Logistics Outsourcing Trends to be Watched out for in 2021

COVID pandemic has made a great difference to the logistics industry. It has created new goals and outlooks for the year 2021. Through logistics outsourcing service providers, the industry could achieve most of the supply chain and business objectives. Logistics outsourcing companies allow real-time operations, better visibility, speed to market, protection from cyber threats, and use of better technology.

logistics outsourcing

Some of the logistics outsourcing trends in 2021 are:

Use of Artificial Intelligence(AI)

Automation is a growing trend in most industries. Artificial Intelligence has allowed the automation process in the logistics industry. AI algorithms could handle basic operations automatically. Thereby saving time and any form of error leading to better efficiency.


Blockchain is an encryption-based distributed computer filing system that creates real-time records. This brings transparency to the logistics and allows to automate the commercial process. Through blockchain, one could track and trace the product from the time it leaves the factory till the final delivery to the customer. With IoT, the blockchain will provide smarter logistics. On delivery, it would automatically send the confirmation and also about the condition of the goods. Thus, one could check whether they follow the agreed conditions and payment leading to better efficiency.

Use of Internet of Things (IoT)

The Internet of Things (IoT) allows connecting everything from people to parcels. IoT devices allow the logistics companies to track the shipments in live and provide better maintenance. Also, IoT could be used by the consumers to check if the parcel has left the godown and delivered, thereby reducing the chance of theft.


5G has the potential to pull up the logistics industry by providing better digitalization for monitoring, tracking, and theft detection. Through 5G, the logistics industry could optimize its routes. This cuts out the unnecessary inefficiencies. Also, during all the points of the trip, 5G allows the logistic managers to check upon the cargo.

Robotic Automation

For performing labor-intensive tasks, autonomous mobile robots could be used. This allows the logistics labors to spend time on decision making. Order picking up, sorting, and warehouse execution are some of the tasks of the robots. Thus, allowing the labor processes more efficient and in time.

Smart Contracts

Smart contracts allow generating an invoice when the shipment arrives at the destination. Also, it conducts financial-based transactions between the parties. One could settle payments using cryptocurrencies through smart contracts.

Agile supply chains

From the ongoing pandemic, agility is the factor supply chains must learn. They must be always ready to be flexible with any major or minor shocks. With the help of AI and machine learning, supply chains could make models that predict future events and get prepared for them. Another place where agility is required is in the personalization of shipments. Companies should make infrastructure that allows customized orders within the supply chain.


The changing nature of the logistics industry is really exciting. Every year lot of changes come with and helps in the growth of the industry and provide many ideas that solve most of the challenges. Thus, the ups and downs faced in the year 2020 will be solved in 2021.

NexGenLogistics BPO is an offshore logistics outsourcing company that provides many logistics bpo services. Our logistics outsourcing services help the logistics industry to achieve high productivity by allowing them to concentrate on the core functionalities of the business. For more information about our services contact us at [email protected]

Post Author: Natsha Fernande