COVID19 has bared the helplessness of global supply chains, and it is an issue the logistics industry will continue to face this year.
To effectively respond to this crisis and prepare for 2022, the need of the hour is for the companies to become more flexible and bring close cooperation between all parties involved in the supply chain.
While the shortage of drivers, high customer expectations, ongoing pandemic, lack of container availability, and capacity shortages will continue to impact the global supply chain, below are some expectations for 2022.
Expectations For 2022
With the effects of the pandemic mostly in control, 2022 looks like a good year for logistics. Although things will still take time to get back to normal, the sector will again be on track with the right strategies. Below are some predictions for 2022:
Continued growth in logistics as global economies bounce back from COVID 19.
Customers will be more inclined toward logistic companies, which follow greener logistics operations. There will be more focus on sustainability, and companies will make a conscious effort to decrease the carbon footprint of delivery.
The focus will be on building more micro warehouses in 2022, which will bring the inventory closer to the customer.
There will be an increased demand for Third-Party-Logistics and Fourth-Party-Logistics.
Automating core last-mile delivery operations will turn significant for making sure deliveries are done on time.
Several logistic companies have already made substantial investments in setting up autonomous vehicles, and drones advanced autonomous delivery technologies, which will only grow in 2022.
There will be more focus on Big Data and IoT.
Ecommerce has bought the world closer, thus making everything more accessible for the customers. The year 2022 is expected to see greater demand for cross-border eCommerce.
The shortage of drivers will keep on growing, which will result in delayed deliveries and other challenges.
What changes will occur to your logistics department in the shipping and delivery in 2022?
To increase customer loyalty, the logistics departments will offer more omnichannel touchpoints in 2022, which will allow customers to shop easily.
logistics companies will be forced to work on a strategy to achieve delivery KPIs while keeping costs minimum. There is a need to increase flexibility and a need for logistics companies to stay ahead of developing compliance requirements. There will be a continued consolidation market.
What would be the hardest obstacles for your logistics company in 2022?
The biggest obstacle for logistics companies in 2022 is the high shipping and transportation cost. Some other blocks for the industry are – rising fuels costs, government regulations, shortage of drivers due to the pandemic, and environmental issues.
The good thing is that logistics companies can overcome these obstacles by using various software solutions.
What technological enhancements are expected in the shipping and delivery in the logistics industry in 2022?
With the new technological advancements in 2022, the logistics industry is expected to evolve fast to meet the consumer's demands. Thanks to fast delivery guarantees and a customer-centered business world, many more logistic companies will shift toward automation technology.
With its growing popularity and connectivity, the Internet of Things (IoT) is expected to see more developments, which will make more companies shift to it, thus reducing its costs further.
In 2022, more and more companies will use AI-based route planning software, which will create the most efficient routes to ensure quick and efficient deliveries.
For more information on how AI can help logistics companies to achieve more in 2022, contact us today.