Top 3 Trends in Logistics
The logistics industry trends depend on the substantial changes driven by the implementation of the technology-driven innovations in the business process.
Fremont, CA: Logistics plays a vital role in keeping the world economy running. Automation in logistics processes is bringing out a significant increase in the productivity and efficiency in the workflow. In 2020, global pressures, opportunities in ecommerce markets, and alliances coalescing around new technologies keep logistics moving.
Here are top logistics trends that is impacting supply chain management, shipping, compliance, and more.
Blockchain achieves more widespread support
The global supply chains are already swarmed with data from ships and trucks, shipping pallets, sensors, business partners, and inventory management systems. Blockchain provides unprecedented visibility and security for this first- and third-party data. The industry is well aware of it, which is why the adoption of Blockchain is growing. Blockchain helps to achieve a supply chain trend that is becoming common throughout numerous industries, eliminating wasteful intermediaries and recover value companies that could better use elsewhere.
Research indicates that artificial intelligence (AI) is better at predicting the outcomes and making projections than an unaided human cognition. A wide amount of opportunities exists to put AI to work in shipping and logistics, such as:
• Substantial predictive insights into back-office functions, such as looking for potentially risky language in business contracts.
• More accurate predictions for customer demand mean more lead time and opportunities for distributors and shippers to engage in predictive shipping.
• Optimizing shipping routes and making last-mile delivery more efficient, helping companies save money on fuel costs.
Green initiatives call for a circular supply chain
Companies worldwide are heeding consumer demand for greener products and processes. According to research, products marketed as sustainable accounted for half of the consumer packaged goods (CPG) market between 2013 and 2018. Therefore, the world’s supply chains are becoming circular rather than linear. For example, manufacturers are looking at methods to improve product longevity and the ease with which they can recover, repair, and resell goods.
The circular economy also affects the shipping and packaging choices. Throughout the world, governments are taking steps to cut waste from the supply chains and boost recycling and reuse for commonly used products. European Union member countries must now recycle half of their packaging waste. In California, businesses cannot use plastic bags and must recycle 25 percent of their plastic containers. In Japan, companies must reuse all packaging materials.
See also: Top Supply Chain Solution Companies