The logistics industry went through significant changes in the past few years. So now, looking forward, what should users expect about this industry?
When we think of trends, we typically think of something temporary. However, the trends that have come about within the logistics industry due to the pressing need for innovation and change have seemingly left their mark on the industry for the long term.
An industry that moves fast needs to adapt to what’s happening in the world continually, and technology is more and more required to find success.
In this article, we’ll go over:
- The shift of logistics in the past years
- Five trends in the industry that will cover most of 2022
- The importance of technology for this industry
The Big Shift
It only took a few decades for an ancient industry to shift focus. Since the beginning of time, the logistics of armies, letters, and packages have been important. But what used to be a matter of manning and organization changed to technology-oriented.
In the past few years, with the hit of Covid and the world turning towards tech improvements, we’ve seen this industry take a giant leap towards what should be expected in the future.
As users, we’re able to buy almost anything without moving from our houses, we can send important documents, and sign contracts, and so much more from the comfort of our homes.
Yes, most changes within the industry are here to stay. But what should we pay more attention to when deciding where to invest in tech regarding logistics –well, keep reading.
Trends Coming Strong in 2022
1. Integrated Technology
It is unthinkable to think of logistics and not match the concept to technology. The integration of both industries has been strong for years now, and moving forward, tech will be the base where the whole logistics, supply chain, and e-commerce stands by.
In the last two years alone, demand took over the supply, with more people ordering online and more eCommerce businesses appearing. As a result, we faced a historical backlog of deliveries and fulfillment requests.
To tackle these challenges, companies that had yet to integrate tech began to pivot and implement technology systems and strategies to address the needs of their customers.
These systems range from DMPs, communication integration, 3PLs, scheduling, and more. These systems are being implemented and applied to nearly every aspect of the logistics process.
Looking back, we can state that the companies that quickly adapted to the pandemic in the past will be the ones that have the back to quickly change behavior in the future and adapt to whatever’s coming.
Logistics companies worldwide are becoming more tech-driven as the need for faster service and great customer satisfaction is in high demand. This trend will continue to be at the forefront of the evolution of logistics.
2. Last-Mile Delivery
As competition becomes more prevalent, so does the need to stay competitive. Last-mile delivery has dramatically changed how quickly fulfillment and deliveries are made.
With customers demanding faster services and tailored experiences, last-mile delivery has been used from order placement to delivery and everywhere in between.
Technology allows all parties to be involved in the purchase process. This facilitates the money exchange and generates a great Customer Experience, and, as a result, a user becomes a loyal customer.
This system only adds value to the supply chain, customers, and business operations. However, greater efficiency is essential in this tech-driven world, and last-mile delivery will continue to push forward.
3. Greater Focus on Customer Retention
The competition from the pandemic has also led to a great need to keep customers coming back to your brand. The success of any business is largely based on customer loyalty.
Our latest article discussed what logistics companies could do to retain customers and the significance of overall customer satisfaction.
Today, brands understand that customer retention is a large factor in keeping up with competition and overall success, amplified during the pandemic. Then, the pandemic shifted the market, and now it's more customer-driven than we have seen in some time.
Companies industry-wide have noted this and are moving towards building operations that keep their customers top of mind.
4. Sustainable Operations
Sustainability is a word you will continue to hear echo throughout all industries. As a society, we are taking on the responsibilityto make our planet a better place. That means looking at the way we perform operations and day-to-day tasks.
This is especially true when it comes to supply chain and logistics. With many of the operations depending on various types of transportation, which contribute to gas emissions, companies are working to become more aware and eco-friendly.
Remember that customer retention we spoke about before? Well, we now see that many customers are more likely to choose economically sustainable businesses in some way.
Instead, through more green waste management or green vehicles, the trend for more environmentally friendly operations is accelerating thanks to heightened awareness and demand.
5. Autonomous Vehicles
As we touched on in our first trend, technology is becoming vastly integrated into logistics operations. So how can we be more efficient? How can we do it well? These are questions that led to new types of innovations.
Autonomous vehicles are starting to take a more significant role in logistics. These vehicles are controlled by a robot or a series of technological commands, fitted with sensors and AI.
According to a Deloitte article, the aim is to solve high-risk operations and provide more safety for staff. These bots could be an extra hand for employees working in the warehouse or on delivery routes.
This innovation can greatly improve how logistics and supply chains operate by reducing errors, increasing productivity, and reducing costs. After experiencing a massive unexpected shortage during the pandemic, companies are looking at these types of tech to help them further prepare for the unexpected.
To The Future: The Importance of Technology
Hours of consultancy and development are dedicated to improving the logistics industry. It’s impossible to separate what the Customer needs and wants, what the Company has to offer to that customer, and what the advances in technology offer.
As society moves ahead with tech, users demand the same products they expect to receive at home.
At Dixtra, we focus on this industry as well as e-commerce and have unique insights on what to deliver for which audience. With over 20.000 hours of consulting in 2021 alone, we have helped several companies improve their delivery method, focused on customer satisfaction, and took our time to listen to what the user had to say.
These trends have, in large, become more popular due to the unprecedented situation the pandemic landed us in.
The logistics and supply chain industries may have been one of the hardest hit. But thanks to the significant growth and use of technology, companies were able to adapt and make changes.
We will see this continue to take shape in 2022 and beyond.