Logistics Challenges

About this Alert: robot generated from verbatim forecasts and questions auto-extracted from the Shaping Tomorrow database of articles, reports and PowerPoints and supplemented with quantitative and graphical analysis by the robot. Time to compile and produce – 55 minutes.

Customers will come to expect logistics companies to offer effective authentication technologies, a transparent supply chain and a diversified transport network at ultra-low or no cost. Read on to spot opportunities and risks to your supply chain and logistics models.

Athena’s forecast
Start year: 2015
Likely Tipping point: 2022
Likely End year: 2035
Likely Impact $: Billions
Likelihood: 90%
Regions affected: The World
Most affected issues: IT, Construction, Retail, Aerospace, Transport, Manufacturing, Environment, Logistics

What is changing?

Expectations

  • Only if companies embrace highly connected networks and run as Live Businesseswill their demand, supply, andlogistics rise to the level that modern customers want and expect.
  • Consumer expectations will drive companies to increase investments in warehousing IT and operational functions over the next four years as manufacturing and logistics companies continue to adjust to delivering directly to consumers.
  • Consumers’ expectations for same-day deliveries and custom delivery experiences will only continue to rise.

Growth

  • The global third party logistics (3PL) market is projected to exceed $1 trillion by 2022 at an annual average growth rate of 4.4 percent.
  • Indian logistics sector has grown at a healthy rate of 15% in the last five years and is expected to grow at a CAGR of 12.17% by 2020 driven by the growth in the manufacturing.
  • Transportation and logistics could be the next billion-dollar opportunity for e-commerce companies.
  • The market size of automated logistics equipment system in China is expected to reach RMB174.5 billion by 2020.
  • Automated material handling market estimated to be worth $18.55 bn in 2015 and will expand to $33.6 bn by the end of 2021 at a CAGR of 10.4%.
  • Companies that adopt 3D prototyping today will lead in production tomorrow.
  • The future growth of segments will be mainly dependent on the rapid development of the logistics industry and the swelling demand for urban logistics vehicles.
  • The challenges of city logistics will drive significant new demand for logistics property in and around cities.

Efficiency

  • Companies will be able to use sensors to scan the environment to improve navigation, logistics, city planning.
  • Manufacturing facilities are expected to hold the major market share for operational predictive maintenance market due to high deployment rate by manufacturers to reduce the maintenance cost increasing the profitability.
  • In a circular economy where materials are kept in circulation at all time, reverse logistics could represent a golden opportunity the logistics sector cannot afford to miss.
  • The reverse logistics of hazmat will continue to rise with the increased consumption of goods in a growing economy.
  • Robots will be part of the future of logistics.
  • Australia Post has announced the it will be the “first major parcels and logistics company” in Australia to trial package delivery by remotely piloted aircraft.
  • In 2017, open information sharing will continue to be an important foundation to help companies anticipate dynamic consumer demands.
  • Constant real-time remote monitoring of vessels worldwide will see ships become more closely integrated intologistics or supply chains.
  • Self-driving trucks are an opportunity for the logistics business because they will help lower the costs of operating the vehicles due to their superior fuel efficiency.
  • Additive manufacturing could significantly alter logistics by allowing deployed units to print specific parts in situ.
  • 5G is expected to contribute significantly to the development of connected cars, mobile health, transport and logistics.
  • Amazon has been and will continue to be disruptive to the logistics business.
  • Predictive analytics is one of the disruptive technologies that will have a dramatic impact on supply chains and the people who run them.

Resources

  • Companies that actively manage their resource footprints will save costs and be more competitive.
  • Companies will be able to use sensors to scan the environment to improve navigation, logistics, city planning.
  • Demand for mobots is expected to increase in manufacturing, military, services, logistics fields and in hospitals.

Regulations

  • The next step for self-driving vehicles in logistics will be to overcome regulatory and security challenges to deploy autonomous vehicles on public roads.
  • Regulators will play an important part in boosting the penetration of truck platooning systems in the truck market in the coming years.
  • Brexit will add additional supply chain and logistics complexity.

Work

  • In transportation, distribution, and logistics, there will be 1.3 million good jobs available over the next decade.
  • Processes organized for the administrative convenience or cost-efficiency of public-sector suppliers and providers will be forced to reorient themselves to the customer’s unique preferences.

Implications

  • A logistics company could use the Internet of Things to collect data from distribution networks and combine it with analytics capabilities to create a new revenue stream.
  • Computers will start replacing people in especially vulnerable fields like transportation/logistics, production labor, and administrative support.
  • A logistics company could use the Internet of Things to collect data from distribution networks and combine it with analytics capabilities to create a new revenue stream.
  • In future, aeronautical infrastructure will be supplemented to manage consumer and commercial use of drones and localized logistics for Internet-based goods-delivery fulfilment.
  • Transportation and logistics could be the next billion-dollar opportunity for e-commerce companies.
  • Several “operational constraints” such as regulations, the truck driver shortage, and “infrastructure bottlenecks” are evolving at breakneck speed and threaten to fundamentally change the rules of the logistics game.

Sentiment Analysis

Learn more

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