A new report from Deloitte and the Logistics & Supply Chain Management Institute was designed to help supply chain executives understand what’s likely to come and how to prepare for it. The report’s authors surveyed nearly 1,200 supply chain executives across 18 industries, including retail, manufacturing, aerospace, automotive, and consumer goods. It was found that while 80 per cent of executives across all industries say they expect supply chain costs to go up in the next five years, only 58 per cent of those executives believe their supply chain is equipped to handle that.
The transportation and logistics industry is evolving rapidly. As consumers become more dependent on their devices, companies must find ways to deliver products quickly and reliably. Even in states like Texas, there is a technological revolution happening in terms of the transportation and logistics industry. People looking to hire trucking companies in Dallas Texas tend to lean towards ones that offer cutting-edge services and features. Each company is trying to be more technology-forward than the last. Customers expect quicker delivery and less overall cost. To keep up with this trend, some companies are even turning to technology such as autonomous vehicles and drones.
Digital professionalization is one of the Transport and Logistics Trends in 2022. This term refers to the process of enhancing professional knowledge and performance through the use of digital technologies. Deriving from digital native philosophy, digital professionalization emerged in the 1990s. However, it gained traction only in the last decade. It refers to the integration of technology in organizational processes. Technology integration enables organizations to draw insights from big data, automate tasks, and reinvent the working environment. In fact, increased use of technology has enabled firms to specialize in niche areas such as trucking accounting, which helps with more efficient financial management and thus an uptick in operational efficiency as well. As it continues to play a greater role in commercial activities, more organizations are seeking a way to maintain a competitive edge over competitors. Professional organizations, like the International Federation of Logistics and Transport (FIATA), believe that digital professionalization has the potential to transform the industry and help businesses modernize.
Automation across the nation
The introduction of automation to trucking and transportation has been on the way for quite some time now. While full automation is still a few years away, truck driving is gradually being automated to a level that products like Uber’s self-driving Volvo Trucks have become the norm. This automation trend is affecting almost all aspects of the trucking industry. Last year, Uber revealed plans to eliminate drivers from its fleet by 2020 completely. This move will streamline the company’s operations and cut driver costs. The transportation and logistics industry is undergoing a transformation. Automation across the nation is one of the Transport and Logistics Trends in 2022. The industry is slowly becoming less dependent on manual labour and adopting technology and automation. Automation is being driven by advances in technology and digitized processes. The changing technology environment has affected the way businesses work.
Manufacturers will look to restore their supply chains.
The logistics industry has been in demand in recent years. This is due, in part, to recent economic instability and the resulting need to quickly adapt supply chains and manage supply chains in times of crisis. Managers in large industries seem to benefit from the use of logistic software. The application of such software can allow operation heads to maintain a record of the transportation and shipment of products. It would also provide them with details of people accountable for specific operations, making the chain of responsibility easier to track.
That being said, logistics companies have been expanding globally, and, as such, supply chains are getting longer and more complex. They are also hiring and expecting higher salaries. This raises costs, too, which puts pressure on companies to reduce expenses. Therefore, many logistics companies are expected to focus on reducing their costs. This can be seen in their restructuring and downsizing efforts.
A focus on sustainability
Sustainable practices in transportation and logistics are becoming more and more common as companies realize that they have a social responsibility to protect the environment and reduce costs. A recent survey from AptarGroup found that 42 per cent of shippers, 62 per cent of carriers, and 60 per cent of third-party logistics (3PL) providers intend to incorporate sustainability into their business to lower costs and increase revenue.
Machine learning goes mainstream in supply chain logistics.
With businesses around the world being increasingly focused on delivering new levels of efficiency, accuracy, and customer service, smart logistics technology is becoming increasingly attractive to shippers, distributors, and retailers. With the emergence of machine learning and artificial intelligence in the logistics industry, we are likely to see some of the biggest changes since the rise of the internet. Artificial intelligence (AI) and machine learning (ML) are already widespread in other industries, but they have only begun to make inroads into supply chain logistics. For example, the industry has seen the introduction of intelligent robots for picking orders. But the use of robotics in warehouses and other logistics settings is only currently beginning, and the technology is likely to become more popular over the next five to six years.
Transport and logistics are a supply chain of organizations, people, and technology that are involved in the movement of goods, services, and information from producer to consumer. This supply chain integrates information, processes, and technology to move products from the manufacturer to the retailer and on to the consumer.