6 trends to look out for in global supply chain management in 2020

In the current international business environment, customers' expectations are high, affecting every part and stage of supply chain operations. At the same time, next-generation logistics management solutions are also making global supply chains smarter, faster, customer-centric and more sustainable.

Here are 6 trends to look out for in global supply chain management for 2020 and beyond.


Using "Green Logistics"


Green Logistics helps cut costs and win customers. Logistics companies are integrating efforts, innovation, and sustainability applications into their overall strategy by keeping the environment green and eliminating pollution. This trend is often referred to as Green Logistics. This not only helps the environment but also enhances the reputation of the company, reduces supply chain costs and most importantly increases customer loyalty for the company.


Supply chain integration is increasingly concentrated in large companies


The deep and extensive development of technology has played a major role in changing the supply chain processes. Recently, leading ocean carriers have implemented online data processing through online applications and processes, with the goal of streamlining the entire supply chain.


Maersk and Damco are two of the world's leading shipping companies in container shipping with the desire to double the number of highly integrated logistics operations of domestic services. This will help shippers route transport at reduced costs, as the two companies have planned to connect the sea and the mainland, outside the port of call. At the same time, digitalization plays a huge role because it helps them access data and information in real-time, creating more flexible and efficient processes and operations. Most importantly, digitization helps flexibly develop the company's development strategy.


Is software solution supported by blockchain technology the tool of the future?


The lack of public transparency negatively affects the performance of supply chains. Experts are trying to minimize risks and get results for the whole process in one go! The new software solution, powered by blockchain technology, will support global trade as a single platform possible to track the journey from start to finish, making the whole process transparent. than.


Shipping carriers, seaports, 3PLs (providing third party logistics services or contract logistics), freight forwarders and other logistics services will all share and use a single portal to Update for their customers. But continued access and use of information are also important. This will help track the freight. Updating data in real-time helps streamline inventory management and improve asset utilization - an important element of logistics operations. But it is more important to keep an eye on any downsides to customers as well as industry-wide implications of continued blockchain use.


The hidden cost of getting people out of the process


Many companies are automating and digitizing their operations to reduce costs. But according to experts, digital or automation, it is itself a large cost with items such as investment in infrastructure and technology, maintenance costs, maintenance of machinery and equipment. ... Automation will benefit at a few points and can be applied in the right categories. But investing in infrastructure along with training people will both help increase supply chain productivity and eliminate some additional maintenance costs.


Lack of infrastructure and services can lead to increased costs. Some carriers charge twice the amount for a simple local delivery; It includes high fuel prices and excessive surcharges. All 3PLs try to minimize costs and operate efficiently, but due to the large load/volume and unexpected problems that arise, even 3PLs are powerless and ignorant when ordering a truck. They tend to charge a high fee here even though the company tries to use all of the lowest, timely carrier's resources.


Investing in infrastructure and delivery options will reduce this, leading to the discovery of alternatives to traditional delivery. For example, drones have begun to play a huge role in the supply chain industry. This will have a significant impact on the trucking industry, as drones may open up new futures for delivery companies.


Increasing the number of partners to reduce logistics costs


The goal of any company's logistics strategy is to minimize freight costs and provide a highly efficient service. Partnerships often not only help reduce costs but also minimize the risks associated with shipping goods. In some cases, an effective partnership can also reduce delivery delays and enhance customer value and satisfaction.


In the international market, companies are trying to find partners using advanced digital solutions, helping them find new opportunities. Increase forecasting accuracy, reduce inventories by using the JIT system (only in time), achieve new, more accurate, and more accurate ETA (Estimated Time of Arrival) estimates. Reducing the amount of administrative work needed, these are some of the key areas that businesses aim to address through partnerships.


Will tariffs reduce business competition?


Because of US President Donald Trump's new tariff policy, the B2B and B2C supply chains are greatly affected. Retailers worry about the tax increase that will lead to price escalation and lower consumer demand. In some cases, tariffs may enable few businesses to have a competitive advantage and even lead to monopolies in specific industries.




At Orgit, we are problem solvers, next-generation thinkers, and efficiency aficionados. Operating at both local and global scales, Orgit offers comprehensive solutions packages developed by in-house industry experts, tested against real-world scenarios, and designed for the changing supply chain. Learn more about Orgit’s solutions or get in touch with our experts today.