In looking ahead to 2016, it’s crucial for logistics managers to be aware of developing trends that could impact the way they do business and facilitate their supply chains. However, as managers gear up for the coming year, these questions remain: What is the logistics landscape going to look like in 2016 and beyond? What role will data management and technology solutions play in streamlining the supply chain and decreasing business complexity? Let’s dissect some predictions and recommendations for the year ahead:
Shipping problems continue
Logistics Management editor at large Bob Trebilcock noted that in the wake of the 2015 holiday shopping and delivery season, there are still underlying issues with the logistics involved in shipping. Thanks to ever-increasing demand and steadily growing shipping costs, manufacturers and distributors have run into problems getting everything from point A to point B – and something needs to change.
“[W]hat we do today is not sustainable if industries like retail are going to maintain their traditional margins and meet the growing customer demand for home delivery,” Trebilcock wrote. “This could be the most significant issue facing manufacturers, distributors, retailers and their transportation providers in the years to come.”
This year, in other words, it will be integral for manufacturers to incorporate solutions in their day-to-day processes that reflect a greater emphasis on meeting the demands of home delivery as that market continues to expand.
Logistics in the cloud
In previous years, the cloud has become synonymous with agility and convenience when it comes to the supply chain. In 2014, IT research firm Gartner reported that the supply chain management and procurement software market grew to a total value of $9.9 billion, exhibiting an increase of 10.8 percent. Of that market, the use of cloud-based tools grew 17 percent – meaning more businesses are turning to virtual environments and solutions to enhance operations, according to Logistics Management contributor Bridget McCrea.
In 2016, it will become even more crucial for manufacturers and distributors to use cloud-based tools to enhance data analytics, improve communications and synchronize resources across the supply chain.
“By leveraging a cloud host’s global network, businesses can more quickly communicate with suppliers, transportation providers and customers,” wrote Inbound Logistics contributor Joe Pampel. “This improves their delivery schedules, better manages their inventory and prevents last-minute complications.”
All of these benefits will serve to improve logistics and simplify management in the coming year.
Tech tools are increasingly important
With the concerns relating to shipping and the marked shift in attention toward cloud-based tools, it’s clear that technology has an even greater role to play this year than it has previously. Inventory & Supply Chain Optimization contributor Ludger Schuh wrote that in 2016, artificial intelligence and lean management practices are both going to get some of the spotlight, and tech tools – like the aforementioned cloud-based solutions – will be essential to take advantage of new, innovative strategies.
Solutions like Oracle Transportation Management and other Logistics Management tools are playing a larger role in reducing costs and optimizing freight. In 2016 and beyond, CIOs should ensure their business is running smoothly, and these kinds of technological solutions can make a difference in the long run.
Contact the experts at Inspirage today to learn more about our Oracle Logistics Management suite.
