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A new report from FarEye highlights the U.S. supply chain's struggle with rising costs and consumer demand, pushing the industry towards AI and outsourcing solutions.
Logistics leaders face a 12% annual increase in costs, with some routes experiencing a 70% jump, while aiming for near-perfect delivery performance.
Nearly 90% of companies are increasing reliance on third-party logistics providers, with AI expected to create over 1,000 profitable logistics companies by 2030.
The last mile is seen as a critical arena for future logistics leaders, according to FarEye CEO Kushal Nahata.
Global players like DHL are expanding infrastructure globally, focusing on AI integration and sustainability as key strategies.
A new report from FarEye reveals the U.S. supply chain is at a breaking point, caught between climbing costs and intense consumer demand for speed, forcing an industry-wide scramble for new solutions driven by AI and outsourcing.
Feeling the pressure: Logistics leaders are facing a classic squeeze. A survey of 500 leaders found cost is the top priority as expenses climb 12% annually, with some routes jumping by 70%. At the same time, the performance benchmark is near-perfection, with 70% of companies aiming for 99% or higher on-time, damage-free delivery.
Rise of the machines: Faced with this dilemma, nearly 90% of companies are maintaining or increasing their reliance on third-party logistics providers. FarEye CEO Kushal Nahata says "AI is rewriting the rules of logistics," predicting the technology will create a new class of over 1,000 major logistics players by 2030, all profitable enough to command 15% EBITDA margins.
The final arena: Nahata believes these forces are creating a new generation of logistics leaders, stating, "The last mile is no longer a challenge to be solved; it is the arena where the winners of tomorrow will be created."
his transformation isn't happening in a vacuum. Globally, major players like DHL are expanding supply chain infrastructure in sub-Saharan Africa. Meanwhile, industry leaders are focused on new strategies like keeping humans in the loop with AI.
