Monday, November 7, 2016

Some trends in Logistics

This is in no way a comprehensive list but there are so many things which will incrementally or radically affect the Logistics world that it is enough to give ulcers to the Logistics management of any Global enterprise. Wonder how are the Logistics planners for the businesses in the affected zones taking cognizance of these developments.


Socio political

Logistics is an industry which is intimately and immediately affected by all that is going in the world. It could be changing political changes, climate changes and even public perceptions and concerns.

A major impact is potentially changing political alignments. What will be the impact of a future American president breaking up trade treaties like NAFTA, will the pacific rim countries fully implement Trans-Pacific Partnership Free Trade Agreement (TPP), how and when is impact of Brexit going to be felt in Europe and the world, will the Euro Union follow suit and collapse in the coming days, will the new alliances sought by Russia and China in the world change the way trade and thus Supply chains are realigned.

Economic

Are the world economies on the verge of another bubble aka 2008 or things are looking much better now ?

IMF projects global growth to slow to 3.1 percent in 2016 before recovering to 3.4 percent in 2017. The forecast has subdued for advanced economies with weaker-than-expected growth in the US while robust growth is predicted in India (among emerging) and slowdown in Africa.

Enablers (Processes & Systems)

How soon will technological driven innovations like Driverless Freight transport, Drones, Uberization, Automated AS RS systems, be more mainstream.

Will the use of Super tankers and opening of new Trade routes like New Panamx, New Silk Route change the economics of the trade enough to realign existing supply chains


More than anything flexibility and agility has to be designed into every logistics process, system and resource to handle any situation coming out of this mishmash.

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