Global EconomyLogistics

The Future of the Shipping Supply Chain

The Future of the Shipping Supply Chain

Supply chain challenges have been making headlines for several years, and shipping, fulfillment, and production challenges will unlikely lower.

The recent Covid-19 pandemic revealed vulnerabilities in global logistics, transforming how merchants produce, ship, and deliver products.

In this blog, we’ll identify the future trends and the strategies businesses will use to ensure success:

Trend # 1: Supply Chain Disruption will Continue to Occur with Increasing Frequency and Severity

A commissioned study by Forrester Consulting reveals that shipping delays, shipping costs, and manufacturing delays are among the top concerns brands will encounter in 2022.

Some analysts believe that it’s unlikely systems will normalise until 2023. Furthermore, experts say that even if the logistic network returns to its original state, it will continue to experience natural disasters, political instability, and regulatory changes.

The manufacturing production sphere experiences significant disruptions every 3.7 years.

Trend # 2: Evolving Shipment Plans and Fulfillment Strategies To Overcome Supply Chain Subjection

Today, merchants are redefining where their stock is, how it reaches the end-consumer, and the techniques to get products/services into customers’ hands- particularly since shipping costs and manufacturing delays increase. 

According to Shopify, companies are rethinking their manufacturing and shipping strategies to create opportunities to improve customer service, cut costs, and boost revenue.

In addition, businesses and their logistics will switch their efforts to building more resilient supply chains focusing on digitisation.

Trend # 3: Smart Shipping will Continue to Prosper

With digitisation rapidly transforming every aspect of human existence, it’s no surprise that smart shipping is replacing standard shipping.

Today, organizations use intelligence technologies and data analytics to gather real-time data and make informed shipment decisions.

Advancements in innovative technologies have encouraged developments in the logistics sector. Artificial Intelligence and Machine Language help businesses introduce hyper-automation, while immersive technologies like IoT provide smart tracking. Therefore, organizations can collect data like a departure, arrival time, and ports visited.

Trend # 4: Autonomous Fleet Will Bring Better Efficiencies

Several years ago, drones made headlines and stirred conversations when Amazon announced that it would launch drones for last-mile deliveries.

While drones are becoming a crucial part of the shipping supply chain future, it’s not the only type of fleet to become completely autonomous. 

Before the introduction of drones, the first vehicle to become autonomous was forklifts. These expansive, heavy-duty, and efficient machinery replaced the warehouse’s time-consuming and unproductive manual tasks.

However, we expect innovative ‘vision-guided fully autonomous mobile robots’ to replace heavy-duty forklifts. With the help of these, organizations can process orders faster and with better accuracy.

In addition, autonomous trucks and truck platooning will become a reality by 2030. At the same time, the semi-autonomous trucks industry will grow by 8.2% CAGR and reach a penetration rate of 5%.

Trend # 5: Supply Chain Will Become Localized

Today’s customers want goods and services at a low price for instantaneous fulfillment.

It fuels a competitive market where on-demand delivery is becoming a differentiator and USP. While same-day delivery used to be an advantage, it’s becoming an expectation.

Unfortunately, most supply chains struggle to provide next-day delivery. Therefore, we expect fulfillment to become more localized as organizations leverage multiple locations to reduce delivery time and ensure efficiency.

Not just this, but fulfilling orders from local stores allow businesses to use local inventory when necessary. It also leads to the enhancement of customer experience and ensures you stay up-to-date with supply chain trends.

Trend # 6: Social and Environmental Impacts Will Redefine the Next Era of Shipping and Logistics 

An insightful survey reveals that 66% of all respondents consider sustainability when purchasing. Furthermore, the Global Consumer Insights Survey showed that 37% of buyers look for eco-friendly packaging and 41% of people avoid using plastic whenever possible.

Thus, it’s evident that modern consumers prefer doing business with socially conscious and environmentally sustainable businesses. As an increasing number of customers choose sustainably operated and green companies, merchants will shift their focus to improving sustainability.

According to Shopify’s in-depth report, businesses that invest in sustainability will enjoy better ROI, customer loyalty, and employee retention rates.

Trend # 7: Revamping Supply Chain Strategies Provides the Perfect Chance to Reduce Carbon Emissions and Build Resilience

The retail supply chain causes over 50% of industrial carbon emissions, making it the biggest producer.

Pressured by consumer expectations, over 43% of merchants are changing their shipping strategies to reduce carbon emissions and reduce global shipping delays.

In addition, 45% of people plan to improve their manufacturing capacity.

The Bottom Line

These seven trends showcase that green and intelligence-embedded supply chains enjoy a competitive advantage in today’s digitalized and dynamic world.

One thing is clear: companies will have to leverage state-of-the-art technologies to create a more efficient and innovative supply chain.

This website uses cookies. By continuing to use this site, you accept our use of cookies.