Logistics and Supply Chain Trends: 2022 and Beyond Logistics and Supply Chain Trends 2022 and Beyond.jpgkeepProtocol scaled

Logistics and Supply Chain Trends: 2022 and Beyond

Logistics computerThe business of the forecasts has been risky since the start of the pandemic, but two years later its impact on logistics and supply chain trends has become more apparent. Looking at last year’s logistics and supply chain trends, it seems some changes take place in the long run, while others seem more temporary. And, of course, there are new emerging trends that are worth paying attention to in 2022 and beyond.

What are some of the logistics and supply chain trends?

IPI Freight and transhipment

IPI Freight and Transshipment is likely to gain popularity in 2022. IPI Freight – where IPI stands for Intermodal Inside Point – refers to inbound freight delivered to the shipper’s door, not to a rail terminal or container yard. The IPI using the original ocean-going container and docking queue has actually fallen in use and has become more expensive recently due to the lack of containers, but the combination of transhipment and IPI is a popular and growing solution.

Transhipment is the transfer of goods from one mode of transport to another, and usually from the original container, to reach their final destination. It offers many advantages, both for the shipper, as they have more direct control of their goods, and for carriers, especially as ocean freight suppliers want to get their containers back as soon as possible. In fact, several major carriers expanded their cargo operations last year with further expansion plans. The combination of IPI freight and transhipment provides more detailed inspection of goods, the ability to condense cargo, deliver cargo to the shipper’s door and again for the carrier, to empty ocean containers faster.

Seating Capacity Challenges

There are still restrictions on the capacity of the vehicle. Today, three of the last four years have witnessed the most difficult capacity markets in history, with no signs that capacity concerns are subsiding. In fact, 2021 was a record-breaking year in many respects, with a shortage of containers, trucks, port and storage space, and people. As we wrote last year, market challenges cannot be corrected by brute force. There are simply not enough resources to throw at it.

It seems that the impact of performance issues on product availability and cost will remain, at least for the time being. Worldwide, prices increased in 2021, whether it was road, intermodal or any other mode of transport. And this expensive trend for shippers is likely to continue.

Logistics on demand

Spikes in demand are likely to maintain their unpredictability. While the holiday season still brought with it a lot of increased demand for products, other seasons weren’t sparse either. With the pandemic, consumer demand shifted drastically from services to goods and led to significant tension in the supply chain in 2021. This shift could potentially balance itself at some point when the world is fully open, but it is unlikely to happen immediately.

e-commerce

Of course, this demand for products – and the increasing desire to shop at home – continues to drive the exponential growth of e-commerce, which in turn bypasses the traditional brick-and-mortar store stage in an omnichannel supply chain. In other words, thanks to the omnichannel, many customers are no longer interested – or expected – to travel the last mile to the product they want or want to return. Related to demand and the changing dynamics of the supply chain is also the growth of the world, country and city population. As with e-commerce, the continual transition to remote work, or at least hybrid work environments, not only changes some purchasing patterns, but also leads to flexibility in the place of residence.

Logistics and supply chain technology

Another year has passed, and more and more new logistics and supply chain technologies are making their mark on the industry. Amazon continues to lead in many ways, but other technologies such as autonomous trucks, advances in supply chain visibility and traceability, integrated, cloud-based TMS solutions, and more are doing their job. As in other industries, more than ever, distributed logistics and supply chain workers use the cloud, remote meeting applications, VPN, and more to get their jobs done as efficiently – and sometimes even more – than before.

Expect augmented intelligence – using artificial intelligence to assist logistics – to continue to gain popularity, something AI has already done in some areas. We mentioned unmanned trucks, and while this technology is moving forward, the same applies to the idea of ‚Äč‚Äčautonomous railroads as well. Just imagine the mode of transport and put the word “autonomous” in front of it, and you probably have an idea that comes close to reality. More and more technology is always on the way as logistics technology startups cover areas such as delivery robots, automated warehouses and more. Many of today’s logistics problems could be solved by the technology of the not too distant future.

Another startup deals with sustainable development, and this is still a priority in the logistics space. Companies are well aware of the attitudes of customers, which attach great importance to social and environmental responsibility. Numerous studies have shown that returning customers are more exposed to companies adopting environmentally friendly practices.

Finally, a technology note, as cloud-based systems and other online / automated systems increase in popularity, the risk of cybercrime increases. While logistics and supply chain companies have been known to be ransomware targets in the past, more ransomware attacks have affected more in 2021 and senders and even the infrastructure itself have been reported. Threats don’t go anywhere, so logistics and supply chain cybersecurity is a must to be considered in the blend of logistics and supply chain technologies.

What to do next

After summarizing some of the trends and forecasts in this article, we’ll look at some of the steps logistics and supply chain companies can take to stay ahead of the competition in 2022. In the meantime, you can always contact usand we will quickly analyze your specific needs and help you find the right solutions.

To learn more about us or about logistics and supply chain issues in general, visit our Learning Center, which features blog articles, e-books, videos and more.

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