3 Growing Trends in the Logistics Industry
Logistics are vital to the economy of the world. Technology has made it possible for industries to move goods across the globe with ease. Understanding what keeps logistics moving and how the trends are changing makes a difference for shippers.
In 2020, new opportunities with e-commerce markets, plenty of new technology, and pressure from all across the globe are driving the logistics industry. Let’s look at little closer at three of the growing trends found in the logistics industry right now.
Artificial Intelligence Transforming Logistics
One of the growing trends in the logistics industry is starting to take hold. Artificial Intelligence or AI has started to make more accurate predictions for customer demand and optimizes shipping routes.
AI allows those in the logistics industry to better predict where customer demand will be and when. This allows distributes and shippers to work together with something known as predictive shipping.
Another way AI is helping shape the trends of the logistics industry is through shipping routes. AI can make deliveries more efficient and help companies save more money. By optimizing shipping routes and making it easier to fulfill last-mile deliveries, the logistics industry is changing due to AI.
A Circular Supply Chain Emerges from Green Initiatives
With sustainable products making up about half the group in the consumer packaged goods industry, it’s not surprising that green initiatives are changing the logistics industry. Eco-friendly practices have started to move the global supply chain towards a circular design instead of a linear design.
For example, more manufacturers are seeking ways to make products last longer. They are also seeking products they can recover, repair, and resell.
This circular change to the economy trickles down to packaging and shipping choices. Many governments across the world are beginning to cut waste and boost recycling. This has caused the logistics industry to look at how they use and reuse products differently.
Real-Time Supply Chain Visibility
Another huge trend found in the logistics industry is the ability to see the supply chain in real-time. It used to be, if a logistics company offered supply chain visibility it was a big deal. Now, it needs to be real-time supply chain visibility.
Customers and carriers are demanding real-time data for shipments at an all-time high. With such a demand, the industry is changing as technology has allowed for shipments to be tracked in real-time.
A few other logistics industry trends currently starting to grow include:
- Blockchain gaining widespread support
- More 3PL and 5PL growth
- Integration of Smart Glasses and Drones
- Elastic Logistics
All of these trends are starting to become the norm for the logistics industry. As more new technology becomes available, companies at the forefront of the logistics industry, like ArdentX, will make their operations more sustainable and more efficient.
Logistics has changed rapidly over the years. The industry is implementing new technology all across the globe. With Artificial Intelligence, Drones, Smart Glasses, and other technological advances, logistics has become much more advanced.