Looking back on 2021, the most important takeaway is that the logistics industry remains open to evolving its business models to reflect the needs of the marketplace. Rather than holding onto and investing in systems that are no longer working, shippers and transportation providers should spend their time, money, and resources on next-generation systems that address current challenges and leverage today’s opportunities as well as those of the future.
Historically, the industry tends to follow the philosophy of “If it’s not broken, don’t fix it.” Although most were aware of stress fractures throughout the supply chain, it has become clear that a critical breaking point is most acutely revealed during the final touch points before delivery to the retail customer.
Lack of capacity, limited innovation, and labor stresses across the warehousing, distribution, and drayage segments have had a significant impact on the flow of cargo. Last-mile stakeholders and equipment providers are collaborating on solutions, such as grounded container yards, to reduce the inflow of cargo to the distribution centers, which would lower chassis dwell times, improving overall efficiency.
The industry has traditionally been slow to embrace technology, but the COVID-19 pandemic has been a catalyst in the adoption of digitalization and automation. Whether the industry was ready or not, we are seeing the turn toward technology solutions, given the lower availability of human resources. Digitized solutions provide enhanced visibility, a key to optimizing operations and planning, supporting supply chain fluidity and improved cargo flow. A heightened level of insight, such as that offered with modern asset management systems, also enables optimized fleet management, increased inventory control, reduced administrative time, and minimized costs. Automation allows for contactless operations, reducing human error and delays. As we struggle with manpower shortages, automation will continue to evolve as a viable solution, ultimately becoming the major component of efficient supply chain operations.