We live in a fast-developing world, and if big companies want more profit, they have to adjust to the newest trends. You may think that the economy is in a state of crisis; however, it is just a transition to technology-based management. Trends are developing in every business area, and you must keep track of them if you want your business to stay profitable. Logistics management is one of the key elements for every supply chain company, that is why it is essential to explore the latest trends for its development.

The Role of Logistics in Supply Chain Management

The logistics in supply chain management is a unified system which connects production, sales, and shipment. The main task of logistics is to manage the implementation on all stages. The ultimate goal is to develop the company’s productivity as well as increase the profit. Logistics performs many tasks in supply chain management. Among its main benefits are the minimization of the company’s expenses on labor resources and delivery, improvement of the service, providing the necessary documentation, consolidating transportation volumes, etc.


Top 5 Logistics Trends in 2019

If you want your chain supply company to grow in 2019, you have to consider the latest trends. Here are the most important trends in logistics to help your business model advance in the next 10 years.

  • Innovative technologies

The development of technology in logistics is one of the approaches to shorten costs while increasing the price-performance ratio. Modern technologies can assist in the implementation of routine tasks that require significant physical effort. DHL has published a report on the current trends in logistics: the Internet of Things, Robotics and Artificial Intelligence are the main innovative solutions for the following 5 years.

Another trend to pay attention to is using software for logistics management. Many medium-sized and big enterprises face problems with functioning transport administration. The logistics management software is a must-have solution to increase your company’s productivity and avoid mistakes. It saves time and human resources, and it enables automation of numerous tasks related to management, customer support, analytics, and reports.

  • Automation of logistics

Another technical solution is automation. The high and ever-increasing staff taxes paid by enterprises, as well as the risks incurred by employees, push companies to automate processes that are subject to mathematical algorithmization. Automation provides transparency at all stages. Unmanned stackers and transporters replacing manual workers and shipping agents is already a reality for many companies. For example, the number of Italian logistics companies using robots has increased greatly.


  • Customer-related approach

Customer focus will be a key element in meeting customers’ demands with fast and convenient logistics. The increase in the number of products purchased online, especially in the B2B segment, calls for omnichannel logistic solutions. Customer requirements also contribute to the development of conditions and timing for shipping. You should provide conditions for packaging, storage, temperature and delivery terms for such types of products as food, medicine and other perishables.

  • Outsourcing

Outsourcing is a fast-developing trend in many business areas, including logistics. Logistics outsourcing is the transfer of logistics processes to a third party. The goal is to reduce delivery costs and to increase the employees’ productivity by attracting one or more qualified professionals – logistics operators. For companies creating products with a high intellectual component, logistics outsourcing allows concentrating on key processes and creating added value without struggling with transportation costs.


  • Environmental sustainability and rational use of resources

Modern trends in the logistics industry should be based on the principles of sustainability and environmental protection. Officials at various levels are committed to reducing emissions of CO2 and waste amounts. One of the solutions for switching to environmentally friendly logistics is to convert the logistics park and infrastructure to electricity as an energy source.

The Bottom Line

Logistics plays a very important role in the development and functioning of supply chain companies. A properly organized logistics system allows adjusting the trading process and makes it beneficial for all the parties involved. Do not hesitate to implement the latest trends and technologies into your transporting management. Thus, well-structured logistics decrease costs and boost the performance of the supply chain enterprise.