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Supply Chain

2019 Supply Chain Logistics Trends

December 18, 2019


As 2019 draws to a close, we can begin to celebrate the coming of the new year…but not before reflecting on the 2019 supply chain logistics trends of the past 12 months!

2019 Supply Chain Logistics Trends

The overall cost of supply chain logistics rose 11.4% this past year! A variety of factors from networks around the globe contributed to this increase. 

2019 Trends:

Focus on Efficiency and Demand: The rise of e-commerce forced businesses to prioritize speed and agility in their processes. The retail industry emphasized the importance of their supply chain processes as many businesses have implemented forms of product line management or  warehouse automation to centralize the supply chain and improve end-to-end operations. 

Sustainability: The global issue of climate change drew together protests, marches and acquired fame for environmental activists. Due to this, businesses this year have been forced to adopt more sustainable solutions.  This means assessing their environmental impact, increasing transparency and empowering sustainable lifestyles for their customers. Companies like Patagonia and Ikea added sustainable innovation practices into their business model. 

Environmental Regulations: The climate change crisis drove governments around the world to impose stricter environmental regulations around emission levels. For example, the United States announced new rules governing nitrogen oxide emissions from trucks, Singapore announced a carbon tax to limit greenhouse gas emissions, and China introduced a soil pollution law and shut down many heavy pollution factories. 

Trade Wars: Trade tensions around the world, specifically between the United States and China, forced companies to build up inventory buffers and adapt their supply chains. Transpacific carriers benefited as prices increased to nearly double the 2018 rates. 

The Rise of New Technology: 2019 brought awareness of technological possibilities and how they can be used to better the supply chain! Blockchain technology created a buzz this year as more companies have begun to implement the technology. The downfall is that Blockchain can only reach its full potential when a larger network of companies adopt the joint solution. The technology functions off of shared ‘blocks’ of information in a chain. 

Summary

2019 has brought many new trends and placed a strong emphasis on efficiency within the supply chain and logistics industry. The new year will bring even more trends to learn and grow from! Happy New Year! 

Want to learn more about Inventory Management Solutions? See How Clear Spider Can Help. Schedule a Demo today!


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