In logistics industries, the market trends are affecting the sector to a great degree. The Logistics companies must stay advertised into new and emerging trends to remain at the top edge and remain competitive with others. From new technologies to explore and take advantage to shift regulations that require new techniques and tactics to ensure compliance, Companies that succeed are the ones who embrace a combination of the latest trends and utilize them in a way that capitalizes on traditional and established technologies.
Logistics industry trends require that clients have options when it comes to delivery, from last-mile services to same day and next day delivery and it’s up to providers to make sure that customers have those very delivery options. As e-commerce restarts to extend further epic balances, many companies notice quite a bit of possibility in integrated 3PL services. Businesses are catching this by fetching in serious assets in trucking and adding freight brokerage capabilities and warehouse facilities to deliver deep integration into customers’ systems. As consumers advance through their use of modern technology, logistics companies are adopting logistics automation trends by utilizing API integrations to secure e-commerce stores with a fulfilment centre in addition to traditional EDI. Because supply chains have so many various channels and modify so quickly to meet consumer demand, fulfilment practices must evolve along with it to cope with COVID-19 and any other supply chain disruption that may arise.
Omni-channel fulfilment is an increasing reality in the logistics industry, one that is being spurred on by a shifting approach to meeting customer expectations in the retail industry. According to the Harvard Business Review, the Amazon effect is driving traditional retailers to offer more omnichannel touchpoints to increase customer loyalty. The goal is to provide a seamless and easy way to shop, regardless of whether it’s conducted digitally or in-store. In this context, successful logistics companies are those that have evolved to offer more creative approaches to shipping to navigate growing omnichannel complexities within the supply chain. A simplified look at possible omnichannel fulfilment and return order flow directly to (and from) the end customer are described below
E-commerce and omnichannel trends, the last-mile evolution of shipping methods has increased the complexity of the supply chain. And further, no longer is one-way logistics enough to compete.
UPS may be the biggest success story for big data in the logistics industry. Through data collection, analysis, and demand forecasting, the company has made massive strides in operational efficiencies and cost savings. Some 80,000 vehicles each have more than 200 onboard sensors that measure speed, braking, backing up, location, and idling time. Some of the sensors collect diagnostic data on the vehicle battery and tire pressure, allowing for preemptive maintenance. The goal is to maximize the time a vehicle is on the road versus in the shop. Further, big-data-driven predictive modelling is the basis for massive gains in route optimization. Because of the proliferation of GPS and location sensors, along with real-time traffic updates, companies now are able to optimize delivery windows regardless of construction, parades, accidents, and the like. Companies utilizing big data technology, create systems to allow them to change their route in real-time. This is done for a couple of reasons. The first, of course, is to minimize fuel consumption. UPS has leveraged big data to reduce fuel usage by an estimated 1.5 million gallons in 2012, greatly reducing the environmental impact and increasing operating margins through efficiency gains. Another big data outcome related to route optimization is to decrease mileage. The level of savings that companies in terms of mileage, impact the wear and tear on vehicles. UPS further specializes in inefficiency in an unusual way. According to their CEO, UPS “trucks never turn left.” When a route optimization specialist maps out the optimal path, they provide right-turn-only directions to drivers. It’s an innovative solution built on decreasing the amount of time a vehicle spends at red lights, and it works. While some forward-thinking companies are starting to invest in greener technology as well as big data initiatives. Many supply chain companies are coming up with new techniques that parallel the outcome of route optimization through a mastery of inventory logistics management, optimizing shipments for efficiency.
Logistics companies are also utilizing embedded technology to better connect with their customers. They recognize that they need a data movement platform to seamlessly share data reliably back-and-forth between their customers. Embedded integration capabilities provide SaaS companies in the logistics space to offer value-added services related to logistics and supply chain data. This is a true encapsulation of digital transformation as more traditional logistics enterprises are evolving to data-centric services companies. Organizations are taking advantage of modern services and solutions to take in data, process it, and provide insight to customers. The ability to be more dynamic than ever before by providing fast and critical information to and from customers is central to a business's success. An embedded data platform provides secure communications protocol flexibility that enables robust transactional business flows. You need to be able to connect, transform, and integrate data through capabilities that are already built into the solution. Customers want to know everything, and information is of the utmost importance. Service-level agreements (SLA) must also be met, and companies are taking advantage of embedded software with business-level dashboard views and 24/7 monitoring to extend visibility throughout the process to ensure compliance with tough SLAs.