Globalization and technological advances to advertise the logistics market
(Courtesy Image: World Economic Forum)
According to a current market research report, the global logistics market is highly competitive. Vendors in the global logistics market are expected to pursue multiple organic as well as inorganic growth strategies in order to gain momentum in the industry. Among these, the use of the latest technological innovations is a popular concept among players in the logistics market.
The implementation and use of new technologies has had a significant impact on providers in the logistics industry. Some of the latest techniques on the market include warehouse management systems, global positioning systems (GPS), transportation management systems (TMS), and order entry systems. Technological advances made it possible to monitor the item throughout the shipping cycle. This is due to the advent of tracking systems like RFID, GPS and barcode technologies.
Logistics service providers use the latest technologies such as CPFR and VMI (Vendor Managed Inventory) in order to meet the constantly changing customer requirements. DHL Express introduced a new TC55 technology that works on the Android platform and is easy to use, as well as the navigation capabilities in the Global Positioning System (GPS).
Leading players in the logistics market include JB Hunt Transport Services, Ceva Holdings LLC, Expeditors International of Washington Inc., CH Robinson Worldwide, Inc. and Americold Logistics.
The global logistics market is expected to grow by 7.4% CAGR in the forecast period 2018 to 2026. The market is estimated to be worth $ 16445.1 billion by 2026, according to analyst reports.
The logistics market in the Asia-Pacific region is expected to grow rapidly over the forecast period. The study shows that due to the development of retail in e-commerce, which is currently driving the logistics market, the global logistics industry is expanding rapidly. A comparable trend is expected in the forecast period.
Growing global trade brings logistics market to the point
The development of the world market in logistics is primarily due to increased global trade activity for developing countries, stronger trade agreements and global logistics infrastructure as well as advances in IT and transport. Globalization is also boosting the logistics industry as the supply chain has become increasingly complex and multinational companies outsource logistics services to third, second and fourth.
In addition, logistics management makes the quality, price, flexibility, and distribution of an organization more competitive. These variables now help companies to improve their logistics activities. There are many benefits to logistics, including lowering operating costs, improving delivery, and increasing customer satisfaction. This is a key factor that will fuel the global logistics market in the years to come.
Outsourcing as an important market trend
The increased use of logistics services outsourced to the region has led to market growth. Growing imports and exports as well as the enormous demand for logistics services are driving producers to trade worldwide through economic growth and urbanization. The logistics infrastructure is improved to meet the requirements of additional logistics features and to use IT to ensure a smooth flow of data from one source to the next. This factor increases the demand in the global logistics market to a great extent.
Free trade agreement to strengthen the logistics market
The growth in trade-related contracts between the two nations is also a major factor that has influenced the logistics industry. The FTA has approved a reduction in taxes and duties. In addition, trade activities have increased as exporters and importers do not have to pay state taxes. Trading bloc countries lift bans and trade flexibility. It is expected that these supportive initiatives will greatly advance the global logistics market in the coming years.
These findings are based on a report on the logistics market by Transparency Market Research.
Sea News Feature, September 2nd