Logistics and Supply Chain Trends 2024

The Supply Chain and Logistics Industry trends are experiencing unprecedented transformation. Evolving dynamics, technological progress, and global industry increase reshape the market landscape. We'll dig deeper to identify priority development paths for companies seeking to scale and strengthen their business.

Recent trends in Supply Chain and Logistics

The logistics market is shaped by innovations, AI, machine learning, IoT, and blockchain, and this list is constantly growing. So, should all of those innovations be utilized for market players? 

According to the March Gartner research, two main areas leverage emerging technologies: the first one is control and protection, and the second one is the complementary integration of humans and machines.

The PwC’s analysed digital trends in logistics operations, and found that 45% of Chief Executive Officers consider their company won’t be viable in ten years if they continue with their current technology approach. Over half of respondents (59%) reported at least two reasons for their failure, and 37% pointed to at least three.

Over 600 supply chain officers were surveyed to investigate whether their investment in multiple technologies brought the expected results to digitize operations. Nearly 69% did not get the expected results, and 31% of respondents answered that the technology investments brought the desired effectiveness.

What might improve such a situation? Integration complexity, expectations from technology involvement, and data issues could have had less influence if companies used custom solutions. Software systems created for the individual needs of the logistics companies offer the ultimate efficiency. Tailoring features to specific operational needs, and enhancing scalability can lead to significant cost savings and optimized processes.

Those are the crucial reasons Customers want to create unique software, here are examples of successful user cases.

Technology Trends in Supply Chain 2024: AI and ML

As the technologies continue to develop, and reshape the market landscape, making it more agile, and unpredictable. Artificial Intelligence (AI) made a revolution in the supply chain industry and Worldmetrics.org research shows that it is going to reach USD 20,3 billion by the end of 2024.

Nearly 61% of companies, who had involved Artificial Intelligence in their logistics operations have seen significant costs reducing. AI-driven algorithms can minimize risks by identifying potential disruptions. The primary advantage is the ability to analyze a huge amount of data in real-time to optimize inventory management and demand forecasting.

Businesses that already use this solution have seen an overall rise in customer satisfaction level of 6%.

Machine Learning (ML) with its real-time data processing easily identifies patterns, and anomalies that would be more difficult to identify for humans. ML also helps to predict equipment and machinery failures before they occur.

Internet of Things (IoT)

IoT devices, like GPS trackers, and sensors can assist companies with comprehensive data on the location, status of shipments, and additional details. This allows them to optimize and manage their operations more effectively.

Connectivity between devices gives full control and visibility over all the processes. Companies who use Internet of Things technologies might not only manage delivery timing, and the status but also track the condition of goods and control their quality. With IoT technology, companies can analyze the situation with the fleet and equipment and even plan and enhance predictive maintenance. It helps to prevent additional disruptions due to unexpected breakdowns.

The Internet of Things gives a lot of advantages, such as reducing stockouts, improving inventory management, and decreasing the percentage of product damage or spoilage.

Blockchain

Blockchain technology has become a part of the supply chain processes. It enables the enhancement of internal company systems through a secure and unchangeable data chain. It helps to build a strong customer experience by offering a transparent view of the product's path for all the stages.

Traceability became one of the main advantages of blockchain-based innovations in the supply chain processes. The technology uses decentralized open-source ledgers to record data, giving the ability to overview transactions in real-time. This transparent visibility for tracking products creates a more intelligent product-tracking process and enables frictionless movement between suppliers and manufacturers.

Blockchain in the Supply Chain might play a huge role in Environmental and Ethical Sustainability. Companies can pinpoint areas for improvement to minimize their ecological footprint and ensure socially responsible operations. Technology might track harmful emissions into the environment and other environmental impacts across the supply chain.

One more crucial benefit is payment processes simplifying. It can be achieved by utilizing smart contracts, which automatically execute payments based on delivery verification or quality checks.

Automation and Robotics

Robotics and automation technologies are revolutionizing supply chains by taking over multiple tasks. One of the biggest advantages is improved worker safety, which helps to reduce the risk of injuring workers by taking part in dangerous and physically hard processes.

Automation speeds up processes, reducing the time required to complete tasks. Also, robot implementation reduces errors in picking and packing. One of the biggest benefits based on their usage analysis, shows that inventory management becomes much more efficient. Also, it gives a higher level of control over stockouts in Warehouses.

At the moment, autonomous robots, drones, and automated guided vehicles (AGVs) have become very popular. Improved integration process with warehouse management systems allows enhanced productivity. It makes workflow more scalable to changing demands.

Cybersecurity and Data Governance

With the increasing use of IoT devices, cloud computing, and advanced analytics, supply chains operate with a huge quantity of data, like customer details, sensitive information, and proprietary information.

Companies all over the world are paying attention to enhancing their cybersecurity frameworks. Deploying advanced threat detection systems, strong secured architectures, unauthorized access monitoring, and cyberattack prevention are pivotal to organizations' cybersecurity. Moreover, employee training and software updating also minimize potential breaches.

Digital Twin Technology

This is a unique virtual model of real-world counterparts in real time. Digital twin helps to overview physical assets, processes, or systems via data-driven simulation. It processes all the crucial information from multiple sources, like IoT sensors, machine learning algorithms, and existing records in the system. For supply chains, it helps to create virtual models for machinery, entire warehouses, and distribution networks.

Digital Twin Technology analyzes data from multiple channels:

• Customer Relationship management insights;
• Payment data (like bills and invoices);
• Essential vendor data;
• Information related to User experience;
• Internet of Things devices.

It helps managers analyze situations, make the right choices, and get smart insights immediately. Furthermore, this innovative system helps companies to predict real equipment failures even before they occur. So, it reduces downtime and prevents additional spending.

Digital Twin Technology helps to create an optimized transportation plan for delivery. In warehouse management, the operational efficiency grows, because of GT modeling different variations of warehouse processes.

The overall productivity also grows. Visualization and analysis of the entire supply chain improve transparency and foster collaborative problem-solving.

Custom future-ready software

As companies seek flexible and unique solutions to meet their operational needs, Custom Software development solutions are still the top trends in Logistics in 2024. Off-the-shelf systems cannot affect all the specific challenges of complex supply chains, and fall short in integrating diverse systems, storing real-time information, and effectively processing data across different channels.

To get optimized delivery processes, enhanced transparency, and greater adaptability companies choose to craft software that aligns with their sizes and requirements. This helps vining in a rapidly evolving market. Check the user cases provided for our clients in Logistics.

Logistics Market Size and Growth predictions?

The logistics industry grew to USD 8.96 trillion in 2023 and is expected to gain USD 9.97 trillion in 2024. Due to Ti's latest market sizing research, the Contract market will be stable with 4.2% growth in 2024.

While many worldwide companies are outsourcing a significant portion of their supply chain, they still retain much of internal supply chain management processes.

According to Ti data, over the next five years, the global freight forwarding market is projected to experience a growth rate of 1.6%.

It sounds like a great perspective for the companies in this industry!

In summary

The logistics and supply chain market is changing due to transformative trends driven by technological advancements and evolving market needs. These trends are reshaping how businesses manage their supply chains, enhancing efficiency, and addressing new challenges.

As we saw in the analysis, not all organizations gained the expected results from innovation involvement. However, there are still many companies, that have maximized their efficiency and streamlined processes at each stage of logistics.

Looking ahead, the integration of AI and autonomous systems could lead to even more automated supply chains, where real-time data and machine learning drive decision-making processes, minimizing human intervention. Technologies like Last-Mile Delivery Innovations, 3D Printing and Additive Manufacturing, Green Logistics, Advanced Analytics, and Big Data will reshape the industry landscape.

Companies, who are ready to drive innovations and recent Logistics trends into their workflow have a better chance to operate more efficiently and become successful in a competitive market.