logistics trends in 2023

The Most Important Logistics Trends in 2023 to Plan For

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As we enter a new year, we have a fresh set of challenges in every sector of activity and at every level of the management hierarchy. As packaging and logistics professionals, our attention is on the most important logistics trends in 2023. We know that they will affect our clients’ businesses and will give rise to new demands for us.

We believe that being ready to meet any challenges starts with being always in the know and remaining flexible to adapt our products and services to the market demand. For this reason, one of the first tasks we set ourselves for the beginning of the year is to identify and analyze the logistics trends in 2023.

These are:

1. Business Goes Digital in All Industries

The digital revolution is probably the most important and ongoing trend not just in logistics, but in every aspect of doing business. It has far reaching consequences for all companies, big or small, operating in all industries. The process had started a few years back, but the COVID pandemic acted as an accelerant.

Now, all businesses must rely on digital properties and tools to manage their operations, meet customer demands, interact with vendors and suppliers and monitor their performance. Thus, digitization of the supply chain is one of the key logistics trends in 2023.

One of the main benefits of digitization is a greater access to data at all levels and across all stakeholders. Using new technologies, such as the blockchain, changes to data is automatically performed within the network, offering each interested party access to real time information.

2. Reducing the Physical Length of the Supply Chain

This is one of the logistics trends in 2023 that promises to have a major impact on every industry involved in the production, distribution and sale of goods of any type. The US and Europe are working hard to reduce the number of products with the label “Made in China”. As the COVID pandemic showed, any unforeseeable circumstance can lead to major disruptions in all industries.

Secondly, rising shipping costs no longer make Chinese production the cheapest option for companies. Thus, one of the logistics trends in 2023 is creating shorter supply chains, with vendors, production facilities and suppliers located closer to the main distribution market. This concept applies to all strategic partners, from the providers of raw materials to packaging producers and transportation companies.

3. Fuel Costs Will Impact the Final Production Cost

The competition to keep customers loyal becomes more complex both for B2C and B2B companies. When it comes to pricing and shipping policies, businesses will have to rethink their strategy. Low prices and free shipping may not be sustainable, in the context of the rising diesel prices.

This is one of the logistics trends in 2023 which will impact all companies, including 1st thru 3rd tier suppliers for producers and manufacturers. In the end, these rising cost will lead to an increase in product prices. In this context, the perceived added value comes from customer service, shopping experience and the professionalism of all staff interacting with corporate clients or consumers.

4. Automation Reduces Costs and Simplifies Operations

To balance out rising diesel costs, companies are investing massively in automation at all possible points of the supply chain. This means a reduced reliance on manual labor and significant savings in terms of time and money.

This is not one of the new logistics trends in 2023 – as far as we are concerned. Logistic Packaging consultants are strong promoters of automation in warehousing and logistics operations. Our packaging materials are specifically designed for use on conveyor belts and handling by robotic arms and other automated material handling solutions. Thus, if you are still relying on manual labor, 2023 is the year to change that.

5. Environmental Regulations Impacting Logistics Operations

Being sustainable and “green” used to be a great idea to stand out from your competitors. It became a necessity in recent years. From now on, it will be an imperative demand. International regulations are stricter in terms of disclosing the environmental impact of business operations. Laws are being passed and enacted both in the US and the European Union, as well as on other continents. The common goal is to reduce carbon emissions and slow down climate changes – which already have devastating effects.

In this specific context, professional plastic packaging is a reliable ally for businesses. Compared to other types of packaging materials, they are more sustainable, have a longer lifespan and can be 100% recycled when they reach end of life.

Whenever new challenges appear, the Logistic Packaging team is here to help your company overcome them. Reach out to us and let us help you adapt your operations to meet the logistics trends in 2023 with confidence!