Disrupted supply chains are wreaking havoc all around the globe. Ever since the COVID-19 pandemic, transportation and logistics have changed drastically. The industry faced major disruptions and challenges throughout the pandemic, with the industry’s gross value added going down by 6.1 per cent in 2022 alone.
Without an efficient logistics system and supply chain, businesses can’t function in today’s fast-paced and competitive business environment. As the world grows more complex and becomes more interconnected, unpredictable market disruptions have occurred. When the pandemic affected businesses, especially the supply chains, it became clear that logistics were vulnerable and needed immediate action.
The upcoming years are filled with opportunities and challenges for the global logistics industry. With new technologies like Artificial Intelligence (AI) and automation, managing logistics will be changed forever. Businesses will go to great lengths to stay competitive, which will mean changing their supply chain management.
This blog will highlight some major challenges that the global logistics industry faces in today’s changing world.
Hidden Supply Chain Risks
If there’s one thing the pandemic has made us realize, we live in a highly unpredictable world. New threats like the pandemic can emerge any day from anywhere and can compromise your business. Businesses need to factor unknown risks into their business strategy and keep their supply chain operations flexible.
For instance, in addition to the global pandemic, the past two years have been troubling, keeping in mind the storms, natural disasters, and wildfires that affected different parts of the globe. For this, partnering up with a reliable logistics company is essential.
Lack of Visibility
One of the biggest challenges for today’s logistics industry is the lack of visibility in the supply chain. Most companies don’t have access to what is happening inside the factories and warehouses besides their control area. But thanks to the digitalization of supply chains, it is now possible to get real-time updates and a more holistic view of all the supply chain processes and operations.
Timely deliveries are the foundation of any supply chain. Customers demand faster and cheaper deliveries, which is why most companies partner up with third-party logistics companies that deliver globally.
Furthermore, automated robots and Warehouse Management Software and systems are also becoming increasingly common among companies. This is because these systems boost productivity and reduce the time taken during routine tasks and processes. Having fulfilment centres equipped with the latest equipment and technology is crucial for a company’s success.
Choose the Best with 3PLWow
We are the best logistics service provider in the UK. At 3PLWow, we work across a plethora of various niches and industries. Large and small companies hire specialized 3PL fulfilment service providers like us at 3PLWOW.