A Look to the Future: 3 Logistic Trends Expected to Dominate 2020




From the rise of green and sustainable shipping to the increased integration of digital workflows and more, the world of logistics is continually evolving to deliver more streamlined and agile operations to supply chains.

In this article, we’ll be taking a look ahead to the rest of 2020, discussing a number of trends that are expected to be prominent in the coming year. With insights from the packaging specialists at No1 Packaging, we’ll see what the future of the logistics sector may look like in 2020 and beyond.


Going green

While the adoption of more sustainable shipping methods isn’t necessarily new, this doesn’t mean it isn’t a trend to keep a watchful eye on. As businesses get into their stride in 2020, it’s becoming clear that prioritising sustainability within logistics is no longer optional, but a must. 

As a large contributor to greenhouse gases, the transportation industry will have a significant part to play in reducing carbon emissions and developing green logistic solution models. The benefits of adapting your supply chain management to be more environmentally conscious go beyond doing your bit to save the planet, too. Firstly, it provides organisations with the opportunity to bolster their brand reputation both within their industry and with end users. Secondly, a greener, leaner supply chain can also lead to improved productivity and efficiency, resulting in reduced supply chain costs through lower energy costs.

When it comes to implementing green logistics, many companies are striving to seek out more efficient and planet-friendly solutions to help minimise pollution and increase overall efficiency. Some growing trends include utilising all freight, which in some instances can include collaborating with competitors to combine shipments and sourcing environmentally responsible partners across the supply chain. Elsewhere, a major trend is adopting more eco-friendly packaging materials, which in some cases can be reused or recycled to lower waste. 

Technology will also have its part to play in creating greener logistics as new tech advancements work to refine all aspects of the supply chain - offering greater visibility on global shipping.


Third-party logistic partnerships

Tying in with green logistics is the growing trend of shipping companies partnering with third-party logistic (3PL) providers to fulfill their transportation requirements. However, the motivations here aren’t solely environmental. Employing the services of 3PLs can have a significant impact on driving down the costs of storing and shipping freight, as well as increasing efficiency within the logistic supply chain. In addition, it can help companies looking to meet the growing demand of consumers for convenient and quick (often same-day) delivery. With the ability to process and track shipments in real-time and get them dispatched on the same day, this helps to bridge the gap that many companies face when it comes to last-mile distribution. 

At the core of these successful 3PL and shipper relationships is the advent of innovative technology that allows seamless information sharing and visibility of shipments on both a domestic and international scale. With their sole focus on shipment fulfilment, third-party logistic providers have streamlined their operations, which results in a lowered risk to cargo on route and improved order fulfilment to the end user. Outsourcing logistics can be a cost-effective way to help to alleviate stress points in a company's supply chain without the need to overhaul the entire operation model internally.


Digital workflows and big data

Of course, it isn’t just 3PLs who are making use of advancements in technology to improve their services - the integration and use of digital workflows and big data is becoming common practice in supply chains of all sizes. 

From small-scale ecommerce enterprises to large global brands, every supply chain consists of multiple layers with its own complexities that are all interlinked - so finding a suitable way to marry them all together for seamless operations is key to staying ahead of the game. This is where supply chain management technology has already transformed current supply chains, but these digital workflows are fast-becoming an essential part of every successful business procurement process.

Offering real-time data for order processing and tracking, accurate forecasting ability and inventory management, digital workflows and big data allow supply chain managers a clear view of every facet of their supply chain. This not only helps to identify potential problem spots in real-time, but it can also help to pinpoint areas for improvement. 

As this is an area that is continually developing and improving, it’s no surprise this will be a major trend to keep an eye on this year and beyond. Whether it’s harnessing the power of big data to better predict consumer buying trends or eradicating traditional logistic blind spots for cross-border transportation with pallet GPS tracking, there are endless possibilities for digital workflows to contribute to a more agile supply chain built for the future. 

With increased demand from consumers and environmental pressures, keeping an eye on what the future may hold for logistic trends could be the key to succeeding in this evolving landscape. We hope these insights will provide you with food for thought on how you can build on your current model to deliver a robust and agile supply chain in 2020 and beyond. 

Alex Jones is a content creator for No1 Packaging - one of the UK’s lowest cost packaging providers.

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