2015 is here! The
wave of positivity and change has surged through the Freight &
Logistics industry bringing in new optimism. This year is expected to
bring in new business opportunities and growth. From sharp decline in
crude oil prices to emergence of new markets, there is so much going
on globally. It is very difficult to keep track of everything in our
highly volatile industry. Yet it is important to know what is new and
what to expect in 2015. To help you prepare for a year full of
opportunities, we bring you the current and upcoming trends in
Freight Forwarding & Logistics Industry. Let us have a look :
1) Continued Growth
of E-Commerce
E-commerce sales are
growing 20% annually and are expected to reach almost $900B globally
this year. According to Forester Research, e-commerce will make up
11% of all U.S. retail sales. In India alone, the e-commerce industry
is expected to spend an additional 500 to 1,000 million USD on
Infrastructure, Logistics and Warehousing (according to an
ASSOCHAM-PWC joint study). As people continue to buy stuff online,
logistics companies will have more and more business coming their
way. The challenges though will remain same which include efficient
tracking of orders, the security of the fragile products and the last
mile delivery in rural areas.
2) Going beyond
Visibility
As a result of rising
expectations of customers, visibility and customer service is going
to be of high priority. Customers are looking to get more services
along with the real-time tracking of orders. There is a growing need
for fully integrated view of real-time information across the supply
chain to reduce response time and improve customer satisfaction.
The effective usage
of software will allow freight forwarding companies to provide the
shippers with a customer
portal integrated with Web and Mobile platforms. Such interactive
portals will help customers not only to track their orders but also
to manage their bills, payments etc. and book new orders while
providing a unified picture of their supply chain. This will also
enable freight and logistics companies to reduce the cost and efforts
spent in customer service.
3) Soaring to the
Cloud & Going Mobile
Technology will
continue to alter existing and define new trends and expectations.
More and more freight & logistics companies are expected to shift
to the cloud platform. The cloud, with its affordable, remote
solutions will enable global logistics companies to become more
efficient and performance-driven. Smart use of cloud
technology with integration of Web and Mobile platforms will
allow logistics companies to gain competitive advantages such as
reduce costs and provide better visibility.
4) Growing use of
Information Reporting, Analytics & Big Data
Logistics companies
generate huge data in form of freight information, customs related
data, bills and payment information etc. Using this data to generate
insightful inferences and drastically improve decision making will be
a major focus in logistics industry. Successful use of powerful
reports, dashboards and KPIs will improve supply chain effectiveness
across the organization. Information reporting will also allow
freight forwarders to bring in new business models with better
customer experience and competitive pricing.
5) ICT to become a
Communication Backbone
Information and
Communication Technologies (ICT) have already had significant effects
on logistics. Collaborative technology in conjunction with cloud, web
and mobile will greatly improve communication across the organization
connecting partners, customers, vendors and all other entities.
Growing number of firms will opt for integrated systems that help
increase the speed and fluidity of physical and information flows.
6) Awareness for
Sustainability and Green Initiatives
Green challenges and
initiatives are and will continue to be a significant part of
logistics companies around the world. New regulations are also coming
from the governments that put higher demands on the industry. A
greater understanding and improvements in technology will provide the
industry with opportunities to improve the way it operates and help
to minimise the environmental impacts in a smarter and more measured
way.
7) Growing demand for
Skilled Logisticians
The logistics
industry is expected to face major challenges in managing the
workforce: difficulty in attracting talent and the lack of the ideal
logistics skill set. With growing business, logistics industry may
have to cope with a huge shortfall for skilled workforce. The
development of logistics skills will be a top priority globally and
will be achieved through a number of initiatives that increase the
competency and make greater assets for the organisation.
These are the 7
trends that will drive freight forwarding and logistics industry
globally in 2015. With growing e-commerce, adaption of cloud-based
logistics software, interactive customer service portals and
Green Initiatives, the overall year looks very promising and
propitious.
Softlink Global wishes you all, a Very Happy, Successful and Profitable New Year 2015.
1 Comments
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