Spotlight On: Logistics Trends to Watch in 2022
A new year brings with it new challenges and opportunities! After a difficult 2021, we hope that this year will be different! While we are still facing extraordinary demand in the logistics industry, the industry is starting to show signs of recovery, which we hope we can continue to build on. In fact, according to Global Trade Mag, with the pandemic situation starting to ease gradually, the logistics industry is projected to be worth $12,975.64 billion by 2027. This is a massive increase from being valued at $5,200 billion in 2020.
Let’s take a closer look at a few of the key logistics trends we can expect to see in 2022.
Focus on Green Logistics
Increased sustainability will be essential in all industries in 2022, especially logistics. Green logistics is a sustainable measure or policy taken by the industry to minimise the environmental impact of transportation, warehousing, shipping, and other logistic activities. Green logistics aims to create a sustainable balance between economic and ecological efficiency.
A few ways by which logistic companies can adopt green logistic practices are:
- Electric and solar-powered vehicles
- Eco-friendly warehouses that use timers and smart technology to sustainably and efficiently use resources such as water and electricity
- Using software to calculate their carbon footprint
- Biodegradable packaging
With more and more being done online, the need for cyber security and data security is paramount. So is on-time delivery and real-time tracking of the entire logistics process. To achieve this, we’ll see an increase in the effective use of blockchain technology to have all the data in a single location and synergy with shipping companies and other suppliers. The boom in eCommerce is set to continue this year, so businesses will be under pressure to keep consumers happy when delivering their merchandise.
Big Data and IoT
If there is one thing we learned from COVID, it is the need to be flexible regarding logistics. Managing large information flows is essential to making quick decisions, and this is where Big Data and IoT come in. A few intelligent uses of Big Data in the logistics industry are:
- Understanding consumer buying cycles and being able to forecast demand more accurately
- Reducing inefficiencies and being able to make more informed decisions
- Better predicting of things, such as which mode of transport or carrier to use to meet delivery schedules and maximise profits
IoT helps to connect devices and physical objects, allowing a continuous exchange of data over the internet. The logistics industry will use it more frequently to offer innovative solutions to challenges. Here are some of the benefits we can expect to see in 2022:
- Increased security and real-time notification of stolen or missing assets
- Improved operational efficiency
- Enhanced visibility of assets such as vehicles and the condition of cargo
- The ability to make accurate predictions on exact delivery times, leading to improved customer satisfaction
At TSI, we’re excited to see what the year ahead holds, and we are feeling optimistic about where the logistics industry is going. Our Digital Control Tower is helping businesses around the country remain competitive, and it can do the same for you. Book a demo today and see for yourself.