Locus foresees customer experiences, convenience, and sustainability driving logistics excellence in 2024
India, December 9, 2023: Since 2020, businesses have been strategically reshaping their supply chains to foster resilience, agility, and maximize convenience to the end customer. Locus, a leading all-mile customer experience and dispatch management platform, foresees a continued transformation in the business landscape in 2024 in response to dynamic market conditions. The year ahead is anticipated to be characterized by a focus on delightful customer experiences, heightened profitability, and sustainable logistics practices. However, it is imperative to give strategic priorities to the following trends that are expected to guide businesses on their trajectory toward a future defined by prosperity and innovation.
Addressing carbon emissions; a global priority to promote green logistics
In 2024, carbon emission reduction will be taking center stage for logistics businesses worldwide. Shippers and carriers prioritize cost, capacity, service, and most importantly, carbon footprint. The United States, contributing nearly a quarter of global transportation emissions, emitted 1.84 billion metric tons of CO2 in 2022. There’s optimism that U.S. businesses will take stronger initiatives to reduce carbon emissions in 2024. The Middle East, a key global fuel producer, is shifting to tech investments for carbon reduction. In 2022, the Middle East’s carbon emissions were lower than North America and Asia Pacific (2,200 million metric tonnes of carbon dioxide vs. 5,851 and 17,955 metric tonnes, respectively). The GCC region is now actively working on carbon reduction through green initiatives. Indonesia sees progress, with 74% of consumers preferring sustainable brands. In contrast, India grapples with a sustainability challenge, witnessing a 5.5% rise in carbon emissions to 1.91 metric tons in 2022. With a strong consumer shift towards sustainability, Indian logistics are investing in tech solutions like transportation management systems and real-time fleet tracking for emissions reduction.
Quick commerce revolution to maximize profitability
Quick commerce, an e-commerce model emphasizing ultra-fast deliveries within an hour, is surging globally. In the USA, while there has been a slowdown in the past year, a market value of $30.8 billion is anticipated in 2024, driven by players like Gopuff and Instacart. The Middle East is embracing rapid deliveries, expecting a $20 billion market by 2024, led by companies like Talabat. In Indonesia, quick commerce is nascent but poised for substantial growth, foreseeing $3.6 billion revenue by 2027. India experiences rapid adoption with a 49.5% annual growth rate, projecting a market volume of $7.8 billion by 2027, driven by increased smartphone usage and a tech-savvy population. Investments in this trend are set to soar in 2024, reflecting evolving consumer behaviors across Southeast Asia.
Global Adoption and Financial Impact with asset-light logistics
In the dynamic logistics landscape, a standout trend for 2024 is the growing preference for an asset-light logistics model. This approach empowers companies to prioritize customer experiences while minimizing reliance on physical assets, resulting in lower operational costs compared to asset ownership. With rising warehouse and fleet management expenses, coupled with labor market complexities, businesses are increasingly adopting this agile logistics approach. Globally, 67.5% of companies now leverage third-party logistics (3PL) providers for transportation, while 63.5% outsource warehousing. Transportation costs, constituting over two-thirds of logistics expenses, particularly impact U.S. businesses. Owning fleets entails substantial labor, fuel, maintenance, and scaling costs, often leading to excess capacity during slow periods. Asset-light models provide nimble alternatives, allowing efficient navigation of peak seasons including Diwali, Ramadan, Raya, and holiday seasons. Multi-carrier Parcel Management Solutions, exemplified by tech platforms like Locus, empower businesses to seamlessly transition, maintaining branded tracking visibility even with outsourced fleet operations. As 2024 approaches, the asset-light logistics model emerges as a disruptive force, offering a cost-effective and dynamic solution to meet modern marketplace demands.
Cost-effective, customer-friendly, efficient, and profitable logistics
In 2024, the triumvirate of customer delight, profitability optimization, and sustainability defines success in global logistics. Yet, there’s a fourth, often overlooked, element every forward-thinking business needs to emphasize as they peer into the future of logistics: Which tech platform can truly elevate their logistics game? Locus’ transportation management platform emerges as a game-changer. This isn’t just another tech tool; it’s a logistics powerhouse. Packed with customer-friendly features like route optimization, a driver app, control towers, and geocoding, it’s the secret sauce to supercharge operations. It does not require a costly overhaul and seamlessly integrates with existing systems, leveraging advanced machine learning for scalability, flexibility, and reduced human intervention. This results in logistics that are cost-effective, customer-friendly, efficient, and remarkably profitable.