Six major trends in cross-border logistics for 2022

As we look back over the year, the supply chain and logistics industry received more attention than ever before as it faced a myriad of challenges and circumstances. As we look to 2022, here are some of the top trends and priorities to watch out for in the coming year of Nuvocargo, the premier digital freight forwarder and customs broker for trade between the United States and Mexico.

Platformization and integration of data across the entire supply chain. The pandemic has pushed the adoption of digital platforms by reducing the friction to try new solutions that will lead to the migration of informal and manual communication platforms to specialized products that make their workdays more ‘automagic’ by providing a source of truth and increased visibility. According to a report by Alloy Technologies Inc., 92 percent of executives agree that supply chain visibility is important to success, only 27 percent have found a way to achieve it. This means that we could see a shift from discrete software to handle specific use cases (TMS and warehouse software) to platform and data integration across the entire business chain. supply, which will make operations increasingly fluid and businesses more competitive. To achieve this, blockchain technology can be used to integrate all components of the supply chain on a single platform and provide more transparency in the process.

Control suppliers and vendors based on resilience and adaptability. With digitization revolutionizing the logistics sector and bringing more efficient processes, information exchange and visibility, we will see the sector evolve towards a rigorous selection of partners based on their technological skills and knowledge. This will be strongly the case for Mexico since the new tax regulations oblige companies to adapt and optimize their processes in order to comply with them. Small transportation companies will find it difficult to comply with requirements when dealing directly with clients without the technical infrastructure of brokers. The accounting team of every logistics company will be put to the test, and those that manage to take advantage of efficient and automated processes will avoid the compliance crisis in time for every shipment. From this point of view, remaining competitive will require a stricter filtering system for logistics partners and suppliers.

Regionalization of the supply chain and nearshoring. Organizations have been affected by COVID-19 supply chain disruptions that have led companies to find suppliers closer to home to reduce costs and be less affected by more complex logistics or uncertainties. McKinsey’s report on the effect of the coronavirus on global economic sentiment says uncertainty over COVID-19 is no longer the top economic concern for leaders. Instead, they see growing supply chain spillovers and inflation as the biggest threats to the growth of their businesses and economies. “Businesses have learned the importance of being agile, adapting and solidifying so that they can thrive in volatile and unpredictable environments. This includes a restructuring of the core business, technological implementation, regionalization, partners, etc. », Says Anaid Chacón, product manager of Nuvocargo. “Companies have already started to implement new strategies in their supply chains and we can expect these changes to continue in the years to come. “

Creative and technological solutions to address the driver shortage. The delay in delivery is the accumulation of many factors. According to American Trucking Associations (ATA), in order to meet current economic demand, more than one million truck drivers will need to join the industry. In 2022, we’ll see how the industry meets this need by tapping into talent from other fields or demographics with low representation among drivers. A U.S. Department of Transportation Report 2019 says 28 percent of the current heavy-truck driver workforce will be over 65 in the next decade. This means that the industry will have to promote and provide more benefits to young people and women since the current average American truck driver is 48 years old. We may also see solutions based on process automation or self-service systems for customers to deal with these labor shortages. Autonomous trucks are also on the rise since major transportation lines start buying and testing efficiency and costs.

Innovative financing solutions for the supply chain. Continuously providing partners with alternatives that will help them finance their operations and improve their cash flow will benefit all parties in terms of increasing capacity and sustaining the supply chain. “Our data collection and experience have taught us the weaknesses of our partners who have high expenses, get paid 30-60 days after delivery of shipments and often need loans with high fees to keep operating,” Chacón explains. “This is an industry-wide condition that requires special attention if we are to continue to strengthen and develop the industry. Financing is one of the solutions to the unpredictability of cash flow required to meet peaks in demand. “

Greener supply chains. Logistics and transportation companies are pushing environmental efforts to make their supply chains less invasive or less harmful. This can include environmentally friendly warehouses with advanced energy management systems, climate smart supply chain planning, and more. We can expect these initiatives to continue to grow and become more sophisticated over time.