4 supply chain trends in 2019: from agility to digitalisation in transport

Author without image icon
Editorial
10 January 2019
3 min

DHL Supply Chain has mapped out the key supply chain trends for 2019. According to the company, four trends are going to play an important role in the coming year: warehouse robots, agility, talent development and digitalisation in transport.

Although, according to DHL, there are
number of emerging technologies that supply chain managers should have on their radar
, ranging from blockchain to platooning, the company has
focused on the four trends that will have the greatest impact on its
operations in North America.

"The complexity of supply chains has been growing for years and several trends threaten to make supply chains even more complex," said Scott Sureddin, CEO of DHL Supply Chain North America. "However, we are now also seeing key technologies reaching maturity levels. This allows us to better manage complexity while increasing productivity and reducing costs. This makes 2019 a very exciting year in the ongoing evolution of the industry."

1. Warehouse robots are coming of age

Robots have already proven their value in warehouse applications, but the technology will reach a tipping point in 2019, DHL expects. While order picking is a key focus of robot development, the technology is expected to have an impact beyond e-fulfilment. "At DHL, we have adopted a multi-vendor strategy for robotics, which allows us to select the best technology for each application. In addition, we are using our scale to support new solutions. This will ultimately help broaden the range of solutions for the industry," says Sureddin.

2. Increasing uncertainty calls for agile supply chains

In today’s global and interconnected supply chains, new tariffs, trade agreements and climate events can have a ripple effect
that paralyses the entire supply chain, according to DHL. This makes proactive supply
planning more important than ever. Setting up supply chains that
can circumvent natural disasters or quickly reconfigure to cope with shifts
in costs or material availability is
crucial to maintaining high service levels.

3. Talent gets the attention it deserves

While the talent shortage remains a challenge, DHL says solutions are also emerging, citing its own achievements in particular: "As the world's largest provider of contract logistics, DHL Supply Chain has adopted a proactive and multi-faceted approach to recruitment and retention." Despite the tight labour market, the company has been able to consistently meet customer demands. "In addition to using robotics to increase productivity, the company has automated every step of the recruitment process to increase the quantity and quality of candidates for positions."

4. Transport benefits from digitalisation

Digitalisation offers numerous opportunities in the supply chain, but the transport sector will benefit the most in 2019, DHL believes. "There are a number of digital solutions on the horizon that will enable the industry to make better use of available transport resources and close the service gap."

Cloud-based transport management systems (TMS) offer smaller companies the opportunity to optimise the use of their resources. Moreover, the increased use of IoT in the form of fleet management systems makes it possible to improve truck utilisation and reduce downtime. DHL expects digital freight platforms to make the biggest difference in 2019. These online marketplaces connect shippers with available transport. This will streamline processes and optimise costs, DHL expects.