Consumers drive shift towards personalized and flexible delivery options in freight and logistics

The freight and logistics industry plays a critical role in the global economy as it enables the movement of goods and materials around the world. The industry includes a wide range of activities, including transportation, warehousing, and distribution, and involves a variety of modes of transportation such as trucking, shipping, and air cargo.

The freight and logistics industry is essential for the smooth functioning of global supply chains, which are the networks of businesses, transportation systems, and information systems that are involved in the production, handling, and distribution of goods and materials. Without the freight and logistics industry, it would be difficult for businesses to access the raw materials and components they need to produce goods, and for consumers to access the products they need and want.

In addition to its role in the movement of goods, the freight, and logistics industry also plays a key role in driving economic growth and development. The industry creates jobs and generates income for workers and businesses, and the efficient movement of goods can help to reduce costs and increase productivity for businesses. As such, the freight and logistics industry is an important contributor to the overall health and stability of the global economy. Here are 5 shifts that analysts project for 2023 and beyond.

1. Sustainability & Green Logistics

According to the Boston Consulting Group (BCG), “Transport activities (aviation, rail, shipping, heavy and light trucking) are responsible for ~17% of global greenhouse gas (GHG) emissions.” Additionally, the World Economic Forum reported: “85% of the delivery mileage from freight delivery is responsible for emissions.”

As the world moves towards curbing this problem, sustainability is becoming increasingly important to consumers and businesses, the freight and logistics industry may see a shift towards more environmentally-friendly practices, such as the use of electric or alternative-fuel vehicles.

2. Localization of Supply Chains For Optimized Reverse Logistics

According to data from Statista, the global market size for logistics services was estimated to be $8.1 trillion in 2020. This market is expected to grow to $15.5 trillion by 2023, at a compound annual growth rate of around 14.5%.

As the demand for “fast & free” shipping and return orders in eCommerce increases, the logistics industry tackles an imminent problem — to manage the ever-increasing costs of reverse logistics and optimize it as per the supply chain patterns.

This makes it imperative for logistics companies to invest in last-mile delivery solutions for the D2C (direct-to-consumer) models. We’ve observed a shift towards localization of the supply chains for fast order fulfillment in 2022. This is expected to grow in 2023 and beyond with more 3PL integrations locally for increased speed and efficiency in the last-mile distribution.

3. Blockchain Integration in Logistics & Supply Chain

Blockchain technology has the potential to revolutionize the logistics industry by improving the efficiency, transparency, and security of supply chain operations.

One of the key benefits of using blockchain in logistics is that it allows for the creation of a shared, decentralized ledger of transactions that can be accessed by all parties involved in the supply chain. This can help to increase transparency and traceability by providing a single source of truth for the movement of goods.

Many of the global logistics players are already investing substantially in Blockchain technologies and as more supply chain stakeholders adopt this technology in their daily operations, Blockchain integration will without doubt evolve as an industry practice.

4. Artificial Intelligence: Predictive maintenance and autonomous vehicles are among the key ways AI will transform logistics

Artificial intelligence is already with us and it is here to stay. AI has the potential to revolutionize the logistics industry by improving efficiency, reducing costs, and enabling the development of new business models and services. Some of the ways in which AI could impact the logistics industry include:

1. Optimization of logistics operations: AI can be used to analyze data from logistics operations and identify patterns and trends that can be used to optimize routes, reduce waste, and improve efficiency. For example, AI could be used to optimize the loading of cargo onto ships or to identify the most efficient routes for trucking operations.

2. Predictive maintenance: AI can be used to analyze data from logistics assets, such as vehicles and equipment, to predict when maintenance will be required and prevent downtime. This can help to reduce costs and improve the reliability of logistics operations.

3. Autonomous vehicles: AI can be used to enable the development of autonomous vehicles, such as self-driving trucks, which could significantly improve the efficiency of logistics operations.

4. Personalization of services: AI can be used to analyze customer data and provide personalized recommendations for logistics services, such as delivery options or routing. This can help to improve the customer experience and increase loyalty.

5. Development of new business models: AI can enable the development of new business models, such as on-demand delivery services, that could disrupt traditional logistics models.

Overall, the use of AI in logistics has the potential to significantly improve efficiency and enable the development of new and innovative services that can drive growth and competitiveness in the industry.

5. Singularity: Fully-Branded & Extensive Customer Experience

The growth of the logistics sector (or any sector per se) revolves around its customers. Over the past few years, the trend has been evolving —the customer no longer likes to be sold to, preferring instead a relationship-based engagement. There has also been a noticeable shift in most industries — from a purely operational mindset to a more customer-centric mindset.

A report by KPMG says that almost 80% of transport and logistics companies are focused on improving customer experience. Considering the macroeconomics and competition in the logistics industry, a fully-branded customer experience becomes the differentiating factor. A point of singularity where the marketplace, the product, and the customer are collapsed into one unit. In 2020 the world entered an error where platforms such as Google, Facebook, Instagram, Twitter, etc will for the foreseeable future dominate almost every aspect of global trade.

Thus, re-orienting traditional practices and developing new processes to ensure a consistent customer experience across all channels is the future of the logistics business. Understanding the problem and communicating its solution to the consumers is the basis of a strong brand — which engenders trust and reliance.

This is where the need for a strong online presence comes in — where consistent branding through content, social media, and other marketing assets