Consider this, The International Road Transport Union (IRU) has over a million members and each of them is at varying levels of technological advancement. In the fierce competition that exists, these 5 supply chain trends are going to result in cost savings that will have a ripple effect right down the value chain. And more importantly, what is the best way to implement them in your own supply chain.
Trend #1 The new breed of Supply Chain Players will be less Asset-centric
Data is already proving to be a big differentiator. We are going to see the rise of a new breed of logistics players who will not own assets but will provide logistics services by leveraging data from those who have those assets. We already have Shype and Zipments who have discovered this space and are providing freight quotes and trucking services at 50% of the normal cost, only because they do not have to maintain any assets.
The non-asset-based carriers are like e-brokers that offer their clients the advantages of flexibility. By tapping the power of digitization, they can view the availability and rates of various partners and connect their clients to the most appropriate asset-based carrier company. E-brokerage will gain ground as we move ahead based on the study by Forbes.
Crowd shipping will require reliable real-time data from innumerable sources There will be on-demand pickup solutions that will also provide on-demand storage and retrieval. These features will become quite commonplace for customers.
Trend #2 Circular Supply Chains will be big in the future of logistics
Government regulations on waste disposal and increased incentives for ‘green energy’ will push companies to consider:
- Adopting electric and solar-powered vehicles in supply chains
- Eco-friendly warehouses that will implement advanced energy management systems
- Shifting from linear to circular supply chains
Circular supply chains are a move away from the’ take, make and throwaway’ liner model. The latter is the model where material is discarded after use into landfills and much of it is also polluting our lakes and seas. The severity of this problem is clearly seen by the discovery of a plastic bag in 2019, in the Mariana Trench – the deepest point in the world’s oceans