Future business strategies

Logistics UK has identified the need for our future industry to be flexible and resilient, have recognised value, zero negative impact on society and optimal efficiency.

In the past, the success of top logistics companies has been built around speed, reliability, customer service and reducing costs, though there is evidence this model is shifting. As technology continues to advance at an almost exponential rate and environmental concerns move to the forefront of both government and consumers' attention, logistics companies will likely have to adapt to new and innovative strategies in order to survive.

Organisations that can invest to be flexible and resilient will succeed. Future logistics companies need to be able to adapt to the changing nature of society, consumption, manufacturing, production and trading. COVID-19 has tested the flexibility and resilience of our industry in ways in which it is unlikely to be tested again, and companies are diversifying their business, scaling back operations and taking work back in-house – spreading risk and reducing risk.

Organisations that promote and deliver a positive reputation will succeed. The logistics of the future will be increasingly technological, responsive and highly skilled. Only by increasing standards, delivering great experiences and promoting a positive reputation will organisations be able to attract the right and sufficient talent to join the industry and secure its future.

Organisations that judge their path to zero negativities well will succeed. One of our biggest campaigns in our work around the environment is concern that there is no clear path to decarbonising heavier and larger freight vehicles. Hydrogen, electric and battery-electric have been identified as the lead potential power alternatives for HGVs; however, a clear direction and certainty is needed for businesses before they invest in designing, building and procuring these new vehicles.

Organisations that focus relentlessly on efficiency will succeed, as they will be able to invest.  In the shorter term, we can expect costs to go up in response to COVID-19, EU Exit and our environmental ambitions, but this is not where our industry likes to be, and we know its unremitting focus on productivity will soon recommence. The furlough scheme, which has had the effect of businesses only bringing staff back when there is work, has led to a complete redesign of some areas, unlocking productivity gains that were previously hidden.  The need for customs and safety and security declarations for those trading in the EU will again lead to a complete rethink of service delivery as demand increases. And there are more opportunities to really differentiate oneself from one’s competitors with new systems and choices for business models around more environmental forms of transport and degrees of automation. The potential for business process redesign is immense and companies who invest in it will be the most successful.

If you would like to know more about the future business strategies that organisations will need in order to succeed, please join Elizabeth at the Future Logistics Conference on Friday 13 November, where she will be presenting on this subject.

*https://logistics.org.uk/future-logistics

Published On: 12/11/2020 16:00:26

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