Looking at key trends and themes, for supply chain and logistics, in 2024

Hello and Happy 2024!

In this space, at this time of year, I would typically put together a column that takes a look back at some key logistics trends and themes over the course of 2023 (which was a lot) and also takes a look at what may be in store for 2024. While it was my intention to get this written up before using up some banked time off for the rest of 2023, that ultimately did not come to fruition, so here we go, with a look at some of the things that, in my opinion, could be viewed as the most pressing, or top of mind, for freight transportation, supply chain, and logistics stakeholders. (Please note I am aware I will miss some things, to be sure).

One of those issues is the state of the economy. Is it good? Is it bad? Honestly, this question, despite lots of good data signs and directions, also seems to be one of the most, if not the most, scrutinized ones. Inflation is trending down, consumers spent over the holidays and also traveled, too, unemployment levels remain historically low, and GDP readings, especially over the back half of 2024, were encouraging. These are all good things, and we need to see more of this in the coming months.

Where things go, in terms of the economy in 2024 are contingent on a whole host of issues, including on the geopolitical front, such as the ongoing Russia-Ukraine conflict, the more recent Israel-Palestine conflict, and America’s tense relationship with China, to name a few.

Some of these factors, notably U.S.-China relations, figure to significantly factor into logistics roadmaps and playbooks, for 2024 and beyond. It is already at play in Mexico, with shifting manufacturing operations there from China, to reduce costs and bolster transit times, getting more attention, to be sure. But things are expected to move at what could be viewed as a more tempered pace, given how intricately-designed and asset-heavy U.S.-shipper operations are set up in the Far East. Yes, things will change and move closer to home, but many stakeholders maintain it will happen at a gradual pace.

Supply chain resiliency is, and will remain, a key focus moving ahead. And how could it not be. We are now nearly four years past the onset of the pandemic, a period which has really been unlike any other, of course. During this period, the supply chain, as we all know, was front and center, as evidenced by the sheer amount of coverage and attention it received—most notably when items were in short supply or containerships were clogged outside of ports waiting to empty cargo.

Being prepared for the unexpected may become the new chapter one for all logistics textbooks, it seems. Following the pandemic and all that it brought, it makes a lot of sense. Other possible chapters could include things like inventory management, or sourcing, or logistics technology (I told you I would have an incomplete list).

The topic of inventory management will continue to have a high logistics profile, going forward. The ability to know where your inventory is and how much is on hand will never go out of style, one has to think. That importance was evident over the course of the pandemic, for certain. What’s more, this has been heightened since then, as noted in a Wall Street Journal article this week, which observed that many retailers are reducing the number of items they keep in stock, as they finally able to shift away from a pandemic-influenced pattern of deep discounting to pare down excess inventories and, instead, “focus their supply chains more tightly on products that shoppers want.” 

To be sure, there are many, many other things to monitor over the course of 2024. We will be looking at, and reporting on, all of these things, as the days go by. In the interim, please have a happy, safe, and productive 2024.