Logistics is the most efficient way to move goods and services around the world. It integrates manufacturing, distribution, warehousing, transportation, warehousing and retailing. In order to provide a high level of logistics service in this competitive market, companies must constantly update their technology and processes. With increased competition in the global logistics market, sharper focus on customer service will lead to more growth opportunities for companies. Here are some global logistics trends that you should be aware of so you can make smart investments when making your business more competitive.
Global Logistics Trends
1. Shifting from a manufacturing-based economy to a service-based economy:
Shifting from a manufacturing-based economic system to a service-based one has been occurring for decades. As the world becomes more technologically advanced, the need for fast logistics services to meet demands is growing rapidly. This means that companies need to focus on differentiating themselves and providing customer service at an even higher level.
2. Increasing demand for goods and services:
Demand is increasing across all sectors of the global market including business, retail and consumer goods. In order to meet this demand, companies must increase their productivity and efficiency in order to stay relevant in the marketplace.
3. Emerging markets like China are becoming more important:
Emerging markets like China are becoming increasingly important as they become more progressive with their eCommerce practices and digital marketing strategies. China has emerged as a global economic superpower in recent decades. It is not only the world’s second largest economy and the largest exporter by value, but it has also been investing in overseas infrastructure and development at a rapid clip as part of its Belt and Road Initiative.
Supply Chain Solutions
Companies are constantly looking for ways to improve their supply chain. Supply chain solutions can be divided into two categories: Technology and Process.
Technology refers to the use of software, hardware, and other electronic tools that help with managing the logistics process.
Process consists of changing processes like moving from a human-based process to an automated one.
The global logistics market is evolving quickly due to increased competition, which results in a focus on customer service and better quality of services. This means that companies must provide more streamlined services in order to provide better customer service and remain competitive in the global market. A solution that can help your company stay competitive is providing your customers with smart supply chain solutions.
Global Logistics Industry
The global logistics industry is a $5.2 trillion market that has been growing in the past couple of decades. This industry has many players, including trucking, railroads, air cargo, shipping and warehousing.
The positive outlook is supported by expectations of strong growth in the country’s air and sea freight markets.
The analysis, based on recent data from Business Monitor International, forecasts the UAE’s air freight market to expand by a compound annual growth rate (CAGR) of 4.8% over the 2017-2021 period.
Future of Logistics
The future of logistics will be driven by autonomous vehicles. This technology will allow delivery companies to deliver orders to consumers faster and more efficiently than ever before. The new technology will also reduce the environmental impact on roadways and parking lots, which is expected to reduce traffic congestion and pollution in these areas.
Global logistics trends also include cloud computing, where data can be accessed anytime from anywhere. This means that companies can access their data even when they are not in the office. It eliminates the need for a physical office and allows employees to work remotely without taking away from productivity.
Another trend is global trade with blockchain technology. Blockchain technology allows companies to streamline international transactions with more transparency because it stores information on a distributed ledger, which is public for everyone in the network to see.
To keep up with the rapidly changing global logistics trends, you need to stay informed about the latest developments in the field.
ProConnect Integrated Logistics
If you think freight forwarding, warehousing, customs clearance or local distribution could be helpful and prove to be efficient for your business, talk to us. We help companies across several industries with their logistics needs, including cross-docking, warehousing and freight forwarding.
We possess the experience and the expertise required that can help you reduce costs, achieve faster turnaround time, implement more efficiency, and offer strong partnership.
Know more about shipping/ logistics industry by checking out our previous articles on Logistics Service Providers: The Role in the Implementation of a Differentiated Supply Chain & 3 Ways to Unlock the True Value of Your Supply Chain
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