Last year we looked at Logistics in our Hot Sector Spotlight. Here we take a fresh look at the sector’s hot topics and see how trends have changed and impacted the industry over the last twelve months.
After adapting to a number of changing conditions in the sector, 2023 is likely to be the year that the supply chain focuses on sustainability, e-commerce, green energy and transportation systems. Elsewhere, organisations may look at automation technology and IT systems to increase efficiencies and reduce environmental impact.
Automation, AI and the Internet of Things
The demand for the speedy delivery of goods, both for personal and commercial use, increases with the ability to process them. Automation can accelerate that process, increasing efficiency and assisting logistics staff with repetitive and laborious tasks, as well as minimising errors.
Many logistics companies are investing heavily in automation, using Data analytics and AI to make supply and demand more efficient. AI especially, can provide in-depth analysis to provide insights about inventory and forecasting, and enable more informed decisions.
Meanwhile, the potential for the Internet of Things (IoT) within the supply chain is limitless. Connected devices can send information to and from a warehouse and monitor the whole process, offering users a streamlined and highly-efficient, real-time experience, cutting costs and simplifying the supply chain.
As such, professionals can expect the number of roles in these specialist areas to increase, and demand for highly-skilled IT personnel to rise in 2023.
We’re all being tasked with helping to save our planet, and for the supply chain and logistics sector it’s an area where innovation can make a real difference. Environmental factors can impact on the supply chain, and many customers also want more green behaviour from their suppliers.
Logistics UK, one of the biggest business groups in the UK, is part of the Route to Net Zero campaign to reduce the industry’s impact on the environment through transport decarbonisation and achieving Net Zero by 2050.
Logistics firms across the country are now concentrating their efforts into going green – many are implementing sustainable and eco-friendly solutions to reduce their carbon footprint as a direct result of pressure from both regulators and customers. For example, some organisations are replacing their fleets of diesel vehicles with electric ones, reducing air miles by ‘smart-shipping’, whilst others are using recycled and recyclable packaging.
Environmental specialists will be in demand in 2023, as organisations attempt to reduce their carbon footprint, and go greener, not only to save the planet but also cut costs.
In 2022, the UK had almost 60 million e-commerce users, building on necessity from the COVID-19 pandemic and subsequent lockdowns. It’s become a normal way to shop for many of us and the UK now has the most online shoppers in Europe, with almost 30% of overall retail sales being conducted online.
It’s a sector which grew by 47% in 2020 and it shows no signs of diminishing. Fashion leads the way, followed closely by consumer electronics. Much of the demand is said to be driven by social media, with ‘creators’ on TikTok particularly playing their part in promoting products, but subscription-based food services such as Hello Fresh and Odd Box, also gaining in popularity.
Increased demand for goods has led to more demand for warehousing, transportation, delivery and returns – commonly called reverse logistics operations which includes return and refund policies, and flexible tracking options.
Skilled and experienced e-commerce specialists should expect to be much sought after in 2023, as the sector continues to develop.
The supply chain and logistics sector has faced some immense difficulties over the last few years but has also shown remarkable resilience in the face of a changing world with changing values.
In order to compete effectively the industry must now concentrate on the attraction and retention of people with new skills and new ways of thinking. This means sourcing candidates with data and e-commerce skills, and enthusiasm and experience in a sustainable sector, especially given the skills shortage prevalent in the UK at the moment.
Considering a career in logistics?
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