Trends in logistics: Shaping the way we work and live

Creating a better platform for engagement

Like logistics itself, we see digital technology as an enabler rather than just a logistics trend. We can use data and systems to better understand our people, which allows us to personalize decisions and provide information and support as they need it. Technology can create a better platform for engagement, maximize the skills of our workforce, improve job satisfaction, and lead to more creativity, better customer service, and ultimately a better organization.

The pandemic has not only reinforced this idea, but it has also forced us to act fast. Suddenly, we had to rely on technology to connect with others while working from home. We learned to leverage tools that were already there, like video conferencing. We found out that our people are just as or even more productive when working remotely. We discovered that the office is more than a transactional place where we get things done. It’s also a social place. And, in fact, the workplace of the future might just become a center of interaction and creativity while the home or remote office becomes the space where we put those ideas into action.

Accountability and transparency

Companies can lead on so many levels to get there. Training programs and to raise awareness and education staff are a must. Accountability and transparency should also be high priorities. Making leaders accountable and leveraging data ensures progress and keeps us on track. Leaders must be good role models who bring people together and give everyone the respect and dignity they deserve.

The private sector can also speak up and speak out on diversity and inclusion. We can tell the world that the more diverse we are the better we are. This can send a powerful message and encourage others to speak out. For example, we employ 170 nationalities in Germany alone and we want people to know this. One of our bottom lines is to be an employer of choice and a great place to work for all regardless of trends in logistics.

Above all we need to be passionate about driving change and making our workplaces – and ultimately our world – a far better space than when we found it.

Information flow is underserved and can make a huge difference. It’s a value-added service that shippers and companies can create beyond the physical flow of goods. And information isn’t only to consume. It needs to be bidirectional. For example, giving customers the option to choose their delivery time and location. It’s a conversation with the customer – a dialogue. It’s also a two-way street internally behind the scenes. Customer service agents, logistics analysts, and marketing managers all need this information, but for different reasons and to produce different outcomes.

Another aspect of this trend in the logistics industry is the fact that B2B customers are beginning to expect the same experience as B2C customers. There are tremendous opportunities for companies to recreate B2C outcomes in B2B commerce – looking at business customers holistically and thinking about every touchpoint in their journey. In our business, for example, we’re combining technology and social collaboration to improve supply chain management. That’s because the physical infrastructure may be essential, but it’s dedicated people and clear communication that keeps all the moving parts in perpetual motion.

The pandemic has highlighted how important the experience really is. With the initial disruptions caused mainly by reduced passenger air traffic, supply chain predictability was very much on the minds of our customers. Whereas speed drove conversion before the outbreak, reliability became the driver of repeat business afterward. Customers now want to know that their shipments will arrive when expected, even if it takes a little longer. Reliability is now more important than ever before.

Our experience shows that customers want to offer that reliability and comfort. They are even willing to hand over things like post-sales services to reduce their own need to handle those issues. That’s another reason why we are going deeper to better understand what individual customers want and need – and leveraging data to be more proactive. What do we need to change in the backend to produce an experience on the front end? The best experience is a personal one – what makes sense in each particular case. For example, do we need to fully replace the product or will a spare part due – one that can be delivered in two days as opposed to a full replacement in four weeks. 

These are the aspects that turn customer experience into customer outcomes – where we don’t simply measure the value of each individual touchpoint but across the entire relationship. Logistics providers who can deliver unique and positive end-customer experiences and provide good outcomes for their customers will turn this trend into a logistics game changer.

But companies compete for talent, and it’s not in a company’s interest to have huge turnover, because that comes at a high cost. So, there is an incentive to retrain and upskill employees, so they remain employable for the jobs of the future. The companies that do this well will have competitive advantage. As we increasingly automate our warehouses, our people can spend more time on value-adding work that requires human intelligence and less time pushing heavy carts up and down aisles. Technology will play an important role here, as we will need better tools and better information to assess what skills will be needed for the future of work.

But training is only one aspect. Companies will also need to focus on the needs of that future workforce. We want to keep our people happy and therefore performing at their best. We want to give them the best technology work with so that they can be as productive as possible.  And we need to ensure that we bring everyone with us. That means making new technology understandable, being highly transparent about what you are doing, and building trust, so people understand what you’re doing with their data and where the company is headed.

Right now, every business needs a strategy for transforming to a hybrid model that looks at both inputs and outputs – and a management evaluation system that does the same. You can’t monitor workers because this increases stress. Instead, companies out in front of this logistics trend will look to hire trustworthy people and create management evaluation systems that measure outputs and makes it easier to work remotely. 

Economist and author, Carl Frey, who spoke at the DHL Logistics and Supply Chain Summit on the future of work, says, “If you put one hand in the freezer and one hand on the stove, you should be quite comfortable on average. But we know from experience that that is not necessarily the case.”

The most successful companies are “walking the talk” as we speak – they’ve done their homework and their management boards are, well, on board. Sustainable business has to start with governance – with the board as a role model. The best leaders reinsure the strategic interest in sustainability and demonstrate that sustainability is a business opportunity that can deliver competitive edge. They demonstrate that sustainability is a strategy and not just a corporate ESG program or a fleeting trend in logistics, taking the carrot approach with education and awareness building.

The social aspect of sustainability is now more important than ever. The latest addition to the workforce – Gen Z – are much more racially and ethnically diverse than previous generations. They are digital natives and on track to be the most well-educated generation yet. Young people are educating business on diversity, so it shouldn’t come a surprise that companies are empowering their employees to help make a social impact. Here again, leadership matters. People have the greatest potential to drive social change – if they think it’s important, they will make it happen. The most forward-looking companies recognized this long ago. They are enabling their people to inspire their colleagues as sustainability ambassadors.

For this trend in the logistics industry, making a social impact also means thinking across the entire supply chain: not just my suppliers, but their suppliers and their suppliers. Human rights are a key aspect, with respect for diversity an absolute must. Many people talk about a culture of inclusion, but logistics companies must really live it and remember that actions speak louder than words. 

One important action many companies are taking is to embed responsible business practices deeply into their organizations. This takes a lot of work, especially in big, multinational companies. With the right governance structure in place, companies can build teams, collaborate across departments and with suppliers, and ensure sales teams are communicating with customers, who are demanding more sustainable business practices. Job seekers are keen on good governance, too. Especially young people, who increasingly check whether a company is sustainable before applying for jobs.

The trend toward sustainability both in the logistics industry and beyond is that it should involve environmental protection, social responsibility, and good corporate governance. But – and this is key – it must be much more than an ESG program. This logistics trend is, in fact, much more than a trend. It’s about ensuring a future for us and the generations to come. Companies that recognize it as an opportunity will be the ones leading the way into the sustainable future.