As decision makers step carefully into 2024, they are already keeping a lookout for the challenges they must prepare for. Things are no different at Logistic Packaging. We have already identified several supply chain trends that will take hold during this year and continue staying relevant for the foreseeable future.
Here are some of the biggest changes all logistics managers should start taking into account in their supply chain strategy this year:
1. The Digital Supply Chain
This year will put the last nail in the coffin of the paper trail. The global supply chain is ready to go fully digital. This means that companies need to increase their investments in powerful interconnected computing systems. This will help them join the digital supply chain ecosystem, which will free many employees from repetitive tasks, allowing them to focus on tasks that require their talent and abilities.
2. Green and Circular Supply Chain
Going green is now the basic prerequisite for success in any industry. It remains one of the biggest supply chain trends, as there are still differences in the adoption rate of sustainable practices from continent to continent.
At Logistic Packaging, we are already advanced in implementing this trend. We offer our clients fully recyclable reusable plastic containers and plastic pallets. Some of our products are made from recycled PP or PE. Also, we assist our clients with helpful tips for the recycling of the packages that have reached end of life.
3. Agility and Resilience
According to an Accenture report, resilience is the winning strategy for businesses that will continue to grow in challenging economic conditions. Thee report indicates that agile and resilient businesses manage to increase their market share by 3.6%, giving them a competitive edge.
But what does it mean building an agile and resilient supply chain? Some action points are:
- Building stronger relationships with local vendors and supplying
- Reducing the dependency on South-East Asia for manufacturing and shipping
- Investing in a multi-skilled workforce
- Creating proximity-based hubs concentrating production and sales.
4. Visibility and Traceability
There is a growing need to be able to trace each product down to its main ingredients. This is one of the global supply chain trends that stem from both key stakeholders in the market:
- Businesses that need to reduce product theft, tampering and counterfeiting
- Customers, who want to ensure that the products they buy are ethically sourced and manufactures.
At Logistic Packaging, we offer various customization options for standard packaging materials to increase product visibility and traceability in transit. Some of these options are:
- Printing barcodes, QR codes, or specific instructions on packaging
- Embedding RFID chips into plastic pallets or order picking boxes
- Adding seals to container lids.
5. Investment in Systems and People
With the rise of AI and digitalization, human talent remains paramount in logistics and supply chain. Smart machines can perform repetitive tasks, but people have to program and monitor them.
Thus, successful companies must focus their investments both on computer systems and in human talent. A careful correlation of digital systems and human efforts can give your company the boost it needs to stay ahead of the competition.
6. AI Is Not the Enemy
During the last few years, the increasingly advanced AI systems have caused concern among all types of professionals and workers. Will robots take jobs away from people? As we get accustomed to working with it, we realize that AI is not the enemy, but a useful tool.
It cannot replace human ingenuity, talent and thinking capabilities. However, it can handle repetitive tasks that cause cognitive fatigue, performing every iteration at the same level of precision and quality.
7. Geopolitics Causes Deglobalization of the Supply Chain
Finally, the wars and unsafe conditions in key areas of the global supply chain have already caused it to break up and become more localized. As far as possible, companies will try to bring their production facilities closer to their service area, shortening transportation distances.
Correlated with a push towards decreasing the dependency on China as main manufacturer for all types of goods, this trend will take hold stronger and reshape the way products are made, shipped and sold.
At Logistic Packaging, we are ready to help all companies adapt to supply chain trends with effective solutions and sustainable reusable packaging materials. Send us an email to start discussing your packaging challenges with us!