What’s In It for the Logistics Industry in 2024?

Published: January 5, 2024
An image shows cargo ships. The image caption reads Navigating the logistics industry in 2024.

The social, economic, and political upheavals have caused tectonic shifts in how we do business, and the logistics industry is no exception.

With the emergence of new tech and digitalization efforts, companies must stay ahead of ever-evolving market trends and delegate logistics operations to experts in the industry. We’ve compiled some tips and tricks to satisfy your logistics and supply chain needs in 2024:

The Major Events Causing Bottlenecks in the  Global Logistics Market

Several logistics companies have been forced to contend with the disruptive forces impacting the shipment of customer purchases, placing them in an overwhelming ride in 2023. What challenges continue to threaten the industry? Let’s find out.

U.S. and Eurozone Manufacturing Demand Slowdown: How BPO Manufacturing Outsourcing Can Help Businesses Ride the Tide

Your logistics proficiency typically rests on your manufacturing performance. Deplorable factory conditions and backlog congestion continue to strain manufacturing operations, fueling supply chain disruptions and a decline in production.

Let’s dive into a few statistics proving this:

  • The U.S. Manufacturing ISM Purchasing Managers Index (PMI) scored 46.0, reaching a six-month low in June 2023. 
  • Most (78.3%) manufacturers also cited supply chain disruptions as their primary challenge.
  • The Federal Reserve spiked the interest rate by 5%, increasing the costs of manufactured goods.
  • 78.3% of manufacturers cited supply chain disruptions as the main hindrance to their overall performance.
  • Other challenges include retaining skilled staff (76.1%), expensive raw materials (76.1%), and high logistics and transportation costs (65.9%).

Global Supply Chain Disruptions and What Can You Do To Mitigate Impacts

The pandemic and global tension have crippled the supply chain, immobilizing shipment flow and drastically raising delivery costs. 

For instance, the delivery time from China’s warehouse to the U.S. has stretched to 34 days longer than pre-pandemic times. The Russia-Ukraine tension has also hampered the already tight supply chain, with giant container lines such as MSC and Moller Maersk suspending their operations in the Black Sea. As a result, the U.S. has hit the highest inflation rate after 40 years, recording an 8.5% inflation rate hike.  

The Case for Amplified CX for the Transportation and Logistics Sector in the Post-Pandemic Era

A logistics operation can’t thrive without a skillful and reliable workforce. They are the unsung superheroes in your business, coordinating the movement of items from production to their delivery destination.

However, the looming labor crunch threatens to impede the process. The U.S. Chamber of Commerce showed a plunging decrease in the labor participation rate, with 10 million job vacancies but 3.4 million fewer employees than in 2020.

How Outsourcing Logistics & Supply Chain Outsourcing Fortifies Your Business Capabilities in 2024

Understanding the root causes behind logistics and supply chain disruptions is a good start. The next step is pinpointing effective remedies for these impending challenges.

How Back Office Transport Services Help Solve the Top Challenges Facing the Logistics Sector

Your logistics operations consist of several back-office processes that keep your businesses upright to guarantee a smooth delivery. However, spending too much time enhancing these capabilities may detract from your core competencies and lead to missed opportunities.

It’s better to outsource these processes to a third-party back-office team:

  • Logistics Data Entry: Tracks shipments, oversees inventory levels, and manages routes to optimize operations
  • Airwaybill processing: Processing a contract between the air shipper and carrier that delineates certain agreements and obligations of both parties
  • Freight Audit and Payment: Navigates driver using ideal delivery routes
  • Freight Booking Administration: Transportation arrangement for goods, including rates negotiation, booking carriers, and completing necessary paperwork
  • Invoice Processing: Managing and handling invoice payments and capturing discrepancies
  • Omnichannel Customer Support: Communicates with customers across traditional and modern platforms to address concerns and inquiries

6 Outsourcing Solutions To Prepare You For the Black Friday and Cyber Monday (BFCM) Sales Craze

While the holidays are a jolly season for many, it’s a crazy time for businesses. As retailers are driving sales, financial management may be in jeopardy.

Navigate your sales seamlessly with accountant and bookkeeping outsourcing. While tracking your diverse expenses, your outsourced team can set a realistic budget. In turn, you can formulate a lucrative strategy that maximizes your profitability amid the overwhelming sales in-flow. 

An Extensive List of BPO Dispatch Services for the Logistics Sector

Not all logistics companies offer the same pricing model since every business deals with foreign vendors, leading to varying costs and expenses. The most pressing question that always comes to mind is, “How much will this cost?”

Outsourcing companies can help you by delegating a team of customer support experts to respond to service rate inquiries specifically. They provide customers with prompt and comprehensive pricing information, fostering trust and reliability with the brand and encouraging repeat business.

Equipped with accurate data entry, an outsourced remote team can also track and trace customers’ inquiries, offering them real-time visibility of the status of their purchased item. With these two strategies in check, you’ll foster formidable customer relationships and spark positive word-of-mouth referrals. 

2024 Trends in Back Office: Outsource Support Services Across Different Industries

Often, the root cause of lackluster services lies in your disengaged employees.

Burnout among employees leads to decreased productivity and negative customer experiences — and with employees being one of the tenets of a successful business, your logistics company must strive to boost morale. 

Since employees who receive late salaries tend to lose motivation, revolutionizing your payroll system is a quick solution to this issue. Instead of doing payroll management in-house, where delays and inaccuracies are inevitable, consider outsourcing it to an outsourced team that can guarantee timely salaries.

Holiday Inventory Management Tips: E-Commerce Strategies You Can Use in 2024

For most, inventory control and management is the last thing that comes to mind when enhancing business processes. Little do we know that this process is the X-factor that makes or breaks a company.

Rather than allowing it to be our greatest weakness, let’s turn the tables and transform inventory management into our greatest strength. In doing so, you can leverage inventory management outsourcing for higher investment returns.

Here are some of the best practices your outsourced team can place in their arsenal:

    • ABC Analysis: Categorizes stocks based on return on profitability
    • Just-in-Time (JIT) Inventory: Maintains low inventory levels to reduce holding costs
    • Demand Forecasting: Expects future customer demands using historical sales data and current market trends 
  • Supplier Relationship Management (SRM): Helps you assess your vendors and select the most compatible and valuable ones
  • SKU Standardization: Labels each product with a unique identifier in your database

The Power of Specialized Call Center Agent: Enhancing Customer Experience

While general customer service teams can help with typical concerns and responses, they still need to be escalated to more knowledgeable personnel if customer inquiries become too technical. 

Unfortunately, not all customers will stay on the line when placed on hold, leaving issues unresolved. As a result, your customers will feel dissatisfied with your services, fueling customer churn. 

However, upskilling and reskilling your existing customer support to meet their demands is not as simple as it may seem. A study showed that employee training can cost an average of $1,071

How can you elevate your customer experience without incurring too much costs? By outsourcing a customer service team specialized in the logistics and supply chain industry. 

Being masters in specialized and technical issues, your team of specialists can solve your customers’ concerns in a single interaction, minimizing customer follow-ups and ultimately enhancing your customer experience. Outsourced CSRs can also train employees who are not apt in the intricacies of the logistics industry.

Streamline Operations with SuperStaff’s Outsourced Services for the Logistics Industry

As technology advances rapidly, the increasing complexity of supply chain systems makes it impractical for companies to entrust technical tasks to individuals lacking specialized expertise. To streamline and enhance your supply chain and logistical operations, teaming up with SuperStaff is your best bet.

SuperStaff is a leading BPO company in the Philippines, ready to transform your logistics operations and help you focus on your core competencies. With over a decade of success, we can drive customer satisfaction and propel your supply chain operations to greater heights.

 Reach out to us today. Growth and success await your business in 2024!

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