15 Trends In Logistics and Supply Chain Management you should not miss in 2021

9 min readApr 7, 2021

15 Trends In Logistics and Supply Chain Management you should not miss in 2021

The global pandemic COVID-19 that stuck us in the last months of 2019 and still creating havoc with the second wave has changed the way business is being conducted. It has not only changed the way businesses operate but also the behavioral pattern of customers, shopping preferences, and more. One industry that has seen particularly noticeable changes over the past year and last few months is E-commerce. As self-isolated consumers turned to online shopping, it’s created immense pressure on the availability of chain logistics and supply chain industry to stay up with the increasing demand.

Innovative thinking builds innovative and successful strategies and this is what logistics companies are adapting to post-Covid. From automated warehousing technology to last-mile delivery solutions, here are the highest 15 emerging trends within the supply chain logistics Industry you would like to understand in 2021.

In this Logistics and Supply Chain Blog, read about:

Blockchain

E-commerce Logistics

Reverse Logistics

Digital Training

Gamification

Elastic Logistics

Warehouse Automation

IoT — Internet of Things

Cloud Computing

Last-Mile Delivery

Sustainable Supply Chain Management

Social Sustainability

Logistics Industry Investment Trends

Risk Management Framework

Lean Logistics

Blockchain

In 2019, worldwide spending on blockchain solutions was at 2.7 billion; before 2022, this number is predicted to climb all the thanks to 11.7 billion (DHL and Accenture, 2018). Blockchain has been one of the foremost steadily increasing industry-reshaping global logistics trends through a previous couple of years, and its rise shows no signs of stopping.

As data becomes more and more crucial to optimize logistics operations, so do the safety risks and efficiency challenges related to processing data through the 3PL industry many IT Industries are in all-out efforts to bring the success and defining the trends of Logistics Management in 2021

E-Commerce Logistics

E-commerce has been the major thrust for Logistics, Supply Chain Industry and had been growing at a higher rate since the pandemic stuck globally. online purchasing.\, E-commerce logistics, E-commerce companies are going to witness never-before growth globally giving further rise to Logistics and Supply Chain Management. Additionally, a combined 28% of respondents saw e-commerce growth of 40% or more within the same period

Reverse Logistics

Related to the increase in e-commerce is that the need to permanently reverse logistics management in 2021. Reverse logistics includes all the value-added services that companies provide after the purpose of sale. The reverse logistics supply chain is predicted to be worth US$ 603.9 billion by 2025, with a CAGR of 4.6% between 2018 and 2025. within the growing Latin American market, the CAGR is projected to succeed by 17.9% by 2025.

Currently, sellers are fighting to remain competitive within the e-commerce era by offering fast and free return shipping. As the return of the goods is also increasing because of increased transactions, , good reverse logistics management is crucial to guard profits (Saleh, 2019).

In 2020, return delivery costs were estimated to succeed in the US $550 billion. With returns making up the maximum amount as 50% of some e-commerce seller total shipments, good reverse logistics management will become a good bigger part of the logistics and provide chain industries.

Digital Training Solutions

Though the start of the novel coronavirus pandemic raised concerns about disruptions in supply chains, the associated e-commerce created unprecedented new demands. for instance, Amazon hired 175,000 temporary workers at the start of the pandemic and has hired 2,800 new workers a day since July 2020 (Kaur, 2020).

To cope, Amazon embraced digital training methods to handle the main onboarding challenges this 2020 hiring spree posed. Amazon is having vast strength of highly skilled logistics Professionals helping it smoothen the task globally. Modern warehouse workers are wont to the interactivity and ease of use they accompany their cell phones and other devices and respond well to digital training (Robinson, 2018). Digital training is often a superb companion to a contemporary blue-collar workplace.

Gamification

In 2021, engaging your workforce through interactive and motivating productivity boosters like gamification may be a good way to reinforce warehouse worker training and boost productivity (MacPherson, 2020). • Constant real-time evaluation of skills, knowledge, and productivity ensures workers and management have quick access to hard data tracking the worker’s performance. this suggests there are fewer surprises during employee review periods and leaders can intervene early and sometimes to make sure employees have the training they have to succeed (MacPherson, 2020).

Gamification adds to the interpretation of choices any individual makes and how those choices and patterns of decisions or choices affect others, makes repetitive tasks more fun and interactive.

Elastic Logistics

2021 supply chains got to be able to expand or shrink capacity counting on an ever-changing demand of industry variables This practice is named “elastic logistics,” and it’s one among the foremost crucial logistics and provides chain management trends in 2021.

Elastic logistics highlights the advantage of using 3PL companies to react quickly to high-volume periods, since many 3PL companies use highly elastic temporary workforces to satisfy rising and falling production needs. With a projected worth of US$1,789.94 billion by 2027, 3PL companies have the flexible infrastructure and labor capacity to quickly combat warehousing and processing needs for online retailers.

Warehouse Automation

A 2019 report predicted the warehouse automation market will grow at a CAGR of 12.6% over the subsequent five years, making automation one among the leading trends in supply chains within the foreseeable future Moreover, over 70% of blue-collar executives feel technology is that the most vital factor impacting the longer term (Davis and Mathew, 2019).

Warehouses are innovating by several apps available taking the efficient ones as per the latest trends and reviews for Logistics and supply chain management in 2021. Looking again at Amazon, the corporate is investing heavily in automation. it’ll likely save around $18 billion in warehousing operating costs in 2021, despite record hiring in 2020. Automated vehicles will become more popular for on-demand businesses, reducing overall delivery time costs by up to 40%

IoT

According to McKinsey, investment in warehouse automation will still grow 3–5% by 2025, with the pharmaceutical logistics industry investing the maximum amount at 8–10% therein time (Dekhne, Hastings, Murnane & Neuhaus, 2019). IoT Internet Of Things will be playing a major role too as the importance of Big Data, IoT and similar trends grow in 2021. Companies will need more and better-embedded software to quickly develop data transformations to make sure good logistics and transportation management. IoT will p[lay major role in connecting physical devices with

Data management and Cloud Computing

Digitization will boost Logistics in a big way and with the growth in demand of cloud computing, logistics solutions will minimize communications obstacles in the way and lift the security barriers Last-mile delivery costs account for quite half of companies’ overall logistics costs (Mordor Intell. Furthermore, cloud computing allows companies to gather and analyze data from their management systems.

Home Delivery

The World Economic Forum anticipates that by 2030, 60% of the earth’s population will sleep in cities (World Economic Forum, 2020). This number is about to extend to 70% by 2050.

Coupled with growing e-commerce needs, expanding urbanization means a serious transportation and logistics industry trend is going to be last-mile delivery initiatives

Traffic congestion in city centers caused by the rise in last-mile delivery initiatives in logistics is an environmental issue that companies must affect Additionally, temperature-controlled smart lockers offer customers flexibility by reducing delays and costs related to returned deliveries thanks to unavailability. This walk initiative is particularly useful for perishable goods like food and medicine.

Sustainable Supply Chain Management

The buying consciousness of the fashionable consumer is changing. Sustainability is now a top concern of buyers and corporations alike, with many buyers pushing for more transparency into supply chains and rewarding brands who showcase their progressive political stances and green behavior. At an equivalent time, consumers are demanding increasingly fast and convenient fulfillment and shipping that needs highly reactive manufacturing and logistics processes (Amed et al., 2021). With new national and international regulations concerning shipping emissions and other potential environmental risks related to distribution, green tech is certain to steer the way in 2021 logistics innovations.

Social Sustainability

Along with environmental sustainability, social sustainability are going to be a key topic for warehousing trends in 2021. High turnover rate rates including a competitive market have forced warehouses and third-party logistics companies to specialize in the warehouse workers at the core of their operations. Social sustainability is about how effective leaders empower workers and provides them the knowledge and skills they have to achieve their jobs therefore the workers are less likely to quit or be fired. Constantly hiring and training new workers is expensive, social sustainability is a fantastic tool for reducing labor costs and boosting productivity in 2021. this is often an especially important topic when watching 3PL industry trends. 3PL companies often rely heavily on temp workers to make sure they will increase and reduce their capacity on-demand to satisfy manufacturers’ or partner warehouses’ output needs.

Logistics Industry Investment Trends

When asked about broad investment goals over the subsequent 18 months, companies told Peerless Research Group (PGR) that the most important spending area would be in maintenance, This doesn’t mean that the logistics industry’s digitalization journey is stagnating.

Risk Management Framework

Risk management may be a big topic for logistics and provide chain management trends in 2021 may be a big topic. PGR found that the highest three risks being planned for in 2020 were:

In-house production or operations risks (60%)

Logistics risks (57%)

Supplier risks (47%)

In 2019, the odds were higher for logistics risk (69%) and supplier risks (62%). an equivalent report found that “economic and financial volatility as a risk factor” declined from 34% in 2019 to 30% in 2020, adequate to its 2018 level. However, the consequences of the pandemic are still being evaluated. This number will likely increase for 2021, with many companies working to attenuate economic risk factors sensitive to large-scale disruptions like COVID-19.

Areas where companies report/reported risk management concerns for the approaching year between 2018 and 2020 are represented below.

Lean Logistics

The backbone of the most important logistics and provide chain trends in 2021 is constant improvement. This approach is best implemented by adopting lean logistics because of the core of your warehouses or supply chain operations. Lean logistics may be a highly reactive management philosophy supported by empowering workers and optimizing processes. Leaders regularly engage with workers and warehouse floor operations to encourage constant, open dialogue about the way to reduce waste and boost efficiency (Minghini, 2020). As a result, leaders can evaluate increasingly standardized output to get where they will make positive changes that cause lower operating costs and happier customers and employees

What Does the Trends 2021 Mean for Logistics Companies?

2021 holds immense potential for Logistics, Supply Chain Management as a field and business, coupled with increased freight and warehousing infrastructure. At the same time, the continued economic disturbances left within the wake of 2020 will cause logistics professionals to face tough decisions within the coming year.

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