment. The ongoing market trends and developments were adversely affecting the client’s growth as a result of which they wanted to devise a strategy to ensure continued profitability.

Moreover, the dynamic nature of the logistics industry along with the changing customer demands posed several new challenges, which accelerated the need for leveraging market intelligence in devising sustainable supply chain strategies. Therefore, to overcome such challenges and devise a best-in-class sourcing strategy, the break bulk cargo shipping services provider wanted to leverage market intelligence across their global supply network.


How did SpendEdge Help the Client?

Our supply market intelligence experts collaborated with the break bulk cargo services client to develop a comprehensive sustainability approach that responds to the long-term market trends while supporting their corporate strategies. The development process can be categorized into the following three phases:

  • Step 1: Internal analysis of the supply market

The initial step revolved around the analysis of supply market data to better understand the market scenario. This involved extensive interviews with market leaders to analyze their business objectives and the business models adopted by them. By doing so, the client was able to classify their strengths and weaknesses and identify key drivers for sustainable performance.request proposal

  • Step 2: External review to better understand the dynamism in the supply market

Conducting an external review of the market is a pre-requisite to any supply market intelligence assessment. A detailed market review helped the break bulk cargo client to gain a clear understanding of the factors affecting market growth. Also, with the help of such detailed market inputs, the client was able to comprehend the near-term changes in the business environment.

  • Step 3: A strategic three-step supply market intelligence-based approach to develop a sustainable strategy to drive business growth

The developed approach helped raise the bar for sustainability in the industry. The scrupulous three-step approach also enabled the break bulk cargo shipping company to effectively implement sustainability practices in their business operations. It also allowed the client to fine-tune their procurement strategies to meet future goals and objectives. This, in turn, led to an increase in profit margins, enhancements in market share, and improvements in ROI.


Key questions answered in this supply market intelligence engagement include:

Market Intelligence

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Benefits of the Engagement:

With the help of SpendEdge’s supply market intelligence solution, the break bulk cargo shipping services provider develop a comprehensive direction for sustainability which helped them reap positive results. The developed approach turned out to be a top differentiator in the company’s performance. Our experts worked as an extension of the break bulk cargo firm to identify the success factors that uncovered several future sustainability opportunities within the logistics industry.

Why is supply market intelligence important for logistics industry players?

As digitization takes the forefront and customer expectation evolve, the logistics industry is expected to face unprecedented challenges. Collaborative business models and advanced sourcing strategies are constantly re-shaping the market landscape in ways that are only beginning to become ostensible. New market entrants in the form of start-ups and market expansions by existing players are also shaking up the global market.

Market Intelligence’ is, therefore, the need of the hour, making it essential for logistics industry players to possess the right intelligence at the right time. Hence, leading companies are now approaching SpendEdge to leverage its expertise in supply market intelligence and flourish in a hyper-competitive environment.


Our Findings:

This supply market intelligence engagement points out the fact that market intelligence is an essential success factor, which empowers organizations to keep abreast of the ongoing market disruptions to achieve long-term strategic business goals. Also, the strategic use of market intelligence paves the way for organizations to confront the ever-increasing procurement challenges.

Besides, it is quite evident from this engagement that effective use of market intelligence will eventually help you achieve the set goals. If your organization is on the lookout for an objective way to drive sustainability, we’re here to help. Wait no more! Go ahead and get in touch with our supply market intelligence experts to develop custom configured engagement models and procurement research deliverables.

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Industry Best Practices Benchmarking Engagement: Uncovering Major Opportunities for Improvement for a Logistics Service Provider

Engagement Overview:

A leading logistics service provider wanted to emphasize on the measurement of key performance metrics. To identify and focus on key performance metrics in several areas – customer satisfaction, technology investments, and other similar performance indicators, the logistics industry client approached SpendEdge to devise a comprehensive approach that would help them identify and benchmark the industry best practices. A detailed quantitative analysis of various categories within the supply chain was request proposal carried out to identify and benchmark the industry best practices to be followed.

About the Client:

A multinational company offering logistics services. The client is a leading player in the logistics industry specializing in offering non-pareil and technology-enabled solutions to the most complex SCM needs.

Business Challenge:

The logistics industry client was facing challenges in reconfiguring supply chain operations to meet the dynamic needs of their customers.


How did SpendEdge Help the Client?

  • Step 1: Determined and analyzed the right global operating model in the logistics industry

The initial step involved the assessment of logistics models to determine the global model based on the client’s operations. It included the identification and classification of in-house logistics operations from the ones that required outsourcing. Leading logistics organizations now prefer the internal 4PL business model to effectively manage the service needs across various business categories.

  • Step 2: Identification and alignment of KPI’s

The continuous monitoring of market performance led to the identification of key performance metrics and industry best practices. It also helped in aligning the payment terms with the KPI’s.

  • Step 3: Devised a three-step approach to continuously analyze and monitor the logistics network design

The scrupulous approach helped in the constant monitoring of the logistics network, lane structures, capacity requirements, and capacity requirements. It also enabled the logistics industry firm to scrutinize their technology investments and drive profits.


Key questions answered in this industry best practices benchmarking engagement include:

Industry Best Practices


Benefits of the Engagement:

The industry best practices engagement helped the logistics service provider to identify the key performance metrics and fine-tune their logistics strategy to boost savings. Our industry best practices experts worked as an extension of the firm to identify the success factors that uncovered major opportunities for improving their services.

Why incorporate industry best practices benchmarking?

To withstand the growing competitive pressure, players in the logistics industry must adopt better strategies and deliver better results at a comparatively lesser cost.  To do so, companies employ strategic planning as apart of their organizational processes to identify the core business value and employ strategies to best achieve them.

Industry best practices benchmarking has become an integral part of operational improvements and strategic planning. Identifying and benchmarking industry best practices help companies to bridge gaps and improve performance using quantitative and qualitative information collected from various industry-specific resources.

Our Findings:

Benchmarking industry best practices will enable organizations to increase competitiveness and enhance value from a customer’s perspective. If your organization is on the lookout for an objective way to enhance market growth, industry best practices benchmarking is the ideal approach to identify alternative and feasible ways to enhance performance.

Moreover, industry best practices benchmarking is an instrumental technique for enhancing business value and acts as a powerful vehicle for overturning the inertia that often sets in when businesses become inward-looking and cloistered.


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Cargo Services Market Intelligence Engagement: Offering Tips for Portfolio Analysis

Engagement Overview:

The client wanted to enhance service efficiency and delivery capabilities across their supply network. To proactively address the challenges in achieving their objective, the cargo services provider approached SpendEdge to conduct a detailed portfolio analysis. Our experts developed a three-step methodology that helped the client to drive business value. 

The category market intelligence engagement helped the cargo services provider to gain detailed insights into information related to the market, cost, supply, and demand. Moreover, portfolio analysis that was conducted as a part of the category market intelligence engagement enabled the client to focus on core services that have a higher probability to establish value-addedrequest proposal and long-term relationships with clients.

About the Client:

The client is a leading player in the cargo services industry.

Business Challenge:

The cargo services provider was facing difficulties in improving their portfolio management capabilities.


How did SpendEdge Help the Client:

  • Step 1: Diversification of business strategies

Identification of factors that led to significant losses led to the development of more appropriate and new business strategies.

  • Step 2: Reprofiling the business strategies

Reprofiling business strategies helped in shifting focus to core services that ranked in the top tier of the industry.

  • Step 3: Clearing the long-tail in professional services

Additional tougher decisions regarding service offering enhancements required the cargo services firm to focus on driving profitability by developing win-win agreements with key clients who possess a sustainable infrastructure.


Key questions answered in this category market intelligence study include:

Cargo Services


Benefits of the Engagement:

Our category market intelligence solution assisted the cargo services firm to gather and analyze specific information relevant to the organization’s supply market. It also enabled them to optimize decisions by leveraging market facts and data pertaining to different categories.

Why incorporate category market intelligence?

In today’s competitive business scenario, the need for world-class procurement is more pressing than ever. This is mainly due to the rise in market volatility along with growing economic pressures that are forcing organizations to do more with less. However, devising a top-notch procurement model with the necessary market intelligence capabilities for support poses a major challenge even for the most resourceful organizations.

Our Findings:

Considering the fast pace at which markets are developing, it’s extremely important for an organization to explore the plethora of available resources available to categorize demand and develop solutions to meet specific requirements. Moreover, supercharging the category market intelligence capabilities of your organization enhances your strategic sourcing capabilities and offers detailed insights that are required to drive business value.


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Contract logistics

Category Market Intelligence: How SpendEdge Helped a Contract Logistics Services Provider Streamline their Supply Chain Operations

Overview of the Logistics Industry

The logistics industry is confronting immense change owing to the presence of digital transformation, changing customer expectations, and evolving business models. With the relentless growth in the competition, companies are planning to invest highly in product innovation and expansion facilities to strengthen their foothold in the market. Contract logistics at large involves the process of handling activities such as designing and planning supply chains, facilities, and warehousing to improve the supply chain efficiency. Moreover, the growing convenience of online shopping is compelling businesses to outsource their logistics activities.

Some of the factors that may curtail the growth of the contract logistics space include:

  • Rising fuel costs: Today, prominent contract logistics service providers are witnessing a fluctuation in the fuel prices. Higher fuel prices will have an adverse effect on the transportation as it escalates the surcharges added to freight rates. Even in the midst of the fluctuations, prominent contract logistics will face the need to ensure consistency in their product offerings while meeting the quality requirements.
  • Improving customer service: The consumers of today are informed and are demanding transparency in their supply chain activities. To keep pace with the customer demands, contract logistics providers need to improve their technical capabilities and streamline their supply chain operations to stay relevant and offer more reliable services to the customers. In addition, contract logistics service providers need to meet the regulatory compliance to reduce the time-to-market for the products.

To address such challenges and adequately gain relevant insights into the market, leading contract logistics service providers are augmenting the need for a category market intelligence solution. Request a free proposal to access our service portfolio of category market intelligence solutions.

The Business Challenge and Our Journey

The client, a renowned contract logistics service provider, wanted to understand the market landscape in terms of the drivers and the potential challenges in the market. With the help of a category market intelligence solution, the contract logistics service provider needed to analyze the supply and the commodity price trends and understand the supplier pricing and the cost structure to deliver the products to the target audience. The primary objective of the client was to assess the technology landscape and streamline their technical capabilities to improve the supply chain efficiency.

To analyze the latest developments in the contract logistics services space, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the market. Through category-specific websites, trade journals, and specialized publications, the experts also compiled information needed to eradicate supply chain risks.

The category market intelligence solution offered by SpendEdge assisted the contract logistics service provider to devise a robust SWOT analysis to identify the key risks in the logistics industry. Moreover, the solution also offered relative insights into the procurement best practices that can help the contract logistics service provider to improve supply chain efficiency and ultimately reduce excess inventory costs.

Want to gain better understanding of market dynamics, drivers, and niches?

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Fundamental Questions Answered to the Contract Logistics Service Provider :

RW

For detailed insights on solutions offered, request for more information. 

The Results

The engagement offered insightful ways for the contract logistics service provider to gain information on the market dynamics in terms of the raw materials and the indirect spend involved in the supply chain process. The solution further assisted the client gain early warnings of any potential problems and mitigate robust supply chain risks.

To know more about our category market intelligence solutions, get in touch with our experts now!

IR21

SpendEdge’s Supply Chain Risk Analysis Solution Helps a Renowned Third Party Logistics Provider to Mitigate Potential Risks

Overview of the Third Party Logistics Market

Today, companies in the third party logistics market are facing immense challenges when it comes to managing their inventory, reducing capital expenditure, and mitigating risks. With the growing preference for outsourcing business functions, companies in the third party logistics market are facing the need to optimize their supply chain activities to meet the increasing shipping demands. The growth of the industry can also be marked by the availability of industry-logistics services and the emergence of big data. Moreover, the issues related to logistics costs have increased the focus on supply chain visibility and security. Although the third party logistics space is witnessing considerable growth, several factors may curtail the growth of the industry. They include:

  • Meeting suppliers’ specific requirements: Prominent 3PL companies are facing the dire need to meet the specific needs of suppliers, especially in terms of packaging, on-time delivery, and customer service. Moreover, third party logistics providers should also ensure that they keep track of all the shipments to provide better visibility into the services.
  • Increasing emphasis on rules and regulations: Since most third party companies aid in the transportation of goods to different regions, companies should abide by the set of laws and regulations for that specific location to continue their activities in a hassle-free manner. Moreover, prominent logistics providers should also meet the compliance requirements to ensure smooth functioning of the supply chain.

To address such challenges and identify relative risks in the logistics industry, businesses are utilizing supply chain risk management solutions. In the third party logistics space, a supply chain risk management solution will help businesses identify, monitor, detect, and mitigate threats to ensure supply chain continuity and profitability.request free proposal

The Business Challenge and Our Journey

The client, a renowned third party logistics provider, wanted to identify the potential threats in terms of cost volatility, material shortages, and supplier financial issues, and ensure continuity in the supply chain process. With the help of our supply chain risk management solution, the third party logistics provider wanted to collect, analyze, and manage supplier information and leverage the use of advanced technologies to automate early detection. Moreover, the third party logistics provider needed to focus on their marketing efforts to reduce production cycles and maximize the ROI.

To identify, analyze, and manage risks, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the third party logistics space. The experts also compiled information from reliable sources such as paid industry databases, trade shows, and company presentations to generate valuable insights into the supply chain process.

The supply chain risk analysis solution offered by SpendEdge helped the third party logistics provider understand the structure and the current state of the supply chain. The engagement assisted the client in analyzing the trends and forecasts in the supply chain and the effect of potential risks on the overall supply chain efficiency.

Fundamental questions answered in this supply chain risk analysis include:

Sp- supply chain01


The Results

The supply chain risk management solution offered adequate insights into the typical risks associated with the supply chain and the impact of these risks on the overall business efficiency. The third party logistics provider was able to reduce lead times, increase operational efficiency, and ultimately improve their overall ROI.

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Supplier Risk Analysis Assists a Prominent Transportation Services Provider Reduce the Risk of Supplier Failures

Overview of the Transportation Services Industry

The transportation services industry encompasses several sub-sectors including subways, municipal buses, goods transport systems, and other similar modes of transport. Just like the other peer industries, the leading players operating in the transportation services sector are looking at expanding their business units to establish their presence in the market. The transportation services sector is a capital-intensive one, and the demand for these services is further driven by the macroeconomic trends in global exports and imports.

Here are a few factors that may curtail the growth of the transportation services industry:

  • Economic factors: Transportation projects may have an adverse impact on the community’s economic development objectives including employment, business activity, property values, productivity, and investments. The main aim of such projects revolves around improving the overall accessibility while reducing transportation costs. Hence, it becomes necessary to consider both the positive and negative impacts of economic factors.
  • Community impacts: These include the impact of a transportation project on adjacent communities beyond specific factors that adversely affect the direct users of transportation facilities. It is also referred to as ‘social impacts’ and includes changes in walking environments, views, noise, and land use mix and community cohesion. Also, community impacts serve as a significant decision factor when transportation services providers are weighing both the adverse and distributional effects of proposed projects.

To counter these challenges and identify the potential risks in the supply chain, organizations are opting for supplier risk analysis solutions. Supplier risk analysis solutions help businesses to identify, monitor, detect, and mitigate threats to maintain supply chain continuity and profitability.request free proposal

The Business Challenge and Our Journey:

The client, a well-known player in the transportation services industry, was looking at leveraging supply chain risk management solutions to enhance the quality of the supply-chain and maintain productivity standards while mitigating risks and cutting down costs. With the help of industry best practices, the client wanted to collect, analyze, and manage supplier information efficiently. The primary objective of the transportation services provider was to gain actionable insights into the current industry trends and manipulate data, compliance, and risks across their global supply chains. They were also looking at implementing robust supply chain management solutions to reduce supplier failure rates.

To identify challenges in the supply chain activities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the transportation services sector. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

The supply chain risk management solutions offered by SpendEdge assisted the transportation services provider in identifying and collaborating with the right suppliers to bring about a positive impact on their overall business performance. Our solutions helped them in profiling the suppliers based on the typical risks associated with each. Moreover, the client was successful in reducing the cost of maintaining supplier data, which improved the overall supply chain efficiency.

Fundamental questions answered in this supply chain risk management solution include:

Sp- transportation services

The Results:

SpendEdge’s supply chain risk management solutions offered relevant insights into the compliance and regulatory issues in the transportation services industry. The client was able to identify and collaborate with selected suppliers based on the associated risks to improve the overall supply chain efficiency.


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Supplier Chain Risk Management Helps a Prominent Ecommerce Logistics Provider Improve the Business Efficiency by 13%

Overview of the Logistics Industry

Over the last couple of years, logistics has become an integral component of ecommerce businesses as it plays a pivotal role in planning, controlling, and maintaining the flow of products from the source to the final destination. The growing popularity of cross-border ecommerce logistics and the relentless growth of the ecommerce industry will contribute to the growth of the logistics sector. Moreover, with the rise in trading activities, businesses are finding new ways to optimize their logistics process and gain better visibility into the supply chain activities.

Some of the factors that may curtail the growth of ecommerce logistics space include:

  • Maintaining transparency: With the growing demand for authenticity and reliability in the product offerings, leading organizations are facing challenges when it comes to maintaining transparency in the supply chain activities. Moreover, organizations should also ensure better visibility to keep track of the movement of goods from the source to the destination. The alternating preferences of the consumers towards convenience and agility are compelling businesses to maintain transparency in their product offerings.
  • Increasing efficiency: The presence of numerous competitors has brought in a considerable number of choices for the consumers. Therefore, to retain customer loyalty, it becomes essential for businesses in the ecommerce logistics space to curtail the time taken to deliver the products while maintaining the quality of the products offered.

To counter these challenges and identify the potential risks in the supply chain, organizations are opting for a supply chain risk management solution. Supply chain risk management helps businesses to identify, monitor, detect, and mitigate threats to maintain supply chain continuity and profitability.request free proposal

The Business Challenge and Our Journey

The client, a renowned ecommerce logistics provider, wanted to identify disruptions in the supply chain activities in terms of cost volatility, material shortages, supplier financial issues, and failures. With the help of industry best practices, the client wanted to collect, analyze, and manage supplier information efficiently. The primary objective of the client was to gain relative insights into the potential financial issues and automate the detection process to prevent any supply chain disruptions.

To identify challenges in the supply chain activities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the ecommerce logistics space. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

The supply chain risk management solution offered by SpendEdge assisted the ecommerce logistics client to understand the typical risks associated with the suppliers and its impact on the business performance. Moreover, the client was able to identify the mitigation strategies to curtail such risks. The supply chain risk assessment solution also helped the ecommerce logistics client to gain an accurate understanding of the current supply chain and accordingly restructure their financial resources to improve their business efficiency.

Fundamental questions answered in this supply chain risk management solution include:

Sp- supplier chain risk management


The Results

SpendEdge engagement offered deep-dive insights into the compliance and regulatory issues in the ecommerce logistics space. The client was able to profile the macro and micro-economic risks and further reduce the potential risks associated with the supply chain.

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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 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:SE_Demo2

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

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

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.


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