19/03/2024

Freight and logistics 2025: six key trends shaping the future

Authors: Tanja Waldeck & Tristan Reckhaus

The logistics industry is at a crucial turning point. The COVID-19 pandemic has exposed the vulner-ability of global supply chains in recent years and revealed significant weaknesses. Now, the indus-try faces new challenges: the change of government in the USA, growing protectionism, and looming trade conflicts are making the future of international goods transport increasingly complex. At the same time, this transformation presents enormous opportunities for innovation and growth. Tech-nology and digitalization play a central role in enabling more flexible responses to market changes and unlocking new potential. Looking ahead in 2025, six key trends are emerging that will signifi-cantly shape how the freight and logistics industry evolves in the coming years.

1. Digitisation as a driver of efficiency and innovation

The logistics industry is undergoing a profound transformation due to digitalization. Artificial intelligence (AI), automation, the Internet of Things (IoT), and advanced data analytics are optimizing processes, reducing costs, and enhancing the customer experience. Warehouse management systems (WMS) enable real-time monitoring of goods and vehicles, while RF scanners and drones ensure more precise inventory management.

Cloud-based solutions such as SAP S/4HANA update orders and inventories in real time, reducing errors and increasing efficiency. The benefits of this digital transformation are numerous:

  • Optimized route planning and tracking accelerate order processing and improve efficiency
  • Automation of manual processes minimizes errors and increases productivity
  • Greater transparency and reliability throughout the supply chain enhance customer satisfaction

A key highlight is the use of IoT technologies. Sensors on packaging, pallets, and vehicles provide valuable real-time data on the location, condition, and movement of goods. Customers, including those in the B2B sector, demand maximum transparency to plan more efficiently and intervene when necessary. One example is container tracking: if the system detects a cooling failure, an immediate replacement delivery or exchange can be arranged. This enables more precise planning and control of the supply chain. However, the successful integration of digital technologies requires a comprehensive strategy. Companies must rethink their processes and establish a culture of continuous innovation.

 

2. Artificial Intelligence as the key to personalized logistics processes

AI is transforming the logistics industry through individualized and optimized delivery processes. Especially in the B2B sector, the pressure to offer tailored solutions is increasing, as companies expect maximum transparency and predictable supply chains. A concrete example is AI-driven warehouse automation for just-in-time production: by using predictive demand analysis, AI can detect potential shortcomings in the supply chain at an early stage and automatically trigger replenishment deliveries, preventing production downtimes.

AI-optimized route planning for temperature-controlled transport also represents a significant improvement. Algorithms analyze real-time weather conditions, traffic congestion, and loading times to ensure that perishable goods are transported under optimal conditions. This prevents sensitive products, such as pharmaceuticals or fresh produce, from being damaged due to unforeseen delays.

The immense potential of data utilization and AI deployment is evident not only in the logistics industry. In fact, 72% of top global CEOs state that competitive advantage depends on having the most advanced generative AI.

 

3. Computing and AR/VR transforming logistics

Innovative advancements in quantum computing, as well as augmented and virtual reality (AR/VR), are fundamentally reshaping the logistics industry, particularly in terms of efficiency and process optimization. Quantum computers enable highly complex calculations in mere seconds, revolutionizing route optimization. One example of the benefits of this technology is solving the “Traveling Salesman Problem” (TSP), which involves calculating the shortest route for a traveler who must visit multiple destinations. Quantum computers can perform these complex calculations faster and more accurately, factoring in variables such as traffic, weather conditions, and time windows—especially in last-mile delivery planning with drones.

Meanwhile AR systems support employees in order picking by providing real-time product information and optimal storage routes. In intralogistics, AR glasses enhance productivity and safety, particularly for forklift operators. These technologies not only promise efficiency gains but also open up new business opportunities. Companies can already access quantum computing technology through platform-based offerings and explore its potential. Those that invest early can secure a crucial competitive advantage.

 

4. Adaptability to regulatory changes

The constantly changing legal landscape, particularly regarding sustainability and safety, requires logistics companies to be highly flexible. The Corporate Sustainability Reporting Directive and the Supply Chain Due Diligence Act, for example, make comprehensive transparency and reporting necessary. At the same time, regulations on sustainable aviation fuels and circular economy practices push for innovative solutions. Successful companies anticipate these regulatory changes early and proactively adjust their business models. This includes investments in emissions tracking technologies, the development of circular economy concepts, and the optimization of sustainability reporting.

In addition to legal requirements, by 2025, geopolitical developments (e.g., conflicts in Ukraine and Israel) will have significant impacts on logistics chains in the form of disrupted supply chains, air/sea space blockages, labor shortages, and higher energy prices. The current customs decrees by U.S. President Trump and potential responses from the EU, Canada, and other countries could also lead to new trade and customs regulations and shifts in trade routes. The logistics industry will need to adapt in order to ensure smooth border crossings and supply chains.

 

5. Workforce development: the key to future viability

In an increasingly technology-driven industry, workforce development is crucial to secure the necessary expertise and strengthen the innovation capacity of companies. Studies show that by 2030, about 35% of tasks in logistics will be performed by machines. This will lead to a profound transformation of job profiles and employee requirements. Key aspects of workforce development in logistics include:

  1. IT-Skills: Software users and data analysts are becoming increasingly important.
  2. Further education: Focus on upskilling low-qualified employees to counteract the labor shortage
  3. Practical training: Focus on data mining, change management, and process understanding.
  4. Cross-generational approach: Both older and younger employees need to be involved in the transformation process.
  5. Talent management: Effective strategies for attracting and retaining skilled professionals are cruicial

 

6. Sustainability in logistics: ecological responsibility as a competitive factor

“Green logistics” expands the traditional logistics concept by incorporating the ecological aspect and aims to balance economic efficiency with ecological responsibility. As a result, sustainability is becoming a central value factor in the logistics industry. More than half of companies are planning to transition to alternative drive technologies, with hydrogen and electric mobility seen as particularly promising. CO2 reduction is achieved through optimized transport processes, eco-friendly vehicles, and driver training, which can save up to 20% in emissions. Additionally, energy-efficient warehouse technologies are gaining importance. For example, the Rhenus warehouse with 13,000 solar panels demonstrates how CO2-neutral energy supply can be implemented in practice.

The reduction of packaging materials, the use of eco-friendly materials, and recycling concepts complement these efforts. These initiatives not only improve company efficiency but also position logistics companies as responsible players in an increasingly environmentally conscious market, creating a positive impact on corporate culture. Most large logistics companies, such as DHL, also take a public stance and share their goals with the public.

 

Conclusion: technology as a driver of change and progress

The logistics industry is currently undergoing a profound transformation. Companies that strategically incorporate digital innovations into their strategies will be well-equipped by 2025 to overcome existing challenges and unlock new growth opportunities. Particularly in Europe, the development of sustainable, automated, and flexible supply chains is becoming increasingly important. With the help of artificial intelligence, IoT, AR and VR, and quantum computing, not only can efficiency improvements be achieved, but also future-oriented business models can be developed. The key success factor will be the ability to dynamically respond to market changes while driving innovative solutions forward. This will lead to long-term optimization of both the customer experience and the employee experience.

Meet our experts

Tanja Waldeck
IBM iX Leader DACH
Tristan Reckhaus
Executive Partner/Account Director – IBM iX

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