The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
As we come closer to the end of 2023, it makes me reflect on the past 12 months. And although the initial reaction might be that there has been a lot of negative news and events in the logistics industry such as strikes, bankruptcies, security incidents, weather events, etc., there are also many positive things that occurred in the last year.
As we all got together as an industry at FreightWaves’ most recent F3 event, it was obvious that the logistics industry, now more than ever, is an incredibly connected network of companies and individuals who are extremely passionate about this industry and will work countless hours to move this industry forward. Although freight rates are at a low, logistics companies are working tirelessly to continue building revenue and creating new ways to be more efficient so that they can reduce their operational costs while at the same time looking for new business models.
Private equity and VC money might not be as easily accessible, but there are plenty of opportunities where these companies will continue to invest in new technology. as witnessed by a continuously increasing number of startups. These FreightTech startup founders are equally passionate and motivated to create new or improved solutions to improve the efficiency of the industry and to create capabilities we have not seen before. This has become abundantly clear when talking to both investors and founders of bootstrapped startups.
We’ve also witnessed an increasing number of people entering the logistics industry as we are no longer the black sheep of the supply chain. Logistics has truly become one of the most interesting, fun, whilst complex, but also continuously changing supply chain areas. This attracts both new talent to the industry from some of the premier colleges, as well as experienced talent that is crossing over into our industry. The main characteristics of a logistics professional must include passion, a love for people and perseverance.
Education plays a critical role in making the industry stronger. Logistics companies invest more into the education of their employees. College programs focus more on supply chain and logistics, which are continuously growing in importance as a field of expertise. By creating purpose in our organizations and providing education to our people, we will be able to continue to attract the talent, which has become scarcer. The economy will improve, interest rates and inflation will lower, but the availability of a workforce will not. So it has to be a key focus area of any organization in logistics so that you have the right resources to continue on the path to success. While AI, ML, RPA, autonomous systems and other technologies might drive efficiencies, PEOPLE are still at the core of our industry.
While 2024 does not look like it will be any less challenging than 2023, I’m convinced that we will become even stronger, more committed, more connected and more efficient in the way we execute our businesses. This will set us up so that when the economy comes back, hopefully in 2025, we’ll be on a road to success.
So what does the future hold? We will see new technologies emerge, market dynamics shift and businesses adapt to changing consumer expectations and global challenges. Successful companies in the logistics sector will be those that remain agile, innovative and responsive to these dynamic trends and developments.
I truly believe that great opportunities and great successes are in the future of the logistics industry. As we look back in a decade to the stories of the hardships of 2023 and 2024, we will realize that it was a pivotal time that catapulted us into the success and the future of the entire logistics industry.
Look for more articles from me every Friday on FreightWaves.com.
About the author
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.