2021 Shipping Trends
The success and increasing growth of the supply chain logistics industry pre-dates the unprecedented events of this year. However, the COVID-19 pandemic and the subsequent impact on internet sales and eCommerce fulfilment services have only served to fuel a surge in the sector’s growth.
According to the Office for National Statistics, internet shopping accounted for 26.1% of retail sales in September 2020 compared to 18.1% in September 2019. At its peak, it reached 32.8% in May 2020 which was during the first national lockdown.
With these figures in mind, the clear increase in users and conversions to online shopping there is no doubt that 2021 will see some key trends in freight forwarding and supply chain management services in order to meet demands.
In this article, we look at the areas where it is predicted we will see some change as a result of this growth and how freight management services and supply chain logistics companies can continue to adapt in order to accommodate the growing industry.
Logistics and Warehousing Activities
With increased demand will come the need for more warehousing facilities and centres for goods in and out. With faster parcel delivery turnarounds becoming the norm, warehouses will be required to be positioned strategically in order to facilitate final mile deliveries.
The size and quality of warehousing facilities will continue to increase. For example, the Group’s current ongoing construction of a new 200,000sq ft port-centric logistics and warehouse facility located at Southampton Port demonstrates that the need for continued high-quality warehousing solutions in prime locations is growing and necessary to meet increasing demands.
Final Mile Deliveries
With sustainability a large focus moving into 2021, it will no doubt be part of final mile delivery planning and improvements. Final mile delivery is the movement of goods, most likely from local distribution hubs to the final destination. According to reports this final link in the chain can account for 50% or more of the total supply chain logistics spend. This is due to the rise in home deliveries, accelerated by national lockdowns this year, which will inevitably highlight inefficiencies.
Suggestions to improve these inefficiencies include autonomous vehicles, e-bikes and drones and depending on the location a combination of transport solutions may be appropriate. For example, this summer Amazon announced that they will be rolling out 1,800 electric vans which is part of their overall pledge to be net-zero by 2040.
Internet of Things (IoT)
The internet of things refers to the network of physical objects or ‘things’ that are embedded with software to connect and communicate data to one another over the internet. For example the implementation of smart devices in the home to build a ‘smart home’ using technologies that control things such as heating, lighting, security, home entertainment and even shopping.
This new era of technology will enable the warehousing and logistics industry to connect people to parcels. The data obtained from IoT will allow supply chain logistics companies to track shipments live and also predict trends and maintenance requirements. It will also offer consumers the ability to check each stage of their parcel and prevent theft or delays through address errors or similar.
As supply chain logistics technology increases, we can expect to see even more innovative uses into the next year as businesses seek to find newer more efficient logistics and warehousing solutions and drive changes to stand out from the competition.
Automation and Artificial Intelligence
The realities of a worldwide pandemic have seen the need for skeleton staff in order to allow for social distancing and to adhere to government guidelines. This new way of working has paved the way for the increased use of automation and AI technologies.
Warehouse automation such as pick and place technology increases efficiency and productivity by reducing the need for human intervention. Artificial Intelligence can be used in route planning processes as well as offering predictions and assisting in more efficient warehouse management.
After the unpredictable year we have had there have at least been some lessons in a more adaptable business model. Moving forward it is expected that the supply chain logistics industry will seek to be more flexible in approach in order to cope with spikes in demand or falls due to national or even worldwide crises. Seasonal variations can be expected to change too as the demand for online shopping increases.
Ways to manage these changes can be through the use of a transport management system which can be highly efficient when used in conjunction with AI. Together these systems can help to forecast risk, change in demand, costs demand, costs and enable the continued ‘on-demand’ service that consumers have come to expect.
To find out more about Xpediator’s supply chain logistics and warehousing services contact us here.