Top 3 Logistics and Supply Chain Management Trends in 2022
Use a time machine to take you back to the turn of this century, and who could have predicted how the world would look right now?
The business and political work is changing at a rapid speed.
If you are a business owner, current world and business news might leave you feeling a little nervous. You might wonder whether your supply chain is robust enough to get you through these turbulent times.
So use this guide to get up to speed with the top three logistics and supply chain management trends you need to understand in 2022.
1. Drop Shipping is Increasingly Popular
If you aren’t familiar with the term, dropshipping involves sending a product directly from the wholesaler to the customer.
Dropshipping began life as a way for entrepreneurs to launch eCommerce businesses without the overheads of stock or warehousing.
Now, it’s become an increasingly popular supply chain model. Many wholesalers realize the potential boost in sales by offering drop shipping to their customers.
Though drop shipping has advantages for a business owner, it helps to have relevant experience when searching for a reliable dropshipping supplier.
Why not hire a drop shipping expert who can help you get your supply chain in place and running smoothly from the outset?
2. Automation is Commonplace
Automation offers time and cost benefits. So it’s evident why we are now seeing more parts of the supply chain switching to automation. Here are some examples of how businesses are using automation:
- Administrative tasks such as invoicing and delivery updates
- Transportation such as self-driving vehicles (these are popular with Amazon)
- Use of robotics in warehousing tasks such as inventory management and forecasting
The trend to automation in logistics management is helping to create a new normal for businesses that rely on an efficient supply chain model.
Product fulfillment is becoming more reliable, cheaper, and quicker. That’s helping to reduce problems such as missing stock, customer complaints, and delayed manufacturing processes.
3. Global Supply Chain Disruption
Technology and improved processes are helping to pave the way for many companies. Sadly, a negative trend in supply chain logistics is also impacting businesses.
That’s global disruption. As businesses have become more reliant on overseas suppliers, they’ve also become more exposed to severe external pressures. These include pandemic lockdowns, war, and government sanctions.
The answer for businesses is to manage these external risks proactively. Don’t rely on one single supply chain; have backups in place.
Consider whether you can move some of your business to domestic suppliers to reduce your exposure to worldwide events.
And continuously monitor what’s happening elsewhere in the world. Even a single shipping disaster in the Suez canal can create a domino effect on worldwide supply chain management.
Three Logistics and Supply Chain Management Trends to Know
These three logistics and supply chain management trends are vital to grasp if you want your business to survive in 2022.
So take action now to protect your business from potential disruption. At the same time, take advantage of some of the positive trends that will help you reduce costs and streamline your supply chain.
Head to our news section for some of the other latest trends that might impact your business right now.Returns are another inventory threatening issue that businesses need to be aware of. For more information on how returns impact logistics, please see the resource below.
Infographic provided by KGR Logistics – managed transportation solutions