The logistics industry plays a crucial role in the global economy by facilitating the movement of goods, services, and information from one place to the other. It provides transportation, warehousing, inventory management, and supply chain management solutions that help meet the consumer's needs better. The industries that rely heavily upon this sector include retail, manufacturing, healthcare, and technology, to name just a few.
As of the year 2024, it is estimated that the global logistics market is approximately worth 10 trillion US dollars, and this is anticipated to expand by about 6 to 8% per annum from 2024 to 2030. This increase has been primarily attributed to the flourishing growth of e-commerce, the earliest stages of globalization, enhancing technology, and a growing preference for same-day and last-mile deliveries.
The logistics industry plays a crucial role in the global economy by facilitating the movement of goods, services, and information from one place to the other. It provides transportation, warehousing, inventory management, and supply chain management solutions that help meet the consumer's needs better. The industries that rely heavily upon this sector include retail, manufacturing, healthcare, and technology, to name just a few.
As of the year 2024, it is estimated that the global logistics market is approximately worth 10 trillion US dollars, and this is anticipated to expand by about 6 to 8% per annum from 2024 to 2030. This increase has been primarily attributed to the flourishing growth of e-commerce, the earliest stages of globalization, enhancing technology, and a growing preference for same-day and last-mile deliveries.
Logistics as an industry, also known as the logistics sector, involves the efforts put in place to ensure goods, services, and information are brought from acclaimed sources to consumers without any interruption or unnecessary delay. It involves shipping, storing, freight forwarding, package guarding, and customer service.
1. Inbound Logistics: Refers to coordinating the supply of raw materials and semi-finished goods to the manufacturing location.
2. Outbound Logistics: This implies distribution of products to the markets or points of sale.
3. Reverse Logistics: Covers product returns, reuse, and waste management.
4. Third-party logistics, also known as contract logistics (3PL): The services of transporting goods, warehousing, and packaging are extended to an external provider, which carries out these functions on behalf of the client.
5. Fourth Party Logistics (4PL): External operators take over a specific supply chain process or manage the entire supply chain for a company.
Change: The acceptance of most of the processes, such as automation and artificial intelligence in supply chain processes and the driver-operated freight industry, is very high.
Economic Growth Opportunities: It has been observed that there is urbanization as well as industrialization in Asia-Pacific, Africa, and South America, and this growth has created some economic opportunities in these regions.
Multi-Channel Fulfillment: There is an integration of the physical and e-commerce channels, which has called for sophisticated logistics.
Cold Supply Chain: This is because there are more temperature-controlled global logistics needs within sectors such as health and food, more specifically seafood.
Production localization involves shortening processes and bringing production closer to the market, which can lead to cost reductions in distribution and faster delivery at customers' premises.
Advancement of Technology: Increasing use of AI, IoT, and blockchain in logistics is changing the picture of logistics today and making it possible to offer on-time tracking and even analytics.
Green Initiatives: Logistics is also taking a greener way to transform as companies are considering purchasing EVs, carbon-free transport, and warehouses that consume less power for operation.
Growth in Online Consumerism: The ever-expanding e-commerce industry demands the need for quicker and more economical logistics services.
Delivering the product to the client at the final stage: Changes such as drones, driverless cars, and even shipping goods using normal customers and fellow citizens are keeping the industry on edge.
Effective Supply Chains: Most enterprises turn to supply chains with varied sources to reduce or deal with political and external disruptions.
Transport Areas: ground transport, rail transport, air transport, and sea transport.
Modes of Logistics Service: Storage, transportation, cargo forwarding, customs clearance, specialized services, etc.
Users: retail, industrial, healthcare, power and utility, etc.
Regions: N.A., Europe, the APAC region, Latin America, the Middle East, Africa, etc.
DHL Supply Chain & Global Forwarding
Kuehne + Nagel International AG
DB Schenker
FedEx Corporation
United Parcel Service (UPS)
XPO Logistics
C.H. Robinson Worldwide, Inc.
Maersk
Nippon Express
CEVA Logistics