If 2020 taught us anything, it’s that the future is always uncertain. The global pandemic that shook the world has altered and disrupted the logistics and supply chain industry for years to come. Companies have an increased urgency to fill the gaps in their supply chain that the pandemic exposed. To prepare for 2021, we dive into some of the top supply chain and logistics trends to look for this coming year.
Sustainability
One notable trend in the supply chain and logistics industry is the advancement of environmentally-friendly logistics practices. Besides benefitting us and our planet, it’s cost-effective, promotes a good brand, and increases customer loyalty. Most logistics companies are joining sustainability partnerships and organizations that promote cleaner fuel, more efficient equipment, and lower emissions. As we shift to 2021, look for even more businesses to lower their carbon footprint to align with this sustainability trend.
Supplier Diversification
As 2021 begins, logistics companies continue to find ways to incorporate diverse suppliers in their daily operations. Ideally, supplier diversity programs combine social responsibility with the desire for a better and more inclusive world. Not only does supplier diversity benefit under-represented businesses, but it also increases the economic impact of our nation by creating more jobs and higher wages for all. Small and minority-owned businesses will play a major part in supply chains moving forward.
Supply Chain Visibility
15 years ago, supply chain visibility was virtually an unknown term. Today, visibility has become a must-have for supply chain managers around the globe. Increased communication is a major factor for improving supply chain visibility because it allows companies to identify the gaps in their current processes. Visibility also ensures that you are knowledgeable about every aspect of your product’s life cycle and inventory levels, which can help you improve performance and reduce errors.
The Growth of Omnichannel
This past year has taught us that in order to succeed from a sales standpoint, companies need to maximize every available sales channel. These channels include e-commerce, direct-to-consumer, retail, and distributors. Whether a customer is shopping online or in-person, your business should be able to offer convenient omnichannel services. By consolidating demand and optimizing your supply chain strategy across every channel, companies can maximize service, minimize costs, and grow revenues.
Flexibility
In 2020, companies quickly learned that they must be flexible and agile to overcome supply chain disruptions. To ensure stability, companies must ensure that their supply chains are agile enough to cope with unknown events such as pandemics, natural disasters, and the changing costs and availability of raw materials. In 2021, companies must have contingency plans in place so that they can respond quickly to disruptions in production, supply, and delivery.
Staying ahead of these supply chain and logistics trends can ensure that supply chain disruptions have a minimal effect on your business. By embracing new trends and technologies, the industry is set to face new challenges and achieve greater efficiency.
