We couldn’t agree more with the words that mention,

Great companies know logistics and supply chain is the key differentiator to separate from the competition.” 

The rising demand and emerging trends are shaping the future of logistics. The constantly evolving supply chain and logistics trends are tech-driven and focus more on increasing productivity and reducing expenses for businesses. Every year, a new draft is made on the topic, the latest trends in supply chain management, but the list would be slightly different this year. Different in a sense, the pandemic’s catastrophic effect has brought in a revolution. People have started relying completely on eCommerce and online shopping modes, owing to which there is a dire need for the industry to come up with smart & instant solutions. Hence, the logistics and supply chain management trend in 2022 is going to be an interesting topic to learn. Shall we begin?

An Era of Revolution Begins

Logistics and supply chain is the backbone of a business. The more agile and flexible the process is, the better growth opportunities lie for you in the future. By going with the flow, you can increase your business reliability, resilience, speed, and sustainability. The advancement of technology helps you in being focused on the core business offerings while everything else is being taken care of. Well, an added benefit, innovative trends will keep your customers ahead every time.

The covid-19 pandemic has highlighted the weak spots in the flow and how the supply chain lacks efficiency in meeting the emergency situation. However, the below-mentioned current trends in the logistics industry will increase the elasticity of operations. The digital transition and the adaptability of the same will make businesses capable of handling unprecedented events.

Let’s look at how exactly the transformation will be brought in and what trends will strengthen modern-day businesses.

Logistics and Supply Chain Trends

1. Blockchain:

Blockchain is everywhere today, you name industry, and this vibrant technology will have a stunning impact. If we talk about this segment, logistics, and supply chain, it was a hustle to manage and process the data.

This can be overcome by implementing blockchain technology. The success story of Koopman Logistics is the proof of concept. The company executed bitcoin blockchain technology and became the first company that delivers automotive vehicles without paperwork.

2. eCommerce logistics:

Needless to say, we all participated exhaustively in bringing up this trend. The online shopping craze has resulted in the exponential growth of the eCommerce industry. It is expected that eCommerce logistics will cross $524 billion by 2025. Another result of a poll conducted by Peerless Research Group suggests that nearly 10% of participants agree that the eCommerce channel will grow by 60% or more.

3. Digital training solutions:

Again, the rise in demand for eCommerce solutions is one thing, but hiring officials who can solve the purpose is another. The onboarding and upliftment of the hired professionals is also a task that accompanies the growth.

To address this issue, businesses now resort to digital training solutions that will do the job for them. Besides, the digital solutions will take care of the hiring, recruiting, and training process of onboarding professionals.

Amazon, the biggest eCommerce giant, adopted this trend when they hired nearly 175,000 temporary employees during the covid times and since then hired nearly 2800 workers, nearly every day (since July 2020).

Top 15 Logistics and Supply Chain Trends to Follow in 2022

4. Gamification:

One thing that stimulates the human mind for sure is gamification. The increasing need to deliver the product just on time may force the team to work for extended hours. And if this continues for days, they are likely to lose their motivation and productivity.

To boost up their morale, you can include gamification activities like real-time feedback, a digital challenge that will help them interact with the team and also help them raise their skill level.

You can also introduce a Reward system. Say, for example, you give a virtual badge or a performance bonus to the employee who performs extravagantly.

As a result, even the workers can have a real-time check of their performance and learn how to manage their workload. Additionally, the repeated and tiresome tasks can be made fun & engaging, and this will boost their creativity level.

5. Warehouse automation:

One of the important segments in logistics and supply chain strategies is warehouse management. A humongous to and fro of materials happens inside a warehouse. Well, the old-school manual methods of managing the warehouse are extremely time-consuming and costly. And also most likely will be replaced by automated methods in a short time.

Robotic arms, automated guided vehicles, automated storage, and retrieval are a few things that will follow in the year 2022 and beyond. Well, we wouldn’t stop citing Amazon again as an example here. Amazon made an upfront investment in warehouse automation and is expected to save $18 billion in warehouse operating costs.

Read Also: How Digital Supply Chain Technologies are Bringing a Revolution in Supply Chain Management? 

Logistics and Supply Chain Trends

6. Internet of Things:

Well, when the adoption of the IoT is increasing like wildfire in various industries, why not here? A McKinsey report states that there will be a growth of 3 to 5% in warehouse automation by 2025.

IoT will help organizations maintain data accuracy and keep them in sync with a pool of devices. The embedded software will literally help businesses in taking the data transformation journey to ANOTHER level.

7. Artificial intelligence:

Another thing that follows the current trends in supply chain management is the advent of Artificial intelligence and Machine Learning. You will see numerous applications functioning without human input yet delivering accurate results. Automation enables streamlining repetitive and labor-consuming tasks. At the same time, AI attempts to emulate human intelligence and learn from past data to simplify more complex, challenging tasks.

Top 14 Trends In Logistics and Supply

8. Increased supply chain visibility:

One thing that probably earlier supply chain management approaches were lacking is the ability to forecast the catastrophe. However, supply chain visibility will help businesses optimize their operations by forecasting the revenue/expenditure scenario and thereby boosting strong decision-making.

Supply chain visibility will help organizations deep-dive into the operations such as procurement, manufacturing, transportation, and delivery. Since the data will be made available in real-time, businesses have a chance to manage the inventory effectively.

9. Lean logistics:

Change is the only constant; yes, we all know this. But, do you know this philosophy applies to supply chain management too? Organizations will soon start implementing Lean Logistics to power up workers by talking to them. The open platform will give each one of the team a chance to speak out on how to increase efficiency and reduce time waste. This will spread awareness about the importance of productivity and costs in the organization and encourage teams to optimize the processes further.

10. SaaS in the supply chain:

If you have thought about implementing cloud computing in the supply chain model, Software-as-a-Service model implementation goes along with the same. The SaaS model offers safety and security to the organization, and they need to pay only when they use the service.

Companies can free themselves from the extra costs, such as system maintenance, constant updates, infrastructure costs, etc. Companies can opt for SaaS cloud-based transportation management software and have a competitive advantage.

Supply-chain-as-a-service is again another new concept gaining traction in the industry.

Trends In Logistics and Supply Chain

11. Cloud-based Solutions:

To stay competitive in the market, accuracy, agility, and accessible solutions are key for any organization. That’s where Software-as-a-Service (SaaS) models become particularly useful for your supply chain management. Despite being reliable and secure, SaaS is also highly efficient and convenient.

Since it stores all of your organization’s data in the cloud, you or your team can easily access required information at any time, from anywhere. If you have a multinational and digital supply chain, the efficiency achieved by SaaS solutions will support your organization as you progress into a fast-paced future.

12. Reverse Logistics:

Reverse Logistics has become a significant trend to consider for all sorts of retailers. In fact, Allied Market Research stated that the global reverse logistics market– valued at $635.6 billion in 2020– is projected to grow by $958.3 billion in 2028, at a CAGR of 5.6%.

Basically, the trend is to make your supply chain more sustainable using return, repairs, reselling, replacements, and recycling. Apple gives us the best example of reverse logistics. You know, when consumers go back to an Apple store to buy the latest model, it offers them discounts on a new purchase if they return their old models. Apple collects and brings these old products back to their factories.

13. Circular Supply Chain Model:

The circular supply chain model is a new trend in the world of supply chain management. In this model, instead of the traditional linear model where materials are used and then disposed of, the materials are reused and recycled in a closed loop. This helps to eliminate waste and reduce the impact on the environment.

The circular supply chain model is becoming more popular as businesses become more aware of the environmental impact of their supply chains. Additionally, this model can also save businesses money by reducing waste and maximizing the use of resources.

If you’re interested in implementing the circular supply chain model in your business, there are a couple of things you need to keep in mind. First, you need to have a clear understanding of your supply chain and the materials you use. And then, you need to find suppliers who are willing to recycle materials.

14. Omnichannel Supply Chain:

Increasing platforms have made it essential for businesses to offer a true omnichannel buying experience to serve customers where they engage most. For example, by offering customers to shop online or in-store, the omnichannel model enhances demands on logistics and supply chains, stimulating individual customer orders and replenishing stock at retail outlets.

Bonus Trend to follow:

15. Increase Focus on Sustainability in the supply chain:

Consumers now understand the impact of green-gas emissions and how it puts the entire global atmosphere in jeopardy. Besides, it is a rising concern amongst the consumers, and they wish that the logistics industry should be more transparent about the same.

This is why the logistics and supply chain industry is adopting a green behavior approach toward management. The organizations are now moving in a greener direction, keeping environmental sustainability in focus. For example, the packaging is becoming more eco-friendly, products are being made of sustainable components, and lighting is used which reduces electricity demand, are some of the points that logistics companies have started addressing.

Read Also: The Essentials Of Logistics Management Software

Ready to follow the trend?

We hope that this curated list helps you in moving forward and excelling in your logistics and supply chain management profession. Sometimes it might become challenging to follow the trend and implement it in the right direction. However, you may always seek help from an expert.

The outcomes of the trend implementation mentioned above are going to define the future of the logistic industry. Well, this is just the beginning.

Let’s help you adopt the latest trends of SCM!