For all we know, it’s better to be ready beforehand than kickstarting once a crisis starts chipping away at business. Even more, when COVID had us hunkered down for years and prompted us to think about hard immunity again after years.
Industries learned resilience is the key – to adapt is to advance. And to make strides is to accelerate change. The year 2022 will see more digitization and sustainable logistics besides a substantial impact on how we work in logistics. Here’s our preview for the year, which summarizes the biggest trends:
The rise of reactive supply chains
A moment of hope was enough reliever for us when supply chains eased with some items beginning to move quicker in 2021. Some parts of the recent supply chain have freed up again, yet logjams and delays continue slamming the shippers. Experts cite this supply chain slowdown may continue for a few more years.
So, implementing localized and future-proof supply chains should be the main agenda of all logistics meetings today. Some strategies:
- collaborate with a 3PL and improvise your model
- induce more visibility across supply chains
- make carrier relationship a part of your strategy
Micro-fulfillment strategies take control
2021 was all about the micro-fulfillment model, and retailers and grocers benefit from an alternative distribution model. Companies have started investing in setting up locations like micro-fulfillment centers (MFCs), and players like Walmart, Amazon, Kroger are leading the game.
MFCs are saving businesses a lot of money and fueling up customer experiences. Especially:
- ~75% order cost reduction through MFCs
- upfront starting cost might seem discouraging, but well-equipped MFCs can produce 600 units/hour – which is worth the investment
- they are fast: even a 4-hour turnaround on orders can’t seem outrageous given it’s planned effectively
Automation gears up more
Automation typically improves the work process; it mostly occurs while implementing freight management systems and other resources. Micro or macro – it leans on consolidating innovative approaches and helps them self-learn for continual development. Among the gains, we can think about more productivity, lower expenses, error minimization, syncing of tasks, and manual effort reduction.
With this, another aspect at bay is cloud computing. SaaS platforms will gain more traction. With them, remote access will democratize and enable shared access to asset control. Migrating onto the cloud won’t pose any challenge anymore – integration will be easily programmable.
Sustainable wins are everything
WEF reports that logistics and transport claim nearly 5.5 percent of all CO2 emissions globally – all the greater is the need for action in this sector. Companies of all sizes are adopting various ways. Using electronic trucks for last-mile deliveries, switching to bio-LNG for long-hauls, or longer heavier vehicles (LHVs) for minimal impact.
Green everything will gain strength, adding to the perception of the value of the company that practices them, as well as the purchase decision. 85% of consumers globally choose sustainable brands over other business-only names. Even investors back companies with strict policies towards the environment and ones with strong legal compliance with the regional authorities.
Carbon reporting to handle emissions
Carbon reporting provides deeper insights into CO2 emission and helps cut down – and is foreseen as a future prevalent. Companies with much granular information eventually drive ultimate transparency into their businesses. This transparency prompts the companies involved to keep their emissions as low as possible and achieve the least possible impact on the climate. After all, sustainability plays an ever-greater role in the selection of corporate partners and improves a company’s competitive position.
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