Inbound Logistics | January 2025

UP OR DOWN? IN OR OUT?

M&A activity in the logistics market: UP  The trend of M&A will continue in the brokerage industry. Increased scale allows strategic providers to o„er customers a wider array of services and the ability to invest across all parts of the freight cycle. – JARED WEISFELD , Chief Strategy Ocer, RXO Less-than-truckload demand: UP  LTL will see a higher demand for precision delivery as companies manage tighter inventories. After the pandemic, companies face increased pressure to reduce costs and streamline operations, leading them to re-evaluate their inventory positions and shift toward a leaner stock level. As a result, businesses are becoming more focused on precise, just-in-time delivery to maintain e‹ciency without holding excess inventory. As companies manage tighter inventories, there will be a greater need for smaller, frequent, and reliable on-time deliveries to ensure stock levels meet demand without excess.

The number of trucks in comparison to freight demand: DOWN  In short: freight contraction. Some good news for trucking companies (but could mean higher costs for businesses that rely on them) is that balance is returning in the market. For a while, there were too many trucks and not enough freight to haul. This led to lower rates for trucking companies. However, recently, the number of trucks has declined in comparison to the rising demand for freight, ACT reports, meaning trucking companies can charge higher rates for their services. It will not be a dramatic boom; however, the trend is positive, and rates are expected to continue rising for months. – ASPARUH KOEV , CEO, Transmetrics

IN • Right-sizing inventory • Growth mindset • Vertical AI • Proactive • Agile suly chains

OUT • Just in case • Wait-and-see mode • General AI • Reactive • Extended suly chains

– FRANK GRANIERI , Chief Operating Ocer, A. Duie Pyle

Embedded fraud prevention: UP  Supply chains will see a significant shift toward integrated fraud prevention measures, moving away from reactive, stand-alone approaches. A particular focus will be on combating the rise in fraud through standardized verification processes and trusted partner networks. – JARED PALMER , Head of Transportation & Logistics, Tint Fraudulent returns will spur innovation in returns management . Ecommerce retailers lose billions of dollars due to fraudulent returns. There will be a shift toward solutions that tackle this issue directly, including unboxed returns models where items are picked up directly from the consumer’s doorstep without requiring repackaging. More companies will begin to use AI-powered image recognition to confirm the correct item is being returned, preventing fraudulent returns by catching discrepancies. – DENNIS MOON , COO & Head of Operations, Roadie

Regionalization: UP  Supply chains will see a seismic shift toward

regionalized manufacturing and logistics hubs, bringing production closer to the point of delivery. For decades, globalization has been the backbone of supply chains, but rising costs, geopolitical pressures, and the demand for faster delivery are driving a major change.

Companies will move away from extended, complex supply chains and instead invest in nearshoring and regionalized operations. This trend isn’t just about speed; it’s about reliability and control. The future is local. – JEFFERY BENORE , President and CEO, Benore Logistic Systems

92 Inbound Logistics • January 2025

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