Four logistics sector trends to watch out for in 2025
With a new year upon us, what shifting patterns are we seeing in logistics and how can 3PL companies best respond to them?
Companies in the third-party logistics (3PL) sector are scaling up to meet the explosive growth of ecommerce and the changing demands of consumers and retailers. Logistics providers who understand how marketplace expectations are shifting and who can recognise the remarkable opportunities offered by technology and digitisation will be best placed for success in 2025.
Here are four trends set to shape the logistics sector in the coming year.
1. Continued acceleration of ecommerce
In 2024, more than 17 million Australians said they used online shopping websites on a monthly basis. That’s an increase of 45% on 2020 (when just under 12 million said they shopped online monthly).
Australians are clearly becoming more comfortable purchasing from online retailers. But driving this trend are 3PL providers that can effectively meet consumers’ needs. These include an ability to provide same-day delivery, real-time tracking and efficient returns. With online shopping becoming ever more ingrained in our daily behaviour, consumers are increasingly relying on logistics firms to provide faster and more reliable delivery services.
2. Warehouse automation will improve efficiency
It should come as no surprise that logistics companies are early adopters of the latest in automation technology. Robotics and automated guided vehicles (AGVs) are increasingly being used to handle picking, packing and sorting tasks, making them integral to modern warehouse environments.
Artificial intelligence (AI) is further enhancing automation processes by enabling predictive maintenance, inventory optimisation and demand forecasting. The result has been significant improvements in operational efficiency, greater accuracy and reduced labour costs. Expect to see even greater uptake in automated solutions, including robotic pickers, drones and AGVs, in the year to come.
3. Sustainable processes now a ‘must-have’
Businesses are increasingly embedding ESG principles into the way they operate. That’s why choosing a sustainable logistics partner is no longer a negotiable. As well as the need to stay ahead of government regulations, businesses must increasingly satisfy their customers’ expectations that the goods they purchase are packaged and delivered with minimal environmental impact.
With eight out of 10 consumers saying they would pay up to 5% more for sustainably sourced goods, it’s clear that consumers want to buy from companies that walk the sustainability talk. Increasingly, this is requiring companies to work with a logistics partner that has an iron-clad commitment to reducing carbon emissions.
4. Streamlining of last-mile delivery
The last leg in the delivery process is one of the most challenging for logistics operators. It is often hampered by inconsistencies such as shipment sizes, processes and IT systems. In an effort to standardise logistics operations, we can expect to see more formal joint-ventures and partnerships at a corporate level and perhaps even Uber-style approaches to last-mile delivery.
With customers demanding fast, transparent and accurate shipping, no matter where they order from, logistics firms will want to collaborate and harmonise their data to improve the planning, reliability, cost efficiency and sustainability of their supply chain operations.
New technologies, new business models and changing consumer expectations are all challenges set to reshape the 3PL sector in the year to come. Even though the logistics sector is a mature one, and implementing new methods can be tough, it will be those operators with agile and flexible cultures that can best respond to change and embrace the opportunities that lie ahead.
¹ https://www.statista.com/forecasts/1471759/australia-number-of-e-commerce-users
² https://www.pwc.com/gx/en/industries/consumer-markets/consumer-insights-survey.html
³ https://www.pwc.com/sg/en/publications/assets/future-of-the-logistics-industry.pdf