2015 will see the global embrace of new technologies by consumers and businesses accelerate, offering a huge array of new opportunities and challenges for the global forwarding industry.
The societal transformation being driven by technology means our industry must adapt services across modes to the needs of multiple niche markets. I believe the new forwarding environment demands globally standardized solutions that are flexible enough to meet the requirements of SMEs and individuals in emerging and established markets, and across verticals. If we fail to meet these challenges, we risk seeing margins and market shares eroded by newcomers. Constant investment in systems and people will be required, and in many cases the fresh demands placed on forwarders by changes in OEM and consumer behavior patterns linked to new technology will be solved by applying the very same technologies to create solutions.
Take, for example, omni-channel retailing. The distinction between traditional commerce and e-commerce has been blurring for some time, and most traders already supplement their physical stores with online outlets. In 2015 and beyond, the digitalization of traditional stores will continue as more consumers use smartphones and other means of communication to order their goods and to improve their physical shopping experiences. As retailers integrate their online and offline shopping outlets, this will drive demand for B2C deliveries and change how retailers produce and source their products. The implications for forwarding and express solutions are immense.
In meeting this type of challenge, Big Data could be a major enabler. By investing in analytics, the huge amount of information currently generated in the production, transport and consumption of products is increasingly become a mineable resource. With the right systems in place, the use of this structured intelligence can drive down costs, reduce carbon footprints and empower “smart” supply chains or forwarding solutions based on predicting the needs of customers, rather than reacting to them.
I believe we will see further advances in cloud-based forwarding solutions this year. And I expect more progress on augmented reality logistics. It is essentially the use of computer-generated information to enhance the physical reality. Applying this to logistics will eventually translate into, for example, more efficient pick-and-pack warehousing systems as head-mounted displays are deployed to guide personnel.
Roger Crook, CEO, DHL Global Forwarding, Freight