Pre-emptive Logistics – The Road Ahead
What’s Driving Change in the Logistics Industry?
Key Findings:
- Information Exchange: One-third of decision makers believe that being unable to easily exchange information with customers and suppliers hinders their companies' logistics operations.
- Digital Tools and Connectivity: Two out of five logistics companies lack good digital track and trace tools and reliable mobile connectivity, with three in five agreeing that better logistics tools would enhance their ability to deliver on time.
- Information Sharing Systems: Nearly 70% of decision makers see logistics information sharing systems as very important in the next 3–5 years.
- AI and Data Analysis: Two-thirds of companies plan to use AI and data analysis to match logistics needs with capacity within the next five years, with one in five already implementing these technologies.
- Pre-emptive Logistics: More than 60% of companies expect to ship pre-emptively in the next 3–5 years.
Current State of Logistics
Shifting Expectations:
- Consumers now expect instant access to goods, similar to digital services like music, movies, and games.
- Online shopping grew significantly from USD 1,336 billion to 3,530 billion from 2014 to 2019.
- Amazon and Alibaba have redefined consumer expectations, leading to a shift towards same-day delivery.
Fragmented Market:
- E-commerce giants like Amazon and Alibaba integrate logistics functions vertically through acquisitions.
- The logistics industry involves numerous actors, including 40,000 FIATA members and 1 million IRU members.
- Consumers and business customers demand quick deliveries, creating logistical challenges.
Future Outlook
Digitalization and Sustainability:
- Digitalization is transforming the logistics industry, making it more efficient and sustainable.
- Sustainability is becoming a key driver for logistics enhancements, with 67% of decision makers expecting changes due to customer sustainability requirements.
Pre-emptive Logistics:
- Pre-emptive logistics does not eliminate warehouses and fulfillment centers but aims to create more resilient solutions through cross-competitor information sharing and collaboration.
- This approach can lead to more sustainable and efficient logistics systems.
Overall, the logistics industry is evolving rapidly due to digitalization and changing consumer expectations, with a focus on sustainability and resilience.
