In recent years, we have seen substantial changes in the way we consume products[i]. Modern-day customers demand high-quality items and swift delivery of orders[ii]. This has led companies to change their Logistics and Supply Chain Management strategies. After COVID-19, the supply chain landscape has changed drastically[iii].
In the earlier days, the supply chain was considered just another department in the company. Now top management works closely with this division so that the supply chain management strategies align with the company’s long-term goals.
With new changes taking place, here are three trends in Logistics and Supply Chain Management you can expect to see in the 2020s:
1. Nearshoring
Due to same-day delivery and similar trends, businesses are considering the establishment of more regional factories[iv]. For the past couple of years, the globalisation of supply chain management has been the key focus. However, during recent crises like COVID-19, the Suez Canal blockade, and the Ukraine-Russia war, many countries struggled to supply essential products because imports halted and they lacked local production.
In the next few years, we will likely see companies managing a major portion of the supply chain locally[v]. Hence logistics and supply chain professionals will have to update contingency plans, delivery systems, routes, and relationships with the suppliers.
2. Digitalization of Logistics Management
In this decade, we can expect technology such as Blockchain to revolutionise logistics management. This system will take over the old manual methods. And offer better audit checks, timely updates about the status of invoices, and superior transparency in logistics[vi].
As the world is becoming more digitised, automated logistics handling is not a far-fetched idea. Hence businesses will prospectively use modern technology to optimise Logistics and Supply Chain Management.
3. Diverse sourcing
China has been the major manufacturer of goods for a long time. In 2020, China's lockdown affected the supply of fertilisers, machine parts, textiles, etc. globally[vii].
Now businesses realise the importance of having multiple sourcing stations to maintain a consistent supply. We can expect companies to set up factories in more than one country soon[viii]. With this, new challenges will surface for Logistics and Supply Chain Management professionals as they manage many locations to ensure the quality of products and the satisfaction of the end customer.
Final Thoughts
Logistics and Supply chain management are changing and companies that don’t evolve will be left behind. Technological advances today have made it possible to automate processes and manage departments more efficiently. And in light of the pandemic, the flaws in Logistics and Supply Chain Management are very clear now.
With major changes expected in the Logistics and Supply Chain Management ecosystem, it is wise to stay conversant about all the new developments. For that, you can enrol in a Masters program and learn structured modules. Online Masters degrees are a terrific way to learn about new advances. Especially for professionals who see a future for themselves in the Logistics and Supply Chain Management industry!
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