Insights and trends in logistics sector for 2022
Even though we all realize that logistics sector is one of the sectors whose influence and importance grew more than ever, for those who are planning to work in this sector there are some interesting changes which are worth attention to know about in order to be able to prepare for these changes and survive in today’s competitive business world
Eco-conscious consumers and greener solutions
With the growing understanding about global warming, sustainable development and the way each person’s decision affect our planet daily, more and more people are turning to eco-friendly every day solutions which now includes logistic solutions as well.
According to Polish logistics’ leader Omnipack, it is expected that logistic companies who are seen and known as the companies offering greener solutions will grow their popularity as 70% of consumers are ready to pay more in order to support greener transportation solutions.
The continued rise of automation
Logistics is a labor-intensive industry, a growing industry and full of opportunities for technical innovation to introduce new efficiencies. In other words, it is absolutely ripe for the further automation of any number of processes. From picking items off shelves to door delivery and everything in between, the coming year will see even more advances in automated services.
As any contact work nowadays is very sensitive in terms of workforce, with the logistic sector already facing employee shortage, the need for automated solutions is increasing to guarantee uninterrupted supply and avoid any problems. Global retail companies, such as Amazon, have already taken it a step further with the incorporation of robotics into delivery services and with current variety of automated solutions for business, automated logistics processes and robotic machinery are expected to be No. 1 aspiration for logistic companies.
More cross-border logistics
eCommerce has shrunk the map of the world and sending across national borders has become much less of an obstacle than it used to be. Reaching new consumers in new markets is as easy as setting up a website in that market’s language.
This trend has resulted in an even greater importance of logistics partners, who are now being called on to service more markets just as quickly as their domestic customers. Physical location, access to transport networks, optimized systems for processing returns — all this and more are now on the checklist of every online store looking for a fulfillment service to support international expansion.
Staff recruiting and retention
Driver shortage is a serious issue in supply chain management and will continue to be a challenge in 2022. Currently, the industry is facing a shortage of more than 60,000 drivers and the number is steadily growing. Not only are there not enough specialists to provide the required services, but rising prices caused by global inflation prevent supply chain companies from investing in more trucks.
With that being said, it is more than likely that recruitment services demand in logistics sector will continue to grow and outsourcing, being a great way to prevent shortage of employees will become top personnel service in logistics.
Last mile delivery
Last mile delivery implies to delivery when the good are delivered directly from the warehouse to the end customer, avoiding any trafficking or delivery issues in the process and involving as few parties as possible in the delivery process. Recently, last mile has become the industry standard, which is why it is no longer “recommended” - it is expected. Customers demand fast, accurate and cheap (if not free) delivery and failing to provide it is a major handicap in the market.
As for many companies’ pandemic resulted in decreased income, avoiding third party service such as DHL or FedEx also helps in cutting the costs for the companies. International delivery brands are foreseen to loose their popularity while local delivery services has now a chance to shine bright by offering services to the local companies.
Growing demand for cloud-services and AI
Some of artificial intelligence services are already successfully implemented in the logistics sector and is expected to continue to grow, for example, automated customer service in social media and company webpage which helps to reduce workflow and systemize answers right away.
Meanwhile as more and more companies are jumping to online service and internet shops, safe data and ability to store files becomes high importance service to have, especially considering the fact of increased cases of cyber attacks worldwide.
We hope that no matter if you are a manager, driver, planned to work in logistics sector or already work there, hope that these insight were useful understanding main changes and will help in your career path in logistics!