These trends are expected to continue to evolve in 2021, and robotics, artificial intelligence, and digital networking are some of the trends that are expected to dominate in the upcoming year.
Over the years and especially in 2020, e-commerce growth continues to grow and shows no signs of tapering off. With that, logistic companies have had to incorporate new technology and lookout for industry developments to support this boom.
Some logistic trends that have taken off in 2020 include blockchain, increasing digitization, and last-mile delivery services. Here are some of these biggest logistic trends in 2020 that you should know.
Advanced tracking systems
To meet evolving customer needs, logistic companies have had to invest in better tracking systems and advanced GPS technology to provide customers with updates on their package. For example, UPS has a “follow my delivery” feature for their My Choice customers, which offers live updates on where their package is currently at.
While tracking technology is essential in the B2C sector, it’s equally important in the B2B space. Such technology will help with maintaining an optimal level of inventory and reduce expenses related to supply storage. All successful logistic companies also need to have up to date tracking systems to remain competitive and cost-effective.
Blockchain
Blockchain has taken the logistics world by storm in 2020. There are multiple benefits of implementing blockchain, and it has had a significant impact on supply chain management. Logistic companies have used blockchain to manage global shipments that involve numerous stakeholders from the signing of contracts to payments. Implementing blockchain has also helped to eliminate human errors, delays, and lost documentation.
Other great benefits of blockchain include cost-savings as processes are more automated and error-free, along with data transparency and access. It also adds a layer of visibility and predictability to logistic operations and the potential for new logistic services and more innovative business models.
Improving last-mile delivery
Last-mile delivery services are also growing in the logistics space. It refers to a product’s journey from the warehouse’s shelf to the customer’s doorstep and is the final step of the delivery process. With customers unwilling to foot a delivery fee and logistics companies shouldering most of the cost, this is the most expensive and time-consuming part of the shipping process. Hence, companies have looked into making this process more cost-effective and efficient.
Some examples that have popped up this year include decentralized last-mile delivery services that are tied to central logistics platforms and the arrival of autonomous cars. While autonomous vehicles aren’t ready yet when they are it’ll be integrated with platform-enable solutions for last-mile delivery.
3PL
3PL allows logistic companies to outsource operational logistics from warehousing to inventory forecasting and delivery – allowing companies to focus on other parts of their business. There have been plenty of benefits reaped from 3PL services such as cost reduction and being able to manage peaks and troughs more effectively.
It also benefits the customer as 3PL services have access to a vast distribution network so they can provide fast shipping no matter the customer’s location. Having 3PL services also help with mitigating risks. When shipping delays and unforeseen circumstances happen, a 3PL will help to make alternative arrangements and fulfill the customer’s order as quickly as possible. This helps with protecting logistics companies in the event of damage or loss of goods.
Summing up
There are plenty of trends that logistics companies can implement. While it’s exciting, it also poses a challenge to companies as they would need to adapt to this new market structure. Even so, it’s vital to seize this opportunity and incorporate some of these trends as it’ll help with overcoming threats and gaining competitive advantage.
These trends are expected to continue to evolve in 2021, and robotics, artificial intelligence, and digital networking are some of the trends that are expected to dominate in the upcoming year.
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