Across the globe, transportation and logistics have impacted business-to-business and consumer behaviour. As the Covid-19 pandemic redefined the whole industry for good, we became aware of the new innovations that have changed the industry. Here are a few transportation and logistics trends that will rule the industry in 2021.
· Mergers and Acquisitions:
Due to the pandemic, consumers started to pursue online shopping, creating a need for businesses to improve their transport services. As businesses increase their eCommerce services, logistics will be a center of transportation and logistics (T&L) deals during the ongoing COVID-19 pandemic and post-COVID-19 world. Due to all new changes, many companies improved their last-mile offerings and anticipated a fresh start with consumers.
Covid-19 pandemic forced companies to a digital approach and rely on M&A to expand their business. Most companies have started using M&A to enhance their business and improve their logistics services. As currently, many customers want same-day deliveries with real-time tracking, 78% of companies in Canada in T&L say last-mile delivery is the most inefficient procedure of their supply chain.
· Technological Development:
In this digitized era, the drive towards digital transections, eCommerce, data analysis, and other factors can provide businesses to make rapid fast changes. Shippers and carriers realized that these technologies would benefit them by getting an excellent ROI. Here are a few technologies that are key elements to hasten the changes.
- Artificial Intelligence: AI allows transportation and logistics companies to manage their inventory and resolve supply chain operations’ demand. AI algorithms can automatically conduct primary operations by observing past operation data. Thus, it reduces the chances of making a mistake in the supply chain.
- Automation: With automated warehouses, companies can easily manage, plan, purchase, and predict logistic behaviour.
- Blockchain: The main purpose of blockchain in the L&T industry is to improve transparency and allowing data sharing securely through the supply chain. Blockchain can be used to trace the data, execute smart contracts, and provide payment to linked partners. It can also be used to reduce insufficiencies and make delivery smoother.
· Sustainability and Environmental regulation:
One of the many challenges L&T faces is the potential environmental risk caused by frequent distribution and shipping techniques. As consumers have become more aware of climate changes, they prefer companies with a sustainable and eco-friendly approach.
Most companies have opted for sustainable methods to reduce the carbon footprint they create via shipping vehicles. They are looking for new technologies that can help enhance the of operations’ productivity and efficiency while reducing resource consumption.
As we know, the Covid-19 has impacted many businesses and industries, and the majority of people have adopted new ways to uplift their businesses. With the increased popularity of online shopping, all the industries connected to it have reshaped their tactics.
In this article, there are a few latest transportation and logistics trends that you can follow to enhance your business in 2021.
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