Logistics and Supply Chain Trends in 2022

Logistics and Supply Chain Trends in 2022

Over the past two years, the COVID-19 pandemic has accelerated changes and innovation in the logistics and supply chain sector. These profound changes have led to, among other things, an eCommerce boom driven by rapidly changing consumer buying trends. Meeting the ever-increasing eCommerce demand and leading on key global supply chain issues, such as sustainability and the other opportunities presented by big data, will be the key to success in 2022.

“Big data in business has been fuelled in the past five years thanks to digitalisation, process automation and the rapid adoption of the industrial Internet of Things (IIoT).”

Sustainability 

The steep climb in eCommerce was predictable, even if the pace had somewhat accelerated. The commensurate rise in returns of goods purchased online was also another predictable standout trend. Following COP26, retailers are under increased pressure to rethink their sustainability initiatives to reduce their carbon footprint.

At GXO, we work with a high-profile UK eCommerce retailer, processing all their returns. Our services include mending, dry cleaning and repairing returned purchases, which reduces goods sent to a landfill by over 80 per cent and helps our customer achieve their sustainability goals. 

 

Additionally, we have implemented innovative processes, and in some cases, dedicated facilities to maximise efficient return routes that improved stock availability for consumers and reduced working capital for customers.  

Big Data

Big data in business has been fuelled in the past five years thanks to digitalisation, process automation and the rapid adoption of the industrial Internet of Things (IIoT). Until recently, these large amounts of data were stored primarily on discrete silos to keep it at least somewhat manageable. Now, thanks to increasingly powerful tools for data processing and data analysis, companies can store information—on their own business, customers, competitors, markets and economies—in data lakes. 

Information culled from these data lakes and analysed in specific, customised ways helps companies make highly informed decisions on nearly every aspect of their operations — e.g., design, financial planning and forecasting, manufacturing, marketing, inventory and distribution.  

Through the intelligent use of data lakes, companies can now see ahead and even around the corner, predicting the products their customers will want and the most efficient ways to manufacture, store, market, ship, and service those products. 

People 

Innovative companies put their people first. Employers who create an employee-focused culture will be in a better position to navigate the labour challenges.

In 2022, a competitive wage will be just the opening ante. To attract and retain an appropriately skilled workforce, companies must think beyond wages. They'll need to become an excellent place to work to attract talent from outside the industry — a place with competitive wages where safety is the priority, flexibility embraced, and where diversity and inclusion are lived every day.

Conclusion

Given the remarkable rise of e-commerce, the future of the logistics industry is exceptionally bright. While there remains lingering disruption, businesses have had to adapt to and accelerate the pace of change, particularly processes and technology. This capability will unleash new opportunities for industry players that continue to innovate and invest in the right technology.

 

Weekly Brief

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