Supply Chain Mania 2018 in a nutshell: logistics business trend analysis by Mr. Direk Keshavakarun, Bain & Company
The Supply Chain Mania 2018 that was organized by SCG Logistics (SCG-L) on November 8th at the Waldorf Astoria comprised not only a display of technologies to be implemented by SCG-L in the not-too-distant future but also a friendly discussion on “Next Generation Logistics” which included an analysis of logistics market trends five years from now by Mr. Direk Keshavakarun of Bain & Company. SCG-L Blog hereby presents the three interesting topics touched on in the analysis, in a nutshell.
ASEAN Logistics Market Grows Steadily While Attracting Interest
Logistics business in Thailand, the CLMV countries and Indonesia will keep growing steadily with a 9% growth expected in 2023. At any rate, the focus is on the Thailand-China border logistics which is supposed to grow by as much as 16% while last-mile logistics – non-and e-Commerce – is expected to grow by 20% five years from now.
Credit: Bain Analysis
Future Logistics Model: A Radical Change from Today’s
Future change is predicted to have a major impact on supply chain where more and more of B2B logistics will be replaced by B2C. In addition, customer needs will increase in areas such as express delivery, smaller-sized of goods to be delivered, visibility of up-to-date tracking throughout the entire supply chain system, return logistics in cases of product/merchandise repair or return, among others, while competitiveness grows fierce, constantly. Meanwhile, technology is predicted to play a key role in supply chain management models and thus enable maximal asset utilization and streamlined business partnership-alliance alignment-realignment while logistics technology will be more diverse with a significant downward trends in costs.
Alliance/Partnership between 3/4PL Integrated Service Providers and Logistics Platform: The Future Key Logistics Model
Change in various areas, particularly technology, leads to the emergence of such future key logistics models along with the alliance/partnership between apparently rival companies, alias cooperation ecosystem, i.e. the one between 3/4PL Integrated Service Providers and Logistics Platform.
Credit: Bain Analysis
As conventional logistics nail down the framework for end-to-end physical services, a new internet shipping liner model has emerged out of the woodwork known as the logistics platform. The simple appreciation of the model is that the platform is comparable to flea markets as a meeting place for sellers and buyers, with the sole difference being physicality. The logistics platforms exist on the internet and thus can handle unlimited suppliers and customers with zero additional overhead. Such platforms, e.g., Alibaba and Amazon, has created new encouraging ecosystems that transcends industries, business infrastructures, geographical borders and even demographics. Nevertheless, logistics platforms still lack logistics operators. Business operators such as 3/4 PL, for example, can embrace technology to significantly reduce costs and maximize operational efficiency through track & trace mechanisms that create and enhance visibility, automated mechanisms that optimize customer service and meet customer satisfaction based on simple, swift and convenient services and good communication, and in the same token, enhance cyber security and system integrity to gain customer trust and confidence in the handling of big data and data privacy and security – the key success factors for future growth and sustainability in the next highly competitive era for business.
Lecturer: Mr. Direk Keshavakarun
Compiled by: BLOG.SCGLogistics
Reference and photos: Supply Chain Mania 2018