**London**: As global trade fluctuations and supply chain disruptions challenge logistics firms, experts emphasise the necessity of flexibility and resilience. Key players advocate for rapid responses and advanced technology to navigate the evolving landscape dominated by shifting international trade policies and fluctuating tariffs.
In a rapidly evolving logistics landscape marked by global trade fluctuations, technology advancements, and ongoing supply chain disruptions, logistics companies are increasingly prioritising flexibility and resilience. This shift reflects the need for adaptation amidst a complex environment shaped by trade disputes, tariffs, and the lingering impacts of the coronavirus pandemic.
Logistics experts emphasise the importance of quick responsiveness to shifting business conditions. Chris Caplice, chief scientist at DAT Freight & Analytics and senior research scientist at the Massachusetts Institute of Technology Center for Transportation & Logistics, noted, “The big thing the pandemic taught most companies that survived — and thrived — through that event is how to be flexible.” This adaptability is seen as a competitive advantage, crucial for third-party logistics providers facing evolving market challenges.
Stuart Love, director of global supply chain at DSV’s Inventory Management Solutions division, echoed this perspective, stating, “If you want to be as successful and resilient as possible… you have to be fast.” He added that companies must engage in prudent risk planning and thoroughly comprehend demand drivers, supply constraints, and potential risks to enhance their resilience.
The logistics sector is currently navigating uncertainty surrounding international trade policies, particularly as tariff regulations fluctuate under various administrations. The Biden administration’s shifting stance on tariffs has continued to create complexities for businesses, particularly concerning trade with Canada, Mexico, and China. Patrick Kelleher, CEO of DHL Supply Chain North America, remarked that current discussions on tariffs are a recurring challenge that logistics companies must manage. “As an industry, we need to focus on how we’re adapting to that as a variable in trade,” he stated during a conference in Las Vegas.
Logistics services are evolving in response to these challenges, driven by the increasing complexity of supply chains. According to Love, global manufacturers often require assistance in navigating intricate supplier networks. He described DSV’s IMS business as a fifth-party logistics provider that consolidates various supply chain needs and connections into a unified service, optimising management for its clients. This comprehensive service approach is gaining traction in an environment where logistics firms must handle increasingly specialised areas of expertise.
The ongoing freight market remains challenging, having experienced a prolonged downturn in rates due to an oversupply of truck capacity. Recent analysis indicates that the freight market is slowly recovering, characterised by what DAT’s Caplice describes as an “L-shaped” recovery. Brian Gill, DAT’s chief product and technology officer, speaks with cautious optimism about improving conditions but advises stakeholders to prepare for a gradual recovery.
Amidst these economic hardships, the issue of freight fraud has gained prominence. DAT has introduced new carrier identity authentication tools to tackle this growing concern, as Gill explained, “Nearly all fraud — well into the 95% range — starts with some sort of identity fraud.” This initiative aims to enhance security within the freight industry while allowing for more targeted operations among brokers and carriers.
Technological advancements, particularly in artificial intelligence, are also reshaping logistics operations. Companies like Ryder Supply Chain Solutions are exploring the integration of AI to improve efficiency and process automation. Dave Yoder, group director for product development at Ryder, highlighted the company’s data-first initiative to standardise business processes, enhancing customer service and efficiency in challenging market conditions.
Unilever has been investing heavily in digitalisation within its supply chain, with Sandeep Desai, executive vice president and chief supply chain officer for the company’s ice cream division, advocating for the development of digital models or ‘digital twins’ of supply chains. This strategy aims to bolster scenario planning and decision-making agility in the face of potential disruptions like trade tariffs or major logistical challenges.
As the logistics sector grapples with complex global conditions and evolving technologies, companies are focusing on strategies to ensure resilience and adaptability, preparing them for the uncertainties of the future and the potential disruptions that lie ahead.
Source: Noah Wire Services
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