How to plan your 2022 logistics strategy

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Exporters in Australia are set to see increased growth in orders in 2022, so what can be done to sharpen their logistics strategy? Gleaning insights from the recent DHL Export Barometer report, here’s a quick look into the opportunity areas any Australian export business needs to know.

With more businesses reporting growth in the area of online export orders, it’s safe to say that the Australian export market is finding its foothold again. E-commerce continues to progress, with 82% of orders being exported online.

The outlook for export logistics looks positive in 2022, as most Australian businesses surveyed believe their export revenue will increase over the next year.

With an increase in customer demand, businesses are increasing their output in a multitude of ways. The number of businesses planning to employ new staff (48%) and increase wages (57%) in 2022 is representative of the positive outlook.

The annual DHL Export Barometer report, released on 22 November 2021, indicates a strong recovery in Australian exports. The report shows that businesses have different reasons to expect growth next year, such as increases in customer demand, launch of new products and services, and increased sales and marketing activities as part of their logistics planning.

Pre-empting new export challenges

Understanding the different challenges can help businesses foresee future potential problems and project solutions for them. Looking at the summary of issues surmised in the DHL Export Barometer report, developing adequate risk management protocols can help inform your logistics strategies in a comprehensive manner.

The pandemic brings with it a different stack of challenges. With travel restrictions, there have been flow-on effects to numerous moving parts, including increasing freight costs and an exponential growth in e-commerce demand. 65% of businesses experienced increased transport costs and 43% encountered shortages in raw materials. With 69% expecting further increases for export orders in 2022, it’s safe to say that pre-empting this challenge is a key focus for logistics planning in 2022.

Focus on different export markets

Understanding where export markets are concentrated can also help businesses streamline their varying logistics strategies. Common export destinations in 2021 included New Zealand, North America, Europe, and the UK.

Investing in e-commerce structure to generate orders

During the past year, 82% of export businesses used e-commerce to generate sales orders, an 8% increase from 2020. Small home offices were the most likely to use e-commerce at 86%.

The businesses that increased their revenue in 2021 enjoyed this success because they used different types of logistics strategies to increase their online export orders. Looking to 2022, it appears the most popular strategies will continue to be investing in online marketing (40%), improvements to website design (34%), fulfilment and delivery (29%) and customer services (26%).

How the world of logistics is changing

In the new normal, it’s not unusual that businesses are having to factor in emerging trends such as increased online shopping and mobile reliance when planning their sales and marketing. Notably, more are relying on e-commerce, but knowing just how much and where is key for businesses if they want to increase export revenue in the coming years.

Discover more insights on what’s ahead for Australian businesses by downloading the latest DHL Export Barometer report.