Digitalisation, automation and e-commerce are just some of the long-term logistics mega-trends that have been accelerated by the coronavirus crisis this year, while ‘future-proofing’ the workforce is a clear top priority, according to a new DHL report.
Dynamic growth in data analytics, artificial intelligence, robotics, IoT and other technologies ‘signal a new normal for logistics’ while breakthroughs in Quantum Computing, Blockchain, and Space Logistics signal new niches for logistics providers to solve large-scale problems and create new services, DHL wrote in its latest Logistics Trend Radar report.
In addition, sustainability ‘is a cross-industry imperative’, accelerating the need for innovation in packaging, planning, optimization and building management to curb emissions.
Overall, DHL revealed 29 key trends that will impact the logistics industry over the coming years in the 84-page report, which is based on extensive macro and micro trend analysis as well as insights over the past two years from a large partner network including research institutes, tech players, startups, and customers.
“The mega trends that will continue to engage us are not unfamiliar: new technologies, growing e-commerce and sustainability,” commented Katja Busch, DHL’s Chief Commercial Officer. “But some areas will evolve faster than others, so there is the need to understand the underlying trends and their impact on logistics – not least because of the impact of COVID-19 on global commerce and the entire workforce.”
Training workforces for new technologies
“The Logistics Trend Radar serves as a seismograph for future trends,” explained Matthias Heutger, Senior Vice President, Global Head of Innovation & Commercial Development at DHL. “In this edition, we already see the impact of COVID-19 is accelerating trends that were already well underway – big data analytics, robotics and automation, and IoT, all of which are underpinned by steady progress in artificial intelligence.”
He pointed out, however: “The next big challenge will be future proofing the logistics workforce through training and upskilling in increasingly technologically sophisticated operations. This will take center stage on the strategic agendas of supply chain organizations in the years to come.”
Pandemic accelerates transformation processes
With the logistics industry weathering the current global pandemic, transformation processes have been accelerated, DHL noted. “COVID-19 has driven changes regarding recent logistics innovation, automation, and digital work more rapidly and has accelerated industry digitalization by years.”
Conversely, many trends initially perceived as disruptive game-changers for the logistics industry “have yet to deliver on their disruptive potential”, according to the German group. For example, self-driving vehicles and drones continue to be held back by legislative and technical challenges as well as limited social acceptance.
Logistics marketplaces are stabilizing around a few leading platforms, and established forwarders are entering the game with their own digital offerings, backed with robust global logistics networks, DHL said.
From cloud computing to collaborative robotics, big data analytics, artificial intelligence, and the Internet of Things, logistics professionals have to make sense of a vast market of novel technology. Modernizing all touchpoints of supply chains, from an elegant digital or customer journey, through fulfilment transport and final mile delivery is the new imperative for long-term success. Those who adopt and scale new technology and upskill workforces fastest will have a competitive advantage on the market, according to DHL.
E-commerce growth requires more sustainable solutions
Meanwhile, e-commerce is still growing rapidly and yet represents only a fraction of global consumer retail spending, the DHL report pointed out. B2B e-commerce is expected to follow suit and dwarfs the consumer market size by a factor of three.
“The coronavirus pandemic has served not only to accelerate both e-commerce growth and supply chain innovation agendas. Key moves to scale and adopt new technology like intelligent physical automation, IoT-powered visibility tools, and predictive capabilities from AI will ultimately determine the ability to fulfil heightened customer demands and secure industry leadership positions in the future,” the company commented.
However, with governments, cities and solution providers committing to cut down on CO2 emissions and waste, sustainability now is an imperative for the logistics industry. Indicated by the increasing demand on sustainable solutions to reduce waste, leverage new propulsion techniques and optimize facilities, it is also on top of the supply chain agendas.
Sustainable Logistics – optimization of processes, materials, new propulsion techniques, and smart facilities – provide huge potential for logistics to become more environmentally friendly. Smart Containerization in transportation will also be important in developing environmentally friendly formats for delivery in congested cities, DHL concluded.
The fifth edition DHL Logistics Trend Radar is available for free download at www.dhl.com/trendradar.
