The global logistics industry has risen with energy and courage to face the challenges of the pandemic. And now the transition needs to continue to match as well as meet the needs of the market.
The president of a large logistics company recently said that in the three months of the third quarter of 2020, his business has grown in efficiency by three years. The shipment volume forecast for 2026 is likely to be reached in 2023 and the same is true for logistics providers worldwide.
1. Logistics industry – Changes working configuration
In the early stages of the pandemic, the business-to-business logistics market almost came to a standstill. The effects are profound when supply chains are severely disrupted and new regulations are quickly introduced. Now, as the journey to recovery begins, some companies are looking to diversify and reposition their supply chains closer to countries like Mexico, for example as an alternative to China. with American companies.
Meanwhile, the business-to-consumer market has exploded as social distancing moves people to use the Internet more to make purchases. And it’s not just the increased workload; More orders are placed with consumers who order in the biggest monthly online discount shopping campaigns. In response, logistics companies had to fast-track their growth and development strategies, rapidly expand their workflow to seven days a week, and make significant investments in e-commerce, human resources, and investments. machinery to meet demand promptly.
2. Logistics Industry – Optimizing every aspect of operations
However, while operations are expanding, deliveries to the customer side of the market tend to be less productive; because drivers and subcontractors are usually paid per shipment. As a result, the delivery pressure is even more intense for companies to find solutions to improve delivery density while still ensuring cost effectiveness.
Actually in the context of the Logistics industry, all types of companies need to optimize their operations – with technology data being important enablers. Gaining greater supply chain visibility is key, by collecting and sharing data to track packages in real time from origin to final destination. This data can come from logistics companies’ operations and planning systems, from sensors in warehouses, on pallets in transit, and from telematics in trucks and ships.
3. Logistics industry – Using data from sensors
Logistics companies have become efficient at informing customers of exact arrival times and delivery arrangements. Much more can be done to optimize routes using data. To get an accurate view of order status and location at every stage, logistics companies can anticipate any disruptions when external data sources are integrated (e.g. on traffic or weather), routes may be changed in real time
Serving the pharmaceutical market, for example, companies can use sensors to monitor the temperature of packages in real time; if it changes beyond a certain condition, alerts can be sent and corrective actions taken, resulting in less waste, lower costs and more on-time delivery.
The dramatic drop in sensor technology costs is creating a boom in these intelligent data usage and supply chain technologies. When this kind of big data is overlaid with powerful analytics and machine learning, companies can use it to monitor, optimize, and predict their operations. They can precisely track and adjust the movement of goods to maximize efficiency and even simulate complex supply networks; and they can share information and work more closely with customers and other partners.
4. Logistics Industry – Transportation Process
Logistics providers have stepped up to the challenge of making deliveries safer for employees and customers. Last-mile contact-restricted distribution solutions are critical to the impact of the epidemic in this industry. Last mile typically accounts for about 30% of the cost, optimizing that factor is on the way up – especially as retailers increasingly position products to reduce long hauls and increase last mile volumes.
While the use of drones to make deliveries is beginning to emerge, they are subject to local laws and regulations but adoption is still relatively slow. In contrast, the use of smart locker solutions for safe, convenient, contactless pickup is increasing dramatically.
5. Logistics Industry – A Safe and Sustainable Future
More broadly, safety and sustainability are important business drivers for the logistics industry – especially in light of the urgent environmental challenges. Leading logistics companies are using connected technologies to collect and share data in real time to help drivers reduce fuel consumption and drive safely.
What is clear is that there are big changes in people’s buying habits related to home delivery. On the other hand, Logistics service providers will need to optimize and automate as much as possible and collaborate with other processes to operate in a safe, efficient and superior manner. And as the world adjusts to a new normal, the safe and efficient movement of goods is central to the economic recovery.