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COVID-19 has severely disrupted the international supply chain over the last two years, causing unexpected shifts in demand and widespread factory closures. Now that the pandemic is slowly subsiding, businesses should pay attention to logistics trends in 2023 to recover and go forward.
The global logistics market is expected to grow in 2023, driven by increasing e-commerce sales and a shift toward retail giants like Amazon. There are several logistics trends in 2023 that businesses can consider to boost their growth.
The widespread application of machine learning (ML) and artificial intelligence (AI) in numerous industries has been accelerated by technological improvement. According to a study by Blueweave Consulting, the international market for artificial intelligence in supply is estimated to reach $20,196.6 million by 2028. Companies are already using AI to improve efficiency and effectiveness, but it’s not just about automating manual tasks.
One of the key supply chain trends for the upcoming years will be using artificial intelligence to forecast sales and demand. It will also help with decision-making, process optimization, and even product design by providing more data points for new products or services.
Some of the benefits AI can offer businesses include the following:
The need for essential personal protection gear rose due to the global pandemic. Numerous companies joined the market as manufacturers or suppliers during this time. These companies assembled the necessary raw ingredients and production tools in days or weeks, produced innovative goods, and established a hitherto untapped market.
This shows that businesses that can quickly adapt to uncertainty are more likely to survive under similar precarious circumstances. So, when the threat of climate change and global trade challenges looms over the business community, companies today need to be more adaptable to stay relevant and expand.
Businesses are now expected to be more open about their supply chains due to growing customer concerns about how modern business affects society. Real-time visibility is also essential for effectively predicting delivery times. It is also expected that the changing nature of international trade and related corporate regulations may lead to compulsory business disclosures for supply chain operations.
Last-mile delivery is a crucial part of eCommerce, and it's an area where logistics can make a big difference. End-to-end automation and visibility from the first to the last mile of the supply chain are essential for improved customer experience and supply chain efficiency. Real-time visibility also prevents delivery issues like missed or incorrect deliveries, improving delivery performance.
Customers' tolerance levels have decreased with time, and they expect B2B and B2C enterprises to provide best-in-class delivery performance. Therefore, in 2023, these businesses will concentrate on the performance and capacities of both their internal and third-party delivery systems.
Hyperlocal deliveries have become the current preferred delivery trend for eCommerce companies and customers. Technological breakthroughs like Big Data, blockchain, and AI encourage the business sector to adopt hyperlocal delivery systems.
Sustainable logistics is an emerging trend expected to revolutionize the logistics and supply chain industry. Supply chain platforms are expected to improve process efficiency and reduce the waste of resources, time, and cost. Dynamic planning, delivery optimization, and real-time visibility in logistics software can help businesses significantly reduce wastage, ensuring the sustainability of the supply chain processes.
This year will see a continued evolution of logistics trends in terms of technology and business. We’re already seeing many companies adopting AI and ML as part of their supply chain operations, but these technologies are still in their infancy. Overall, it will be an exciting time for all involved with logistics—from suppliers to customers and third-party service providers alike.
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