The top logistics trends for 2019
As we always do at this time of year, I’ve compiled the thoughts and insights from all the experts across Team Carousel to help you keep abreast of what’s coming up and what you need to do to prepare.
Focusing on the trends that really will come to fruition next year, here’s what you need to know:
Logistics Trend #1 The impact of the sharing economy on supply chain
It’s fair to say that the sharing economy – expertly demonstrated by the likes of big-brands Uber, Kickstarter and AirBnB – has transformed the way in which services are manufactured, sold and distributed forever. Speeding-up processes, removing unnecessary steps and again, putting customers at the heart of the equation, has all led to a direct impact on the way our supply chains are evolving.
One key output of the sharing economy is that the ‘point-to-point’ supply chain is old news. That’s because the delivery stage no longer means the end, but instead, it’s just one part of your supply chain. The sharing economy is heavily interwoven into circular – or ‘close-loop’ – supply chain strategies, and as a result, the need for organisations to focus on garnering resource efficiencies and ‘delighting’ the customer at every stage is now far greater. The reverse leg of the journey is now as critical as the delivery stage and in turn, raises the importance of digitization for organisations in 2019 (more about that on the blog soon). After all, without a digital supply chain, where complete visibility and control is paramount, it will be almost impossible to coordinate time-critical parts and products, in real time as customers now expect.
It needn’t be a daunting prospect though. The idea of a circular supply chain is an exciting concept. After all, it has the potential to make businesses operate smarter and more collaboratively – while discovering new opportunities for gaining competitive advantage. While it won’t completely take the place of the global supply chain, it’s important for organisations to acknowledge that the mindset towards expansion is changing and technology is at the heart of it. Those that refuse to respond to this change however – or fail invest in the required technology – may find themselves playing a losing game.
Logistics Trend #2 Supply chain risk management
Following the rise of the sharing economy, it’s fair to say that customer demands are getting ever-more complex, with the need to meet them ever-rising. Combined with the lingering uncertainty over Brexit, plus some notable security breaches in 2018, risk is something that should be high on the agenda of every organisation next year.
Anyone with a complex supply chain will rely upon the coordinated flow of information, so the first step in responding to risk is to complete some extensive scenario planning. It’s true that to do this successfully requires the right expertise and experience, but it’s an investment that’s worth making because of the potential losses that can be caused by unexpected events.
The number one way of responding to many of these scenarios is to move to a smart supply chain. Only with a comprehensive end-to-end logistics platform, that is fully customisable and scalable, can organisations grow at pace, while also mitigating supply chain risk. Plus, by embracing data with on demand reporting, they will not only have full visibility and control to resolve issues (as and when they do arise), but also the ability to predict issues and avoid risk all together by harnessing all the data-potential within an organisation. This predictive element really comes into play particularly when you consider Maintenance, Repair & Operations, which together, is sometimes called ‘preventative maintenance’.
By using sensors, data about the operation of the equipment and its well-being can be collected constantly. Then, with the help of the Internet of Things (IoT) to connect all the data sources, plus some analytics to make sense of the data, maintenance can be performed when and where it is needed. It’s an innovative way that can really minimise downtime and maximise equipment efficiency.