The expected surge in consumer market growth over the next two decades offers an incredible opportunity for logistics companies; but it also requires them to be prepared for the significant challenges that lie ahead.
With e-commerce gaining momentum, the impact is bound to spill beyond the express package segment, and into the freight segment. Continuous growth in demand from new markets will also open up further opportunities for the logistics sector.
Without doubt, logistics is crucial to a successful supply chain business plan and its role will even be greater with the e-commerce upsurge continuing. Logistics companies able to offer the most efficient and cost-effective services will gain significantly. Those unable to adapt will lose out.
Technology will continue to influence the sector in a big way. In order to find an edge in an increasingly competitive market, companies will have to depend heavily on it.
Logistics companies are looking to deploy cloud technology platforms that serve as an easy-to-use, transparent tool to facilitate management of the entire freight business, and allow for greater transparency, collaboration and planning.
There is also a need to provide value-added services and adopt innovation to keep up with fast-changing logistics landscapes. Automation and integration that can help achieve higher efficiencies while reducing costs will insulate companies from the competition.
E-commerce companies are eyeing the transportation and logistics sector as possibly the next billion-dollar opportunity. It makes sense for them to have a stake in a sector that is crucial to their business. For logistics companies, survival in a market bound to be increasingly competitive cannot be done without technology. As companies shift toward newer technologies, the impact of market forces can be diminished significantly, enabling companies to capitalize on market opportunity.