The logistics industry is a crucial player in the commercial and industrial landscape. Sure enough, the sector will reach a global value of a whopping $15 trillion by 2023, according to CIPS.org. No doubt, this increase will likely be the result of incessant innovation in supply chain management, freighting, and transportation.
Sure enough, new technologies are likely to define the success of this industry. Businesses, especially larger corporations, will have to adapt to a changing logistics landscape. No doubt, this will drive investment in this sector amid stricter supply chain requirements and a higher demand for new tools for improving efficiency.
We can identify several trends that will make an impact in the logistics sector this year and the next. Let’s take a look at the most important ones:
Supply chain automation
Think of a sector that hasn’t adopt automated technology yet. The thing is, we simply can’t because of the fact that automated logistics systems are capable of streamlining supply chain processes and thereby provide companies a better way to secure their investments. But automation can do so much more than increase productivity. When you’re dealing with an increasing volume of goods, you are bound to handle repetitive processes without losing focus of core activities.
Through supply chain automation, on the other hand, you are able to free up time for more important matters, knowing that the right tools are already working to organize all your shipment data as efficiently as possible. Indeed, through smart technology, companies like yours can keep track of the movement of goods, reduce the risk of errors, and increase your productive capacity. These will eventually result in better revenues in the long run.
Focus on Small and Medium Logistics
Technology has made it easier for people to establish a solid business. No doubt, logistics will play a key role in their successes. But considering the high costs facing small and medium enterprises today, business owners will have to look for ways to reduce their overhead costs and increase their profit margins, which is something that many third-party logistics providers want to leverage.
Clearly, providers such as FedEx are catering their shipping services to the SME sector. Sure enough, many of these providers are offering a diverse range of flexible logistics services that fit their clients’ criteria. More so, freight forwarders are making it easier for SMEs to track the movement of goods using software that allows for real-time monitoring and forecasting. Sure enough, logistics for SMEs will be a game-changer in the industry considering its wide-ranging benefits.
Space management and warehouse utilization
When it comes to managing warehouses, managers know better than to waste space. Ineffective utilization leads to a waste of resources. Fortunately, there is a wide range of solutions that allow companies to make full use of their storage facilities. This will lead to an increased workload without added encumbrances.
These trends are only the beginning. With ongoing improvements in big data and cloud computing technology, we can expect the logistics sector to offer better solutions to benefit principals, freight forwarders, carriers, SMEs, and their clients.