Logistics plays a huge role in the ultimate profitability of a supply chain, and it is vital to stay on top of the latest changes in the industry to ensure maximum success. Here is a look at some of the biggest factors that are currently influencing the supply chain landscape.
With supply chains stretching across much of the world, ensuring adherence to country-specific regulations can be a big job. Trade rules and regulatory protocols are constantly changing, and companies must keep up and update their procedures to ensure everything stays in line. Moreover, regulatory restrictions related to the environment continue to tighten, meaning there is a strong need to comply with rules pertaining to fuel efficiency, emissions, and other factors.
Now that online connectivity is essentially ubiquitous, new avenues of business have opened up, with the leader being ecommerce. It’s a crowded market with plenty of competition, and offering quick delivery times to stand out from the crowd can put a lot of stress on logistics efficiency, as can the vast amount of goods on offer.
Data-driven operations are becoming the standard thanks to new and effective ways to collect and manage vast amounts of data, and this presents a tremendous opportunity for boosting efficiency across the supply chain. This is particularly true when it comes to logistics and last-mile delivery. Visibility, transparency, real-time information, data-enabled insights and tracking are all the norm now.
Globalization has spurred the development of innovative offshore supply chain operational models. Rising fuel costs and the threat of recession prompted the supply chain to focus on making cost savings, and outsourcing much of the supply chain responsibility has been the solution for many.
The logistics landscape has changed dramatically thanks to these factors, and further transformations are likely as the global economy continues to evolve and adapt.
This blog post was based off of an article from Ramco. View the original here.