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5 factors affecting the global logistics industry in 2022

Import of goods, rising costs, labor shortage, sustainability and political conflicts are the 5 factors affecting the logistics industry.

Entering 2022, businesses in the supply chain and logistics will be under great pressure because of resource constraints, skyrocketing transportation costs, geopolitical conflicts and consumer demand for goods. increase. They must rapidly pivot their tactics, strategies, and apply new technology to the supply chain to drive differentiation in today’s competitive landscape.





Enterprises in the supply chain and logistics are under great pressure in the face of many problems in 2022. Photo: Global Trade

Enterprises in the supply chain and logistics will be under great pressure in the face of many problems in 2022. Photo: Global Trade

Here are five key factors impacting the logistics and supply chain sector in 2022.

Import of consumer goods

Due to the pandemic starting in 2020, consumer spending demand from services has completely shifted to buying durable goods such as electronics, household appliances, clothing… Notably, the majority of deliveries Translation is done online. Two years after the pandemic, consumer spending on goods remains high.

The explosive retail growth reflected in record import volumes is showing little sign of slowing down. Specifically, the volume of US container imports in February 2022 increased by 12% compared to January 2021 and 38% compared to February 2020. This number continues to put strain on global logistics and supply chains.

Regardless of the Russia-Ukraine conflict or rising inflation, the demand for consumer goods is still high, so importers and logistics service providers do not see a reduction in pressure.

Imbalance in costs

Existing logistics infrastructure cannot keep up with freight demand, creating severe capacity declines at ports and entire last mile distribution routes. At the same time, the shortage of labor also causes importers and logistics units to lose their balance in cost savings and efficient transportation.

In addition, the ability to circulate goods is hindered by the shortage of sea containers. To address capacity constraints and escalating transportation costs, supply chains must operate more efficiently and effectively based on available resources. Logistics businesses also need to increase the ability to track activities for assets to maximize utilization, rebalancing locations over time. Optimization is important to reduce warehouse inefficiencies and make shipping more efficient.

Lack of labor

Labor shortages in the logistics industry are a growing concern. Currently, many young people are unemployed, losing their jobs due to the pandemic. Therefore, logistics companies realize they must reduce their dependence on manual labor and focus their resources on higher-value work to improve financial performance and customer experience. In which, automating manual processes and optimizing existing resources with the best technology is an effective solution.

Besides, the shortage of drivers continues to affect the road transport capacity, causing disruption to the flow of goods. According to the American Trucking Association, the current US driver shortage is 80,000. It is expected to be short of more than 160,000 drivers by 2030. Over the next decade, the trucking industry will need nearly a million drivers. new vehicles to bridge the gap between freight needs, retired drivers and other supply chain pressures.

Sustainability

With more and more countries turning consumers and businesses into action for the environment, supply chains and logistics are playing a leading role in efforts to reduce greenhouse gas emissions. Companies recognize that improving supply chain performance goes hand in hand with improving the environment. At the same time, CO2 reduction is an opportunity to save and improve all-round: operations, costs, time, resources and the environment.

Geopolitical conflict

In the context of ongoing conflicts, logistics companies must devise strategies and apply technology to overcome and, at the same time, minimize the impact of future conflicts by building supply chains. more flexible response. Supply chain resilience must include resistance to attacks on the information technology infrastructure that operates the supply chain.

With sanctions between countries, many carriers are facing major challenges in trading partnerships. They must screen partners for export compliance to simplify business operations. In addition, companies also need to find alternative sourcing to reduce risks.

Thanh Thu (according to Global Trade)

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