#Тест 01.04.2021

Global Logistics Demands Global Changes: Best 5 Current Strategies

Writer: Popova Anna

Global logistics serves to connect geographically dispersed components of the supply chain to make sure the producers distribute goods to end users in a timely and efficient manner. Its development relies heavily on the growth and development of the global merchandise trade that exceeded $16 trillion last year. Global logistics facilitates the flow of goods from one point to another where they get updated and receive added value before finally reaching the point of consumption.

Since the global trend indicates the increased demand for new logistics means and ways, the global logistics industry demands global changes. These changes should include enhancement of communication and collaboration between various business partners, including airlines, railroads, shipping companies and others. Also, logistics real estate companies should improve conditions for management and storage of goods as well as ensure they are reliably protected and secured.

However, increased consumption, eCommerce development and the need to speed up deliveries are the key factors that drive changes in global logistics. The strength of their influence requires big companies to think about changing their logistics to outperform their competitors. However, the fact is that global logistics is still a fundamental actor in the world economy and the world trade.

What Affects Decision-Making about Logistics?

Critical global logistics solutions rely on several factors that usually include time, cost and quality. Re-shaping the entire industry is a time-consuming and slow process because it requires all players to change their rules and start transforming the way they provide their services. Big companies should also be ready to invest money in a search for new locations, building of distribution centers, renovation of transport hubs and roads, etc.

Such investments can be considered as the most functional and efficient for all business across the world considering all the changes in shares of wholesale, retail and eCommerce trade. Industrial and logistics parks nearby cities with the biggest ports and airports will soon become a reality because location is becoming the key determinant of the company’s success in business and trade. Megapolises with huge population density and heavily trafficked transport routes will become an excellent point of consumption.

What Are the Top 5 Strategies for Global Logistics Change Implementation?

Many current trends affect the advancement of the global logistics industry. Key market players should adapt their business to the needs of eCommerce which increases digital literacy among consumers. However, in this article, we will focus on the best 5 strategies that global logistics needs now:


Technologies are shaping the majority of the industries across the world, and global logistics should not be staying away from it. If used correctly, they can benefit the development of the industry on the client’s level as well as on the service provider’s one. Logistics companies should implement technologies that would allow them to track and digitalize all their routes, all global logistics properties, all means of transportation, etc. Utilizing AI to make use of the data collected throughout the years can help them make more reasonable decisions and adjust to the needs of their clients better. On the client’s side, being able to use technologies to streamline logistics processes is, probably, the best solution to small logistics crises they may experience.

Logistics Safety

Giant logistics companies should make sure that they implement enough security measures to minimize risks that greater connectivity to the Internet imposes. Big companies should implement technologies that would improve the protection of the data against cybersecurity threats. Since these attacks are a real threat to the entire industry, the best strategy is to join forces and create a secure global logistics market for every client feel secured about sharing its private data.

Internet of Things

For the last decade, the Internet of Things has been making a revolution in logistics. Logistics companies also need to get real-time data to supply their customers with better goods. IoT devices can help in tracking shipments, determine temperature or humidity to prevent them from getting spoiled, etc. Today, IoT in logistics is not used to fulfill its potential. IoT still has room to advance and improve logistics even more in the future. However, it needs huge capital investments that not every company is now capable of.

Supply Chain Analytics

Logistics companies need to turn their attention to supply chain analytics because if they do not invest in this, they will definitely go bankrupt. For many supply chain analytics providers, global logistics became the key niche in business. They work with data to ensure better optimization and solve critical business problems. For example, they can define ineffective areas where global logistics jobs exceed the number actually needed for the business.

Supply Chain Integration

Supply chain integration can have a significant positive impact on the global economy. It means that all stakeholders are connected and take part in the optimization of global logistics. They share data to ensure a brand-new level of collaboration, visibility, and transparency. Such collaboration improves the relationship partners have and positively reflects on the customer experience.

Final Words

Global logistics is advancing as long as consumption increases and eCommerce develops. However, it needs new investments to fund global changes and make deliveries more efficient. Without shifting their focus on supply chain analytics, IoT and digitalization, logistics companies risk coming to the edge of extinction. Thus, global changes should become a matter of concern for every big and small player in the global logistics industry. Development of the world trade depends on the efficiency of logistics. Thus, the sooner those changes are implemented, the happier is the customer.