Your company supply chain & logistics in 2022

Good supply chain & logistics management reduces the company’s overall costs and boost profitability. The Covid-19 pandemic has reversed the way the world works. Business rules have changed. E-commerce is already a leading trend, gaining significant acceleration. The fuel price crisis in Europe is another important factor that logistics managers must take into account. For many companies, Covid-19 has become a serious survival test. The big shock of 2020 with mass lockdowns and closing borders has led to the cancellation of many orders and deals. Nearly 40% of companies declared logistical losses due to canceled orders due to the pandemic in 2020. Losses for companies whose goods travel by land were the largest.

(*An interesting fact: Bulgaria and Czech Republic were the only EU Member States that registered increases in all transport types in 2020).

In 2021, the world economy has largely returned to positive indicators. The supply chain market also grew despite the pandemic. The expectations for 2022 are that this growth will continue. Here is some stats:

  • The global supply chain market is estimated to experience a CAGR (Compound Annual Growth Rate) of 11.2% from 2020 to 2027.

That means a market value increase from $15.85 billion in 2019 to $37.41billion in 2027.

  • From 2021 to 2028 the Transportation Management System (TMS) is anticipated to have a CAGR of 11.7% .

That’s a rise from a market value of $120.70 billion in 2021 to a expected $261.89 billion in 2028.

  • The Global Logistics Automation Market has the highest Compound Annual Growth Rate of any supply chain market, at a predicted rate of 12.4%.
  • The Global Logistics Automation Market size for 2020 was $50.9 billion.

This size is expected to experience a CAGR of 12.4% by 2026 or this means a grow to $82.3 billion

As can be seen from the prognoses, 2022 should be a good year for supply chain & logistics. Unless… Unless the new wave of Covid-19, caused by another mutation of the virus – “Omicron”, did not impose another lockdown in Europe and did not repeat the shock of 2020„

Therefore, reacting to problems at the moment is not an option. You need a comprehensive strategy for the supply chain & logistics of your company in 2022. A strategy that guarantees you some security of the business. Here are our suggestions on what to base your logistics strategy in 2022.

Supply chain & logistics trends for 2022

  1. Reduce costs and flexibility.

Fuel prices in Europe in 2021 reached their highest levels since 2012. Historical records of petrol and natural gas prices have been set in England, Ukraine, Poland and many other EU countries. This led to a jump in production prices and increased transport and logistics costs of manufacturing companies. Logically, the value of the end-product has risen sharply. Many small and medium-sized companies have been forced to declare bankruptcy or suspend operations. This trend is expected to continue in 2022. Is there a way out of the situation?

The best solution is to reduce the logistics costs of your supply chain. Supply chains have a huge impact on company profits. Therefore, optimizing the logistics process and reducing costs at every stage of your company’s supply chain can put you far ahead of your competitors. This is especially true for Industrial Suppliers, where the average supply chain cost is 13.2%. For comparison: the best companies have managed to optimize this number to 7.9%. That’s a 40% savings.

How to achieve the desired results?

a) Use foldable pallet boxes to transport the products.

This will optimize the use of space in transport and save you a lot of money on fuel in return transport. For your warehouse, focus must be on folding racks. “Space optimization” is the key word. 

 

b) Use customized pallet boxes.

This will reduce your losses during transportation (and storage) of the products.

c) Use reusable eco-friendly pallet boxes.

This will save you a lot of money compared to buying disposable pallet boxes. In this way you will cut the costs of their destruction (and  transportation to the appropriate places).

d) Use second-hand pallet boxes.

Companies like ZAMKO could offer you high quality second-hand pallet boxes at up to 50% of their price as new.

e) Flexibility of logistics processes.

The global pandemic has taught companies to be flexible to avoid potential shortages or overstocking of products. It is important for supply chain managers to be able to see and identify problems in their early stage. A flexible approach to unforeseen circumstances includes renting (instead of buying) logistics equipment. This is particularly true for short-term projects or for the execution of a specific order. For such cases, the best option is to hire the necessary logistics equipment. Especially if you will not use it anymore. In this way you will ensure the continuity of orders, which is especially important during a recession.

2. Sustainable supply chain & logistics (Green logistics)

Sustainable logistics = Green logistics
The goals of Sustainable logistics are to reduce the damage to the environment and ensure greater safety for the company’s employees. Green Logistics protects the environment and reduces pollution, such as solid packaging wastage and reducing carbon emissions. For this purpose Green Logistics uses the most effective available resources, the latest innovations in technology for transportation, packaging and storage. Finding the balance between profit and environmental protection, as well as caring for the health of the company’s employees – this is the “philosopher’s stone” for logistics management.

The methods for achieving these goals are:

  • reduction of mileage in the implementation of logistics tasks, reducing fuel consumption to reduce carbon emissions into the atmosphere;
  • use of environmentally friendly logistics products and techs in the implementation of the logistics goals of the companies.
    This includes the use of selection of appropriate packaging such as collapsible pallet boxes, folding pallet collars, plastic socket pallets, customized pallet containers and others.
  1. Managing Reusable Packaging Service

What exactly does reusable/returnable packaging mean?

Maximum durable (made of strong materials), technology advanced transport containers designed for long life and multiple use.

The containers are environmentally friendly, quick and easy to recycle.

The maximum extended life of the containers reduces pollution (not wasting resources on producing new ones) and significantly reduces companies’ costs. A closed and self-sufficient supply chain is created between the producer (supplier) and the customer. With between 100 and roughly 500 rotations, the service life of such packaging ranges from 3 years to as much as 25 years and more. End of life, the packaging is returned to the supplier and recycled into new packaging.

Reusable packaging is one of the most important elements of your logistics strategy. Therefore, good management of this process at each stage is vital to ensure cost reduction and better profits for your company. This will allow you to better control your logistics resource and optimize its use. You need to know where your packaging is at all times. To have a sustainable supply chain logistics, you need to ensure business continuity. Your logistics resource should not have a “day off”.

Providing not the most expensive, but the most suitable logistics product for you

Zamko is a foldable pallet boxes specialist with extensive experience in providing logistics services. Our approach to each client is strictly individual. We strive to be cost-effective, providing the help your business needs. If this sounds right to you or you need to develop a new profitable logistics strategy for your business, Zamko will do the best to help you. Make 2022 – your year!

Referencies:
  1. https://www.zippia.com/advice/supply-chain-statistics/
  2. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Road_freight_transport_statistics#EU_road_freight_transport_fell_from_2019_to_2020.2C_the_pandemic_reducing_both_international_and_national_transport