Key Takeaways from the
3PL Value Creation Asia Summit 2021
On June 8th, third-party logistics (3PL), shipper, technology, and investment leaders virtually networked at Armstrong & Associates’ 3PL Value Creation Asia Summit to discuss the impact of the COVID-19 pandemic, regional supply chain shifts and trends, e-commerce logistics growth, and advancements in analytical and technological innovation.
Thank you to KPMG, as well as our sponsors, speakers and attendees for another successful 3PL Value Creation Asia Summit. For those who missed the live broadcast, we have summarized some key takeaways below.
For those who missed this year’s Asia Summit, here is a summary of trends that were discussed:
- Despite some brief pauses due to the pandemic, China and Southeast Asia (notably Vietnam) maintained strong and steady growth last year. Freight forwarding and e-commerce volume growth led the way as manufacturers shifted operations from China to Southeast Asia and Mexico, and online orders skyrocketed. 3PL growth is anticipated to continue through Q2 2021.
- E-commerce, including companies such as South Korea’s Coupang, had extensive growth. Technology products, apparel, and food and beverage increased in demand.
- Increased frequencies of smaller sized orders drove growth in last mile and same day deliveries. Third-party logistics providers are incorporating locker usage or bicycle drivers to facilitate last mile deliveries.
- Canal disruptions and delays shine a light on the value of supply chain visibility. Good in-transit visibility allowed some 3PLs and their shippers to view and immediately address delivery exceptions. Ocean container shortages and congestion led to increased China to Europe rail transportation.
- Given the pandemic and infrastructure disruptions noted above, shipper’s “Just In Time” production and procurement practices have shifted to “Just In Case”.
- Robot usage and automation growth is strong in China, Singapore, and developed nations to address worker shortages and wage increases.
Usage of predictive analytics to improve transportation planning and exception management is expanding rapidly. Use in warehousing for slotting and inventory management is on the rise. Weather data analysis and forecasting, sustainability, and cyber security are important areas of industry-wide focus.