First and foremost, we would like to wish all our customers, clients and employees a happy new year. We hope 2022 brings health, wealth, luck and blessings to you and your families.
For the logistics industry, 2021 proved to be a difficult year. This was an issue realised across the globe. The ongoing pandemic, unprecedented low levels of drivers and shipping incidents all played their part.
We are now out of what is the busiest period in logistics, with Black Friday, Christmas and January sales falling one after the other. Thankfully we are intact, all parcels delivered and ready to tackle whatever 2022 has in store for us.
Every year, globally there are around 100 billion parcels delivered. China account for around 50% of that figure. Predictions are that by 2025, this number will have reached 200 billion. This doubling up in such a short period of time is based on the vast improvements made in logistics through technology, demand and economic conditions.
The shape of the logistics industry is hugely affected by technology. Over the last ten years, connectivity has created channels of communication between companies and consumer, countries, warehouses and shipping, almost seamless.
With the ability to live track packages, adjust ETA based on traffic or delays in shipping, efficiency within the industry is at an all time high. This is only set to become more prevalent as we move towards a more automated future.
Preventing Damage and Loses
The biggest challenges faced by the logistics industry, aside from climate change and a greener future, is damage limitation. Up to 20% of returns are reportedly due to damage during shipping. The cost of those returns can become, on average, 17 times that of the original cost to ship.
Again, technology aims to reduce the impact of damage and loses. Inventory management has improved ten-fold over the last ten years. Live updates on stock, shipments, returns and tracking have all helped to refine stock management. This is largely down to IoT (Internet of Things) and automation.
What Does the New Year Have in Store?
We are still very much living in the same precarious times as the previous 2 years. The coronavirus, COVID-19 continues to wreak havoc around the globe, and whilst we are adapting, normality still seems to be a little way off.
For OCS, we are as ever optimistic about the year ahead. Challenges help us to grow and our continued focus is on the delivery of your goods, as well as the same great service you have come to know and love.
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