Discover the latest trends in the logistics industry in 2021

Until a couple of months ago, everyone talking about logistics development praised the speed with which technology replaced or supported processes. In 2020 everyone talked about fleet management with the help of 5G technology, autonomous vehicles, and the development of e-commerce strategies. However, the pandemic had its own plans, and it was challenging to integrate all the advancements technology provided to support the logistics industry development.

The UK logistics industry was on the rise before the turbulent pandemic, and its consequent impact on internet sales have served as fuel for the industry's growth. The Office for National Statistics revealed that internet shopping increased from 18% in 2019 to 26% in 2020.

It very much appears that the logistics industry is heading in a new direction, and the pandemic only facilitated its development and progress. This article presents the trends that are expected to impact the sector in the following months.

Build more warehouse locations

Traditional warehouse locations next to motorways and close to urban centres are no longer enough to cover the current demand for reverse logistics and last lime deliveries. More locations will be needed close to busy cities because people rely on fast delivery. There are many areas offering easy access to the city centre and logistics companies to identify them fast and develop new warehouses before the internet shopping trends register a new surge. The challenging everyone expects in the logistics sector is for businesses to compete for land because those who manage to acquire the best locations will register a sky-rocketing success.

As the logistics industry is focused on building more warehouse spaces, we expect to see mixed-use areas that include residential and industrial buildings. At present, warehouses in key locations continue to grow in value and demand.

Logistics businesses plan to become more sustainable and environmentally friendly

The drive towards net-zero is the focus for logistics in the development of storage facilities and transportation operators. In terms of constructing warehouses, the industry has to embrace the World Green Building Council's green building recommendations that provide all the guidelines companies must respect if they want to limit waste and carbon emissions. Developers need to integrate low-carbon and renewable technologies to lower energy consumption and purchase energy directly from exco-friendly providers. Additional sustainable features may include solar panels and charging points for electric vehicles.

Alongside the sustainability drive, the industry also focuses on creating safer and more secure vehicles for drivers and cargo. Logistics companies invest in bespoke solutions that reduce vehicle accident damage and improve road and site safety. With solutions at hand, the logistics sector should take the question of transport in connection to the sustainability agenda.

Remote work is widely accepted in the logistics sector

Remote work is growing in popularity in all industries, and the logistics sector makes no exception. A year ago, the number of logistics companies who would have allowed their employees the freedom to choose where they work was quite low. But today, the number of people working in the logistics sector and opted for remote work is higher because entrepreneurs understood that their employees can be effective and efficient even when they're outside the office building. The effectiveness of working at home is sometimes even higher than when people came to the office daily. However, it's crucial for the company to provide the workers with the appropriate tools and secure architecture to encourage them to complete their tasks fast. Nowadays, even the signature process can be completed online with technology that allows specialists to sign important paperwork remotely.

Machine learning and artificial intelligence can support development

The transport and logistics sectors have always handled many data, and companies hired a specialist to interpret it and connect the multiple dots. But human error can often lead to issues because the human brain is prone to mistake. With the increased popularity of internet shopping, the number of dots the logistics specialist had to connect exceeded their ability, and the industry has started to show signs that it required automated technology to complete this task. Artificial intelligence and machine learning can create an artificial neural network that connects the dots because the process relies on math solely.

Thanks to the latest developments in technology, logistics companies can predict and recognise data that allows them to automate some processes and improve their performance. By integrating these technologies into their operations, they can reduce human error and save money and time. Artificial intelligence can easily predict a phenomenon and identify a solution. They can handle multiple tasks from customer service to fleet management.

The latest tech tools and systems can support logistics companies to diversify their processes and multiply profit. Combining different technologies and solutions, the logistics industry can enter a new era where they can identify the fastest route to deliver the goods and the most affordable transport option.

Cynthia Madison is a young blogger and economics and marketing graduate. She writes about home, lifestyle and family topics and is a senior contributor to popular niche publications.