Preparing for Logistics in 2023

So far the era of the 2020’s has been incredibly challenging, and will likely go down in history as one of the most testing times for global supply chains. As we look towards entering a new year, we face a new challenge with the rising cost of living and transportation costs. Therefore, 2023 is likely to present some new issues to contend for the logistics industry which will inevitably affect strategies and planning. Here we look at some of the key trends which are predicted to impact shipping and logistics in 2023.

  1. Reduction of Carbon Emissions

A key concern for consumers continues to be the impact that their purchases can have on the environment and the future of our planet. Customers want to know they are making choices which reduce their carbon footprint and will actively seek out opportunities to do so. Shipping and logistics options which demonstrate a priority to reduce emissions and offer transparency will attract more customers moving forward.

A way in which some companies are trying to lower their carbon footprint is through last mile deliveries and turning to the use of electronic vehicles. Using electric vehicles can significantly reduce emissions and the newer vehicles have a much longer range, making them more than capable of dealing with last-mile deliveries.

  1. 2.    Sustainable Packaging

Another aspect of sustainability that customers are becoming more concerned with is packaging. Customers are becoming more likely to shop with brands who have a clear commitment to reducing plastic packaging, and who take a more mindful approach to their packaging processes and materials. Consumers are looking for minimal packaging, with any packaging they do receive being easily recycled at home. 

  1. 3.    Speed of Delivery

Demand for fast delivery is ever increasing. The use of paid services such as Amazon Prime demonstrates that customers are attracted to services which offer them a cost effective and efficient delivery service and they are willing to pay a premium for that. 

Companies which consistently fail to deliver on promised delivery times are less likely to encourage loyalty from their customers. Shoppers want to know that delivery times are accurate and reliable. 

  1. 4.    Outsourcing of Fulfilment

Third party logistics are an essential part of any growing business. With social media platforms such as Instagram and TikTok encouraging in app sales from small to large scale businesses the demand for professional logistics services is at an all time high. 

This is only expected to continue into 2023 as it is a way for businesses to reach new markets and expand their customer base. Outsourcing fulfilment services helps to mitigate risks and employ services from seasoned professionals with the knowledge and experience to support a growing business expand into new markets. 

  1. 5.    Decreasing Delays and Backlogs

There have been many issues and delays over the past few years caused by the global pandemic and Brexit among other things. We have seen many supply issues and a backlog in shipping containers, the improvement of which is set to be a priority in 2023. There could well still be delays and setbacks in shipping, however such disruptions are hoped to be managed and dealt with as a priority. 

As 2022 comes to a close it is helpful to think forward to the new year and keep these trends in mind for a successful 2023 strategy. Sustainability remains a top priority for companies and consumers with new technologies set to support this indefinitely.

If your company needs help with shipping and logisitics, please contact our team.

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