Gain A Supply Of Success With The Logistics Industry In 2022

Gain A Supply Of Success With The Logistics Industry In 2022

May 4, 2022

Every industry took a hard hit when COVID-19 came to “conquer” the world. The global Logistics industry was valued at $7,641.2 billion in 2017 and its value dropped to $5,200 billion in 2020.

Gain A Supply Of Success With The Logistics Industry In 2022

Gain a Supply of Success with the Logistics Industry in 2022

Strong Competition with High Growth Potential in 2022

The COVID-19 pandemic put many cross borders activities to a grinding halt and this greatly affected the supply and logistics industry. However, as much as it slowed down the industry, the pandemic did not entirely stop it. People still need to get their necessities somehow and this is where logistics step in. Many industries like the essential goods industry, healthcare, e-commerce, etc. actually helped prevent the Logistics industry from crashing. COVID-19’s aftermath has also helped to promote the growth of logistics and international transportation.

Fortunately, the COVID-19 situation is gradually improving and the world is getting back on track, with, of course, a new normal lifestyle. The digital world has allowed many firms to bounce back by shifting their business operations online seamlessly, putting the Logistics industry to have an expected valuation of $12.68 billion by 2023.

Since the digital world is an open market, industry players have to remain competitive and efficient by embracing growing trends that are expected to dominate the industry in the future. In doing so, customers will be satisfied and businesses can then reap the benefits of adopting those trends.

Be Prepared for the Big Trends of the Year

1. Bring Your Products Closer to Your Customers

This trend essentially just means to localize the supply chain and shorten the distance firms have to travel to deliver the products to customers. Demands for deliveries have changed and that is to have consumers’ products delivered as quickly as possible. A popular option that has recently become a norm is Same-day Delivery, something that was once unimaginable. Today, it is becoming more than an “add-on”, many companies, especially the renowned ones, are expected to provide same-day delivery whenever possible. 

Supply chains must be pushed to the local level in order to fulfil those same-day orders. Rather than managing inventory and shipping on a regional level in the past, supply chain leaders now fulfil orders from local retailers. This strategy provides a number of advantages, including the ability to utilize local inventory as needed. This is why localizing the supply chain has become so common in the quick commerce market.

Micro warehouses are likely going to be part of this trend in 2022 too. Micro warehouses are smaller scaled warehouse spaces focused on moving inventory closer to customers, which results in faster and more efficient last-mile logistics. This removes the large struggle organizations face when trying to cater to the increasing demand for same-day and next-day deliveries. Additionally, aside from location, logistics firms have to also try to optimize the movement from one place to another to maximize last-mile movement.

2. Sustainability

Sustainable practices in choices and delivery operations, in particular, will help supply chains stay competitive and even expand market share in 2022 and beyond.

According to IBM research, 57% of customers are willing to adjust their purchase patterns in order to lessen their carbon footprint. With such a large majority of customers becoming more environmentally conscious, brands must take sustainability seriously as well and adopt more sustainable practices. As a result, customers will choose companies that take steps to reduce their negative environmental impact while performing delivery operations. Furthermore, guaranteeing logistical sustainability is a favourable situation for businesses as they get to maximize their capacity and produce a higher output with lower input.

These can come in the form of:

  • Increasing resource utilization
  • Usage of environmentally friendly delivery vehicles
  • Biodegradable packaging
  • Decreasing trip volume
  • Decreasing unnecessary miles
  • Better delivery route planning

And many of these factors can easily be strengthened by leveraging technology (e.g. AI management systems).

3. Big Data and Internet of Things (IoT)

Although the digital age provided us with precious information and opportunities for businesses in the Logistics industry, that information may come in excess and confuse us even more. This is where Big Data helps with its predictive analytic methods to utilize that complex set of information and provide insights into occurrences or disruptions. Currently an underutilized resource, Big Data reduces inefficiencies and helps to make informed decisions to produce better results.

IoT on the other hand is devices that continuously exchange information over the internet, typically with the use of sensors. In the Logistics industry, it is widely used to provide more internal transparency and a better understanding of operations. For example, a device embedded in the delivery vehicle senses the movement and helps send real-time information about customers’ packages.

We suggest that Logistics businesses take advantage of this technology to help improve business operations and customer satisfaction, even if it seems scary at first.

4. Cloud Technology

Cloud technology in logistics and supply chain management certainly isn’t a new trend but they are becoming increasingly popular. Adopting this new technology to streamline company processes can provide considerable benefits to logistics companies. Easy scalability, increased reliability, and lower costs are all advantages of cloud computing. Other advantages include reduced device maintenance and enhanced data security through encryption. 

Cloud computing is predicted to rise dramatically during the next five years. It has seen a surge in popularity since 2020, thanks to Covid-19, and will most certainly continue to do so as we move into 2022 and beyond.

5. Speaking English in the Industry

As mentioned earlier, we are in the digital age and e-commerce is a huge player that has contributed to the Logistics industry’s growth for the last few years (and will continue to do so). It is very common to see sellers communicating in English with customers even if it is not their native language. 

This is because English is the most commonly used language online and it would be a shame to lose those customers simply because the seller chooses not to communicate in English. Similarly, Logistics industry players, usually the middleman in a business transaction, should also ensure their employees are able to speak the common language, to better engage with customers and suppliers. 

Additionally, by adopting English training for businesses and employees, you are also developing their skills which will prove useful in this global world. You will be able to reap many benefits by investing in your employees’ development and overall just cultivating a healthier work culture in your business.

Gain a Supply of Success with the Logistics Industry in 2022

With English language proficiency being so important in the digital era and the pandemic situation now, ELSA Speak – an English pronunciation app that uses AI-powered speech-recognition technology to teach English pronunciation skills – has just what the industry needs, English training for businesses. It covers a wide range of English skills such as Listening, Reading, Pronunciation and Speaking, Grammar and Vocabulary compiled by ELSA’s language experts.

This application can also create specialized learning content for English training in Logistics and its various subsectors, allowing employees to better prepare for scenarios unique and relevant to their jobs. Upgrade your employee’s English speaking skills in just 3 months and see it translate into a rapid improvement in your employees’ ability to provide quality service, especially to English-speaking customers and suppliers.

Explore more about ELSA English training for businesses (Logistics) solutions here


  1. Global Trade, “What Does 2022 have in Store for the Shipping & Logistics Industry?”, October 2021
  2. Bringg, “8 Logistics and Supply Chain Trends to Expect in 2022”, November 2021
  3. Financial Express, “What’s On The Cards For The Logistics Industry? Trends That Will Drive The Sector In 2022” January 2022
  4. Allied Market Research, “Global Logistics Market Statistics 2021-2027”, February 2021

Source: ELSA

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