5 Trends That Will Shape the Face of Logistics in 2017

The growth of the logistics market in the Philippines has greatly progressed because of globalization. This has been a driver in the logistics sector; this is why it’s essential to know the trends that will shape the face of logistics.


Here are five trends that every logistics company in the Philippines must know:

Rise in e-commerce

Image source: businessnewsdaily.com

With the rapid growth of e-commerce, the logistics industry must be at par with its development. With the rise of online buying, more entrepreneurs are opting for online retail sales. The successful relationship of e-commerce and logistics is defined by how well they serve and retain their customers.

How does e-commerce affect the logistics industry? Since its boom, retailers and customers’ needs have also increased. Logistics companies in the Philippines must have a strong mobile presence, in-stock merchandise and fast delivery systems and high levels of personalized services in order to satisfy consumer demands.

Internet of Things (IoT)

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This up-and-coming trend in the logistics industry is a system of physical things embedded with sensors, software, electronics and connectivity to allow it to perform better by exchanging information with other connected devices, the operator or the manufacturer.

IoT basically connects devices on the Internet or to each other. As detailed by Forbes, the relationship could be between people-people, people-things, and things-things. This can be used to increase supply chain visibility, customer satisfaction, inventory management and cost reduction.

Business Insider stated that industries and customers have pegged IoT as the ‘Next Industrial Revolution’ and one of the biggest technological innovations in logistics.

Augmented Reality

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What is Augmented Reality and how will it affect every logistics company in the Philippines? Augmented Reality is the integration of digital information with the user’s environment in real time.

According to an industry report by DHL, the next big wave in the logistics sector might just come in the form of Augmented Reality technology. By equipping warehouse workers with ‘AR smart glasses’, they were efficiently guided through order picking. The benefits of this revolutionary technology include reduced errors and productivity in labor. AR is not only used in entertainment sectors but it will play a big role in the logistics industry as well.

Unmanned Aerial Vehicles (UAVs)

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The emergence of UAVs or drones in the supply chain is something to look forward to in 2017. Since the drone economy is exploding, UAVs will eventually become part of the freight forwarding systems. UAVs’ direct to consumer delivery option; internal delivery services; surveillance and inventory tracking features can make a huge difference in logistics’ automation.

Although this shows great promise, there are still concerns surrounding the invention. Privacy issues (such as cyber security) and air traffic control are just some.

Electronic Logging Devices (ELDs)

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ELDs, according to FMCSA, is intended to help create a safer work environment for drivers and to make an easier, faster and more accurate tracking of a driver’s Record of Duty Status (RODS). Simply put, this replaces the paper logbook to record their activities and compliance.  Automated logging aims for an error-free and real-time collection of data. ELD is already available in other parts of the world and hopefully, the country would not be an exception.

The Philippines has the potential to become a major hub for logistics companies, as detailed by The Philippine Star. Although we are lagging behind other Asian countries, with these technological innovations; 2017 is looking bright for this industry.


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