Supply chain and logistics predictions for 2022  

The past couple of years has caused a lot of change for businesses across all sector, causing them to adapt in unexpected ways. Unfortunately, it appears that 2022 is likely to continue in the same way, with COVID-19 still impacting both businesses and consumers. A return to “normal” also appears to be still a long way out as well. However, we feel that there are still some predictions we can make about this year for the logistics sector.

Read on to learn more about how 2022 might look for supply chains such as sharing data and the increased use of technology.  

Risk assessments and scenario planning  

To help any business succeed, risk assessments and scenario planning need to be carried out throughout the year to help prepare for any disruptions and help the company to continue to be reactive. Logistics businesses are no different and rely on risk assessments and scenario planning to prepare for delays in deliveries, lack of storage space and material shortages.

Data is extremely important and helps establish real-time dashboards and warnings to allow for planning and reactive actions. In 2022, risk assessments and scenario planning is more significant than before. At this time, it’s hard for any industry to plan for the year as it’s undetermined whether pre-Coronavirus levels of supply and demand will return. COVID-19 may have an ongoing damaging effect on businesses and consumers; we just don’t know.

Risk assessments are there to support the logistics sector to create a range of scenarios and prepare the supply chain for anything and everything.  

Increase in artificial intelligence  

It’s unlikely that unpredictable events and disruptions will suddenly stop in the near future and therefore demand forecasting is likely to move from previously used modelling techniques to use artificial intelligence (AI) in 2022. AI will be utilized to build “casual frameworks” for event forecasting as a way to respond quickly to disruptions, helping the supply chain run as reliably as possible.

Within the supply chain, there are countless moving parts and technology is key to keeping it all running smoothly. Artificial intelligence is likely to help this, keeping lorries and other vehicles on the road through using AI-enabled dash cams to monitor drivers, helping them make informed decisions.  AI video telematics is also going to become a more familiar sight in vehicles. By combining vehicle cameras and sensors, the technology works to understand what is happening inside and outside the vehicle in real-time. When combing all of this data, it will help businesses to better understand which roads are safe, where low bridges are located and where traffic occurs most frequently to ensure safer and reliable transportation.  

Sharing data  

Previously, sharing data with business partners and customers has been seen as negative and taboo. In 2022, this is likely to change within the logistics sector. Sharing information is extremely important and necessary to build a robust supply chain through a greater understanding of what is happening around the world.

With a more open and transparent data sharing practice, businesses within the supply chain will be able to focus on selected areas within their sector and better serve both their partners and customers. For instance, for shipping businesses, the management of ships, ports and warehouse space is key and should be focused on. In contrast, for a customer-facing e-commerce business, their attention needs to be on customer satisfaction and last-mile deliveries.

In 2022, the increased amount of shared data will allow companies to focus on what they need to, and depend on the rest of the supply chain to assist them.   

Rise in prices  

Regrettably, it appears that the cost of raw materials and energy will continue to increase in 2022. This is down to a large number of factors including climate change, COVID-19, disrupted supply chains and the UK leaving the EU. The price rises look to impact a lot of things from technological components to fuel due to suppliers passing on costs throughout the supply chain.

By using data, supply chains and logistics businesses may be able to combat the soaring prices by carefully planning and managing materials by using available data such as using historical supply data to reduce excess materials. Climate and weather data should also be used to track any extreme weather that could impact the supply chain. In addition, shipment tracking information could be used to ensure all materials and end products arrive wherever and whenever they should.

By utilizing all the data available, businesses can minimise the effect of rising costs.  

Focus on sustainability   

Along with many other industries, the logistical operations are under similar pressures to further develop more sustainable working practices. Thankfully, EPOD solutions can help businesses drive sustainability within their operations.  Not only do electronic proof of delivery systems save time for people on the ground and in the offices, but it’s also a more environmentally-friendly approach to deliveries. Electronic proof of delivery solutions offers a paperless solution that can help save an average business approximately 48 trees worth of paper in a year. Therefore, the desire to go paperless and adopt an EPOD system is likely to grow in popularity during 2022 as the focus on lowering the environmental impact of deliveries continues.  

EPOD solutions will also be valuable in the future of electric vehicles (EVs) as the software will be imperative in ensuring any route can be easily accomplished within a single EV charge. The software will be able to use learnings from previous journeys and plot the most effective route, delivering the most parcels within one charge. The software may also have to develop further and plot electric charging points for drivers on longer routes.   

Find out more

Whatever 2022 brings, it’s evident that the logistics sector will continue to evolve and grow in both using technology and scenario planning to avoid possible disruptions in the future. To find out more about TouchStar’s PODStar system and how it can help your business in 2022, please get in touch today.