The logistics sector’s growth was attributed to factors such as a growing e-commerce industry, an increase in reverse logistics operations, and an increase in trade related agreements, which fueled market growth.
The most common types of logistics models are 1PL, 2PL, and 3PL logistic services, which provide logistics services such as consultation, transportation, packaging, legal services, warehousing, and management, among others, depending on the level.
Furthermore, the logistics industry has accelerated economic globalization. The logistics industry has strengthened inter-industrial ties and accelerated the process of spreading growth impulses throughout its economic sphere and on a global scale.
Companies that embrace a combination of the top trends in logistics management to become resilient to supply chain shocks will succeed in 2022 and beyond.
For more than a decade, Radio-frequency Identity (RFID) chips have promised real-time tracking data. RFID has great potential in logistics, particularly in route optimization and real-time tracking of goods. RFID systems, when properly integrated, can provide precise location and quantity data in real-time. Tagging trucks, pallets, and inventory, for example, provides multi-lateral views of what is happening across the supply chain.
Omni-channel fulfilment is becoming more common in the logistics industry, fueled by a shift in the retail industry’s approach to meeting customer expectations.
The Amazon effect, according to the Harvard Business Review, is driving traditional retailers to provide more omnichannel touchpoints in order to increase customer loyalty. The goal is to provide a seamless and simple shopping experience, whether online or in-store.
As customers advance through their own use of modern technology, logistics companies are embracing logistics automation trends by connecting e-commerce stores with fulfilment centres via API integrations in addition to traditional EDI.
Air cargo business is slowing amid global macroeconomic pressures but 2022 is still shaping up as one of the industry’s strongest years ever with cargo revenues nearly double those before the pandemic.
The trucking industry is attempting to balance continued year-on-year increases in freight tonnage demand with driver and equipment shortages, increased regulation, and higher capital costs.
The short-term market impact of the COVID-19 pandemic is critical for the rapid growth of pharmaceutical logistics. In the midst of the pandemic, governments around the world are emphasizing healthcare facilities and an ample supply of medications for patients. As a result, the trade in traditional medicines is expanding from country to country.
As in most industries, logistics is dealing with a labor shortage across all segments. In the Jabil and Industry Week survey, 60% of respondents said they had experienced moderate or significant negative impacts from labor costs or shortages during the pandemic. From long-haul truck drivers to longshoremen to warehouse pickers, there’s a need for skilled and manual work across the board to move freight through the supply chain.
In 2020, the Global Logistics market attained a value of almost $5.83tn and grew by 3.92% in 2021 to $6.09tn.
For details on Overview of the Industry and Regional landscape feel free to refer to the following Logistics Industry report from CrispIdea.
–By Shreya Shetty and Rashmitha Selvaraj
Shreya Shetty is an Industry Research Analyst at CrispIdea. She covers industry such as Cyber-security, Ad-Healthcare IT, Cloud, Semiconductor, etc.
Rashmitha Selvaraj is relationship manager who looks into Investor Relations and Corporate Affairs at CrispIdea and she also looks after the digital communication of the company.