The logistics industry is always evolving, and the companies that want to stay on top are constantly developing their operations along with it. Processes that are best-in-class one year can become antiquated and inefficient by the next, so getting comfortable is not an option. To remain competitive, it’s vital for companies to stay abreast of changing trends in the industry and adapt accordingly.
Of course, successfully predicting and getting the jump on major trends is a more effective strategy than continually playing catch up. But for many, the daily demands of supply chain management make it feel almost impossible to focus on tomorrow, let alone the coming year. To make proactive strategizing a little simpler, here are a few of the major trends predicted to shape logistics and supply chain management in 2019 and beyond.
More companies will turn to load optimization and performance monitoring
In 2015, 55.1% of shippers leveraged load optimization and performance monitoring to improve their logistics operations. But the adoption of these strategies is on the rise, with 61.6% of companies predicted to embrace them by 2020.
While this might not sound like a big increase, adoption may speed up as shipping spending soars and profit margins tighten. For companies looking to cut freight costs and improve warehouse and supply chain efficiency, these strategies can put dollars back in the bottom line.
A fully integrated transportation management system (TMS) makes load optimization and performance monitoring significantly easier. A powerful TMS brings together all the data a company needs to gain both a big-picture view of its operations and visibility on a granular level. With these insights, shippers can intelligently consolidate shipments, measure, and act upon key performance indicators (KPIs), and more.
Automation will find a more receptive audience
Automation has been the word on many logistics experts’ lips for several years now, but a lingering degree of uncertainty around the technology has limited the rate of its adoption. That may soon change. In fact, the global logistics automation market is expected to reach $72.920 billion by 2030—a compound annual growth rate of 12.51% from where it is today.
It’s no surprise that shippers are increasingly turning to automation to solve core logistics and supply chain challenges. Automation tools are particularly effective for streamlining the most time-consuming and repetitive manual processes, cutting down on labor costs and allowing companies to redistribute staff to the areas of their operations that can benefit most from the human touch.
Teams will embrace outsourced support to solve talent shortages
It’s hard to hire the best people, and it’s only going to get harder. Experts predict that by 2030, global demand for skilled workers across every industry will outstrip supply by 85.2 million people. Up-to-date digital skills are in especially short supply, holding companies back from leveraging their data effectively and adopting emerging technologies.
To avoid these issues, companies may turn increasingly to outsourced support models and remote help over the next few years. At CTSI-Global, for example, we can augment a company’s existing logistics team virtually or on-site, providing vital resources and support—and extra hands on deck when the going gets tough.
The proactive approach isn’t a distraction—it’s a vital strategy for success
In today’s fast-paced logistics climate, companies have a lot on their plate. But by keeping one eye on the future, the road ahead will hold fewer surprises.
At CTSI-Global, we help companies future-proof their operations with proactive tools and critical support. After 60 years in the logistics business, we’ve got a wealth of expertise—but we’re always looking forward in order to anticipate the next trend and help our clients thrive in the midst of shake-ups.
Prepare for tomorrow. Contact us today to optimize your current shipping processes.