The logistics industry is moving faster than ever due to the constant unfolding of technological advances. The industry manages the flows of products, services and information across customers and suppliers, thus allowing the integration of supply chains; therefore, innovations in logistics can help improve efficiency and effectiveness across many sectors of the economy.
In this post we’ll take a look at the innovative trends that the logistics industry witnessed this year. From last mile deliveries to virtual market tours, and sustainable logistics to digital marketing, these technologies have influenced logistic supply chains on a large and growing scale.
Here are the Top 8 Logistics Industry Trends in 2022:
- Digitization & Automation
Digitization played a crucial role in logistics, like in every other industry, this year. We are seeing the logistics sector rapidly moving towards automation, hastened since the impact of the pandemic. Automation is reducing significant business’ costs, increasing efficiencies, and allowing the staff to focus on more productive activities.
In 2022, we also saw a rising trend towards Logistics 4.0, which, in addition to digitization and automation of logistics processes, is also based on the networking of devices and companies with one another to simplify these processes, increase efficiency, and stabilize global supply chains. A great example of Logistics Digitization is our partnership with Quikk solutions.
- Last-mile Delivery
The last leg of delivering goods from warehouses and distribution centers to end customers is referred to as last-mile delivery. The last-mile trend in logistics has been on a rise during the past years because it is cost-effective and convenient than using third-party shipping providers or courier services. For example, the last mile drone delivery industry is expected to be worth $9.8 billion by the year 2030, with retail goods delivery being its topmost use.
Logistics 9 has always been strong on on-time, last mile deliveries – for over three decades we’ve been getting products to consumers rapidly, and in the most efficient manner.
- Cloud-based Technologies
Cloud computing is facilitating the cost-effective connection of multiple partners throughout the supply chain. When businesses store all their organizational data in the cloud, teams are able to easily access required information at any time, from anywhere. When you have a multinational and digital supply chain, like we do, the efficiency achieved by cloud technologies will support your organization as you progress into a fast-paced future.
- Sustainability & Green Business
Sustainable Logistics has led to significant innovations in most industries; and in the logistics sector too, we are seeing organizations moving towards a greener future. For example, there has been a rising preference for eco-friendly packaging made out of sustainable components. Throughout 2022, Logistics 9 customers showed a tremendous interest in sourcing sustainable packaging products like takeaway boxes, cartons & cups, plates, cutlery, wraps, bags, etc. instead of ordering non-sustainable materials like plastic.
- Reverse Logistics or Circular Supply Chain Model
The circular supply chain model is an important trend in the logistics industry that makes your supply chain more sustainable using returns, repairs, reselling, replacements, and recycling. Unlike traditional models, where materials are used and then disposed of, in circular logistics, the same materials are reused and recycled in a closed loop. A familiar example of the circular model is when electronics stores offer customers extra discounts on their purchase if they return the old versions/models of the same products. These old products collected by the store are then sent back to the factories.
Allied Market Research revealed that the global reverse logistics market is projected to grow by $958.3 billion in 2028, at a CAGR of 5.6%.
- Virtual Tours
Virtual Tours is one of the prominent logistic industry trends of 2022 that supply chain leaders are leveraging to improve sales and relations with their stakeholders and clients. Thanks to 360° virtual tours, users can not only “view” a tour like they would stream a live show, but can roam the area, discover it, and engage with it in real time.
For example, with Logistics 9’s virtual market tour, you can visit the factories and markets in China (such as, the Yiwu market) and check out their products & processes — all from the comfort of your home or office. Booking one is easy too; just drop us a message on +8613676803399 or firstname.lastname@example.org and a dedicated manager will get in touch with you within 24 hours.
- Artificial Intelligence (AI)
Latest innovations in Artificial intelligence are altering logistics processes like data collection and analysis, inventory management and customer service. According to a McKinsey report, AI will create an entirely new logistics paradigm by 2030. We already see it making a huge difference in logistics from Driverless Delivery Trucks to Quality Control and Product localization & identification to BOL Documents Processing.
- Big Data & Analytics
Big Data in logistics is transforming from an “add-on” into a “must-have” feature. Data-driven decisions are the focus of attention in the volatile logistics industry, and Big Data technologies allow us to make such decisions quicker.
As supply chains generate more data, it is becoming increasingly sensible to identify accurate patterns and analyze different data types to enhance customer experience. For example, location data improves the efficiency of planning delivery routes for faster shipping and combining past sales data with predictive analytics helps in inventory forecasting, thereby preventing overstocking or understocking. The supply chain big data analytics market was valued at $3.55 billion in 2020 and it is expected to reach $9.28 billion by 2026.
Logistics 9 recognized this need head-on and started providing analytics, data extraction and digital marketing services to our clients in partnership with Quikk Solutions.
The year 2022 taught us that we must be both flexible and agile in a competitive and growing market. The logistics industry is subject to profound innovations and trends on an year-on-year basis. Therefore, it is important for companies to recognize such changes at an early stage and prepare for them strategically. Businesses and their supply chains must be agile, swift and equipped with accessible solutions to stay competitive in the current logistics market.