What are the most common risks and challenges that global logistics face in the current environment?

2 Regulations and compliance

Global logistics has to comply with various regulations and standards that differ across countries and regions. These include customs, tariffs, taxes, trade agreements, environmental, social, and ethical requirements, and security and safety measures. Compliance can be costly, time-consuming, and complex, especially when regulations change frequently or are inconsistent or unclear. To deal with regulations and compliance, global logistics needs to stay updated, informed, and prepared. This means monitoring and analyzing regulatory changes and trends, engaging with relevant authorities and stakeholders, and adopting best practices and tools to facilitate compliance.

3 Sustainability and social responsibility

Global logistics has a significant impact on the environment and society, both positively and negatively. It contributes to economic growth, development, and integration, but also to greenhouse gas emissions, resource consumption, waste generation, and social inequalities. As consumers, governments, and investors become more aware and demanding of the environmental and social performance of global logistics, it faces increasing pressure and expectations to become more sustainable and socially responsible. To achieve sustainability and social responsibility, global logistics needs to align its strategies, operations, and culture with the principles of the triple bottom line: people, planet, and profit. This means measuring and reducing its environmental footprint, enhancing its social impact, and creating value for all stakeholders.

4 Technology and innovation

Technology and innovation are key drivers and enablers of global logistics. They offer new opportunities and solutions to improve efficiency, quality, speed, and customer satisfaction. They also create new challenges and risks, such as cyberattacks, data breaches, skills gaps, and ethical dilemmas. Global logistics has to keep up with the rapid pace and scope of technological change and innovation, which can be disruptive and transformative. To leverage technology and innovation, global logistics needs to invest in research and development, adopt and integrate new technologies and systems, develop and upgrade skills and competencies, and foster a culture of innovation and learning.

5 Competition and collaboration

Global logistics operates in a highly competitive and dynamic market, where customer expectations, preferences, and behaviors are constantly evolving. It also operates in a complex and interdependent network, where collaboration with other actors, such as suppliers, carriers, intermediaries, and customers, is essential. Global logistics has to balance between competition and collaboration, both internally and externally. It has to differentiate itself from its rivals, but also cooperate with its partners. To achieve competition and collaboration, global logistics needs to understand its strengths, weaknesses, opportunities, and threats, as well as its value proposition, customer segments, and competitive advantage. It also needs to establish and maintain trust, communication, and coordination with its collaborators.