Sustainable Logistics in 2023

Sustainability seems to be a new modern trend in logistics caused by regulations and expectations of customers and investors. A lot of companies around the globe do their best and focus on environment friendly operation with great attention to their business goals.

Dennis Anderson, Chief Customer Officer at ArcBest:

“There’s a bit of a tug-a-war between running a sustainable supply chain and running a supply chain that keeps your products in stock and meets your consumers where they want to be met,” Anderson said. “That creates tension for any supply chain manager, and everyone is looking at different ways to tackle it. The good news is that sustainability and cost efficiency often go hand-in-hand.”

Reduction of greenhouse gas emissions in logistics will be the next essential trend as well as development of new types of sustainable fuels (including SAF), systems and development of new transport solutions and routes. These tools will help companies become sustainable and reach the necessary business goals.

Today all kind of businesses including logistics switch to fuels with zero-emissions and pay more attention to route optimization with the help of digital solutions. A lot of multimillion investments are made into the development of new sustainable fuels and environment transformation and today many opportunities lie in the Global South thanks to wind and solar resources and lower production cost (production and transportation of sustainable fuels in Latin America is 20% cheaper than anywhere else in the world).

The Global South has great potential to develop new energy hubs and move to the production of green and renewable fuels but only with the support of governments, banks and businesses and with the help of these investments a new industry able to support both global and local needs will be built.

A lot of Global South member-countries with Egypt, Chile, Algeria, Argentina, Uruguay, Morocco among them are already planning new strategies of green and renewable fuels development. Early investment in infrastructure of the Global South will help to provide sufficient production of green fuel at low production costs already by 2030.

Those market players who will launch an ecosystem and develop their own export strategies will definitely win together with their investors because sustainability is a long-term story. And of course, success depends on the location of a facility and in the Global South there are a lot of countries that are able to locate their factories closer to the coast.

In near future the world will need far more green fuels than now and there is a great chance to become green fuel producer and supplier of global importance.

It is also important to mention that Sustainable logistics does not only include the development of fuels but it also includes operation processes and data storage issues.

The most important things are:

  1. Online tracking of transport because it helps to find the best routes and be flexible for customers if they want to change the date and location of delivery.

  2. Using of pop-up warehouses closer to the customer’s site where it is possible. This helps to reduce carbon footprint and optimize costs providing smoother logistics.

  3. Using environmentally friendly fuels when it comes to aviation and equip facilities with solar systems and energy-powered electricity.

  4. Planning of the activity of a company and calculation of all possible options in terms of sustainability and cost efficiency.

  5. Evaluation of results will help to avoid mistakes and optimize routes and processes and implement new technologies if necessary.

So we see that the world has changed a lot but it still gives us new opportunities to develop our business and save our planet.

Global South Logistics contributes to the development of green logistics in the Global South and makes its operation maximum environment friendly and effective in terms of business goals. GSL supports many logistic infrastructure megaprojects in the Global South and helps its regions connect in the most efficient way to ensure smooth unification of Global South member-countries to develop prosperous industries and enterprises.


New Labor Opportunities and Challenges in Logistics

Global South Logistics keeps up with recent logistic trends and implies them to the fullest in its operation. We use technologies that analyze data and help us to be highly efficient. These technologies can be used for training and retraining, hiring, workflow and cost optimization. We have many high-skilled professionals around the globe and we run our business 24/7 with full commitment. New logistic trends give us new opportunities and better connectivity and thus we can establish partnership with enterprises worldwide and provide exceptional services to our clients. Let’s take a closer look at today’s essential trends that we and major logistic companies stick to.

In 2020 many companies around the globe went online and this gave fresh opportunities for digitalization and automated technologies that enabled 24/7 operation of enterprises. This feature is of a great use for customers and businesses as logistic sector implies numerous processes that shall be carried out round the clock to ensure smooth logistics and meet all the needs of a customer.

In this connection digital learning is a helping hand to ensure efficient operation of a logistic company. It’s no surprise that logistics has changed a lot during pandemic and post-pandemic period due to restrictions and forced digitalization and automation.

Today there are many options of digital learning for logisticians and professionals involved into this sector around the globe and today you one can choose from a great variety of educational platforms to re-skill rapidly and increase personal productivity and operation of the company.

With the help of data employers analyze the demand in the logistics market and evaluate the skillfulness of their current and potential employees and provision of new services or training to support their business is based on the results of this analysis.

Another important trend is that today many employers cooperate with educational institutions and look for young professionals there. Today there are a lot of conferences and workshops for graduates attended by company representatives and this helps to find the right person for the company.

Nevertheless, there is a shortage of professionals but employers can partially overcome this crisis providing healthy environment for work and self-development, flexibility and decent salary but again thanks to the fact that many businesses went online, flexibility and healthy environment are more than achievable.

As for digitalization itself now there is a unique opportunity to hire best professionals from all over the world and thus expand your business and ensure its operation 24/7 with the help of flexible schedule and outsourcing that is also a good way to attract professionals and find people who need no additional training.


Logistics to Go Digital

Today more and more companies and sectors go digital and this gives way to new solutions. Digitalization and big data together can boost effectiveness of your enterprise if you use it properly and analyze the data that is really helpful for your business and supply chains will benefit from new digital solutions. Logistics is a fast moving and developing industry and it has to keep up with todays trends to provide the best customer service and succeed.

Here are some trends essential for efficient operation:

  • Cloud-based solutions

Cloud-based solutions enable better digital collaboration between companies, clients, contractors and suppliers. These solutions are used for all possible business management tasks and provide 24/7 online communication with managers and clients around the globe. Another advantage of cloud-based solutions is data storage. Each enterprise connected to them has access to any data stored in the cloud.

  • Big data

Today many businesses go online, they produce and exchange more data than ever and new effective software ensures quicker data generation and processing and helps to use them effectively. With big data and software companies analyze their activity, forecast threats and develop new strategies to help their business grow.

  • Robotics

With the help of robotics companies work faster and today robots can carry out simple operations at production sites but in near future they will also be able to carry out operations that require intellect. Thus, robotics will save both time and money of a company.

  • Blockchain technologies

Blockchain helps secure information exchange between companies, suppliers and contractors. Today it is possible to sign contracts and make agreements with people around the world with the help of blockchain technology and it also provides data storage and any kind of information about a particular item and enable live tracking.

  • AI and analysis

These tools help companies plan their activity, see the demands of clients and analyze effectiveness. Algorithms based on delivered data processing make workflow more transparent and comprehensible for everybody. With the help of AI logistic companies can predict the needs of their clients and meet them in advance which is profitable for companies and helps them to provide better customer service and better communication with partners and providers and of course simplifies error analysis. These tools also help to collect data and analyze data of other suppliers and companies to see market trends and empty spaces that need to be filled.

Digital technologies also help to avoid any kind of mistakes and make back-office operations smooth. They also provide better communication between providers, suppliers and logistic companies speeding up all operations and provide up to date information about shipment and customs clearance.  Rates and availability are also better in digital because you can always see actual costs and timing of deliveries that is beneficial for both customers and companies. Digitalized Security and documents for customs speed up deliveries and reduce the number of errors to zero as well as validate suppliers and help companies avoid reputational damage due to transparency.

According to analysts today more than 60% of carriers still pay with paper checks but brokers hope that in 2023 more and more companies will go digital.