Happy New Year!
As Radius Logistics moves forward in our mission to make your business better, we find ourselves in the middle of an industry on the move. Supply chain and logistics are at the center of an effective business strategy, and thus, highly susceptible to external pressures and change. Innovation, regulation, economics, and world events all have a strong impact on the direction of an effective logistics system, and 2015 was no exception to that rule. While we work to grow our clients’ operations, we see our business propelling towards innovation and collaboration like never before.
So, what does this mean for 2016? As big data and technology continue to change the way the world does business, supply chain and logistics in turn is going to see exciting disruption on an unprecedented scale. Here are the top 5 predictions for 2016.
1. The value proposition shifts from transportation and warehousing services to master data management and business intelligence services
As technology becomes more and more advanced in the space, it’s no longer enough for a 3PL provider to simply meet capacity and service level requirements at a competitive cost. As businesses increasingly outsource logistical requirements, they look to service providers to meet their growing technology needs. Clients prioritize effective transportation management systems, automation technology, and sophisticated analytics platforms to provide timely, accurate, and complete data.
2. International e-commerce becomes the new frontier
E-commerce is the fastest growing segment of the retail industry. As trading regulations continue to open up a world of possibilities for retailers, the rise of global e-commerce is creating an incredibly complex task for logistics providers. Enabling online businesses to sell to consumers on an international scale means factoring in global trade content capabilities, factoring in duty and tax calculations, restricted party screening, and other processes required for cross-border shipments.
3. Slower global trade creates greater need to optimize international flows
As the global GDP continues to trend downward, so does cross-border trade growth. Supply chain operators will be forced to evaluate global sourcing options more carefully. Multinationals will look to gain economies of scale, and more businesses will aim to hire an expert logistics provider, like Radius Logistics, to manage the risks associate with volatility in the global market.
4. Smart packaging design keeps efficiency in mind
Big data isn’t the only innovation improving supply chain. One of the biggest opportunities to reduce transportation costs and carbon emissions in 2016 is simply to reduce the number of trucks required to ship products. The answer to this lies in developing smarter packaging designs. The introduction of dimensional weight pricing has pushed the industry to start thinking efficiently about packaging. We are already seeing several new packaging products significantly reduce the amount of space needed for shipments, resulting in less truckloads, less materials wasted, and a more effective system overall.
5. Sustainability becomes the focus
Governments are set to continue to enact tighter regulation surrounding environmental impact that will see a large impact on logistics operations. The industry will require an increased focus on sustainable services, pushing innovation, operations, sales, and collaboration towards an increased focus on sustainable solutions.
What are some of your supply chain and logistics predictions for 2016? Share with us on Twitter (@Radius3PL) or Facebook!
Do you want to know more about how Radius can help with you supply chain management and logistics, give us a call today at 1-877-541-1910.
