SCDigest isn’t sure why anyone would be negative on the future of logistics, but in a recent blog post, Gartner analyst David Gonzalez nonetheless produced a list of 10 reasons to be optimistic about logistics’ future.
Thise 10 reasons are as follows:
1. Logistics is Important to the Success of the Business
Gartner’s 2025 Future of Logistics survey says that 92% of more than 300 logistics leaders believe their function is seen as a strategic partner and a value driver that helps deliver overall company objectives. That’s no shock, Gonzalez says, considering that logistics frequently serves as the point of contact between a company and its customers during the delivery of goods and services.
2. Logistics is a Trusted Partner and is Increasing Its Span of Control
Many logistics functions are increasing their span of control, Gonzalez writes. Nearly 40% of high-performing logistics organizations expect to take over customer collaboration and fulfilment. More than 30% will integrate distribution-network design. Almost 30% of all logistics functions expect to gain responsibility for global trade management, which is an increasingly important capability for every global business
3. Logistics Has Direct Access to C-Suite Decision Makers
Gonzalez notes that more than 90% of logistics leaders report directly to a C-suite role, with 50% of high performing logistics leaders reporting to the CSCO and more than 30% reporting to the CEO. C-suite access is critical not only for the profile and representation of the function in terms of service delivery and cost control but also to secure investment in technology and talent that enhance the capability of logistics.
4. Logistics is Prioritizing the Right Activities for Future Growth
Juggling many different tasks is the day-to-day reality of every logistics leader, Gonzalez says. However, what logistics functions prioritize over the next few years will determine the future value of the industry. According to Gartner’s 2025 Future of Logistics survey, high performing logistics leaders ranked the following as the top four priorities.
• Improving customer experience through more service choices.
• Increasing digitalization of processes and offerings.
• Increasing automation of physical execution.
• Upskilling and retaining talent
5. Logistics Knows How to Leverage Technology and Increase Digitalization
Many logistics functions have invested in conventional technologies, with nearly 80% of logistics leaders currently utilizing, or in the process of deploying, TMS and another 74% having done the same with WMS. Gonzalez Adds that logistics leaders are now turning their investments to predictive analytics engines, ecosystem connectivity platforms and embedded AI/ML optimization tools to improve data quality and speed up decision-making.
6. Logistics is Harnessing Resilience as a Competitive Advantage
Many logistics leaders, particularly those with long tenure, can claim to have seen it and experienced it all before, Gonzalez observers. That knowledge and tribal expertise has made logistics functions more resilient. In fact, a third of logistics leaders anticipate contributing to sustainable growth by leveraging future disruptions to their advantage and aligning logistics strategy with the enterprise.
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7. Logistics Will Remain a People Business, Just with Different People
Gonzalez says that according to the Future of Logistics survey, nearly 70% of logistics leaders believe that the function of the future will be almost entirely populated by digital natives employed as data analysts and automation engineers. The logistics industry must manage the transition carefully as, in the short term, it is still challenging to fill traditional roles such as drivers and warehouse operatives.
8. Logistics Will Accelerate Investment in Automation to Offset Labor Challenges
For the logistics industry, the automation of physical tasks and manual processes has been increasing for decades. It will proliferate further and accelerate faster over the coming years. Of high performing logistics functions, Gonzalez notes that 50% say that automating and mechanizing physical-handling tasks in warehousing and transportation to minimize dependency on labor is the top priority to adding value to enterprise goals.
9. Logistics Will Do More Good Environmentally Rather Than Less Bad
Making the logistics industry more sustainable will be achieved by a culmination of small incremental changes and improvements. For example, 45% of logistics say they intend to increase collaboration and share infrastructure and resources with other companies. Furthermore, 35% of logistics leaders plan to utilize assets and infrastructure powered by renewable energy, which as we reach critical mass, will further reduce the cost, Gonzalez believes.
10. Logistics Organizations Will Centralize More and Autonomize Less
For years, logistics leaders have sought to balance central control with local autonomy, Gonzalez notes. However, going forward, 65% of logistics leaders agreed that logistics functions will be more centralized as companies consolidate decision making and execution into centralized teams and shared-service centers that enable cross-pollination of skills and knowledge.
SCDigest agrees.
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