Blog: 5 Logistics trends & innovations for 2022

1. Data analytics

As technology keeps developing, the amount of data we gather keeps increasing as well. For instance, nowadays a ‘smart box’ monitors all data relevant to the movement and handling of a shipping container. This increase of data technology can be seen at every process in the logistics industry.

All this extra data can provide insights to improve customer service, warehouse productivity and performance management. Data analytics makes it easier to monitor shipments and containers to increase efficiency, transparency and visibility and therefore improve customer satisfaction and risk management.

In the near future, data will not only be used to improve the supply chain and service, but it could also become a sustainable earnings model.

Making predictions based on data analytics will improve both efficiency and profitability when used correctly.

 

2. E-commerce

E-commerce has been steadily growing over the last couple of years until the COVID-19 pandemic skyrocketed this growth, turning online shopping into the new norm in 2021 and probably the upcoming years. Online shopping went from mostly shopping for groceries, fashion articles and consumer electronics to basically everything, even luxury products and large furniture. Online shopping has become the go-to for everything consumers and businesses need.

E-commerce logistics are projected to be worth over €430 billion by 2025 (Business Wire, 2019) and this prediction will likely be surpassed, because of the pandemic and its stimulant effect on e-commerce.

To respond to this trend in the market, we started our new company Euro-Rijn E-fulfilment. This company specialises in providing logistics and order fulfilment for webshops.

 

3. Automation & robotics

Automation is one of the leading trends regarding logistics and supply chains in the foreseeable future. Warehouse automation means reducing human interventions and using technologies such as ‘Pick & Place’ or autonomous vehicles to increase efficiency, speed and productivity.

The use of these new technologies will boost warehouse productivity and reduce risks. An example of automation being used in a current situation is the ability to deal with the difficulties thrown up by Brexit. The use of cloud-based data and constant updates on matters such as customs paperwork and routes between Europe and the UK makes successfully trading with the UK easier for logistics companies.

Automation is often combined with robotics and artificial intelligence (algorithms combined with machine learning technologies). Robots and A.I. will not take up the jobs of humans, but will work collaboratively alongside them to reduce health and safety risks and increase operational efficiency.

Euro-Rijn XL Logistics, for instance, utilizes a robot in their warehouse. This robot allows a mobile conveyer belt to be placed inside a container in order to unload it much quicker while minimizing the physical impact on employees.

One of the new technologies that will play a large role in supply chain automation is 5G wireless network technology. The connection speed of 5G enables new application types to be used and will greatly support the data exchange throughout the supply chain.

 

4. Risk management

If there is one thing that has become clear from the COVID-19 pandemic, it is that we are often too dependent on one link in the supply chain. If anything happens to this partner the entire supply chain is affected. This is exactly what western countries experienced by being too dependent on low-wage countries for relatively cheap product manufacturing.

An underlying goal in technological developments like data analytics, automation and robotics is reducing risks. ‘Supply Chain Resilience’ is the concept of making sure you mitigate any risks in your supply chain wherever possible. For example, by selecting multiple business partners in different regions, to be able to quickly change the supply chain whenever needed. Data analytics is then used to provide insights to identify, analyse, manage and monitor any risks.

Except for the risks concerning the supply chain, we also see financial risks in this market. Financing commodity trading via traditional Trade Finance has become increasingly difficult, mainly due to the increase of regulations and banks scaling down their lending to commodity firms. To combat this risk we started Euro-Rijn Financial Services, a company that provides a solid funding alternative by collateralizing existing inventory.

 

5. Green logistics

Reducing waste, recycling and the use of renewable energy are important trends for the future of logistics. An example of green logistics and sustainability is the use of LED lighting in warehouses (like a lot of Euro-Rijn Group companies do). This saves money and reduces emission. Another great illustration of green logistics is the use of energy management systems that use timers and sensors to monitor any activity, this helps reduce the use of electricity, water and gas.

A big challenge in the future of container shipping is finding an alternative to fossil fuels. Recently we have seen the first electric container ship powered by lithium-ion batteries, which are the biggest individual batteries in the electronic vehicle sector. In the near future we will see a steady increase in electronic vehicles used in the logistics industry. This will improve sustainability by reducing CO2 emission.

As opposed to a traditional linear economy, in a ‘circular economy’ resources are kept in use as long as possible, instead of being disposed after usage. Circular Plastics (an Euro-Rijn Group participation), for instance, creates packaging out of recycled plastics for its clients in the international floral industry.