Trends Shaping Logistics and Supply Chain Management
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The logistics and supply chain management niche has endured plenty of changes in recent years due to events no one had expected. The outbreak of coronavirus (global in 2020 and recent in China) and the war in Ukraine disrupted supply chains and accelerated the pressure on this industry.

Undoubtedly, the supply chain and logistics markets are going to change. Companies that aren’t ready to respond to the new reality probably won’t survive. That is why it is essential to reconsider the business models and uphold new strategies that would not just let companies stay afloat but will also enable them to stay on top of their profit margins.

In this article, we will look into emerging logistics and supply chain trends 2022 you need to know. It will help you better understand what is going on in the market and digitally transform your business to overcome the upcoming challenges and unlock a new level of success.

Explore experience based insights into how you may automate and manage numerous vehicles, track routes, avoid infractions, track delivery time, and predict expenses based on AI advanced analysis. Thrive with digital transformation of business processes and experience an improved logistics and supply chain management result.

What Is Happening in the Supply Chain Industry in 2020-2022

The global pandemic in 2020 has significantly transformed the logistics and supply chain marketplace. Due to the lockdown, the tendency for online shopping skyrocketed as people were locked in their apartments and houses. That switch put huge pressure on supply chain logistics. It took time for companies, even smart mastodons like Amazon and Walmart, to accept a new reality and find fresh opportunities for running a business to be able to keep up with the demand. Besides, because of pandemic restrictions, many manufacturers or suppliers temporarily put their processes on pause. Hence, there was a new challenge — finding and managing new ways to replenish the warehouses and shelves..

The moment the world, and the supply chain and logistics field in particular, started recovering from the consequences of the COVID-19 outbreak, a new economy-shattering crisis happened. As russia invaded Ukraine on February 24, 2022, this put additional pressure on supply chains. The World Economic Forum states that the supply chain management industry has seen a significant disruption in 2021, costing major economies €112.75 billion in GDP. Experts project that the russia-Ukraine war could lead to an additional GDP loss of up to €318 billion in 2022, which inevitably causes inflation to climb.

The recent 6th package of sanctions imposed on russia by the EU bans the import of all russian seaborne crude oil and petroleum products, which make up 90% of oil imports from the aggressor. Previously, President Biden banned the import of russian oil, liquefied natural gas, and coal to the United States. Because of these restrictions, the prices for gas, oil, and electricity have seen a rise, which poses a new challenge for supply chain companies.

Also, Bloomberg emphasizes China’s crisis. This country accounts for around 12% of global trade. Its new COVID restrictions in 2022 that involve full or partial lockdowns in more than 45 cities have idled factories and warehouses. Moreover, they slowed truck deliveries and exacerbated container jams. American and European ports are already swamped, making them extremely vulnerable to additional loads.

However, there is a positive tendency to handle the serious challenges in the supply chain. For example, President Biden signed the Ocean Shipping Reform Act of 2022 (OSRA 22) on June 16, 2022. This revision of maritime legislation is going to fight core inflation.

As technology is constantly evolving, new apps, software features, and other tools emerge at lightning speed. In the supply chain segment, digitalization serves a mission to eliminate the pressure on this industry. Some companies use off-the-rack software that offers popular features, while others prefer to build a custom solution to get the toolkit that will keep them several steps ahead of their rivals. So, businesses get more tools to manage their logistics and supply chain to meet modern challenges.

Considering the extent of the crisis this industry is yet to overcome, keeping up with the tech novelties for supply chain businesses is a must. Undoubtedly, with the successful implementation of supply chain and transportation technology, you will confidently swim across the existing and upcoming challenges in the markeplace.

How Is Supply Chain Management Different from Logistics Management?

But first things first. Before we delve into the current situation in the supply chain industry and its future trends, let’s clarify the basic terms.

So, what is logistics and supply chain management? From the first look, you may see plenty of similarities between logistics and supply chain management. But there is a constellation of features that sets the logistics vs supply chain practices apart. Logistics is a part of the supply chain process. Logistics in the supply chain deals with the coordination of shipping and storage of goods. As we switch to the definition of supply chain, we define it as a broader concept that covers product production and delivery. It is responsible for sourcing, processing, and delivering goods to end customers.

In other words, by focusing supply chain management on connections between manufacturers, suppliers,, wholesalers, retailers, and customers, logistic businesses help all parties in the process.. At the same time, logistics is about the internal movement of goods since it deals with their efficient transportation and storage.

Well articulated supply chain and logistics systems can be game-changers in how to run a retail business. When processes are organized correctly, retailers match their customers with the best products, avoid overselling or overstocking, manage the flow of orders, and ensure their customers get exactly what they ordered within the desired time frame. As a result, customers are encouraged to return to shop because of unparalleled service they appreciate.

That prompts a question: How do you organize the processes to use a properly established logistics and supply chain strategy? The days of spreadsheets and manual workflow management are far gone. Successful businesses have already switched to cutting-edge supply chain and logistics technology to run their operations.

But if you would like to gain a more competitive advantage in the retail industry, you’ve got to adopt future trends in supply chain management to be ready to withstand the competition.

So, we’ve gathered the most recent and upcoming supply chain and logistics industry trends that would help you become a trendsetting business.

That prompts a question: How do you organize the processes to use a properly established logistics and supply chain strategy? The days of spreadsheets and manual workflow management are far gone. Successful businesses have already switched to cutting-edge supply chain and logistics technology to run their operations.

But if you would like to gain a more competitive advantage in the retail industry, you’ve got to adopt future trends in supply chain management to be ready to withstand the competition.

So, we’ve gathered the most recent and upcoming supply chain and logistics industry trends that would help you become a trendsetting business.

Artificial and Augmented Intelligence

Artificial intelligence (AI) has already paved the way in logistics and supply chain management. It involves using machines programmed to handle tasks that frequently require human intelligence. It means that devices get instructions from the pre-set algorithms encoded in the system to perform activities that were once unavailable for machines and could only be performed by humans.

For instance, Amazon uses AI for automated warehousing. Zipline lets drones deliver medical supplies to areas with poor infrastructure. Other use cases of artificial intelligence include the choice of an optimal carrier. A human may spend up to 20 minutes manually browsing hundreds or thousands of routes and schedules. With a machine powered by AI, this process can take several seconds.

  • While companies rely on artificial intelligence, they should also keep a focus on augmented intelligence. Augmented intelligence is designed to create a fruitful collaboration between artificial intelligence and humans to improve decision-making or other aspects of the business. So, unlike artificial intelligence, augmented intelligence does not mean replacing humans. Instead, it provides essential data so employees or company decision-makers can make better choices. In this way, you can manage big volumes of data, both structured and unstructured to your advantage.

As one of the most game-changing logistics future trends, artificial and augmented intelligence have plenty of advantages. They reduce human mistakes, promote faster decision-making, support 24/7 involvement, and cut operational costs.

ON A PRACTICAL NOTE

Artificial and Augmented Intelligence in action as delivered for one of our clients.

If you are curious about how artificial and augmented intelligence can be implemented in the supply chain business, here is a good example.

We’ve created a tool that helped our client analyze the data, track all the possible threats, and maintain new possibilities to optimize expenses:

  • The system analyzes the driver’s route and notifies the operator or client regarding possible obstacles caused by weather conditions, traffic jams, closed roads, etc.;
  • The dashboard provides data about on-time delivery or any change that may be influenced by external factors, as well as whether there may be severe fluctuations from defined delivery times;
  • Real-time vehicle stop tracking and automated notification system based on the data on regular stops and place time aimed at avoiding emergencies etc.;
  • Automated analysis of the agreed route with the current route information provided by the vehicle’s GPS.

Would you like to leverage the AI solution for your business?

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Advanced Analytics & Data Standardization

Advanced analytics has been trending in the supply chain & logistics field for several years. It involves autonomous or semi-autonomous data examination and estimation through the use of advanced tools and techniques that allow for making more accurate predictions, gaining deeper insights, and generating recommendations. With advanced analytics instruments, you can gain a competitive edge in procurement by forecasting the product demand based on the buyers’ behavior and other factors. Retails get full visibility into their inventory by visualizing at what speed products rotate and even predict delivery promise failures by estimating the risks of working with manufacturers or vendors who deliver too late.

One of the supply chain management trends is data standardization, which means bringing data to a

common standard. It allows optimizing the supply chain and logistics so that all departments, partners, vendors, and other parties follow the same procedures in using shared tools or managing data. Thanks to this, customers can communicate more effectively, while the team will avoid confusion by utilizing neatly standardized data.

ON A PRACTICAL NOTE

Advanced Analytics and Data Standardization HebronSoft Delivered

To give you a better understanding of how data standardization can improve your business, here is a vivid example of the implementation of this trend.

We worked out a data standardization system at our client’s request. Here is how it helps tackle the company’s challenges.

All the information in a client’s system is always standardized and has a variety of checks and access levels,which helps eliminate human factors and mistakes. Besides, new employees without proper experience can easily work with data, facilitating onboarding. The company also said that standardized data is much easier to process, so this solution also improved the internal workflows.

Do you want to unlock access to advanced analytics and standardized data?

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IoT

With each passing year, IoT is deeply rooted in the list of hot topics in supply chain management. As a system of smart devices connecting and exchanging data through the Internet, it solves plenty of logistic issues and helps businesses manage their supply chain operations more effectively.

For example, an IoT inventory system can monitor stock levels in real-time to keep one in the loop about the product quantity to prevent shortages.

IoT sensors may also facilitate the process of shipment tracking. Placement of the sensors in the shipping containers with products, one can monitor the condition of the shipped goods, track their location to estimate the delivery, and eliminate the risk of damaging goods.

When certain materials or products require special transportation or storage conditions, IoT devices help companies maintain the optimal environment without human intervention. They are equipped with sensors that estimate the temperature, humidity, and other critical parameters for the items’ storage. Then, this data is passed to the machines that regulate the indicators if needed.

ON A PRACTICAL NOTE

IoT Solutions in action delivered for one of our clients.

Here is a juicy example of how IoT technology helps meet the supply chain challenges and simplify the work of operators of commercial vehicles.

An Electronic Logging Device (ELD or E-Log) is a piece of hardware we construct and program. It is linked to a vehicle to keep track of the number of driver hours. Commercial vehicle operators use it as a method of keeping track of working hours and other metrics. When it is connected to the engine of the truck, it automatically records driving activity and updates the logs that are sent to the control center. This gives the driver accurate data on the amount of time spent driving, the amount of time spent resting, the risk of an infraction, the level of speed, the location, and the possible arrival time.

Do you believe it’s time to let IOT technology carry your business forward?

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Cloud Computing

Even though cloud computing has been around for more than 20 years, supply chain management and logistics experts have been hesitant to migrate their systems to the cloud. Regardless of the delay, we are witnessing how cloud computing is transforming the logistics & supply chain management facet of the business.

A cloud-based supply chain is a concept that involves the connection of two or more parties through a cloud environment. As third-party providers host the cloud servers, all participants of the supply chain process get access to the platform through the Internet. This helps coordinate work with the supply chain network’s partners, share real-time data, manage procurement, inventory, warehouse and transportation management, and whatnot.

ON A PRACTICAL NOTE

Cloud Computing Solution in action delivered for one of our clients.

One of our clients has adopted our cloud technology into their processes. Since it is hosted offsite and works in multiple locations through the Internet network, all of the company’s employees can now access data and monitor any changes in real-time.

Big Data

Big data software comes to the rescue when the supply chain data volume is so huge that your company can no longer handle it with traditional tools. These apps enable storing and managing data effectively. In this way, you may cut the gap in communication between supply chain and demand managers, enhance operational excellence, save costs, get more visibility into the inventory, and improve customer satisfaction rates.


Big data technology has many applications in supply and logistics. For example, it may consider previous sales trends and predictive algorithms to help inventory managers gain a better vision of what product demand to expect. In addition, big data systems enable maintaining the temperature monitoring for products requiring specific transportation and storage conditions. They also help prevent potential disruptions during shipping and delivery based on variable data like traffic delays or weather.

Embedded Integrations

Embedded integration technology is one of the emerging trends in logistics and supply chain management. It is designed to help you tackle the growing challenges of your business by integrating the tools you need into a native platform, in particular:

  • The exchange of business documentation and other data between your company, partners, and other parties in the supply chain process;
  • The use of several tools for day-to-day handling of tasks;
  • Limited visibility into business transactions;
  • A time-consuming onboarding of partners and clients.

An embedded integration solution has already been implemented by innovative logistics companies. It allows you to integrate the company’s ecosystem into a single platform easily. Thanks to this, you can orchestrate end-to-end integrations, exchange information with your partners seamlessly, plan and execute transport and logistics operations throughout the product’s cycle. 

Embedded integration tools allow your IT department to bring all the apps your employees use in one place to enhance productivity, add more visibility into processes, and enhance automation. If you do not have an in-house IT team, the HebronSoft software solution service provider will help you solve your tech issues by setting up the embedded integration platform for your business.

ON A PRACTICAL NOTE

Embedded Integration Solution in action delivered for our clients.

Embedded integration confidently makes its way to the most popular logistics tech trends. We have managed data synchronization for many companies. Here are some integrations we implemented:

  • ComData – instant electronic checks;
  • EFS – fuel cards;
  • Build-in phone calls, SMS, MMS, and other telephony;
  • netSuite – integrated administration services of business finances and operations.

All the organizations report that the productivity of their employees has dramatically improved. From the staff’s part, we were informed about the decreased digital fatigue. Besides, workers say that they are more focused now. Switching between apps takes time and costs concentration. By bringing all the tools to one place, the need to renew their attention dropped to a minimum.

Do you think that embedded integration is the right solution for your organization?

Hire now!

Digital Twin

If your company is on its way to embracing digitalization, digital twin technology is one of the transportation and logistics industry trends you can’t ignore.

This technology involves creating a digital simulation of the supply chain model to track its dynamics and predict its success. In this way, the analysts can grasp the behavior of the supply chain, possible bottlenecks, and get data that enables the development of an action plan for emergencies. The digital twin technology also gives the instruments for monitoring the risks, planning transportation, and more. You will unlock functions such as prediction of financial and SKU flows, scenario testing, and demand variability.

It uses real-time data and snapshots to forecast how the process will flow. Digital twin relies on live information about shipment schedules, stock levels, vehicle location, etc., to give you a better idea about how the supply chain performs and will behave in the future.

However, a digital twin for SCM and logistics doesn’t work in isolation. It integrates with your company environment (databases, IoT devices, software) to improve your operational and tactical decision-making.

Warehouse Robotics & Automation

Several years ago, only 5% of American warehouses were automated. But with the shortage of workers and increased inflation, the idea of leveraging technology looks more beneficial than ever.

Robotics and automation belong to the latest trends in logistics and supply chain management that capture the market. Non-automated facilities see a significant boost in productivity by implementing this technology. For example, employees spend less time traveling from one warehouse location to another to perform a particular task. In this way, employees can focus on more value-added or complex tasks and feel less fatigue, while the company will benefit from saving costs and distributing the workforce better.

Robots are great assistants for loading or offloading containers at distribution centers, wrapping pallets, placing inventory on conveyors, and placing the pallets in the programmed place in the warehouse or distribution center. You can also replenish inventory with this technology by implementing the multi-SKU pallets. Robots can even help pack parcels that include different types of items: a robot brings the ordered goods while the human packs and ships the package.

Many modern warehouses use drones to enable automation. They help the workers count the inventory levels, which may be especially beneficial for high shelves where employees have to climb the racks to count the products.

Automation-centered technology in logistics and supply chain enhances customer service by improving the speed of order processing and increasing the volume of orders the company can process, which has a direct impact on the revenue.

Autonomous Vehicles

Even though autonomous vehicles are still associated with science-fiction for many people, they are confidently making their way to the logistics and supply chain industry.

Autonomous vehicles are machines that perform specific tasks programmed by the software to run with little to no human intervention. They come in different shapes and sizes and are meant to operate on the road, in the air, or over the water. Most devices are noted for artificial intelligence that allows them to capture information from the environment to make their decisions independently. They also have sensors that enable receiving data from the surroundings and delivering it to the corporate software. In addition, you will find a navigation system in nearly all vehicles, meaning they can work and move around independently.

Based on the ​​transportation and logistics industry outlook and the growing need for enhancing or replacing the workforce, autonomous vehicles have the capacity to reshape this industry.

Companies can use drones at the warehouse to let them help with inventory counting. They can scan the barcodes associated with the storage slots, collect information about the items stored in those slots, and even process data to make accurate calculations of the stock availability. Drones can replace humans to perform dangerous or difficult tasks.

Autonomous devices may be programmed to help workers with routing, storing, tracking, and packing. So, you will be able to manage and process products more effectively. There are also benefits to the transportation facet of the business as well. Human-independent machines can move goods, load them into the containers, and control the container’s environment until they arrive at the destination. You can even switch to self-driving drones that will safely transport products from one place to another.

The supply chain and logistics industry is a complex, interconnected ecosystem that heavily relies on human context. As this field has been overstressed by destabilizing challenges like the COVID-19 pandemic that encouraged panick buying behavior, production shortages, and logistical issues, it has become evident that new business models and approaches should be implemented.

The new reality dictates that investing in supply chain digitalization and automation is a good idea, but it may not be enough to tackle all business challenges. As it turns out, companies should look to their employees first.

In a perfect world, future trends in supply chain management allow people to work in tandem with innovative technologies. As we have already covered the tech side of the field’s innovations, let’s dive into the human-centered trends that disrupt this industry.

Compliance & Risk Management

The supply chain industry’s compliance and risk management landscape is more dynamic than ever. Stakeholders have increased expectations, fines for non-compliance with regulations are obscenely high, and product integrity requirements overlap. These are just a few of the challenges companies are forced to navigate in the modern realm.

To effectively manage supply chain compliance and risks, you should gain a certain degree of transparency through full knowledge and easy access to information. On top of that, you should scan the horizon for rapidly emerging requirements and respond to them promptly.

You may have several options to implement solutions for these current trends in logistics and supply chain management for your organization:

  • Outsource supply chain compliance managed services from third-party companies;
  • Establish a centralized approach to create a virtual center of excellence;
  • Use off-the-rack apps that have common features to help you comply with the requirements;
  • Build a custom solution that would integrate all the instruments you may need to keep up with the ever-changing risk and compliance management landscape.

No matter what approach you adopt, make sure you design a scalable and flexible solution that allows you to proactively monitor the dynamic supply chain compliance and risk management environment. If you need assistance designing a proper program for your organization, HebronSoft is ready to help you develop a holistic method tailored to your needs.

Omnichannel Shipping

Retail businesses can’t help but notice that the sales process is becoming increasingly sophisticated. Before the Internet boom, buyers used to shop in physical stores. With the rise of the global web, eCommerce platforms and websites rapidly took over in-store shopping. Now customers are dictating new supply chain industry trends – they want a seamless experience through several sales channels and expect sellers to be ready to provide multiple delivery options. So, omnichannel shipping means providing the customers with flexible options of how they want their packages to be delivered. For example:

  • Placing an order online and picking up a package at a physical store;
  • Placing an order online and getting the package shipped to a given address;
  • Buying the product/s from the store and getting the purchase delivered to a given address.

More specifically, omnichannel shipping can also involve warehouse-consumer, supplier-consumer, store-consumer, and distribution-consumer delivery options.

The goal of omnichannel shipping is customer satisfaction. Yet, this logistics trend requires a certain level of tech proficiency in tailoring to the customers’ needs and preferences, which retailers may want to outsource if they do not have an in-house IT team.

Social Sustainability

In general terms, social sustainability deals with understanding what impact the business has on people. This model puts people at the core of the company and ensures that human rights, fair labor practices, living conditions, equity, work-life balance, and other aspects of workers’ lives are maintained.

As we look at this strategy from the perspective of trends in logistics management, social sustainability affects the welfare and safety of people engaged in the supply chain process. Social sustainability practices target social issues of the employees like health, hygiene, wages, labor rights, and more.
Social sustainability, as one of the current trends in logistics and supply chain, has the following goals:

  • Ensure maintenance of labor, security, and safety standards;
  • Stick to the norms of fair trade and equality;
  • Improve the life quality due to better availability and delivery of goods;
  • Deliver automation of mundane tasks.

Developed countries control social sustainability by law. At the same time, companies with a proactive position integrate social sustainability into their supply chain priorities.

Sustainable Supply Chain Management

Sustainability is one of the latest trends in logistics and supply chain management that comprises the ability to follow standardized processes without harming the environment.

This strategy involves the implementation of environmentally-friendly practices into the supply chain lifecycle. It means that whether at the stage of product design and development, material selection, manufacturing, packing, transportation, warehousing, or distribution, you should think of ways to reduce the carbon footprint of your business. Even though the main objective of sustainable supply chain management is environment conservation, your organization can also benefit from streamlining end-to-end operations, which allows for better profitability.

In order to build a sustainable supply chain, you’ve got to spot the issues in supply chain management by breaking down the pipeline into different identifiable segments. After careful analysis, you will understand what aspects of the supply chain require improvement. One of the critical things you should keep in mind is informing the employees about the upcoming changes and their objectives. If new processes require new skills, you should also provide proper training to workers.

Service Line Optimization

Service line optimization aims to ensure the company’s investments (including human and capital resources) are deployed to maximize business efficiency and profitability.

After the first COVID-19 strike, numerous companies started the recovery process by re-optimizing service lines. In this way, they initiated new logistics solutions. They are aimed at boosting the supply network’s efficiency and performance to provide customers with a better experience while keeping the business sustainable, profitable, and agile. These days, the service line optimization in the supply chain is as relevant as it was several years ago.

As the focus of supply chains was on the network design in the past (warehouse placement and fleet distribution), modern reality has changed the rules. These days, the attention is switched to building a competitive advantage, a positive brand reputation through a flawless customer experience, and smart use of the company’s resources through automation and digitalization.

E-commerce Pressure for Innovation

The Coronavirus has accelerated the shift from brick-and-mortar to online shopping by around five years. At the same time, the supply chain industry is still challenged to keep up with the growing pressure imposed on its internal operations.

However, supply chain leaders have successfully learned from eCommerce experience, logistics trends & insights to tackle their issues. For example, let’s see what supply chain managers have learned from Amazon:

  • Amazon Prime Air drone delivery prompted the use of drones.
  • Amazon Flex service encouraged to partner with drivers to deliver items.
  • Amazon Scout served as a role model for the use of autonomous delivery devices.
  • Amazon Pegasus showed that robots could be great assistants at sorting centers, warehouses, and other facilities.

When the eCommerce business is thriving and relies on the latest technology, the supply chain industry has no other choice but to keep pace with the logistic needs of businesses.

Real-Time Supply Chain Visibility

Customers and other participants of the supply chain would like to get visibility into the route of goods these days. Some time ago, companies relied on manual processes and continuous coordination with several stakeholders to make that possible. But that was time-consuming, expensive, and sometimes inaccurate. Luckily, digital transformation changed the rules of the game. Now organizations rely on cutting-edge technology to provide access to real-time visibility into supply chain activities.

As one of the most beneficial current supply chain trends, real-time supply chain visibility enables tracking and tracing of the movement of materials or products from the manufacturer, supplier, distributor, and other participants of the process to end customers in a 24/7 mode.

Thanks to the real-time information obtained from GPS and sophisticated software, supply managers have access to trackable data like the status of raw materials, regulatory data, order status, shipping details, and more. In this way, businesses improve productivity, deliver better customer service, and gain a competitive advantage.

Hapag-Lloyd, a global provider of shipping and logistics services, was the first to adopt real-time tracking technology. It equipped dry containers in its fleet with sensors that track the container’s location, measure temperature changes, and even spot sudden collisions or shocks. In this way, the organization delivers a better service by enabling its customers to see the container movement. Besides, it predicts possible delays early and automatically notifies impacted customers about possible shifts in delivery deadlines.

Gamification

Work hard, play hard. If this phrase resonates with you, you will probably quickly catch up on one of the funniest yet effective transportation industry trends.

Gamification implies the stimulation of employees’ skills in an engaging way through the use of experience points, scores, leader boards, badges, status bars, and other instruments for performing specific supply chain-related tasks. As you incorporate these elements into the work process, you increase the level of engagement from your staff. Thus, they prove to be more productive and results-oriented, directly affecting the company’s performance and revenue.

When gamification works in tandem with digital tools, you can track whether the employees are accurate, concentrated, and qualified for this or that task. At the same time, workers are engaged in the process by earning rewards. Gamification is a great productivity and motivation booster that promotes a healthy desire to improve performance.

Amazon leads gamification supply chain trends on the market by launching a suite of digital games. Workers can voluntarily participate in the game by completing daily warehousing tasks of different levels and gaining scores for their completion.

Elastic Logistics

If you are wondering what’s new in logistics and supply chain, let us introduce you to the recent trend that proved to be effective at optimizing the logistic capacity and maximizing profit in conditions of ever-changing customer demand.

Elastic logistics is the industry’s response to the fluctuating nature of the product demand on the market. It is characterized by the ability to shrink and expand logistical capabilities based on the supply chain demand. In this way, companies operate supply chain processes more efficiently. They scale up and down depending on the seasonal activity or other factors, allowing them to leverage the profitability of the increased demand and save resources when the need for the product drops.

The implementation of this trend works hand in hand with logistics industry analysis, supply chain forecasting, big data, and automation tools. With these instruments, you are always ready for the upcoming increase or decrease in the supply chain demand. Also, companies use transportation management systems to enable elasticity in the supply chain workflows. These tools help manage and optimize the transportation fleet by providing on-demand delivery services based on customer behavior.

Lean Logistics

As companies are stuck in a vicious circle of never-ending business improvement because of changes in logistics and supply chain, lean logistics emerges as a natural response.

The lean logistics approach aims to eliminate wasteful activities in the supply chain pipeline to improve product flow and speed.

Companies adopting a leaner logistics philosophy are in constant dialog with workers. They thrive on eliminating redundant operations that do not have any business value. Through workflow optimization in the supply chain, workers can focus on more meaningful tasks that bring measurable and visible results. This strategy helps businesses stay on top of the competition and align with the industry 4.0 era.

To implement a successful lean logistics strategy, you’ve got to create repeatable and scalable processes. Make sure your team understands the importance of the changes and how new processes work. For this purpose, it would make sense to standardize warehouse operations to provide employees with detailed protocols. You should provide new documentation so every participant in the supply chain process knows what they need to be doing.

ON A PRACTICAL NOTE

Lean Logistics Solutions in action delivered for our clients.
Before we jump to the last person-centered trend, here are some examples of the deployment of lean logistics strategies for our clients:

  • All-in-One Solution – the management platform that enables companies in the delivery and logistics industry to automate pipelines targeted at the execution and administration of internal processes by employees.
  • Visibility Panel – a platform that enables a clear dashboard with crucial information about the trip, load, and route depending on the role and access level in the system

Would you like to clean up your supply chain pipeline with a lean logistics solution?

Hire now!

Digital Employee Training Solution

As companies are adopting more and more edge-cutting solutions to trends in logistics and supply chain management, we’re seeing a huge gap between the technology and employees’ skills. The supply chain industry is becoming more intelligent and tech-advanced, so the need to train the workforce to leverage new instruments is more urgent than ever.

Digital employee training is deservedly referred to as the future of the logistics industry. It allows workers to quickly gain the skills required to succeed in their new digital roles and promotes faster onboarding of new employees in an easy-to-grasp format.

Many companies make the training accessible from any device so the staff can learn anytime and anywhere. Leading organizations even use AI tools to assess workers’ skills, match the skills from old to new roles, and even predict talent acquisition success rates to make more informed decisions about the relevance of arranging training for every individual employee.

Before we jump to conclusions, let’s consider the question;
How big is the logistics industry? Spoiler: it’s huge.

The supply chain and logistics field makes up to 10% of GDP in the United States and about 12% of the global GDP. In the language of money, the global logistics industry is estimated at 8,6 trillion USD. However, the projected market growth is strong, meaning that the figures will rise.

The statistical data suggests that the supply chain industry is yet to see its peak size. What it means to businesses is that they should be able to predict future trends in logistics and supply chain management and rapidly respond to them to stay afloat.

In the light of the recent challenges the industry is facing, the SCM focus should be switched to digitalization and optimization of supply chain operations, which can’t be achieved without a proper tech background.

In case you are looking for a secure tech partner to help you implement one or several of the above-mentioned logistics automation solutions, the HebronSoft custom digital solution provider is at your disposal. We will help you keep up with the dynamic supply chain market so you reach the utmost level of productivity and profitability. We’ve been in the industry for years and monitor the logistics outsourcing trends to deliver the solutions with the highest transformative capacity. Get in touch with our company representative to discuss how we can aid you in leveraging the emerging trends in transportation and the supply chain.

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