Logistics refers to the management of the supply of goods between the producer and the consumer to meet the needs of individuals or corporations.
The industry varies significantly not only in business models but also in profitability and margins. EBIT profitability typically ranges from -1% to 8%. Carriers operate with near-zero profits, while large courier companies sometimes achieve double-digit profitability. The sector impacts all elements of the economy where freight movement is involved.
Trends in logistics:
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Increased efficiency and transparency in B2B
Clients in manufacturing industries require shorter delivery times, fewer defects, and more personalized products—even to the extent that mass-market products are customized to individual customer requirements. As a result, logistics companies must integrate data analytics and social supply chains to ensure greater transparency and predictability while optimizing costs. Intelligent solutions will become essential, and "digital fitness" is now a necessity for every logistics company.
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New shopping models in B2C
Many B2C consumers have adopted digital technologies faster than traditional retailers. Most private consumers do not care who delivers their goods as long as delivery is reliable, fast, and cheap. Many prefer flexible delivery options regarding when and where they receive their products but are unwilling to pay extra for standard delivery. However, they are willing to pay a premium for meaningful services such as expedited delivery for high-value goods. At the same time, logistics partners operate within a narrow pricing corridor, as customers expect to pay a consistent delivery price regardless of seasonal factors affecting carriers.
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Digitization as a key factor
Technology is transforming all aspects of logistics companies' operations. "Digital fitness" has become a prerequisite for success, and those who understand how to use new technologies effectively—from data analytics to automation and platform solutions—will emerge as winners. Given the current high level of technological uncertainty, choosing a clear digital strategy as an integral part of the overall business strategy is crucial.
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The sharing economy and new players
New business models are emerging due to technological advancements, often driven by startups or players from adjacent industries entering the logistics sector. Sharing-based business models, which rely on the collective use of a common resource pool, may have as significant an impact on the logistics sector as digital technologies. Existing clients and suppliers could eventually become the industry's largest logistics partners.
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Targeted collaboration between competitors
Competitor collaboration, where mutually beneficial, is already taking place, especially in long-haul transportation. Higher efficiency levels can be achieved through clearer standards, which can be developed by expanding cooperation in the form of alliances or joint ventures.
