Given the current global consumer climate which has seen customers having higher expectations than ever before, supply chains are coming under immense pressure to deliver exceptional services within a reduced timeframe and at a lower cost. As such, it should come as little surprise that logistics management solutions, accompanied by next-generation delivery techniques, have adapted and developed their key approaches to the benefit of smarter, faster, sustainable and more customer-focused international supply chains.

With heightened levels of consumer demand not looking to slow down any time soon, this article by business packaging experts, No1 Packaging, will provide you with three key logistics trends you need to be aware of in order to stay on top of future global supply chain management methods.

Sustainability

A crucial factor in global business strategies around the world is incorporating more sustainable methods into the supply chain, which will prove to be incredibly important in 2020. For most companies, buildings and internal equipment will be bought based on their eco-friendliness, where factors such as their energy-efficiency and reduction in transportation costs (and energy) will be key considerations in deciding how sustainable key logistics tools are.

Logistics companies are becoming increasingly aware about the effects going green have on their overall strategy – allowing them to remain motivated to keep the planet green and eliminate pollution where possible. Green logistics will, therefore, not only help the wider environment, but will act as a strategy to enhance corporate reputation, increase customer loyalty and lower supply chain costs in the long term.

Tech Integration

The advancement of technology will continue to play a vital role in the evolution of changing supply chain processes. Where previously customers booked shipments, received an expected delivery date and then, for the majority, were left in the dark, modern shipment tracking systems now allow customers (and indeed recipients) to track the whereabouts of their cargo 24/7 – enhancing both user experience and the overall supply chain system. In addition, the advanced accuracy of GPS devices allows for increased productivity and more satisfied customers as a result, as companies have the ability to track the locations of trucks throughout their journey.

With companies such as Amazon testing drone delivery methods, to stay on top of your supply chain management, it’s vital you continue to integrate technology into your logistics in 2020 – evolving with new advances as opposed to simply operating alongside them.

Partnerships

For most companies, the key focus of their logistic strategies is to minimize the freight cost while providing a highly efficient, effective service. As such, third-party logistic (3PL) partnerships will not only help to reduce costs, but can minimize risks associated with shipping cargo, as such partnerships have the ability to decrease delivery delays and enhance customer satisfaction.

The way this works is that businesses are likely to outsource to third-party logistics companies more than ever in 2020, providing services which include: online ordering, returns processing, product assembly, product kitting and documentation and inventory management. By offering these services, third-party logistic partnerships can build long lasting relationships with their clients and become more profitable as a result. So, to succeed here, third party providers will have to look to specialize in a higher number of services in order to prove themselves as valuable and foolproof. 

The future starts now, and while you can’t necessarily predict what happens in time, by making yourself aware of and adopting the above trends into your company’s strategy, you will better equipped to take the lead the logistics field in 2020 and beyond.