Retailers and brands will ruthlessly invest in new, innovative technologies to increase structural flexibility in their supply chains
Traditional warehousing solutions are not flexible; they're static, clunky, and require long-term contracts. They were not designed to support dynamic businesses with decentralized demand.
As retailers become increasingly omnichannel, there is an opportunity for comprehensive logistics solutions that give retailers visibility across all of their channels from one centralized location.
2.
Home delivery habits will reshape the world
As consumers are increasingly avoidant of public spaces and embrace remote work, companies with last mile delivery operations will need to accommodate demand, recruiting thousands of new delivery people.
We expect record growth in supply chain employment.
3.
Retailers will get smarter about their delivery promises, offering more options based on customer data
Amazon is the undisputed eCommerce king. But the anti-Amazon movement is also catching on with the rise of digitally native vertical brands that focus less on the “hyper-transactional” business model. As these brands compete with Amazon, they will realize that customers don’t necessarily want next day delivery - what they want is choices. Brands will take advantage of this to improve economics, introducing offerings such as “save $2” when you opt out of 2-day delivery.
4.
Even more retailers get on board with recycling, collaborative logistics, and innovations to increase sustainability in their supply chains.
According to a recent survey, one-third of firms worldwide are targeting more sustainable supply chains and recently 43 retailers signed the Fashion Industry Charter for Climate Action, committing to reaching net zero emissions by 2050.
5.
Sensors and internet-connected cameras will enhance real-time inventory control
By 2020, nearly 50 billion devices will be connected to the internet and will be able to transfer and receive information. A recent study by DHL in collaboration with Cisco Consulting Services outlines the ramifications of IoT on the logistics sector. The DHL Trend Research Report claims that no other industry will be impacted more by the IoT than the logistics sector. We could see revolutionary changes in supply chain, powerful delivery efficiencies, and maximum cost-efficiency
6.
Warehousing on demand will become the default
Everyone is familiar with how sharing-economy platforms and apps, such as Uber, Airbnb, and Laundrapp, have disrupted centuries-old sectors, such as personal transport, accommodation, and cleaning. But what few people realise is that the model is now being applied to industrial warehousing.
Organisations will no longer need to think of warehousing in terms of massive regional hubs. Instead, they can now manage it as a national or international grid of smaller facilities that can be expanded or contracted on demand.
7.
We will see a shift from monolithic, slow, reactive supply chains (global scale), to smarter, faster, automated networks (local scale)
In this new, connected world, the manufacturing dominance of China – and even the need for offshore outsourcing itself – will seem antiquated. Matching manufacturing, distribution, and logistics to customer need, and not to the lowest labour cost: in an automated world, that’s the real opportunity.
8.
Blockchain traceability will bring unprecedented transparency and deepen relationships with customers
What farm-to-table has done for healthy eating, data visibility is going to do for broader supply chain operations. Logistics managers will be able to see their specific order from the time it’s assembled on the factory floor, through distribution and onto the retail shelf. Riding on the blockchain wave, traceabilitywill be real-time and comprehensive, which will be critical in areas like the cold chain. Businesses will be able to deepen relationships with customers, offering information about sourcing, labor and environmental practices, all of which are increasingly influencing consumer purchasing decisions.
