The logistics and transportation industry will grow to $15.5 trillion, from a current market value of $8.1 trillion, according to a recent Transparency Market Research report. Like other fast-growing industries, the market is extremely competitive, with the big-four companies controlling less than 15% of the market, procurious reports.
The industry may be ripe for disruption, however, so procurious suggests companies focus on dynamic strategies to ensure resilience. Such strategies require a renewed focus on improving savings for both buyers and suppliers.
New technologies are entering the logistics space in droves, driven by the allure of an e-commerce boon, low-barriers to entry given a fractured market and rising shipper demands. The challenge, however, is that companies are often slow to adopt new technology despite its availability.
Many of the tools to achieve transparency, visibility and traceability are already out there, but logistics companies must take the technology and combine it with brand-reliability as well as a knack for relationship building to get ahead in the space. There's a reason many logistics startups end up accepting an acquisition by a larger company, or otherwise engage in large partnerships.
It may take ten years for the supply chain to normalize the various disruptive technologies offered by the logistics industry. What is certain is that e-commerce is accelerating the rate of adoption and innovation, and as uptake improves, so will supply chains.