This year will see new global competitive pressures and e-commerce market opportunities, as well as alliances around new technologies.
Logistics plays an important role in keeping the world economy growing, but what makes logistics grow? Here's a look at some of the global logistics trends affecting supply chain management, transportation, compliance, and more. Each of these trends is independent, but together they add up to a rapidly maturing global supply chain. New technology, consumer and regulatory requirements require new ways of thinking, but they also bring profit and competitive opportunities.
Blockchain gains wider support
According to the 2018 report, blockchain is expected to increase global GDP by 5% and trade volume by 15%. It's not hard to understand that the global supply chain is already awash with a lot of data - from ships and trucks, sensors, shipping pallets, business partners and inventory management systems. Blockchain provides unprecedented visibility and security for first - and third-party information. The industry knows this, which is why the BiTA Blockchain Freight Alliance is growing.
BiTA was founded in August 2017, and its members include fedex, UPS, Penske, GE Transportation, SAP, Salesforce, JD.com, and more than 100 companies. BiTA integrates all parties in the freight and logistics industry, jointly discusses the application of blockchain in the freight industry, and develops blockchain standards for the freight industry, so as to improve the transparency and efficiency of the freight process and make the industry more advanced.
A spokesperson for BiTA partner LaneAxis, a company that combines proprietary freight and logistics technology with blockchain technology, explained why logistics technology has been consolidated around industry blockchain standards. "Third-party logistics companies have had a stranglehold on the industry for too long. Our focus is solely on using blockchain to create a direct shipper-to-carrier network, eliminating the need for freight brokers and third-party logistics that charge exorbitant rates.”
Blockchain helps implement a supply chain trend that has become increasingly common across multiple industries -- eliminating unnecessary middlemen so that a company's value can be better used in other ways.
Artificial intelligence plays an important role
Artificial intelligence (AI) is better than humans at making calculations and predicting results, according to research. Two cognitive scientists, Richard Nisbett and Lee Ross, are clear on this point when they claim: "Human judgments are not only worse than optimal regression equations, they are worse than almost all regression equations.”
There are plenty of opportunities for AI to play a role in shipping and logistics, including: more accurate prediction of customer needs, which means more lead time for dealers and shippers in transit; Lots of predictive insights into back-office functions, such as finding potential vulnerabilities in commercial contracts; Optimize transportation routes and improve "last mile" delivery efficiency to help companies save on fuel costs.
Demand for refrigerated transport soared
Shipping companies are stepping up efforts to meet the growing global demand for refrigerated shipping products, including food, beverages and pharmaceuticals, in 2020 and beyond.
Some of the reasons for this growth include changes in consumer preferences, such as a rise in demand for non-local food. In addition, globalization has greatly increased the accessibility and diversity of the transportation of perishable goods. Studies show that reefer containers will grow at a compound annual growth rate (CAGR) of 10.2% by 2025, which is faster than the growth of any other segment of the container market.
To meet the challenge, companies are expanding the number of refrigerated vans and containers, not to mention temperature-controlled warehouses. Ocean Network Express, for example, announced the addition of 6,000 new reefer containers to its fleet; Hapag-Lloyd announced the addition of 13,420 new reefer containers. As customer demand increases, other service providers will have to readjust the amount of equipment they have.
Automation makes distribution centers run more smoothly
One report forecasts a compound annual growth rate of 12.6 per cent for warehouse automation technology through 2024. One reason is that the U.S. unemployment rate is only 3.8 percent, making it harder to find and retain talent in logistics and distribution. Warehouses and distribution centers can benefit from automating key processes such as: intelligent visual inspection of machines can significantly reduce error rates, including reducing the likelihood of shipping damaged, incomplete or incorrect items to customers; Robotic autonomous guided vehicles (AGVs) can lift, transport and prepare heavy loads without human intervention, thereby reducing repetitive movement and handling injuries in warehouses; Compared with human warehouse workers, robot pickers can locate boxes and identify products more quickly and accurately.
The green initiative calls for circular supply chains
Companies around the world are paying attention to consumer demand for environmentally friendly products and processes. With research showing that products marketed as "sustainable" concepts accounted for half of the growth of the consumer packaged goods market (CPG) between 2013 and 2018, the world's supply chains are becoming circular rather than linear. For example, manufacturers are looking for ways to improve product life and simplify product recycling, repair and resale. The circular economy also affects transportation and packaging choices.
Governments around the world are taking steps to reduce waste in supply chains and promote the recovery and reuse of commonly used products. Eu member states must now recycle half of all packaging waste; In California, businesses cannot use plastic bags and must recycle 25 percent of their plastic containers. In Japan, companies must reuse all packaging materials. People may choose to see these regulations as burdensome, yet there are economic as well as environmental benefits to reusing products for longer periods of time rather than buying new ones.
