The logistics industry has been, and is, one of the fundamental economic sectors. That is why it is an area that constantly seeks to innovate, and this innovation has been focused on efficiency, flexibility, technology and care for the environment for a decade. To keep up to date with what is happening in the market, we tell you the main trends that will develop during 2023.
In recent years, logistics has been booming, and companies pay all their attention to this industry to meet several objectives.
Since 2020, with the explosion and rise of e-commerce, there has been an increase in demand for logistics centres, motivating a high occupancy rate and stabilizing rental prices, all in a market with slow growth.
But, the growth of this market is a double challenge: on the one hand, there are the developers who have to find strategic locations so that the operators can reach the consumer as quickly as possible and, on the other, the companies who are also looking for a location that guarantees greater operational efficiency.
Even so, both brokers and industry analysts maintain that the Buenos Aires logistics market ended 2021 with a marked recovery, which translated into good prospects for 2022 and, in some way, an upward projection for 2023.
This 2022 began with a marked trend for great technological advances and improvements in the industrial sector that seek to change towards more efficient, flexible, technological and automated companies, also considering the environment as a focus of interest. Industry 4.0, established in the supply chains of companies in recent years, is adapting and becoming more demanding according to the needs and demands of the market.
But, as we head into the future, many of these changes will endure. They will incorporate significant advances that must be considered to gain a competitive advantage in the marketplace. Below we will comment on the main trends in the logistics industry that are expected for 2023:
Now it is easier to keep track of the entire operation since everything is automatically saved in the cloud with easy and fast access to the needed data.
Approach towards sustainability
Not only for the supply chain, but sustainability is a challenge that all companies fully assume. And it is that green logistics or sustainable logistics seeks an improvement in the conservation of the environment without losing efficiency and optimizing current processes.
Transparency through innovation
No trend is as important in 2022 as transparency within the supply chain.
With a transparent supply chain, risks within the supply network can be identified and eliminated to create a comparative advantage. This transparency is achieved hand in hand with digitization and innovative technologies. Therefore, companies will have to analyze their logistics processes with a magnifying glass next year. This way, they can spot optimization potential and then exploit it.
Part of the transparency is achieved through using the most advanced technologies and software. These are increasingly recurrent to reduce risks and improve the productivity of business processes, especially in warehouses. If the business grows, the complexities grow with it. Even though there are many reasons for a possible failure if there is no correct control, the support in management systems facilitates the process.
For this reason, in 2022, software such as the Warehouse Management System (WMS) had a great boom. This warehouse management system, also known as SGA Software by its acronym, through its WMS program, allows you to control the organization and the different operations of the warehouse. The software controls the materials in the warehouse, from when the raw material enters until it leaves the facilities.
Drones and robots
Motivated by the search for greener logistics and automation, the use of drones and robots for product delivery is a project that has been underway for many years and is a very close reality.
Some companies, such as Amazon, have already conducted tests to deliver via drones, although they have yet to be accepted.
On the other hand, the development of autonomous driving solutions with automated trucks is also growing. Of course, this would not mean reducing staff either, but artificial intelligence would be a complement to make the work of employees more accessible and more efficient.
Online commerce is booming and, with it, the famous “last mile”. While consumers are delighted with trends like same-day delivery or free shipping/returns, the logistics industry is experiencing the opposite. The increasing volumes of transport, the greater urbanization and the high costs generate enormous daily challenges to this industry.
The answer to this problem could be micro warehouses: These small warehouses bring merchandise closer to customers, especially in densely populated areas. They help organize the last mile faster and more efficiently and respond to the growing demand for immediate deliveries.
NFTs and Blockchain
These two concepts, which played an important role during 2020 and 2021, have been developed to adapt to different sectors.
An improvement in data encryption, cybersecurity, incredible speed and real-time traceability adjustment are some of the main ideas that logistics businesses should bet on this year.
2023 will be the year of innovation. New technologies and special attention to sustainability. Transparency and well-organized supply chain risk management will be the key to success. Here it can be advantageous to use innovative technologies to generate this transparency. In this way, the potential for optimization can be increased to ensure the supply chain’s continuity.