Keeping up with industry developments is key to gaining an edge for you and your company. Are you up to speed on the latest logistics trends?
You might find them surprising and not what you’d expect.
Check out the video below to see what’s trending now and how it could impact your business.
Watch Rob’s latest insights and stay ahead of the curve!
This week, let’s dive into the current trends in logistics. You might be surprised by what’s capturing attention in the industry.
As the head of Logistics Bureau, my daily routine involves overseeing a wealth of global case studies and industry updates. This unique perspective allows me to bring you insights into the latest trends shaping logistics worldwide.
When discussing what’s hot in logistics, I draw from over 200 client projects conducted globally in the past year. These trends might not align with the typical focus on technology. In fact, while technology is crucial, it’s not the main highlight this week. Let’s explore some key areas currently driving change.
Challenges in the Industry
The past few years have been hard. Post-COVID, managing supply chains remains challenging. Warehousing space is scarce in many regions, including Australia, and finding reliable freight carriers is increasingly difficult due to driver shortages and supply chain disruptions affecting truck availability.
Key Trends and Solutions
1. Inventory Management
During COVID, many businesses overstocked inventory to combat supply disruptions. Now, the focus has shifted to reducing excess inventory while managing tighter demand. Companies are refining inventory management practices and tools, yet many still lack robust forecasting and demand planning systems. Effective inventory management and sales and operations planning (S&OP) are essential. Even medium-sized companies can benefit from adopting these practices without massive investments in technology.
2. Warehousing
A shortage of warehousing space continues, prompting businesses to seek efficient layouts and storage solutions. Companies are optimizing existing warehouses with better layouts and automation. While automation can be costly, even small-scale implementations can significantly enhance efficiency. Evaluating your warehouse network and storage practices is crucial for addressing space constraints.
3. Freight Management
Freight management is disrupted by driver shortages and long lead times for new trucks. Companies are revisiting their freight contracts and rate structures to ensure they’re getting the best value. Analyzing freight profiles and optimizing rate structures can lead to substantial cost savings.
4. Warehouse Outsourcing
Outsourcing warehousing has been a popular trend for decades, but current challenges, including labor shortages, make it more complex. Third-party logistics (3PL) providers are becoming more selective, and businesses need to present streamlined operations to attract them. Ensuring your processes are well-documented and manageable is key to successful outsourcing.
5. Cost to Serve
Understanding the cost to serve is fundamental. Companies must analyze profitability by customer type, location, and product characteristics to identify profit leaks. Conducting a detailed cost-to-serve study can reveal significant opportunities for improvement and cost savings.
Technology Insights
Lastly, regarding technology, it’s essential to approach new tools thoughtfully. Technology should address specific issues rather than being adopted for its own sake. Larger companies often lead in technology adoption, but all businesses should evaluate their needs and the benefits technology can provide.
Make sure you don’t miss anything by watching the full video above.
Related articles on this topic have appeared throughout our website, check them out:
- Struggling with Logistics Challenges? A 3PL Might be Your Salvation
- Raising Productivity in Logistics Operations: The BHAG Approach
- Selling Online? What It Means for Your Logistics Network Design
- Reverse Logistics: Who Does it Well?
- Getting Aligned with Business Goals for Successful Logistics Outsourcing
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated October 04, 2023, under the title “What’s Hot in Logistics?“.
