BSS058-6 Strategy and the Global Competitive Environment Assignment Sample
BSS058-6 Strategy and the Global Competitive Environment Assignment Sample
Introduction
- The study has briefly identified the future trends of an industry and its impact
- The logistics industry has been considered for evaluation in this assessment
- Along with impact, the creation of a scenario grid would be focused on referring to the logistics industry
In this slide, a brief introduction would be considered referring to this assessment where identification of future trends of the logistic industry would be analysed along with its impact. Apart from this, the creation of a scenario grid would be referred to for a better understanding of future trends and their influence.
Key future trends in the logistics industry
- Key future trends of the logistic industry would be evaluated with PESTLE analysis
- PESTLE factors have been considered as a framework for analysing the future trends
- Future of Freight plan strategy by the UK government for seamless logistics (Gov, 2022)
- The UK government invests £7 million in new freight technology (Gov, 2022)
- The logistics industry drives economic growth with employment, national income, and others (Al-Khalidi Al-Maliki, 2021)
In this slide, the key future trend of the logistics industry has been evaluated with the support of PESTLE analysis. The framework has significant factors that are political, environmental, social, technological, and environmental. Referring to this, the political aspect has been identified that the UK government is focusing on managing strategies for better logistics and creating an environmentally friendly sector in the industry. In order to drive economic growth the UK government has invested around £7 million in new freight technology. Apart from this, the future of the freight plan has been strategised by the UK government for seamless logistics. In this context, it can be understood that the government is setting the industry to work together and deliver a world-class level of delivery in terms of railways, seaways, roads ways, and canals. This has come as wider governmental support and effort in order to enhance the economy as well as the industry, significantly referring to the logistics industry.
Other than this, the economic context has been identified, which refers that the logistics industry has the possibility to drive economic growth. The logistics industry provides significant aspects and contributions to the national economy such as creating national income, employment, and foreign investment influx along with increasing the competitive power among corporations. This significantly drives the economy as well as impacts the advantages aspects of a nation.
- Flexible, customisable, and fast delivery is expected by consumers (Ahrens et al. 2019)
- Cloud computing and 3D printing are taking over the logistics industry (Gibbons, 2022)
- Union Customs Code (UCC) is essential to follow by logistic operators for transparent transportation (Come2ets, 2023)
- 81% of companies are reliant on green supply chains (Businesswire, 2023)
- Sustainability in logistics is highly appreciated by the consumer, as it showcases the responsibleness of the organisation
In this slide, social, technological, legal, and environmental factors are evaluated. In terms of social factors, consumers are found to be specifically focusing on customisable, flexible, and fast delivery aspects from the logistics operators. This infuses constant pressure on the logistics operators, as consumer demands are significantly changing with their requirements and demands. Apart from this, it has been noted that there are several technological trends going on in the logistics industry. Referring to this, such as cloud computing and 3D printing are excessively growing with an outlook of improving the logistic sector with seamless aspects. Through the support of the cloud-based system, the logistics business is able to improve its workflow by having tech-based information that assists custom technology integrations and allows them to get paid faster. Moreover, with 3D printing technology, the logistics are able to deliver the products faster with a connected approach in the supply chain.
Referring to the legal aspect, Union Customs Code (UCC) is found to be essential in terms of Logistic operators to have transparent logistic operations. This is the key element that helps an organisation to take action regarding the customs rules and procedures that can improve a better communication aspect and trade in a more ethical and legal manner. Lastly, the environmental factor is the most essential aspect that is taking over the entire logistics industry because right now sustainable logistics is taking over the traditional way of logistic operations. It has been identified that 81% of companies are focusing on sustainability in their supply chain and logistics, which is playing an integral role in their initiatives. Sustainability in the supply chain and logistics is becoming the dominant aspect among all sizes of companies, as it reinforces the organisation to support the community effectively. Furthermore, taking sustainable initiative such as lowering carbon emissions, and wastage along with an aspect of sustainable efforts are appreciated by the consumer. Thus, it can be stated that in the logistics industry, there are significant changes in terms of future trends.
Assessment of the potential impact of the above-mentioned trends on the industry
- Government support for the logistics industry would impact it in a positive manner
- Government investment, in turn, will be supportive of countries’ economic growth (Khan et al. 2020)
- The market size of the global logistics sector will be approximately 13.71 trillion Euros by 2027 (Statista, 2023)
The above discussion has made it clear that future trends in the logistics industry are driven by different factors that are concerned with political, economic, social, technological, and environmental. Global governments are emphasising seamless logistics by implementing different plans to bolster supply chains. Findings indicate that the future trend of government support to the logistics sector has a great potential to impact it in a positive manner. For instance, last year the government of Australia invested more than $1 billion in supply chain and logistics, which has a great potential to impact the logistics industry of the country (Misuraca, 2022). This investment, in turn, will be supportive of the economic growth of the country. Specifically, considering the economic factor, government support and investment in logistics would positively influence the growth of the industry (Khan et al. 2020). On the other hand, the growth of logistics would also benefit the global economy. Furthermore, the worldwide logistics industry is estimated to grow positively in the upcoming years, with the support of governments (Statista, 2023). Moreover, it is predicted that the market size of the logistics industry globally is estimated to be approximately 13.71 trillion Euros in the upcoming 4 years (Statista, 2023).
- In the UK, an annual retail survey in 2020 revealed that approximately 43% of consumers want next-day delivery (KPMG, 2020)
- 3D printing offers the opportunity for mass customisation and decentralisation production (Mueller et al. 2020)
- Green supply chain would also positively impact the industry by assisting it to maintain sustainability (Sundarakani et al. 2021)
Considering the future trends of the logistics industry, the expectation among customers regarding flexible, customisable, and fast delivery is growing day by day. Relating to this, an annual retail survey in the UK in 2020 indicates that approximately 43% of customers want next-day delivery (KPMG, 2020). This is indicating that this trend of growing expectations among customers regarding fast delivery is forcing the global logistics industry to be more efficient in this regard. Considering this, this future trend would negatively impact the overall activities of the global logistics sector by continuously forcing it to be improved for matching the unrealistic expectations of global customers regarding fast delivery.
The future trend of using advanced technology such as cloud computing and 3D printing has the potential to positively impact the growth of the logistics industry globally. This is because the use of technology like 3D printing offers the opportunity for mass customisation and decentralisation production, which is beneficial for the global logistics industry (Mueller et al. 2020). Moreover, the future trend of increasing the use of different technologies would have a positive influence on the growth of the logistics industry by improving its business operations by creating opportunities to make improvements in production and services. Apart from that, considering the above discussion, some global laws and regulations are not only influencing the current scenario of the logistics industry but have the potential to impact its future (Come2ets, 2023). There is a need for companies in the logistics industry to work in accordance with global laws and legislations to operate the business successfully in the international market. Different laws guide companies in this industry to be specific about their operational activities and work ethically. Additionally, the future trend of the green supply chain would also positively impact the industry by assisting it to maintain sustainability (Sundarakani et al. 2021).
Scenario grid with 4 scenarios
Figure 1: Scenario grid
(Source: Created by researcher)
- Integration of artificial intelligence and machine learning, cloud computing and 3D printing
- Governmental intervention can also be highlighted in the UK with subsequent investment towards new freight technology
- Green logistics market size is estimated to grow at a compound annual growth rate of around 6.10%
Innovation
With regards to the consumer behaviour, the logistics industry has been attentive to provide seamless experience for the customers and clients due to which technology advancement has taken place as an integral part of the sector. Different advanced technologies are noticed in this case that has been empowering the scenario with the integration of artificial intelligence and machine learning, cloud computing and 3D printing and others. The cloud supply chain management market is predicted to grow at a compound annual growth rate of 11.09% between the forecast period from 2022 to 2027 (Mordor Intelligence, 2023). Similar consequences can be highlighted from the perspective of 3D printing innovations that are extending the competitiveness of the logistics sector. As mentioned previously, adequate governmental intervention can also be highlighted in the UK with subsequent investment towards new freight technology (Gov, 2022). The uncertainties generated through the Covid-19 pandemic situation eventually added a greater value to signify innovation in logistics.
Sustainable logistics
Sustainability has also emerged as a large point of concern within the logistics industry. In this case, extended preference of green supply chain can be highlighted from the company’s perspective that has been generating the reliance on green supply chain and logistics attributes. As an example, the green logistics market size throughout the globe is estimated to grow at a compound annual growth rate of around 6.10%, which is amount to USD 1481.5 billion by the end of 2028 (Globe News Wire, 2022). The uncertainties taking place due to climate change as well as growing environmental consciousness of the consumers have been pushing the growth of green logistics as an integral part of reducing environmental harm through logistical activities (Dahlmann and Roehrich, 2019). Apart from that, the attributes of reduced resource consumption and improvement of logistics efficiency have also been driving the businesses to consider sustainable and green logistics to ensure subsequent competitive edge in the market.
- Autonomous market size is also predicted to ensure a growth of 62.4 million units by the end of 2030
- Autonomous logistics has also been improving the logistics operations with comparatively lower freight expenditure, reduced delivery times
- Companies are usually noted to depend on flexible and fast delivery with customised services
Autonomous integration
The attributes of autonomous integration can also be highlighted in the logistics sector. The autonomous market size is also predicted to ensure a growth of 62.4 million units by the end of 2030 from 20.3 million units in 2021 with a compound annual growth rate of 13.3% (Markets and Markets, 2023). Prime consideration of autonomous logistics has taken place due to its innovative nature of declining the operation cost for businesses. Potential businesses are also looking forward to empower their logistics capability as well as efficiency through the integration of automation. Apart from that, autonomous logistics has also been adding a greater value to improve the logistics operations with comparatively lower freight expenditure, reduced delivery times and others that are also providing a positive impact on the consumers mindset (Ziajka-Poznańska and Montewka, 2021). The company is are also able to generate seamless consumer integration and experience by referring to the concept of autonomous logistics. The attributes of improved fuel efficiency in autonomous logistics are also playing a significant role in terms of driving the logistics efficiency and accountability to a higher extent.
Flexible logistics
In the present times, companies are usually noted to depend on flexible and fast delivery under the feature of customised services (Birkmaier et al. 2021). It has been eventually highlighting the expectation of the consumers that may also be accounted as another uncertainity in the logistics industry. The consumer behaviour has been highlighting significant shifts and changes in demands due to which the logistics service providers are going through significant change management by referring to the concept of innovation and sustainability. Moreover, greater focus on the obtainment of faster delivery is also indicating another trend within the logistics sector to ensure distinctive flexibility through service customisation and timely delivery.
Describe the scenarios
- Logistics innovation is the use of advanced and new technologies, new processes, new ideas, and new services in logistics (Pererva et al. 2021)
- Sustainable logistics is processes as well as practices that are concerned with improving the sustainability of logistics and supply chain activities (Trivellas et al. 2020)
- Autonomous integrated logistics refers to the use of technological devices for executing supply chain processes (Junge, 2019)
Logistics innovation can be described as the use of advanced and new technologies, new processes, new ideas, and new services that can be utilised to improve operations in this specific sector. Innovation in logistics has been improving the productivity of the global supply chain, along with mitigating challenges like any kind of errors (Pererva et al. 2021). Additionally, sustainable logistics can be described as processes as well as practices that are concerned with improving the sustainability of logistics and supply chain activities. Autonomous integrated logistics refers to the use of technological devices for executing supply chain processes and movements, including the movement of people, vehicles, equipment, freight, resources, information, and other controls (Junge, 2019).
- Flexible logistics has been the prime concern among the businesses
- DHL has been attentive to signify on-demand delivery services through flexible logistics
- Unrivalled portfolio of logistic services in DHL due to which their consumer integration and experience have been improved
Flexible logistics has been the prime concern among the businesses in recent times. For evidence, the context of a renowned global organisation DHL can be taken into account. DHL has been attentive to signify on-demand delivery services through flexible logistics and shipping options as an integral part of ensuring a reliable and trustworthy last-mile delivery experience (DHL, 2022). This attribute has been adding a greater value to the unrivalled portfolio of logistic services in DHL due to which their consumer integration and experience have been improved to a large extent.
Conclusion
- Future freight plan strategy, government investments towards logistics, preference of sustainability
- Next-day delivery with flexibility along with a focus on sustainability
- Integration of automation, sustainability, innovation and flexibility in the logistical activities
Based on the overall assignment, clear understanding can be generated regarding the key future trends of the logistics industry including future freight plan strategy, government investments towards logistics, preference of sustainability and technology advancement and others. The consumer’s focus has eventually revealed next-day delivery with flexibility along with a focus on sustainability that has been driving the integration of green supply chain and Logistics. Different uncertainties are highlighted in terms of signifying the scenario development including the Covid-19 pandemic, climate change, changing consumer behaviour and others. These aspects have impacted integration of automation, sustainability, innovation and flexibility in the logistical activities.
Reference list
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