Logistics Trends

There is an immense transformation continuously happening in transportation and logistics industry; change is the essence, and along it brings opportunities as well as risks. The logistics industry is striving towards adopting new technology, with new market entrants, followed by new customer expectations, and new business models.

The challenges are both evolutionary and revolutionary, required to be met by the sector. However, there are few key problem areas that logistics companies really need to focus on now.

Customer expectations are enormous these days. Both businesses and individuals expect to get shipments flexibly and quickly. Consumers expect shipments at lowest delivery cost. Besides, manufacturing has become customized, which is good for customers but a challenge for the logistics industry. To add on, the sector is under tremendous strain to deliver a better service at a lower cost.

This requires intelligent use of technology, from data analytics and automation, leading to lower costs, improved efficiency, and the opportunity to make genuine breakthroughs in the way the industry works.

But again, ‘digital fitness’ is a challenge for the sector, which is currently lagging many of its customers in this respect.

Attracting the right skills and developing the right strategy are vital. On top of it customers are starting up their own logistics operations, and new methods are emerging for more lucrative elements of the value chain by exploiting digital technology or new ‘sharing’ business models, and balance sheets are not tedious. The systems are easy to manage.

The whole sector is redefining collaboration – from Uber-style approaches to the final delivery stage, to formal corporate level partnerships.

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