The logistics paradox: more demand, less efficiency

The pressures of changing logistics dynamics

Logistics and transportation are at a crossroads. The rise of e-commerce and changing consumer behavior have plunged the industry into a vortex of challenges. Where once we could rely on full trucks and long, efficient routes, we now face a reality of smaller, more frequent shipments and shorter delivery times. This fragmentation is logistics' greatest enemy.

Electrification of logistics is a popular talking point, but we risk overlooking a more fundamental problem. Current technologies are often not feasible for carriers with minimal margins and small fleets. Moreover, electrification by itself does not solve the growing congestion on our roads. What we are seeing is a desire to make our problems electric instead of solving them first.

E-commerce has drastically changed our purchasing behavior. Consumers order more frequently and in smaller quantities, often without the possibility of warehousing. This has led to an increase in transport movements, further increasing pressure on logistics networks. Traffic jams are increasing, truck utilization rates are falling and bankruptcies in the industry are on the rise.

To future-proof the sector, we must first commit to smart logistics. This means: reducing transport movements and making our logistics processes more efficient. The idea of the "physical Internet" offers a solution here. By organizing transport flows the way data flows on the Internet do, we can use trucks more efficiently and better manage overall transport capacity.

So for the future, the question is not just whether we should electrify, but how to first make our logistics intelligent. Only when we have taken this step will electrification make sense and be feasible. It is time to prioritize and strengthen the foundations of our logistics system so that we are prepared for tomorrow's challenges.

Alex Van Breedam, founder and CEO of TRI-VIZOR, is pioneering and driving disruptive innovation in logistics and supply chain management. As the world's first impartial "orchestrator" for transportation and logistics, TRI-VIZOR proactively designs and manages horizontal partnerships and collaborative communities among shippers. By aggregating and synchronizing freight flows across multiple supply networks, double-digit gains can be achieved in terms of cost, customer service and sustainability.

Alex Van Breedam
founder and CEO, TRI-VIZOR.