Prominent Logistics Trends to watch in 2022
The last few years have seen dramatic changes in the Logistics industry and 2022 is expected to be no different. Thanks to Covid-19, global lockdowns, the growth of e-commerce stores, technological advancements and going green initiatives, Logistics companies are under heavy pressure to adapt or get left behind. In the following article we will look at the major factors expected to change the Logistics industry in 2022;
Top 6 Logistics Trends in 2022
These popular trends have already been identified as major drivers to the expected changes in the logistics industry, effectively utilizing these trends would lead to new opportunities.
Invest in your workers
From skilled drivers to warehouse managers, the logistics industry is currently experiencing a shortage of skilled workers. If you invest time and money into developing your staff not only will they stay loyal to your company but their productivity will also increase. Stay ahead of your competitors by looking after your staff and avoiding unexpected staff shortages that many others are currently experiencing.
Increase your capacity
The e-commerce industry has grown exponentially and so has the demand for last-mile deliveries. Customers are looking to personalize their deliveries and demand faster delivery times at cheaper prices. Last Mile as a Service (LMaaS) is a recent trend that is taking the logistics industry by storm and requires many companies to reevaluate their business models as they look for ways to increase their delivery capabilities and speed up the last part of the delivery journey.
Going green Initiatives
As Europe has introduced a plastic tax and Amazon has vowed to be carbon neutral by 2030 many logistics companies have had to become more environmentally aware in order to keep customers happy. As climate change and sustainability have become increasingly popular on trending lists electric vehicles, including trucks have been emerging. Although lagging behind the automotive industry is said to begin focusing on electric vehicles within the next 5 years, something all logistics companies need to be prepared for. The need for eco-friendly warehouses, biodegradable packaging, environmentally friendly electricity and minimizing carbon footprints are all necessary in order to stay ahead of competitors.
Cross-Docking becomes Popular
As the demand for cheaper delivery options grows so does cross-docking, this process cuts out the need for goods to be taken to a warehouse before being shipped. This reduces costs, improves stock turnover, shortens delivery times and minimizes the risks of damaged goods as they are handled less. Globally the cross-docking market is said to grow by 6% in the following 8 years thanks to the need for speedy delivery times.
Development of Blockchain technology and SMART warehousing
Blockchain technology is a new type of ledger which monitors all transactions within a company and has become popular in the supply chain management sector, as it prevents fraud and promotes transparency. Once a transaction has been recorded it is almost impossible to alter the data, by using this in conjunction with SMART warehousing applications and warehouse management systems the amount of people needed to monitor the entire operation minimizes and saves the company time and money in the long run. It also builds trust with customers and suppliers as their transactions are easy to view and track.
Increased demand for Locally sourced goods
Thanks to Covid-19 and lockdowns many companies were forced to look locally for the products they needed. This led to local companies expanding and numerous opportunities appearing, while the international market took a hit the local market saw significant growth. This growth resulted in increased competition for suppliers and is expected to continue to do so well into the future. Some benefits of locally sourced products are faster delivery times, fewer carbon emissions, more reliability and a chance to improve your reputation with the locals. Looking for local suppliers to partner with in 2022 will definitely benefit your company.
Those are the 6 major trends being discussed in the logistics industry for 2022. For information and to stay up to date with what is happening follow Bridgewater Logistics and the Bridgewater Group or visit our website: https://bridgewaterlogistics.co.za/