2017 looks set to be a turbulent year for logistics. International uncertainty, protectionism and the upcoming Brexit will put pressure on the sector next year, said statedthe ING Economics Department last week. Exactly what changes await us? And which technologies are going to be really big in 2017? We asked some of our logistics experts.
‘The year of
disruption’ 
“Disruption has been talked about for some time, but in 2017
we’ll be seeing it more and more in logistics too,” says journalist Marcel te Lindert. “A new
generation is storming into the sector, seeing and seizing new opportunities. These young
logistics professionals are asking questions that we old hands have forgotten to ask. Why
do we still need a freight forwarder in 2017, for example? An online platform
with smart algorithms for matching supply and demand should be able to do a much better job
. All freight forwarders rely on their knowledge and
experience and claim that things won’t change that quickly, but that’s exactly what
taxi drivers and hoteliers thought the same before the rise of Uber and Airbnb.
We’ve always had clever logistics professionals, but
for a long time we were able to convince them that they would only learn the real trade after their training
on the job. As a result, all those talented individuals were stuffed full
with the same ways of thinking, concepts and solutions as their predecessors. And
they’re no longer falling for that, spurred on by the success of start-ups in
other sectors. They won’t be fobbed off any more, certainly not by old hands
like us. All that’s left for us to do is listen to that new generation and
be open to their ideas. Not all of them will be equally brilliant, but
one good idea is enough. So bring them on board, that new generation of
logistics professionals, before it’s too late.”
'Industrial sector rebounds' 
Hans Groen, Supply Chain and Performance Management consultant, expects volumes to grow in 2017. "In both the US and Europe, volumes are rising again and investments are increasing. The sector sees itself supported by increasing consumer spending and the slow recovery of the economy. For the logistics sector, this means growth in transport volumes again. Because, besides the industrial sector, a clear growth path can be identified among non-industrial companies.
The role of sustainability continues to grow as I predicted last year. If you are going to invest, it is wise to make this central to your decision-making. In doing so, pay particular attention to consumers who have now seriously made the switch, where (international) politics is still lagging behind."
‘Lead times are getting shorter’
“A trend we’ve been seeing for some time now, and one that is set to continue
in 2017 is that lead times are getting shorter in every respect,” predicts Frits de Wind. According to the logistics consultant, it is important for companies to respond to this in good time. “Those who manage this well
and has at least given it careful thought can turn this to their advantage
.”
We’re seeing delivery times to customers getting shorter and shorter,
which places considerable demands on the entire supply chain. (Where do we store how much stock,
at which stage of the process – from raw materials through semi-finished goods to the finished product?) At the same time, we are seeing contract durations becoming
shorter. Partners believe they can gain an advantage from this because
they can part ways quickly should market conditions change. However, these short
terms do mean that the effort and, certainly, the investments required of the other party
other party will be limited. Investments, in particular, will be made sparingly
, given the considerable uncertainty surrounding the payback period. Ultimately,
both parties may well end up opting for a longer contract term, allowing for
investments can be made in sustainable yet robust solutions that
will then yield a good return.
Finally, there is also a challenge in the area of HR: employees
are tending to stay with us for shorter and shorter periods. How can we retain them and
retain their knowledge and experience?
There are plenty of areas to focus on for the new year, which we can
turn into opportunities, provided we develop a clear vision.
'Volume reduction through smart packing'
Volume reduction will continue to receive due attention in 2017, predicts Johan Faes, founder of packaging company FPC Beyond Packaging. "This reduction can be achieved by providing packers with the right packing information during order picking already. 'Pick in a box' is what it's called, but then preferably in the right box in 1 go.
Normally, at 2 or 3 items, packers can estimate which box they need. With more items or more complex shapes, this becomes a lot more difficult. There is a very high chance that the box chosen is far too big and then has to be filled with all kinds of padding materials. It is also possible that the packer finds out that the chosen box is too small and then has to be repacked, something that takes a lot of extra time.
Fortunately, these days there are very smart applications that make it possible to calculate the right box for each order in advance and help the packer fill it correctly. Some of those applications even take into account walking routes or stock locations. On the outbound side of companies, there is even more to be gained by consolidating in a smart way. This can be done per order, but also afterwards per delivery address. Smart consolidation can save many thousands of euros in costs just like that."
'From macho culture to safety culture' 
According to internal transport expert Tom van BLOM, a lot of attention will be paid to safety next year. That includes the right people, the trainer argues.
"With the launch of the Healthy and Safe Warehouse Code and the attention paid to the annual election of the Safest Warehouse, it seems that many (logistics) companies are willing to pay more attention to safety. Paying attention to safety is not only important for the wellbeing of employees, but also actually results in more efficiency. The logistics sector will make further strides in 2017 to change from a macho culture to a safety culture. The challenge in 2017 is to recruit the right people who are a good fit for the safety culture. Have you thought about recruiting women or gamers as reach truck drivers?"
Editorial LogistiekProfs
