Supply chain and logistics predictions for 2022  

Much has changed in the past couple of years, with businesses across all sectors having to adapt in ways they didn’t expect. Unfortunately, it seems that 2022 is likely to continue in the same trend, with COVID-19 still impacting both businesses and consumers and returning to “normal” appearing further and further away. However, there are still some predictions we can make about this year for the logistics industry.

Read on to find out more about how 2022 could look for supply chains including sharing data and the increased use of technology.  

Risk assessments and scenario planning

To help any company succeed, risk assessments and scenario planning need to be carried out regularly to help prepare for any disruptions and help the company remain reactive. Logistics companies are no different and rely on risk assessments and scenario planning to prepare for material shortages, delays in deliveries and lack of storage space.

Data is incredibly important and helps to create real-time dashboards and alerts to allow for planning and reactive actions. In 2022, risk assessments and scenario planning is more important than ever before. Currently, it’s hard for all sectors to plan for the year as it’s so unknown whether pre-Coronavirus levels of supply and demand will return, or COVID-19 will still have a detrimental effect on businesses and consumers.

Risk assessments are there to support the logistics industry to produce a range of scenarios for the year and prepare the supply chain for whatever may come.  

Increase in artificial intelligence  

With more unpredictable events and disruptions likely to continue in the future, demand forecasting is likely to move away from previously used modelling techniques to use artificial intelligence (AI) in 2022. AI will be used to build “casual frameworks” for event forecasting as a way to rapidly respond to disruptions, helping the supply chain run as consistently as possible.

Within the supply chain, there are many moving parts and technology is key to keeping it that way. Artificial intelligence is likely to be used to help with this, keeping lorries and other transportation methods on the road through using AI-enabled dash cams to monitor drivers to help them make better decisions. AI video telematics is also going to become more commonplace in lorries. They combine vehicle cameras and sensors to understand what is happening inside and outside the lorries in real-time.

All of this combined data will be used to better understand what roads are safe, where low bridges are and where traffic frequently occurs to ensure safer and reliable transportation.  

Sharing data  

In previous years, sharing data with partners and customers has always been seen as something negative and taboo. In 2022, this is likely to change in the logistics industry. Sharing information is actually very important and necessary to build a resilient supply chain through a better understanding of what is happening in the world.

With a more transparent data sharing practice, companies within the supply chain will be able to concentrate on key areas within their sector and better serve their partners and customers. For example, for shipping companies, the management of ports, ships and warehouse space is key and needs to be focused on. In contrast, for a customer-facing e-commerce business, their focus needs to be on customer satisfaction and last-mile deliveries. In 2022, and with the sharing of data, businesses can focus on what they need to, and rely on the rest of the supply chain to support them.   

Rise in prices  

Unfortunately, it appears that the cost of raw materials and energy is likely to continue to rise in 2022. This is down to a multitude of factors including climate change, COVID-19 sickness, disrupted supply chains and Brexit. The price rises look to affect everything from technological components to fuel as suppliers pass on costs down the supply chain.

Backed by data, supply chains and logistics companies should be able to combat the rising prices by better planning and managing materials through data such as using historical supply data to reduce excess materials. Weather data could also be used to track any extreme weather that could affect the supply chain and shipment tracking information should also be used to ensure all materials and end products arrive where and when they should. By using all the data available, it should help companies minimise the impact of rising costs.  

Find out more

Whatever this year brings, it’s clear that the logistics industry will continue to develop and grow in both technological uses and scenario planning to avoid disruptions in the future. To find out more about TouchStar’s fuel logistics optimisation solutions and how they can help your business in 2022, please get in touch today.