Recent technological advancements and innovations are transforming business operations in every industry, including the logistics industry. The service providers in the logistics industry have shifted their focus from building their infrastructural capabilities to adopting big data and analytics-driven economy. Being the backbone of business and trade across the globe, the logistics industry is set to witness trends that can transform its future. With the rise in digital transformation, new entrants, changing customer preferences and expectation, and competitive business models are changing the logistics landscape. Apart from these, there are a few factors that are expected to drive growth opportunities in the logistics and transportation industry.
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Technologically Competent Workforce
With the rising mobile and internet penetration in the market, the workforce is equipped with the necessary technical know-how and expect the same from their work environment. Technology has made life easy and streamlined business processes by allowing employees to multi-task, seek instant gratification, and confidently make strategic decisions. As a result, the service providers in the logistics industry will have to adapt its equipment and management techniques to suit the needs of the future workforce.
Evolving Consumer Behavior
The consumer buying patterns and shopping behavior has constantly evolved over the years as a result of wide availability of products, easy accessibility, high level of customer awareness, and the advent of e-commerce businesses. Of all the factors that are impacting consumer behavior, e-commerce has driven brought about major changes in the logistics industry and its operations, which has pushed the service providers to adjust their fulfillment practices, ensure cost-effective delivery options, and improve customer service. As a result, the logistics service providers are advised to leverage predictive analytics, business analytics, and other advanced data analytics solutions to gain actionable insights to improve decision-making.
Increasing Connectivity in the Logistics Industry
The passenger transportation industry has witnessed a sudden surge in revenue, competition, and market players, thanks to the uberization phenomenon that has changed the way people commute. It won’t be long till the commercial transportation or the logistics industry adopts the uber-like service models. As a result, companies will be able to book their shipments or vessels through an app, which will not only allow them to check for the nearest truck location but also book it in one go without any haggling.
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Unstable Political Landscape Across the Globe
Recent upheavals in the political landscape across the globe have resulted in the fragmented market scenario and heightened the security concerns for the transportation industry. The developed markets are nearly saturated and are not as cost-effective as compared to the emerging markets, which is why businesses are turning to low-cost and flexible routes for their logistics needs. Additionally, the increased usage of cloud-based technology by logistics service providers and the recent cyber-security attacks has raised several eyebrows on security and monitoring capabilities of the players in the logistics industry.