Point A to Point Possible: The Official Blog of BNSF Logistics

Questions That Matter | 2020 Logistics Trends

Written by Erin Brady | December 4, 2019

Inspired by Inbound Logistics magazine's monthly "Good Question" article, we decided to ask our own experts to chime in on
BNSFL Questions That Matter (and Our Experts Answer).

- December 2019 -

This month, we're asking:
"What are the biggest logistics or supply chain trends
and opportunities that we’ll see in 2020?"

In 2019 shippers were looking to 3PLs to provide the technological capabilities to accomplish their supply chain goals. In 2020 it appears those shippers and their third-party logistics providers continue to enhance their relationship from where it started in 2019. Shippers and 3PLs have been using data and information for many years to support decisions that are relevant to their relationships. However recent history suggests that the use of analytics—is gaining significantly in terms of frequency of use, levels of sophistication, and utilization of available computational capabilities. Broader types of capabilities that support this trend include the availability and utilization of cloud-based technologies, growth of software and approaches to manage and analyze data, and the successful adoption and use of Internet of Things (IoT) capabilities. Environmental sustainability is taking on greater importance globally, and those within the supply chain are no different. More and more shippers are embracing sustainability programs, and carriers and 3PLs are focusing on greening efforts to attract shippers. In addition, those within the supply chain are becoming more sophisticated in how they demonstrate and document their carbon emissions, miles per gallon, data, and efficiency metrics.
- Juan Borque, Branch Manager; 31 years of Industry Experience

In projects & heavy haul, we're looking at driver & equipment capacity limiting the ability to delivery projects on time.
- Clay Gambill, Director Projects & Wind Energy Sales; 17 years of Industry Experience

The biggest trend for 2020 is that customers are looking for speed and precision while looking for more e-commerce platforms. Our biggest opportunity is for BNSF Logistics to gain the momentum within our technology to become a deeper provider.
- Geno Pignataro, Vice President/Operations; 16 years of Industry Experience

Technology, optimization, efficiency in moving freight. Relationships are key, but companies have to adapt to stay competitive in these areas.
- Josh Jacobi, Branch Manager; 14 years of Industry Experience

Logistics companies utilizing internal technology tools to compile data, present this data to carriers/shippers via a similar tool, and sell this data to companies that want realtime feedback.
- Jack Malloy, Branch Manager-Phoenix; 11 years of Industry Experience

 

The biggest thing I don't hear much discussion about is how the global ocean fleet's new emission standards are going into effect January 2020. The ocean fleet will be utilizing much better quality fuel than previously, and the ripple effect into the diesel market will certainly impact all other modes that use forms of diesel. Even if over-the-road, intermodal, and railrail fuels are somehow protected, the baked-in cost increase from the ocean leg will ripple into the cost of goods and be absorbed either into the transportation industry in some way or be passed on to consumers directly.
- Ian Rozmiarek, Enterprise Business Development Director; 6 years of Industry Experience

Increasing interest in automation and streamlined supply chain planning and processes.
- Jennifer Mosso, VP, Enterprise Business Development; 13 years of Industry Experience

I expect that we will continue to see the digitization and automation of our industry to accelerate. Customers and carriers alike will continue to leverage technology tools to better run their businesses and optimize their supply chains. With the large investments being made in technology, I expect to see a continued ramp up in 2020 in the evolution of how we interact and partner with our customers and carriers.
- Lance O'Daniel, Vice President, Supply Chain Solutions; 20 years of Industry Experience

Mega trends and society forces that shape our business, mostly technology and working at high-paced speeds, integration of systems and technology to keep up with Smart cities with huge business opportunities, the digital market and our place within it that keeps the retail sector moving ahead, and preparing for high-speed rail and other faster methods of transport. Our technology will be a key play in obtaining and securing best business partners that are headed at full speed.
- Karen Ehlert, Director, Sales Management Training Program; 14 years of Industry Experience

I think we'll see data play a larger role in terms of aggregate analysis. There is so much data being collected now that can be turned into actionable data. The challeneg will be getting it from one place vs multiple channels.
- Jeff Greenwell, Managing Director; 21 years of Industry Experience

If you have other questions that you'd like answered, submit them here.