Staying informed about the latest industry trends can give both you and your company a significant advantage.
Are you familiar with the current logistics trends?
They might not be what you expect. You could be surprised by what’s currently popular!
Let’s look into the latest updates from Rob and discover what’s happening now!
Have you heard about these changes? Find out by watching the video below!
What’s hot in logistics? Based on my experience running Logistics Bureau and insights from over 200 global client projects.
Current Trends
Contrary to expectations, technology isn’t the primary focus. Recent years have seen significant upheaval, with COVID-19 and supply chain disruptions making logistics operations challenging. Key issues include warehousing space constraints and freight carrier shortages, driven by driver shortages and long lead times for new trucks.
Inventory Management
During COVID-19, companies overstocked due to supply disruptions. Now, they aim to reduce excess inventory while demand decreases in some regions. Effective inventory management and accurate demand planning are crucial. Many companies still lack adequate forecasting tools, leading to inefficiencies like high backorder rates.
Warehousing
The shortage of warehousing space persists, pushing companies to optimize existing spaces. Introducing new material handling equipment or better storage layouts can increase capacity by 20-30%. Automation can also improve efficiency, though it requires a careful cost-benefit analysis.
Freight
The freight industry faces disruptions due to driver shortages and long lead times for new trucks. Companies are auditing existing contracts and analyzing freight profiles to optimize rate structures, rather than immediately seeking new transport providers.
Warehouse Outsourcing
With warehousing in short supply, third-party logistics providers are selective about new clients. Companies must streamline processes and avoid unnecessary complexities to be attractive outsourcing partners.
Cost to Serve
Understanding the cost to serve is vital. Companies must analyze profitability by customer and product types to identify and address profit leaks. This analysis often yields significant benefits, providing a clear path to improvement.
Technology
While technology is important, its adoption varies by industry. Larger companies with significant scale and market speed are leading in technology adoption. However, all businesses should identify specific needs before investing in new technologies.
For more details, watch the video above.
Related articles on this topic have appeared throughout our website, check them out:
- Struggling with Logistics Challenges? A 3PL Might be Your Salvation
- Raising Productivity in Logistics Operations: The BHAG Approach
- Selling Online? What It Means for Your Logistics Network Design
- Reverse Logistics: Who Does it Well?
- Getting Aligned with Business Goals for Successful Logistics Outsourcing
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated October 04, 2023, under the title “What’s Hot in Logistics?“.
