The Forwarders Trends for 2023: What We Can Expect In The Future
Created on December 6, 2022
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One valuable lesson we’ve learned over the past few years, with all the events of 2022, is that the logistics and freight forwarding industries remain largely unpredictable. However, looking at possible forwarders trends for 2023 is essential to stay up to date and adjust strategies to specific contexts.
What can we expect for 2023?
As we approach the end of the year, many supply chain and logistics executives begin their companies’ annual strategic planning process. Before they do, it’s worth reviewing the key forwarders trends for 2023 that will impact the market next year.
Given the importance of the freight forwarding and logistics industry to the global supply chain, it’s no surprise that many freight trends for the next year will focus on improving the supply chain itself, especially with new business models gaining strength.
Logistics technology trends also feature heavily Artificial Intelligence (AI), IoT, and Blockchain, which are designed to make the supply chain faster and less prone to disruptions.
In addition, environmental concerns are increasingly present among companies in the industry. Climate change advocacy groups and growing consumer efforts to be more environmentally responsible drive the supply chain to become less damaging to the environment.
Forwarders trends for 2023 you should look out for
Here, we examine some of the major trends, some of which continue from last year and others that have become apparent due to the uncertainty and unprecedented times we have witnessed in the past few years.
- Artificial intelligence (AI)
According to the Global AI Survey, the use of Artificial Intelligence in logistics can increase companies’ profits by more than 40% per year. By using algorithms based on data from previous processes, the use of this technology in logistics can automate procedures and thus make supply chains more efficient.
Artificial intelligence (AI) will also play a key role in making supply chains more efficient by eliminating potential human errors because it can identify patterns in which companies can predict buying demands and manage inventory, taking the guesswork out of planning and procurement.
- IoT implementation
The use of IoT is an ongoing trend in the logistics market that was also observed in 2022. IoT (Internet of Things) is defined as the interconnection of physical devices and objects with embedded sensors to enable a continuous exchange of data over the Internet.
IoT will be responsible for connecting almost everything in logistics, from packages to people, adding value to the supply chain. IoT devices provide information to logistics companies, who in turn can use all this information in real-time to proactively meet customer demands, minimize downtime, and increase overall supply chain efficiency.
Blockchain is a form of distributed ledger technology that holds records of digital data or ‘exchanges’ in a way that makes them tamper-resistant. Businesses can use blockchain technology to track any transaction, making it possible to share documents, personal information, and cryptocurrencies.
The database structure of Blockchain can set supply chains for success with end-to-end transparency. In addition, Blockchain brings to the supply chain:
- Enhanced tracking of materials from a source, through the supply chain, to the customer;
- Reduced paperwork and administrative processes;
- Improved transactional security and visibility with suppliers and subcontractors;
- Improved fraud detection and prevention for high-value items.
- Elastic Logistics
Supply chains also need to be flexible and responsive to market fluctuations. As a result, more companies are adopting a flexible approach to logistics.
Elastic logistics allows the supply chain to easily expand or shrink according to current market demands. In addition, it offers flexibility for many variables in the supply chain, including shipment times, carrier space, container usage, and route optimization.
The ability to adjust helps companies better deal with potential problems, such as excess inventory and non-optimal space on ships. As a result, companies can enjoy greater stability and remain competitive despite market fluctuations.
- Circular supply chain
Circling the supply chain can help reduce costs, in addition to the upfront costs of implementing new processes. With a circular supply chain, companies can spend less on raw materials and, in turn, enjoy a reduced risk of price volatility. In addition, a circular supply chain generates less waste, helping companies reduce their overall impact on the environment.
- Sustainability in logistics
The impacts of climate change have never been more apparent. Sustainability is and will be a key factor for all logistics businesses.
It is increasingly vital to have a decarbonization-focused operation, both for the general public and consumers. Pollution is a global concern, so it will play a significant role in logistics.
By 2023, supply chains will face the risks of climate disruption – and they will also have a major responsibility to improve the situation by reducing emissions and improving sustainability.
Are you ready? 2023 here we go…
The logistics and freight forwarding industry are fast-paced, so if you work in this sector, you already know how trends come and go. For logistics companies to stay competitive and ahead of their competitors, they must keep an eye on new and emerging trends.
The forwarders trends for 2023 that we showed above illustrate how dynamic this sector is and, more than this, how it is moving towards a more technological and environmentally friendly scenario.
To remain efficient, logistics and freight forwarding companies need to continuously update their processes and technologies. Therefore, to be more successful in your freight business, you should integrate these trends into your business strategies.