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One of the most thriving industries today is the logistics line of business. It is valued at $7.6 billion in 2017 and has slowed down to $5.2 billion in 2020 due to the COVID-19 pandemic. While some industries struggled during the global outbreak, daily essential goods and other healthcare services heavily relied on logistics companies to reach their customers despite border lockdowns and restrictions. With signs of the COVID situation slowing down gradually, the world is getting back on its feet and the logistics business is growing with a projection to reach a value of $ 12.9 billion by 2027.
Though the past year has seen its share of challenges in the logistics field, it has evolved freight forwarding companies and supply chains to digitize and increase their support for e-commerce businesses as customers change the way they purchase products. Thanks to progressing technologies, the industry looks far more advanced than it did a decade ago. Looking into 2022, more changes are forecasted to set on the horizon.
Let’s dive into which trends will be unlocked this year that can help logistics businesses grow further.
Going domestic with micro warehouses and last-mile logistics
Bridging the gap between you and your clients is likely to be a key target in 2022. This is where smaller warehouses come in as they focus more on moving inventory closer to their customers, especially in urban areas. It results in faster and efficient last-mile logistics that can cater to increasing demand for next-day or even same-day deliveries. Micro warehouses may not be suitable for fresh or climate-controlled products but for consumer goods, this is a highly recommended solution.
This also falls in line with how supply chains and warehousing units have slowly become more dependent on data and technology to operate, enhance the speed and accuracy of their processing systems. The big data used by logistics companies reduce inefficiencies and helps draw more informed decisions. Investing in data also allows logistics firms to predict trends that can affect their shipments like transportation, policies, and even forecasting the demand with more accuracy.
Adding specialized staff with freight forwarding expertise
2022 will require more people who work in the industry to utilize the latest technologies. This means that the demanded expertise will include those who possess experience in automation, AI, analyzing data, and interpreting them into solutions that can improve your business operations. Experts who are proficient in intelligent environments within the logistics industry will navigate the support system for this kind of business.
However, in many countries such as the US, expensive talents are one of the factors for staffing shortages. Hence, the offshore logistics jobs for professional service providers are rising, allowing them to achieve the same significant results for a lower cost.
Investing in automating systems to streamline processes
Automation will be the top solution for logistics companies to increase productivity in satisfying the growing demands from online retailers. Fully automated workflows should be supported by tools and solutions that rely on artificial intelligence or AI to streamline tasks and operational flows. By 2030, it is predicted that most logistics operations could be automated with AI solutions taking over simple tasks performed by your staff.
This is why as early as now, companies are investing in sustainable and efficient tools such as the Workflow and PAVE that streamline their data processes, run repetitive tasks, and enhance the accuracy and management of the system. This allows your business to focus and fulfill core developments.
2022 is giving the logistics industry a bright future and a positive outlook especially with rising trends in digital transformation. The post-pandemic economic activities have also been instrumental in fueling the growth of logistics and international shipping, making their marketing become one of the most lucrative industries to date.
At Offshore Business Processing, company clients are supported with the most effective and outstanding resources such as offshore teams of experts, to optimize their businesses further. Freight forwarding companies enjoy the advantage of working with dedicated specialists to integrate one of the latest technologies such as the Workflow and PAVE into their pre-existing systems.
To remain globally competent and efficient in this field, industry players are recommended to keep investing in their strategies in terms of business operations.
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