The dawning of each new year comes with a bunch of bright and shiny new trends for optimizing business efficiencies and maximizing profits. Things like cryptocurrency, consolidations, and connected logistics are all making their way to the head of the line this year as global supply chain integration is still the goal for most companies. Let’s look at the trends, what they could mean for logistics, and how to incorporate or prepare for them.
Due to continuing changes and innovations in logistics, logistic consolidations will continue to occur. With only ten major shippers still in the game, it may be difficult for smaller, independent companies to keep up, however, smaller companies are making alliances to stay relevant. What does this mean for all logistics companies? Unfortunately, these consolidations mean less shipping options and potentially higher rates. The upside is the customer experience has greatly improved and shipping capacity is greater, which is especially important as the industry is still facing down the driver shortage.
Easier Cross-Border Transactions
With the rise of electronic payment innovations over the last decade, global shipping has taken off. Most shippers pay with a credit or debit card now, which not only makes payment faster but also offers greater flexibility to smaller companies and exporters. Cryptocurrency is also making it easier to perform cross-border transactions. Major companies like IBM have been using it for years. Cryptocurrency will make it simpler for logistics companies in particular because cross-border, international payments can be made safely and privately without the hassle of other payment methods.
Expect Connected Logistics
It’s undebatable—technology has drastically changed the way we lead our lives. It’s no different for how we do business. As more businesses use cloud-based software and supply chain platforms, mobility is possible. Technology has also jumped ahead leaps-and-bounds when it comes to integration; so much so that even smaller businesses can take advantage of it. Everything from the company website carts to the CRM to vendor shipping apps can all be interconnected to provide the best data and a look at the total picture in a way we haven’t seen before. Analyzing all that connected data makes it possible for businesses to adjust strategies, make supply chain changes, and make key decisions for the business.
Integrated Global Supply Chain
Just what is integrated global supply chain? It’s what exists when activities between all supply chain partners are flawlessly coordinated to create the optimal results overall for all partners. This results in cutting unnecessary costs and reducing “friction” moving the product from Point A to Point Z. With so much going on in the logistics niche, the internal-competition that kept some partners from participating in the global supply chain has become less of a challenge due to shortages and company consolidations. More partners are happy to work for a positive outcome for all parties. Thanks to tech, more partners are able to easily provide the information needed to create a global supply chain.
The shipping industry is currently part of a whirlwind that can be both exciting and a bit overwhelming. Keeping up with all the latest tech, shipping ups and downs, and supply chain innovations can be daunting. That’s why working with a shipping expert, like Merchandise Warehouse, ensures your company is on top of all the new trends in 2019, while still partnering with a company that preserves its commitment to customer service and flawless delivery. Contact us today to learn more.