Five Mega Trends That’ll Empower Logistics Stakeholders Enhance Planning in 2023
Soham Chokshi
Co Founder, CEO at Shipsy: Building a connected platform to make global trade more efficient.
A very happy New Year to everyone! 2022 was nothing short of transformative, and while we saw a lot of new technologies emerge, 2023 is likely to further accelerate this transformation. Before we delve deeper into the trends, let’s quickly highlight the five key takeaways from this post.?
2022 saw massive innovations in the logistics space. We witnessed strong measures being taken to make international logistics operations digital and collaborative. Automation emerged as a key to making everyday logistics operations economical, agile and customer-centric. Equally important, we experienced global businesses and governments making strides to build greener supply chains. An exciting year indeed!
As we look towards 2023, we foresee logistics stakeholders using digitization, AI, predictive and prescriptive intelligence and popular online collaboration platforms to build proactive, resilient, transparent and self-governing supply chains. This brings us to highlight five fantastic tech-powered logistics trends that businesses should consider while planning cross-border, first, middle and last-mile operations in 2023.?
Five Logistics Trends To Look Out For In 2023
#1. Generative AI will take us one step closer to a fully autonomous supply chain
Logistics-powered businesses are using AI to accurately identify faults in the hundreds of moving and variable parts in a supply chain. With Generative AI, we will gradually witness logistics systems not just identifying optimization pockets, faults and improving data quality but also instructing a user towards the right course of action and often making decisions by itself.?
Businesses can use Generative AI to accurately forecast demand, in a specific area, for a future date. Based on the forecast, it will suggest or even decide the exact combination of own riders and freelancers needed to ensure all delivery requirements on that day are met without fail.?
McKinsey predicts that AI will create an entirely new “logistics paradigm” by 2030 as it outperforms humans at repetitive but mission-critical tasks.
#2. Mission-Critical Delivery Workflows Will Be Done On Chat
Digitization of the logistics environment is resulting in many tasks and decisions being executed over chat. So, instead of investing effort in creating new platforms for a highly fragmented supply chain ecosystem, it’s ideal to leverage and optimize existing and well-accepted portals–in this case, online chat. Today, we see major tickets being raised and addressed over chat. For instance, logistics stakeholders can drive never before seen efficiencies via seamless integration of an indent vendor portal with their preferred online chat application.
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Using online chat, logistics stakeholders can automate 80% of support queries and reduce support-related tickets, manual work and costs.
#3. Treating Riders and Logistics Partners As Customers
It’s no secret that happy and engaged delivery executives foster delightful customer experiences. So, why not strive to give riders a similar end-customer-like experience? Retailers and logistics companies will see themselves completely digitizing rider onboarding and background check processes. Dynamic incentivization using real-time performance data will drive instant gratification for delivery executives. Businesses will expedite the usage of gamification tools to create leaderboards and acknowledge good work with badges to ensure courier partners feel recognized.
Gamification clubbed with advanced routing can enhance rider productivity by 14%
#4. Using Technology To Manage Cost of Capital
Today, microeconomic variables and resource-based considerations significantly influence the cost of capital for logistics-driven businesses. A major reason is that, unlike a decade back, the cost of capital is no longer cheap, thanks to intensifying competition in the online delivery space and massive demands for logistical resources. Retailers and eCommerce businesses need to consider outsourcing delivery operations and using technology to optimize costs. Automating carrier selection based on customer, time and cost SLAs and driving intelligent route planning will be game changers with regard to enhancing margins and CX.
#5. Moving Beyond Logistics Visibility To Control A Shipment’s Destiny
Solving for lack of real-time logistics visibility will remain important. However, we see businesses leverage real-time visibility to forecast what will happen to a shipment. Will it be delayed? Will it reach before time? Not just this. Using this knowledge to quickly reorganize supply chains is emerging as a critical trend. For instance, if the system knows beforehand that a delivery will get delayed, can it promptly take corrective measures to reassign the task to someone else so that customer experience is not impacted? Such application of real-time visibility will garner significant importance. Then efficiencies like using real-time visibility to predict detention and demurrage charges even before it’s levied will find their way to everyday cross-border logistics operations.
Predictive visibility can empower businesses to reduce detention and demurrage charges by 80%
These are some of the significant trends that will shape the logistics industry in 2023. Shipsy will soon take this list forward by bringing you more critical insights. If 2022 was a busy year for the global supply chain community, 2023 is going to be busier and more exciting!
Happy Holidays!