Most industries end up affected by global change and shifts in the larger economy, and the logistics industry is no different. In fact, the logistics industry can be particularly sensitive to business trends, production processes, and economic concerns. Here are 5 trends that are making a real impact in the logistics industry.
A Growing Customer Base
The world’s population is rising. Total numbers are expected to reach 9 billion by 2050. Along with this population growth, we can expect increased internet availability and growing demand for ecommerce. This will require logistics providers to not only expand their services, but figure out ways to deliver products to more remote locations and in emerging economies. At the same time, population demographics are shifting as well. Logistics providers will need to pay attention to what’s happening with the population they serve, in order to better serve them.
More Digital Consumers
Currently, more than half of all internet shopping traffic happens on a mobile device. The number of smartphone subscriptions is expected to rise, eventually reaching 4 billion by 2025. People have come to expect increased services from their digital experiences, and they will also expect similar service quality in other industries. It’s important that logistics companies make a point of serving both retail and corporate customers through multiple platforms. This trend is two-fold: not only will more mobile traffic drive more ecommerce shopping, but people relying on digital experiences more often will lead them to expect a digital platform for their own package management.
The Third Age of the Internet
The Internet of Things (IoT) is described as a smart network in which devices connect and exchange information with each other through various communication protocols. This phenomenon is expected to positively impact the logistics industry in a few ways. For one thing, a rise in the IoT allows for improved efficiency in the sector. For another thing, the big data collected by newer technology will allow for instant analysis and key supply chain information, which can be applied to improve experiences for both logistics providers and their customers.
Increased Dependence on Key Platforms
As the internet increases in popularity, you can expect to see even more traction among the largest retail platforms such as eBay, Amazon, and Alibaba. These organizations enable startups or other small providers to operate in a global market. This offers a range of benefits to both small organizations beginning a retail business, as well as consumers looking for greater choice. Having a broad range of suppliers to choose from is a net positive for customers, but to enable these new retailers, key platforms will need to continue to adapt their logistics processes. Expect to see continued innovation in the way that global ecommerce platforms function and serve both end-users and vendors.
Driverless Vehicles and Other Technology Innovations
There are a few things that have the potential to revolutionize the logistics industry. Inventions like drones, 3D printing, automated robots, and driverless vehicles can all improve the way that products are delivered to consumers. Autonomous vehicles are actually ideal for the logistics industry, and in fact, Mercedes is already investing in digital trucks while Amazon is testing delivery drones. Expect much more research and development across these areas, so that the logistics industry can take advantage of innovation without the human element (and the cost and room for error that comes with it).
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