Already, we can be sure that the common denominator of logistic trends in 2020 is going to be a calling for better overview, faster delivery and lower prices.

Considering the fact that the popularity of e-commerce continues without any signs of hesitation, it’s clear that dependence on logistics and new technologies in the industry without which this expansion won’t be possible will grow as well. Therefore, over the upcoming months, we can expect the onset of new trends that could even emerge as a byproduct of these newly established standards.

Growing overview and transparency

Investments in more sophisticated tracking systems that will enable customers to track the movement of their consignments in real (or almost real) time will go hand in hand with the effort of traders to provide their customers with the best services possible. For example, the UPS company already offers the service “Follow My Delivery” that enables the customer to track the vehicle transporting their consignment on live maps with updates every few minutes. This type of service has ambitions to become the norm soon and investments of companies in GPS technologies go along with this trend. Equally important is tracking technology in B2B. To optimize levels of inventory, advanced supply chains are built on the principle of just-in-time (JIT), and therefore are able to offer a higher level of efficiency.

Price battles

Companies like Uber or Amazon have sensed potential in the e-commerce boom and also a huge opportunity in the field of logistics. And they have entered this industry equipped with resources and fleets of cars. That will allow them to set low prices and therefore, get a corresponding market share. This year, we can also expect price competition to belong in significant features especially when it comes to technologically focused traders and carriers and to the ones more traditionally oriented, it will bring considerable worries.

On one hand, the cost reduction trend is quite distinct, on the other hand, there is the question of how sustainable it is. We can’t expect drivers and other employees in the industry to agree with wage reduction. Especially in the situation when there is a lack of potential employees on the market. Logistic companies are going to have to find possible savings in optimization and seek higher efficiency or change their margins.

Increase in operating costs

As a contract to the general pressure on price reduction, increase in operating costs in the industry is expected this year out of two main reasons: national and supra-national regulatory measures and pressure on reducing the environmental impacts of transport. Individual countries develop initiatives for increasing the security of transport and minimizing impacts on the environment. Transport companies have to react to these measures in an appropriate way. A greater cost level typically leads to raising service prices though, so it will be interesting to watch what trend will prevail in the end.

Handling delivery with “kid gloves”

In 2020, we are going to witness an increase in delivery of shipments ordered online, as it was mentioned. And we are going to see even more consignments that require special treatment (that are oversize, fragile or very valuable), because online sales relate to wider and wider range of goods categories. Therefore, automated handling of consignments that can’t be delivered the standard way, is starting to be needed.

Trends of the new year are clear. Some predictions come from last year’s events, some react to new requirements. However, 2020 is unclear for now and it will be fun to watch what it brings. Let’s hope for good stuff.