Parnity Logo Blog

5 logistics trends for 2022 that you should keep an eye on

Created on | Last updated on November 30, 2021 at 07:16 pm

The logistics and freight forwarding industry are fast-paced, so if you’re working in this industry, you already know how trends come and go. Furthermore, for logistics companies to stay competitive and ahead of their competitors, they must stay tuned to new and emerging trends. Companies that are leading in the market understand the latest trends and adapt them to the specific context in which they find themselves. Therefore, if you want your business to be one of these companies, you should be aware of the logistics trends for 2022 to prepare a successful strategy for your forwarding business. 

In 2021, the freight forwarding market, under the influence of the COVID-19 pandemic, basically experienced a continuation from 2020. While there is still great uncertainty about the market’s recovery, some companies are already developing new strategies. With this in mind, it is essential to look at upcoming trends and new logistics innovations. 

What are the new trends in logistics?

  1. IoT implementation

IoT (Internet of Things) is defined as the interconnection of physical devices and objects with embedded sensors to enable a continuous exchange of data over the Internet. The use of IoT is an ongoing trend in the logistics market that was also observed in 2021.

IoT will be responsible for connecting almost everything in logistics, from packages to people, adding value to the supply chain. IoT devices provide information to logistics companies, who in turn can use all this information in real-time to proactively meet customer demands, minimize downtime, and increase overall supply chain efficiency.

In addition, IoT devices can also help companies optimize their assets. Creating a digital supply network combined with a business strategy and risk management procedures could help companies build resilience to circumvent the impact of disruptive events like the COVID-19 pandemic.

  1. Artificial intelligence

According to the Global AI Survey, the use of Artificial Intelligence in logistics can increase companies’ profits by more than 40% per year. By using algorithms based on data from previous processes, the use of this technology in logistics can automate procedures and thus make supply chains more efficient.

Artificial intelligence (AI) will also play a key role in making supply chains more efficient by eliminating potential human errors because it can identify patterns in which companies can predict buying demands and manage inventory, taking the guesswork out of planning and procurement.

  1. Customer comes first

A great customer experience (CX) is always a trend.

CX is the set of actions taken to improve and optimize the interactions between consumers and companies throughout all phases of the relationship process. 

Think of it this way: the customer experience must occur during the entire process because the more your forwarder partners are satisfied with your services, the more likely they are to recommend your forwarder to other people and furthermore, to continue using your services.

Not surprisingly, bringing the customer experience to the center of your freight forwarding company is a major key to success. Customer-centric strategies can be responsible for positioning your company at the highest level. If you want to access forwarder business tips on CX, click here.

  1. Green Logistics

The green wave is spreading…

Green logistics refers to a set of measures, actions, and policies that aim to restructure logistics processes so that they generate less impact on the environment. As it can be done in all stages of the process, it includes environmental concerns during production, storage, transport, and the return of the waste produced so that it can be reintegrated into the production chain.

Today, green logistics is an agenda that is rapidly gaining strength among logistics companies. The increased awareness of consumers about the impacts of their demands on the environment has directly reflected on supply chain operations. 

The environmental changes brought about by climate change affect the availability of materials and resources and may cause disruptions in supply chains, and as a rule, should be considered by companies that need to seek other resources or adjust their strategies if necessary. Moreover, according to the report elaborated by NielsenIQ, companies that adopt sustainable actions not only do their part to preserve the environment but also gain more in terms of profit and customer retention.

  1. Mental health matters

Another logistics trends for 2022 is the incorporation of a company culture that cares more about the mental health of its team members. 

The COVID-19 pandemic highlighted how the work model within this market is characterized by long journeys often combined with stressful routines in which there is little or no incentive for time to rest. Not surprisingly, the importance of addressing employee mental health, as well as the challenges associated with the pandemic and now with the return to work, are becoming increasingly present within companies.

There are huge opportunities now, to rethink the workplace and the flexibility that companies offer their employees. Mental health awareness is the first step. Existing mental health problems that have been exacerbated by the pandemic may be further amplified, for many, with the transition back to work. 

Employers need to take measures that allow employees to feel safe while enabling them to meet their financial obligations and take care of their families.

Let’s get to work…

The logistics trends for 2022 mentioned above illustrate how dynamic this industry is, and more than that, how it is moving towards a more technological and environmentally conscious landscape. However, the new trends and innovations which are shaping the logistics industry need to be integrated with existing and new solutions. Moreover, to remain efficient, companies within this industry need to continuously upgrade their processes and technology.

Therefore, to be most successful in your freight forwarding business, it is advisable that you are able to integrate these trends into your business strategies.