The logistics and transportation industry is fast-paced and complex. Especially during the past few years, we have seen an incredible shift in perspectives and workflows. Logistics innovation has become the focus for most companies seeking to stay ahead of the game and counteract the current supply chain crisis.
It’s essential to understand that when discussing logistics innovations, we are no longer talking about a TMS or client portal; we are talking about more advanced technologies that are set to change the entire supply chain. The technologies that companies are now searching for will create a more efficient and data-driven industry.
Logistics innovation in 2022
Many logistics innovations trends have been taking force during the past years, like Artificial Intelligence, Machine Learning, and Predictive Analytics, technologies that will continue to gain traction during 2022. But there are also more advanced technologies like Blockchain, Big Data, Internet of Things (IoT), and others that are now catching the attention of companies searching for complete transparency and efficiency.
Therefore, logistics innovation during 2022 will take an incredible leap forward, from companies that are slowly adapting to companies that are now completely immersed in the technology era, implementing robust systems that interpret vast amounts of data and generate actionable results.
3 Essential Factors of Logistics Innovation
Innovation is not just technology. Innovation is change and shifts in our ecosystems that tackle specific customer pain points and generate incredible efficiencies. In the logistics industry, we have seen many changes due to the implementation of technology in company operations.
But apart from technology, there’s also a shift in mentalities and how employees see their work. Therefore, companies in the industry must create attractive offers for employees who are now more demanding. One of the best ways to attract talent is having an innovative company that quickly adapts to change.
With this in mind, here are three essential factors of logistics innovation:
Consumers and logistics partners are constantly searching for partnerships based on trust. One of the best ways to create trust is by openly communicating every possible element within their processes. Therefore, transparency becomes an essential part of the process. Companies are not investing in technologies like blockchain that allow customers and all the parties involved to visualize the entire journey of the parts they require to finish a product.
Providing accurate information to your customers and the end-user is a big part of the trust you’ll want to create with everyone who works with your business. By building trust, you’ll build solid relationships that lead to more business, new customers, and increased revenue.
Green logistics has been around for a couple of years. Still, it’s a trend that falls under the innovation category since it requires a shift in mentality that considers the impact our entire supply chain generates in the environment. Companies are searching for ways to decrease their impact on the environment by applying specific changes in their processes.
This trend can be applied to every part of the logistics process, from production and storage to transport and returning waste into the production chain. There are many ways companies can become eco-friendly, like reducing fuel and energy consumption, using recyclable materials, and handling waste correctly.
Nowadays, customers are more conscious of the effects companies have on the environment. Therefore, if they know that your business is eco-friendly and working hard to decrease its impact, they’ll want to work with you.
Even though customer experience has always been top of mind for companies, the customers’ needs have shifted, and they have become increasingly demanding. Therefore, companies must create strategies to tackle these new needs and attract new business.
Being efficient, innovative, communicating openly, being completely transparent, responding quickly, and delivering products as soon as possible are some of the things customers now expect. Hence, businesses must jump onto the bandwagon of innovation and efficiency to ensure customers receive the best services possible. Making sure clients are satisfied will increase the chances of a long-lasting relationship and customer retention.
Logistics innovation has now turned into more of a change in mentalities. Our industry has shifted and paved the way to a technology-driven environment where innovation, transparency, eco-friendly initiatives, and customer experience are required to succeed.