The global logistics industry has had to evolve very quickly with the rise of e-commerce and digital literacy. Global supply chains aim at being faster, smarter and more customer-centric today. To achieve this, they are investing in logistics service providers that can best cater to the demands of customers. This will lead to the global logistics market registering a CAGR of about 7% by the end of 2022, according to an article by Technavio.
Trends Transforming the Global Logistics Industry in 2019
1. Proliferation of 3PL and 5PL
More than 90% Fortune 100 companies and over 85% of the Fortune 500 companies used third-party logistics services in 2015, according to an article by Key Software Systems. The rapid increase of 3PL services contributed the most to the global logistics market share. This trend is expected to continue in 2019, helping carriers benefit from faster courier dispatch, reduced delivery time, tracking and planning. The fifth party logistics providers link e-business to achieve lesser cost targets.
2. Last Mile Delivery Management
This is one of the most crucial aspects of standing apart from the competitors. The same-day delivery market is growing exponentially, keeping pace with the rising customer expectations. This change is most prominent in the pharmaceuticals and food and beverage industries. Ultimate customer satisfaction is achieved only through on-time delivery.
3. The Upsurge of Green Logistics
Companies all across the world are looking forward to implementing sustainable development goals for their businesses. This means decreasing the environmental impact of transportation and supply chains. The result of this move would be strong company reputation, the loyalty of customers, reduction in costs and product innovations, all of which are great for both businesses and the consumer.
4. Increase in Direct-To-Consumer (DTC) Shipment
This has enabled manufacturers to sell their products directly to their customers through online stores. This helps them close the gaps between the supply chain and the consumer on various platforms. Retailers no longer need to ensure inventories and storage space. And, for the consumer, it means better prices and easier shopping experiences.
5. Drones and Smart Glasses
The way forward for logistics is through smart technology. These tools help increase the speed of delivery while affording better flexibility. This makes last-mile delivery more efficient in both urban and rural areas. Hands-free route searches and face recognition ensure error-free delivery. Artificial Intelligence-powered smart glasses also help increase operational efficiency.
Supply chains are welcoming these trends in open logistics network to not only meet the expectations of their customers but to also position themselves better in the market, according to an article by Mixmove.