2024 logistics: A look at the trends shaping supply chains
From sustainable practices to disruptive technologies, 2024 will bring challenges and opportunities to supply chains across the globe. How well you navigate those changes will depend on how your supply chain is set up. Are you in a position to flex if needed? Do you have the right partnerships in place to act quickly?
We sat down with Dennis Anderson, Chief Strategy Officer at ArcBest, to discuss what 2024 could bring and how businesses can stay ahead of emerging trends.
Trend #1: Nearshoring
The COVID-19 pandemic and more recent geopolitical tensions have highlighted some of the risks involved with relying solely on overseas manufacturing. Production and shipping delays or otherwise limited access to certain geographies have led many companies to explore nearshoring options to bring manufacturing facilities closer to the markets where goods are sold.
This geographical proximity not only can help mitigate some risks but can also bring cost savings and allow businesses to react more quickly to changing market demands. Companies interested in exploring nearshoring options should work closely with a trusted logistics partner to ensure seamless transportation across borders.
Trend #2: Alternative fuels
Several environmental, economic and geopolitical factors contribute to the increasing discussions around alternative fuels in the logistics industry. Reducing emissions, adhering to government-mandated emission standards, and potential cost savings are just a few reasons companies are looking to diversify the energy sources used to transport freight.
As logistics companies explore emerging technologies and put alternative fuel sources into use, shippers may be able to capitalize on some of the benefits. Many consumers are becoming more environmentally conscious, so aligning with providers who are focused on improving sustainability may give you a competitive edge.
Trend #3: Convergence of B2B and B2C experiences
The line between business-to-business (B2B) and business-to-consumer (B2C) experiences has blurred in recent years. Customers now expect seamless and transparent interactions with the companies they’re purchasing from, no matter if it’s for personal or business reasons.
This is largely caused by access to more technology and better user experiences across all industries. The more transparent and easier a company is to work with, the more buyers will be enticed to use their products and services. Focusing on improving customer relationships also means providing better information about where their products are. Work with your transportation company to find ways to increase the visibility you can provide to your customers about their shipments.
Trend #4: Accelerating digital transformation
Whether you’re looking to make more data-driven decisions, facilitate better communication between all parts of your supply chain or streamline current processes, technology is a critical enabler. But with the speed of advancements and with rapidly developing, potentially transformative technologies like generative AI, keeping up with the latest tools and products can be time-consuming and expensive.
Collaborating with an innovative logistics company gives you access to the technology that can make your supply chain more efficient. This frees you up to invest in hardware and software for other areas of your business.
Preparing for 2024 and beyond
The last several years have brought multiple disruptions to supply chains across the globe, and market conditions continue to change. Plan for the effects of those changes by understanding emerging trends and how they may impact your business.
Industry knowledge, combined with strategic partnerships, can help you build a supply chain that meets today’s needs while preparing for tomorrow’s challenges. Learn more about ArcBest’s solutions to see how we can help you build a resilient supply chain.
