Supply Chain Management and Logistics Industry Trends to Watch Out in 2022
The pandemic’s difficulties have made digital transformation more important during the past two years.
Manufacturers have been observing the transition to Industry 4.0 for a long time.
Nevertheless, the concept has already gained a lot of traction; one study found that over half of all merchants support a post-pandemic digital shift. It should be a top priority for obvious reasons. In ways we’ve never encountered before, demand is unexpected.
Over the past two years, labour shortages have made it difficult to ship products without making a heroic effort to their destination.
More than ever, participants in the supply chain must adapt quickly. This aim for quick development in 2022 will be the driving force behind significant changes in logistics.
See how supply chain management and trends in logistics Industry will develop in 2022.
Top Logistics and Supply Chain Management Trends
- Renewed Focus on Sustainability
Obviously, COVID-19 is not the only problem that is changing how we think about the supply chain. Climate change worries have long been on peoples’ minds. To solve the issues we are currently facing, sustainability in the supply chain needs to be made a topic of efficiency and optimization.
That may start in 2022 with something as simple as route optimization for last mile logistics, a technique that can significantly reduce fuel consumption. It must also include a more thorough plan for locating and removing inefficiencies throughout the supply chain.
- Crowdsourcing Delivery Tasks
Since supplies are transported to distant locations by empty vehicles, logistics managers face major challenges. Many companies have tried with a variety of techniques to cut down on the time and money spent on carrying out these tasks. However, they failed to achieve any noticeable results.
After the gig economy was successfully implemented in recent years, crowdsourcing, also known as crowd shipping, began to take off. Long-distance independent drivers who use their automobiles to get to work join up as gig workers and do supply chain or delivery tasks for a logistics company.
These companies achieve excellent cost and time efficiency by only operating their trucks whilst the cargo volume is still half full. The limited financial remuneration given to the delivery staff is in exchange.
Crowdsourcing’s effectiveness is significantly increased when used for same-day parcel delivery requests.
- Collaboration for Outsourcing
When striving to optimise the supply chain and short-distance delivery orders, using regular people as gig workers isn’t the only choice. Working together with competing companies to mutually benefit both parties and increase value for all stakeholders is an additional option.
You can cooperate with nearby shipping and delivery companies to develop a market for gig workers. The workers would receive more orders and continue to be happy if they signed up to work for several firms.
- More Connected Transportation Networks
When striving to optimise the supply chain and short-distance delivery orders, using regular people as gig workers isn’t the only choice. Working together with competing companies to mutually benefit both parties and increase value for all stakeholders is an additional option.
You can cooperate with nearby shipping and delivery companies to develop a market for gig workers. The workers would receive more orders and continue to be happy if they signed up to work for several firms.
- Middle Mile Optimisation
According to a recent study, LTL (less than truckload or less than load) transportation is now more in demand and more expensive than long-haul transportation, which is driving businesses to focus much more on the middle mile than they did in the past. Given the capacity restrictions and driver shortages plaguing the world of logistics, it makes sense that supply chain participants would look for new ways to save money, and the middle mile is an obvious substitute.
Why? Considering that we can apply the same technology to optimise the last mile here.
In the coming year, the middle mile should see an increase in supply chain visibility, route optimization, and intelligent, linked driver management.
- The Need for Speed
We are once again going through an unusual time of fluctuating demand and rising client demands.
Simply said, supply networks must run more quickly than before to adjust to shifting consumer needs. Speed will continue to be an important supply chain investment sector in the future, despite numerous obstacles to success.
How will that appear in actuality? It must first improve communication and visibility across the whole supply chain. It will also need to come up with interesting and original uses for AI (AI).
Conclusion
Maintaining the current approaches is easier. But to succeed in very cutthroat markets, one must move beyond tried-and-true strategies. Only businesses with a forward-thinking attitude adopt the latest trends in logistics and supply chain management. As a logistics manager or business owner, you must weigh your options if you want to narrow gaps and enhance operational processes.
