Last 2 years have been difficult in supply chain and logistics. Demand for transportation has been so high that fleets are working as hard as possible. Surviving these 2 years in the realm of supply chain is a major accomplishment by many businesses.
So, let’s look at some trends that will arise in 2022 that may influence logistics journey:
1. Green logistics
The need for sustainability and movement towards eco friendly products or eco friendly methods has increased greatly in these two years. In a survey it was also found that people now prefer products that have recyclable packaging.
70% of the consumers would pay more to support greener logistics operations. Since, supply chain has the highest number of ecological footprints, this is a trend that will only get stronger with time. Now, consumers pay more attention towards brands that align with their values.
So, it has become important for a company to find a retailer that devotes more messaging to highlight their commitment towards greener and more sustainable logistics.
2. Automation
Logistics is a labor intensive industry. This industry is full of opportunities for technical innovation to introduce new efficiencies. Basically, everything in future from picking items from shelves to delivering them to customers will be automated.
Supply chain has always had machine driven automation but access to technology in supply chain is something that is trending each day and it won’t be long until everything in this process will be completely automated.
With more options than ever in the industry, logistics operations are upgrading their services and automating anything they can. It also increases the surge in the value of the warehouse robotics market.
3. Staff recruiting and retention
Shortage of drivers for logistics is a serious problem and continues to be a major challenge in 2022. Currently, the industry has a shortage of 60,000 drivers and this number is growing day by day.
Driver has the most important role in logistics and especially a qualified one considering the road conditions in the country. There are very few specialists to provide such services in the industry but the prices of these services have been increasing.
Not just drivers, in a tight labor market the same pressure is applied to any operation. This has led many retailers to discover the value of logistics partners and these retailers started focusing on retention of their workforce.
Therefore, staff recruiting and retention has become an important part of logistics operations and it will be even more crucial as the demand of staff increases.
4. Last mile delivery
Last mile delivery includes goods delivered straight from the warehouse to customers. This has become an industry standard now and that’s why it is no longer recommended, it is expected from every business. A customer wants fast delivery options and most of the customers do not order from any brand if they do not have a one day delivery option, thanks to amazon.
One day delivery options become difficult for small businesses and these businesses have to rely on third party logistics. However, in 2022 businesses may start providing last mile delivery instead of being dependent on any third party logistics because it is much cheaper than partnering with DHL or FedEx.
5. Cloud computing
Cloud based computing in the supply chain industry has been in talk since a long time. Gartner believed that by the end of 2021 almost 90% of businesses will be investing in cloud supply chain solutions. As we have entered 2022 we can say that cloud computing in the supply chain is one of the best investments.
Cloud computing allows logistics companies to facilitate scalability, reduce maintenance cost and improve reliability. Improved security and better data retention are some other benefits.
There are many other trends in supply chain management we all have to look forward to. However, they all have the same theme, technology, AI, cloud etc.
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