7 Logistics Trends That Will Radically Change the Manufacturing Industry in 2020

For years, manufacturers have been a link in a long supply chain. A midpoint where raw materials are transformed into usable products for resale by distributors and wholesalers. A linear and predictable process from input to output.

But is this linear model keeping pace with our modern economy? Increasing customer demands for delivery speed and precision, competition from new countries, and political tensions are making the supply chain more dynamic than ever.

In addition, the emergence of both e-commerce platforms such as Amazon or Alibaba and direct-to-consumer channels is rapidly transforming manufacturers into direct-to-consumer suppliers.

These new developments impact logistics. Volume per shipment is decreasing, while the number of delivery locations is steadily increasing.

Traditionally, trucks with full, identical pallets left the warehouse. Now, half pallets or small parcel shipments are the norm.

This requires manufacturers to radically transform their logistics. Predictability and efficiency will no longer be the cornerstones of success in 2020. The winners of the new decade will invest in flexibility and the ultimate customer experience.