Manufacturers contributed $2.33 trillion to the U.S. economy just in the first quarter of 2018. Their impact on the global economy is tremendous. However, the manufacturing industry is also vulnerable to the fluctuating global economic, political, and social climate. They rely on transportation and logistics to both receive their raw materials and deliver finished goods to consumers. Whether you ship globally or simply within your region, trends affect your business.
As we march through 2019, here are three trends to pay attention to:
Data is King
Data is transforming the transportation and logistics industry. ”[People] are better [at] leveraging data to make decisions, and there are more sophisticated conversations between shippers and carriers to deal with the economic levers,” stated Logistics expert Adrian Gonzalez in a recent Talking Logistics interview. Having access to key data allows you to consolidate shipments and optimize freight movement. It’s how big players, like Amazon, can offer 24-hour delivery. Removing supply chain waste through data analytics means smarter transportation and a better customer experience. In 2019, we’ll see the power of data continue to increase and give those harnessing that power a competitive edge.
Political Climate Drives Uncertainty
From trade wars to free trade agreements, from growth in the Asia-European trade to the internationalization of transportation, the logistics industry will continue to see fluctuations due to political, economic, and social issues around the globe. Companies are preparing for the possible political effects of future legislation by rethinking their inventory levels and moving goods to strategically position themselves for potential outcomes. Tax changes, higher interest rates, or cuts in government programs lead to less money in the market and lower demand, resulting in lower international shipping volume.
Partnerships Between Logistics and E-Commerce
E-commerce accounted for more than 40% of retail growth in 2018. In a PWC survey, 58% of transportation and logistics CEOs plan to create a new strategic alliance or joint venture. For logistics managers, that means you’ll see a trend of special partnerships formed between large e-commerce companies and transportation providers. Logistics companies will be looking for ways to offer new services to help their clients become more efficient.
Orca Intelligence offers technology that gives you the data you need to empower your supply chain. Optimize your logistics by having access to the right data at the right time. Call us at 1-844-GET-ORCA, or email us at email@example.com.