We asked our employees what they think will be the Top 5 Logistics Trends for the upcoming year 2020. Here is what they said:
Logistics Trend #1: Digitization
Currently digital business models and digital platforms are not only more present and relevant in transport logistics but also in many other areas of the logistics industry, like for example warehousing. Through the connection to logistics platforms, the digitization of small and medium-sized freight forwarders is expected to continue to grow in the upcoming year leading to a higher supply chain efficiency and transparency. We recognize a growing demand of carriers for digital workflows all the way up to documents. In regards to that, more logistics companies might have to adapt digital document handling in 2020 in order to satisfy customer needs. For all players of the logistics industry it will be interesting to see in 2020 to what extent different systems will be able to “communicate” with each other. That means, how does the data from the ERP (enterprise resource planning) system of the customer get to the transport management system of the contractor? How does the data then travel from the dispatcher of the carrier to the truck and finally how does the truck communicate dynamically with for example a time window booking system? Digitization continues to be topic number one for the logistics industry.
As part of this logistics trend 2020, our goal is to make supply chains even more visible and processes more efficient through our digital platform InstaFreight.
Logistics Trend #2: Sustainability
In 2020 the topic of sustainability will continue to be significant for the logistics industry. Especially responsible for that is the growing mindfulness of consumers regarding this topic. With respect to climate change and for the sake of the environment, large changes in the logistics industry have to occur. Progress in electro-mobility can help by minimizing CO₂ emissions, reducing operating costs and lowering traffic noise. Since the market is expected to move away from oil-driven fuel in the next years, logistics companies must start to put a stronger focus on green logistics in 2020. One possible way to do so is through investments in alternatives to diesel engines, such as E-trucks and LNG (liquified natural gas) trucks. In the urban local and delivery traffic, more electrically powered trucks up to 7.5 tonnes could for example be utilized to satisfy the ever-growing requirements for emission and noise reduction.
InstaFreight understands that action must be taken regarding climate protection. That is why the year 2020 is clearly under the sign of sustainability for us. Not just in relation to how we as a company work internally but also in regards to the cooperation with our transport partners, which means offering our customers the chance to fully understand with which trucks our partners drive. The goal is to continue to avoid empty runs as much as possible in order to keep our InstaFreight CO₂ footprint to a minimum. This is made possible by an efficient utilization and analysis of (transport) data.
Logistics Trend #3: Data
With a growing demand for data-driven decision-making the trend that more data will be collected and efficiently analyzed to have a better basis for decision-making and to process transports more efficiently will continue in 2020. The ever-increasing data availability in the supply chain also enables the use of new big data methods, for example in the planning of delivery cycles and in the prediction of operative problems. Specifically in terms of process optimization, supply chains should become more transparent to make actions for companies as well as their partners more traceable.
We use track & trace technologies to allow InstaFreight users transparency through the overview of shipping details. For the upcoming year we plan on making processes even more transparent and to use obtained data for process optimization.
Logistics Trend #4: Recruitment
One goal for 2020 is to improve the overall attractiveness of the logistics industry. Since the shortage of qualified experts has grown consistently over the last few years, the search for new talent is currently a huge challenge for all areas of logistics. Especially the role of truckers will become very important in the upcoming year since they are currently high in demand. The problem of finding truckers might, however, be less of an issue in the long run due to autonomous driving trucks. By now it is undeniable that qualified employees are a scarcity in the logistics industry. A “war for talent” is expected and that not only with respect to operative professionals but also with respect to IT specialists.
As a young company, we offer our employees a dynamic environment in which they can drive and implement their own ideas and benefit from a family-like start-up atmosphere. We want to show that working in the logistics industry can be exciting and challenging. Especially because the industry is shifting from the conservative to the digital.
Logistics Trend #5: New Technologies
Logistics is the backbone of global trade but at the same time also a slow adopter of new technologies. In 2020, however, this could change through the increase of the importance of new technologies such as the remote unlocking of freight containers and the sensory surveillance of sensitive goods. Those new technologies should be used more extensively in the future since they can be helpful with the assessment of operative risks as well as with the pricing of transports.
To fulfill market demands and to remain competitive, the adoption rate of new technologies will be especially high for small and medium-sized transport companies and thereby business models like InstaFreight are expected to find an even higher utilization rate in 2020.
We continuously reflect on how to improve the status quo for our shippers and carriers. Thereby, we use our technical know-how and business knowledge to make processes more efficient and supply chains more transparent. As a team we discover the problems of logistics today, create solutions and shape the transport logistics of tomorrow.
We are excited to see what 2020 has in store for us and the entire industry.
Follow us on our journey of setting trends in the European road freight industry!
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