Glo Csi Logistics Trend Radar 7 0

Insights. Shaping Tomorrow.
Your guide to innovation in logistics.

AI & Sustainability in focus.
Contents Radar
CONTENTS
INTRODUCTION 03
WHAT‘S NEW 05
INNOVATION APPROACH 06
THE LOGISTICS TREND RADAR 7.0 07
SOCIAL & BUSINESS TRENDS 08
TECHNOLOGY TRENDS 88
SPECIAL THANKS & CONTRIBUTION 195
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Contents Radar
The DHL Logistics Trend Radar

is an invaluable strategic resource
for our customers and the logistics
community. It consolidates key logistics
trends, with AI and sustainability taking
the lead in this edition, driving the
evolution of businesses, consumers,
and technologies over the next decade.
This empowers our customers and us
to stay competitive in a demanding
landscape.
KATJA BUSCH
CCO AND HEAD OF
DHL CUSTOMER SOLUTIONS & INNOVATION
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INTRODUCTION Contents Radar
Insights. Shaping Tomorrow.
DR. KLAUS DOHRMANN

VICE PRESIDENT,
HEAD OF INNOVATION & TREND RESEARCH
PROJECT DIRECTOR & CO-AUTHOR
Today’s professional climate is often called the “new Shaping tomorrow requires innovation and collaboration.
normal,” implying our world has changed significantly The DHL Logistics Trend Radar underscores the signific
since the global pandemic. But this new state is not static. ance of both, enabling a deeper, shared understanding
We are living in a period of constant transformation in of emerging trends, anticipating future disruptions,
society, business, and technology. Successful logistics and encouraging organizations to foster partnerships.
organizations are responding powerfully to this by Collaboration within and outside the industry is the most
putting customers at the center of every action, aiming effective way to create and co-create groundbreaking
for supply chain excellence that is global, resilient and, solutions and proactively adapt strategies to stay ahead
above all, sustainable. of the curve.
Over more than a decade, the DHL Logistics Trend Please enjoy the discovery and inspiration of the latest
RadarTM has become a recognized benchmark for trends influencing logistics. We welcome you to connect
strategy, innovation, and education, helping logistics with the open DHL innovation ecosystem, and we look
professionals navigate ever-evolving landscapes and forward to shaping tomorrow together through true
seize new opportunities. With this seventh edition, innovation – beyond potential.
our commitment remains the same – to provide DHL
customers, colleagues, and partners with valuable
insights that reflect the direction of societies, businesses,
and technologies, enabling the logistics community to
shape tomorrow.
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WHAT‘S NEW Contents Radar
The DHL Trend Research team has been closely composition of this latest publication, the Logistics
monitoring key technology as well as social and Trend Radar 7.0. There is more focus on trends identified
business trends for over a decade. Every two years, with an adoption timescale of five years or less, as well
the team updates the Logistics Trend Radar to reflect as showcasing noteworthy developments in artificial
our perspectives on the development of existing intelligence (AI) and in sustainability.
and newly emerging trends, and how they impact
logistics as a whole. The basis of the Logistics Trend Radar is DHL’s cust
omer-centric, integrated approach which empowers us to
Since publication of the previous edition of the Logistics harness the perspectives of our valued customers along
Trend Radar in 2022, we have witnessed several with those of DHL colleagues who are on the ground daily,
relevant developments that have influenced both, driving and experiencing the transformation of logistics.
trends’ adoption and impact on logistics, i.e. changing We complement these insights using classic research
the position of trends on the radar. Additionally, through methodologies and incorporate the viewpoints and
countless engagements with customers, colleagues, assessments of multiple experts, including key opinion
and partners, we have identified new trends to drive leaders from influential think tanks, renowned consultancy
enhanced discussions and accelerate collaboration firms, and top-tier academia from around the world.
on logistics innovation. Overall, this has altered the
LOGISTICS TREND RADAR 7.0

Overview of changes vs. 6.0
Graphic source: DHL (2024)
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OUR INNOVATION Contents Radar
APPROACH
It is our core belief that delivering impactful inno with facility managers and workers is testament to our
vation in logistics can only be achieved by staying dedication in visualizing and implementing solutions
close to customers, close to technology, and close to that yield benefits for both our valued customers and
operations. colleagues.
We cultivate open conversations and engagement with Our end-to-end innovation approach starts with
our customers about business strategies, future needs, thought leadership and continues through customer
and challenges in order to validate ideas, develop use engagement, technology scouting, and research,
cases, and leverage technologies and expertise. We all of which enables us to identify and understand
achieve success through strong customer buy-in and technological breakthroughs.
close collaboration across our innovation ecosystem.
This is the foundation of the Logistics Trends Radar
We are driving the transformation of logistics by tracking and of many other DHL thought leadership trend
and engaging visionary developers and providers across reports. With a finger on the pulse of relevant trends,
industries and by staying at the forefront of emerging we run proof-of-concept projects in real-world supply
technology and supply chain innovation. This enables us chain settings with our customers and within the DHL
to identify and co-create new solutions beneficial to our network of operations to fully understand application
customers. benefits and challenges. Successful projects open up
opportunities for productization and scaling, so that
We leverage our own global DHL logistics operations these solutions are available internally across DHL
to improve efficiency, quality, sustainability, and safety. operations and commercially to our customers.
Our commitment to spending substantial time on-site
DHL Trend Research Innovation Funnel
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THE DHL LOGISTICS Contents Radar
TREND RADAR 7.0
HIGH IMPACT LOW IMPACT ADOPTION

Revolutionary applications that Evolutionary changes with The common way of operating
are potentially disruptive. incremental improvements. and doing business in logistics.
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SOCIAL & Contents Radar
BUSINESS TRENDS
Section Contents
AI Ethics 09
Circularity 13
Cybersecurity 2.0 18
Decarbonization 23
Diversity, Equity, 28
Inclusion & Belonging
Digital Marketplaces 32
E-Commerce Evolution 36
ESG Advocacy 41
Everything As A Service 46
Green Urban Transformation 50
Mass Personalization 55
Metaverses 60
Supply Chain Diversification 64
Silver Economy 69
Smartification 74
Space Economy 78
Workforce Focus 82
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Social & Business Trends Contents Radar
AI Ethics
The trend of AI ethics refers to the increasing While the topic of AI ethics will impact most industries,
focus on addressing the ethical considerations and this in turn will have significant impact on the logistics
implications of artificial intelligence technologies industry:
and ensuring their responsible development and
deployment. Within this trend we also explore With the increasing reliance on AI-powered systems for
legislative developments of AI platform, and the managing logistics operations, there‘s a growing need
implications of data safety and algorithm security. to address concerns regarding the privacy and security
of sensitive data. AI Ethics standards will emphasize
AI Ethics is an emerging field concerned with ensuring the importance of robust data protection measures
the responsible development, deployment, and use to safeguard customer information, and proprietary
of artificial intelligence technologies. Its development data. Company compliance regulations for employees
accelerated in response to growing public awareness of already exist for decades, however amendments to
AI‘s ethical implications, fueled by high-profile incidents, these regulations to extend inclusivity of addressing
debates around democratizing it, and developments in compliant use of company data when it comes to AI
regulatory frameworks to address issues such as bias, integrations to collaboration tools or company portals
privacy, explainability, and transparency in AI systems. will need to be created. Within company compliance
In the logistics industry, AI Ethics plays a crucial role in regulations, here we will also see country laws being
addressing concerns related to data privacy, algorithmic included. This opens a new domain in the world of
trustworthiness in route optimization, ensuring that AI compliance and legal clauses/ contractual obligations
technologies are not only implemented responsibly for employees.
while maintaining safety, fairness, and transparency in
supply chain operations, but also ensuring the ethical
use of AI platforms by the users.
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RELEVANCE TO THE Social & Business Trends Contents Radar
FUTURE OF LOGISTICS
Trustworthy & Explainable AI Ethical End User/ Use
Explainable AI is the ability to trace back an algorithm

to the data that it is built on, and find the logical chain
of association from secure and trustworthy data, and
its traceable training to build a deep learning algorithm. Consumer ethical behavior and use of AI systems include:
In this logic similar to a mathematical equation, we are Compliant and ethical content creation and not
able to determine and explain with high confidence publishing deep fakes of any persons. Examples of this
the output of what an AI has either generated or can be seen in the creation of deep fake videos of public
analyzed. Explainable AI can offer insights into the figures being posted with messages about companies,
factors influencing demand forecasts, enabling better governments, or other public entities which are not real.
decision-making and accountability. The explainabililty Such occurrences would involve hacking and accessing
of those outputs is found in the processing of consumer data which is “stolen” and not intended for use beyond
data- which, if tampered with, renders the output approved groups of people, and using this data to
untrustworthy. Here we see an emphasis on the generate untrustworthy outputs. In logistics, employees
importance of data security and protection against having access to customer data, trade secrets, and other
cyberthreats or hacking. AI can be made explainable sensitive company information which can be used to
and trustworthy through understanding: build algorithms creates a space where the possibility
of non-compliant behavior could stem. Robust measure
Intention- AI systems are constructed by humans to to secure data processing and accessibility is an area of
make decisions based on historical data or real-time increasing need for implementation.
information. Predetermined responses are embedded
in the AI systems. This can also be said for use cases such as AI generated
route optimization, or questioning outputs that appear
Intelligent- The ability to make intelligent decisions with biased or discriminatory. End users may report instances
AI systems is facilitated by combining machine learning of bias to the relevant authorities or organizations,
and data analytics. AI isn‘t intelligent like a human being. encouraging the development of fairer algorithms and
Human intelligence is closest to what a machine can mitigating potential harm to marginalized groups.
approximate. Some consumers actively engage in co-design processes
or participate in feedback mechanisms to contribute to
Adaptive- The AI systems compile information and make the development of more ethical AI systems. By sharing
decisions based on compiling and adapting to new their perspectives, concerns, and values, consumers
information. AI systems can improve the outcome of can help shape AI technologies that align with ethical
decision-making with data they learn from real-time data. principles and better serve diverse needs and interests.
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AI Legislation & Democratization

While not legally binding, these guidelines influence
the development and deployment of AI systems in
various sectors, including logistics. Other legislative
implementations such as CCPA (California Consumer
Privacy Act) or the recently implemented subsidy to
learn AI models in Singapore, approving $20M of
government funded education for people above 40
years of age clearly demonstrates the economic impact
of AI and the need for regulatory measures to ensure
ethical use.
GDPR, applicable in the European Union (EU) and
the European Economic Area (EEA), regulates the The democratization of AI involves making AI
processing of data and imposes strict requirements on technologies accessible, affordable, and easy to use
data controllers and processors. Logistics providers for a wider range of individuals and organizations,
using AI systems must comply with GDPR principles, irrespective of their technical expertise or financial
ensuring transparency, lawfulness, and fairness in the resources. Key aspects of AI democratization include
processing of all data. providing accessible tools and platforms, offering
affordable pricing models, providing education and
The European Commission has published training opportunities, fostering community collaboration,
ethical guidelines for trustworthy AI, emphasizing and emphasizing ethical considerations in AI development
and deployment.
principles such as fairness, transparency,
accountability, and societal benefit.
Graphic source: datacamp (2023): Explainable AI - Understanding and Trusting Machine Learning Models
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SUMMARY & TREND Social & Business Trends Contents Radar
OVERVIEW
Challenges Outlook
Bias in Algorithms: The logistics industry faces Regulatory Scrutiny Increase: Over the next five years,
challenges related to algorithmic bias, which can lead the logistics and supply chain industries are likely to face
to unfair treatment, inefficiencies, and discrimination heightened regulatory scrutiny regarding AI Ethics, with
in supply chain operations (sanctions and geopolitical governments and industry bodies introducing new laws,
events fueling public algorithms). guidelines, and standards to address ethical concerns related
to data privacy, algorithmic bias, and accountability in AI-
Data Privacy Concerns: Managing sensitive data within driven logistics operations. Ethical AI Frameworks Adoption:
supply chains raises ethical dilemmas regarding data Companies operating in logistics and supply chains are
privacy, security, and ownership, particularly when AI expected to increasingly adopt and implement ethical AI
systems are involved in data processing and analysis. frameworks and best practices to mitigate risks, build trust
with stakeholders, and ensure responsible AI deployment.
Accountability and Transparency: Ensuring accoun- This includes integrating principles such as fairness,
tability and transparency in AI-driven decision-ma- transparency, accountability, and societal benefit into AI
king processes within logistics requires clear mecha- development, deployment, and use. Ethical Supply Chain
nisms for understanding, auditing, and explaining the Management: As awareness of AI Ethics grows, there will
reasoning behind AI-generated recommendations and be a greater emphasis on ethical considerations throughout
actions. the supply chain, including sourcing, manufacturing,
distribution, and customer engagement. Companies will
leverage AI technologies to enhance supply chain visibility,
traceability, and sustainability while addressing ethical
concerns such as human rights violations, environmental
impact, and employee welfare.
This trend should be carefully monitored with imple

mentations available for many use cases today.
Related Trends
Advanced Analytics Cybersecurity 2.0
Diversity, Equity, Gen AI

YourStory (2024): Subsidy to Learn AI Models: Singapore Budget to Accommodate AI Learning for People Over 40
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Circularity
The trend of Circularity aims to eliminate waste and The Circularity Gap Report reveals the vast
pollution by considering the full product lifecycle in majority of materials entering the economy over
advance, designing and utilizing each item and its
five years to 2023 were virgin, with the share of
constituent parts to be returned in the supply chain.
This trend seeks to reuse, repair, remanufacture,
secondary materials declining from 9.1% to 7.2%.
and recycle products as much as possible and, when
these processes are no longer achievable, products
are broken down into reusable components and raw However, new legislation is likely to strengthen progress.
materials and ultimately biodegraded. A good example of this is the European Commission’s
new rules on the ‘right to repair’ for consumers,
There is gradual but unsteady progress towards a which may incentivize companies to implement more
circular economy. Although 55% of large businesses sustainable solutions. Circularity concepts require
have committed to circularity, more than half of their dramatic transformation of the processes of product
initiatives are narrowly confided to recycling or waste design, production, and recycling, which is why the
management. Many companies’ strategies are not supply chain is a key enabler of this trend managing
yet encompassing the full range of technologies and and moving flows of raw resources, goods, returns, and
business models for a circular economy, for example, waste among a new network of users in a sustainable,
re-engineering products to last longer, embracing circular manner. Circularity as a trend is therefore likely
repairability, adopting leasing models, reducing virgin to significantly impact the logistics industry, with logistics
material use and providing complimentary services players becoming essential sources of knowledge for
throughout the lifecycle of a product. the transfer of best practice across sectors. But current
momentum to explore, invest in, and adopt circular
products and solutions appears lacking. Hence, it will
take considerable time for circularity to achieve maturity
and widespread adoption along the supply chain.
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The Rise of Recommerce

luxury goods such as bags and clothing. Furthermore
companies like Patagonia embrace recommerce as
part of the business model, prioritizing circularity
and sustainability. As the industry evolves, it is crucial
for companies to consider the long-term environmental
impact of their business models on the future of fashion.
Recommerce business models present challenges for
all industries, especially in terms of goods inspection.
Currently, this task is labor-intensive, although digital
solutions, such as computer vision technology, may help
in the future. However, used items typically have low
profit margins, raising questions about the long-term
viability of these business models.
The rise of recommerce impacts logistics in several
ways. Instead of traditional return logistics, recommerce
supply chains redirect return shipments to in-market
Industrial sectors, especially retail, are witnessing the repair, recycle, and/or resell channels, leading to more
rise of recommerce (also known as reverse commerce), localized, yet complex supply chains.
in which previously owned products, new or used, are
sold and shipped to buyers who then repair, reuse,
recycle, and/or resell them, extending the lifespan of
Circular Packaging
the product. This not only promotes sustainability but
also reduces emissions associated with manufacturing
new products. This trend is evident in the smartphone
sector, with the market for new smartphones falling
by 3.2% in 2023. In contrast, International Data
Corporation (IDC) estimated that global shipments
of used smartphones, including officially refurbished
and used smartphones, would reach 309.4 million
units in 2023. This corresponds to an increase of 9.5%
compared to the 282.6 million devices shipped in 2022.
This development is also evident in the e-retail and
fashion sector; however, things are a bit more complex.
While customer-to-customer (C2C) platforms like
Vinted are growing, it remains uncertain whether large
companies are committed to transitioning to a circular
business model or if they view second-hand platforms
as additional income sources only. In contrast to fast
fashion giants, renowned for their mass production
and affordability but often lacking a clear and In the context of circular packaging, plastic remains
dedicated recommerce strategy, the luxury sector has a significant concern. Over 90% of the 400.3 million
demonstrated notable advancements in this domain. tons of global plastics produced in 2022 was fossil-
Esteemed platforms like Vestiaire Collective, which based. In the five preceding years, greener alternatives
is funded by luxury group Kering among others, are – mechanically recycled, chemically recycled, bio-based
gaining increasing popularity by offering second-hand plastics, and carbon-captured plastics – increased only
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Reverse Logistics
slightly from 8.4% to 9.4%. Targets for minimum recycled
content in plastic packaging are under discussion – the
Packaging and Packaging Waste Regulation (PPWR) of
the European Union seeks 30% by 2030 and 50% by
2040 for contact-sensitive plastic packaging, excluding
single-use plastic beverage bottles. Compostable
plastic packaging and packaging with less than 5%
plastic content are also included in the targets. Existing
solutions like refillable options for consumer goods and
compostable, bio-based packaging in the e-retail and
fashion sectors demonstrate the potential of circular
packaging but are not widely implemented.
What’s needed are convenient and incentivized
takeback processes that are as convenient as discarding
the packaging. In logistics, implementation of circular
packaging requires comprehensive visibility of supply
chain processes to ensure the appropriate distribution
of packaging across warehouses and production
facilities. Also, existing transportation capacity must
be fully utilized, leveraging existing delivery routes to
minimize carbon emissions and costs.
Forming win-win partnerships across the value chain

helps de-risk circularity investments. Key challenges
include significant upfront costs and the costs of
returning and cleaning circular packaging, both of which As more companies around the world join the circular
limit solution scalability. Clearly, price points remain economy to reduce waste and save costs, they will be
a crucial barrier to widespread adoption of circular reexamining and redesigning their supply chains to
packaging. conform to circularity principles. For organizations
in logistics, from those handling storage to those
delivering in the last mile, this can mean sizeable shifts
in operations and a focus on so-called reverse logistics
offerings. Next to running warehouses and moving
goods, logistics providers may see increased demand
for value-adding services for products and materials
they currently do not carry.
As mentioned above, circularity is boosted by the
European Commission’s legislation giving consumers
the ‘right to repair’. Consumers can save costs, as the
law entitles them to repair during and after the legal
guarantee period and are allowed to repair products
themselves. For logistics and supply chain managers,
this increases the need for accessible spare parts,
repair manuals, and information on reparability, while
considering business concerns about intellectual
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FUTURE OF LOGISTICS
property rights and professional repair services. regional, and global regulations on transportation.
Additionally, warehouses may see a greater throughput This entails comprehensive considerations for battery
of secondary raw materials like fabric scrap or management, storage, and handling to guarantee
reprocessed lubricants and may need to reconfigure adherence to regulatory requirements. Overall, circularity
facility floorspace and operations to unload, store, and and in particular the demand for reverse logistics solutions
load more of these products. will bring changes and value-adding opportunities to
Taking the complex example of damaged electric local and global supply chains. The logistics industry
vehicle (EV) lithium batteries, logistics service needs to anticipate and prepare for this.
providers must establish specialized expertise in
reverse logistics to ensure compliance with local,
Graphic source: DHL Group (2024): Era of Sustainable Logitics Whitepaper
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OVERVIEW
Challenges Outlook
Most products are not currently designed for reuse As the right to repair becomes ratified by legislation,
and recycling, limiting their ability to achieve companies must prioritize repairable, sustainable product
circularity principles. design, provide spare parts and repair information,
and encourage consumer engagement in circular
The inhibition threshold for end customers to change practices. Supporting all this is the logistics industry as
their own lifestyle and actively participate in circularity the backbone of circularity. Logistics service providers
is high. must adapt their capabilities, invest in technology,
and collaborate to facilitate repair, refurbishment, and
Coordinated visibility and transparency of products recycling. This also includes the development of new
and their components is crucial for redirecting waste logistics service offerings.
as raw materials, but data is currently severely limited,
hampering attempts to close loops across supply This trend should be actively monitored with de
chains. velopments and use cases on the horizon.
Changes in the supply chain set-up for companies to

implement, such as circular packaging solutions, can
be complex, very expensive, and take time.
Smart, affordable, and convenient return solutions

are not available everywhere, so recycling can be more
expensive than using primary raw materials.
Related Trends DHL Resources
Bio-Based Decarbonization Return to sender? Reverse

Materials logistics explained
Whitepaper: Delivering
Everything As Smartification on Circularity
A Service
Bain & Company (2023): 55% of large businesses have made circularity commitments, but linear mindset is holding back progress
Circle Economy Foundation (2024): The Circularity Gap Report
International Data Corporation (2024): Worldwide Market for Used Smartphones Is Forecast
to Surpass 430 Million Units with a Market Value of $109.7 Billion in 2027, According to IDC
Plastic Europe (2024): Plastics – the fast Facts 2023
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Cybersecurity 2.0
The trend of Cybersecurity 2.0 encompasses the next Cyberattacks can significantly impact logistics
generation of solutions, processes, and standard organizations. Importantly, such an impact can
operating rules and regulations that leverage artificial reverberate throughout the entire supply chain, creating
intelligence (AI) and other advanced technologies a ripple effect that can cause up to 26 times the loss
and ways of working against cyberthreats. It involves for a company’s business ecosystem. For this reason,
protection, detection, and response tools that not the trend of Cybersecurity 2.0 will undoubtedly play
only prevent attacks but also actively predict and a pivotal role in ensuring the resilience and security
autonomously detect threats and respond to attacks. of organizations in all sectors. Here at DHL, we
recognize the transportation sector is a prime target
Due to their critical role, logistics networks are a prime for ransomware due to its critical role in the supply
target for cyberattacks. Across the entire supply chain, chain. As logistics operations are heavily driven by
technological advances in generative AI, quantum digital applications and integration, enabling global
computing, and more represent an increasing challenge reach within the supply chain ecosystem, any threat to
to traditional protection and encryption methods. these core tools could devastate the entire ecosystem
Attackers seek to compromise the weakest link in supply and flow of goods. Increase in vast data sets from the
chains, which could be a software supplier or hardware rise in Internet of Things (IoT) implementations provide
manufacturer whose products are used within the attackers with a ready supply of data to sell or exploit.
infrastructure. Meanwhile, increased usage of digital And just as AI and automation are helping logistics
infrastructure, pervasive connectivity, and convergence companies be more efficient, cybercriminals are using
expose previously isolated assets in operations these capabilities in attacks which are increasingly hard
(operational technology). Not only cybersecurity to detect and manage. As risks increase in the supply
teams but also every logistics professional must be chain, the growing demand for skilled cybersecurity
vigilant. Major risks include ransomware, AI attacks, professionals outpaces the supply of qualified
malware, denial of service, information manipulation candidates.
and interference, and attempts to convince employees
to share confidential information (known as social
engineering). Moreover, increasingly sophisticated
hacking makes it difficult to detect the launching of
“dark” services such as FraudGPT and WormGPT .
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Rise of Cybercrime in Logistics

Companies can use AI and machine learning (ML)
to identify the unusual patterns and anomalies that
indicate potential cyberattack. To mitigate damage,
these technologies can quickly adapt to new threats and
automate response actions.
Companies can also use behavioral analytics to monitor
user and network behavior, detecting the deviations
from normal activity that signal potential security
breaches. And automated systems are available to
rapidly disseminate threat intelligence, enabling a faster
response to any emerging threat.
Anticipation & Resilience
The logistics industry is identified as being among the

top 10 sectors impacted by cybercrime worldwide,
as it is one of the most globally connected industries.
While digitalization brings advantages, the dynamic
transformation of systems can leave some security
factors unconsidered. Outdated servers, unpatched
systems, and knowledge gaps between employees
equate to cracks in the IT infrastructure which provide
loopholes for cyberattack. As this applies to all aspects
of the industry, including maritime, rail, trucking, supply
chain, and last-mile delivery, the potential expense of While digitalization and new technologies create business
this risk is high and can disrupt global supplies, while efficiencies, the growth of (e-commerce) platforms and
also introducing additional liabilities like the theft of the masses of data being stored in the cloud increase
sensitive customer data during a cyberattack. the need for cybersecurity. Anticipating cyberattacks on
Massive losses are incurred by owners when these platforms not only secures suppliers but also the
ransomware cyberattacks compromise system access. private data of their customers. Although logistics and
the supply chain continue to operate in a very hands-on
manner through the physical movement of products,
In 2023, the average cost of a security data this requires a significant volume of data processing and
breach was US$ 4.45 million. The cost for information sharing along the supply chain. The typically
disparate network of parties involved in the supply chain
cybersecurity breaches across the board is
creates more ways for would-be attackers to identify
expected to grow to almost $10.5 trillion by 2025.
weak links in cybersecurity. It is vitally important for
logistics organizations to increase cybercrime resilience
by implementing a strong digital backbone and by
Cybersecurity 2.0 solutions, processes, rules, and staying up to date with the cyberthreat landscape.
regulations will help protect organizations from such The impact of IT system vulnerabilities on business
losses, while also protecting brand reputation and processes, products, employees, and customers
customer loyalty. alike must be constantly monitored to preserve the
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value chain, keep the global supply chain moving, and systems, so too does the possibility of cyberattack.
ensure a position of cyber resilience. Cybersecurity 2.0 In addition, the level of risk increases when these
brings various AI and ML tools to the table for threat technologies are deployed in cloud-based solutions
monitoring and resilience within organizations. For which capture customer data and data generated by
example, continuous monitoring and real-time analytics the logistics infrastructure, automated warehouses,
enable security information and event management transportation networks, and other logistics operations.
(SIEM) systems to aggregate and scrutinize activity Many operational technology (OT) devices can be
from various resources across the IT infrastructure and deployed in the supply chain to improve visibility and for
analyze hardware and application security alerts. In process optimization. However, these technologies and
addition, an intrusion detection and prevention system automation systems may represent a back door through
(IDPS) can monitor networks and systems for malicious which cybercriminals can access the enterprise system.
activity or policy violation, taking action in real time to Cybersecurity within the software supply chain must be
prevent intrusion. Another valuable tool is vulnerability increased and constantly monitored up to second and
management. Regular vulnerability scanning of IT third tier levels to protect the organization from attack
systems helps identify weaknesses that attackers could through these OT devices.
exploit. Also, automated patch management solutions There are several key areas where cybersecurity needs
keep systems up to date with the latest security patches, to ensure the integrity, reliability, and efficiency of
reducing the window of attack opportunity. devices and technologies. For example, a supervisory
Incident response management is another effective control and data acquisition (SCADA) system can control
method. Automated incident response solutions such critical supply chain infrastructure including energy
as a security orchestration, automation, and response management and manufacturing processes. Robust
(SOAR) solution can automate responses to detect authentication, encryption, and regulatory security
threats. This reduces response times and helps mitigate updates are required to secure the SCADA system.
damage. A further tool is threat intelligence and analysis Another example is separating or segmenting the IT
using a threat intelligence platform (TIP) to collect and network from the operational technology network to
analyze threat data from various sources. This provides prevent a breach in one impacting the other. Companies
insights into emerging threats and helps the organization can use firewalls, virtual local area networks (VLANs),
proactively defend against potential attacks. and dedicated communications channels, actively
monitoring these in real time. Further examples include
supply chain IoT devices such as sensors and smart
Cybersecurity in Operations trackers that needs to be secured against cyberthreats.
These require strong authentication and regular
firmware updates. Mobile and edge devices are also
being used in the supply chain and these need to be
protected through encryption, secure authentication,
and remote management capabilities. Another area is
the security information and event management (SIEM)
systems that can collect and analyze log data from
various sources within the OT environment for real-time
detection and response to security incidents.
As intelligent security expands in operations through

the adoption of technologies such as computer vision,
IoT devices, and AI-powered autonomous surveillance
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Quantum Computing
& Data Protection
time threat analysis. In addition, quantum computers can
simulate complex cybersecurity scenarios and potential
threats more accurately and rapidly, helping companies
achieve proactive defense strategies. However, quantum
computers can also accelerate hacking, and this puts the
enterprise and cybercriminals in a race for the upper hand.
Quantum computing is therefore a double-edged sword,
advancing opportunities for cybersecurity practitioners
and raising risks in the cybersecurity environment at the
same time. Although quantum computers are not yet
commercially available, once they materialize and fully
Quantum computing can provide an extra layer of digital mature, attackers are likely to use them to break some
privacy and security to counteract hacking. For example, current cryptographic systems.
quantum mechanics principles can be used to create Organizations are recommended to prepare for the
almost unbreakable cryptographic keys and ensure secure quantum computing era by assessing their current
communication channels resistant to quantum attacks. cybersecurity position and developing transition plans.
Quantum computing can accelerate ML algorithms used This should include evaluating the readiness of existing
for anomaly detection, pattern recognition, and real- systems and infrastructure for quantum-safe solutions.
Graphic source: ENISA (2023): ENISA Threat Landscape 2023
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Challenges Outlook
Humans are the first line of cyberattack defense, The logistics cyberthreat landscape is increasing and
so the organization must dedicate sufficient becoming more complex with the arrival of new, improved
cybersecurity resources and provide ongoing technologies. For every company, cybersecurity and threat
employee training, reminding personnel how to detection must be foundational to secure operations
remain alert to threats and, if necessary, conducting and protect all resources, with focus in the software
special exercises such as sporadically imitating value chain to more tiers, protecting the organization’s
phishing attempts. suppliers and partners as well. Cybersecurity 2.0 offers
a comprehensive approach to navigate ever-evolving
Responding to the increased availability of technology cyberthreat landscapes. By prioritizing prevention,
interfaces, fueled by AI, the organization needs a detection, and response, the organization can safeguard
much larger pool of educated and knowledgeable its data, systems, and reputation in these challenging
cybersecurity personnel but these specialists may times.
not be readily available.
This trend should be actively monitored with use
Companies must invest more because defense cases in some applications that can already be
against cyberattack is becoming more costly, addressed today.
complex, and tech-heavy.
Related Trends
Blockchains Computer Vision
Edge Computing Next-Generation

Connectivity
IBM (2023): Cost of a Data Breach Report 2023
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Decarbonization
The trend of Decarbonization is the movement The Decarbonization trend has high impact as practically
towards reducing the amount of carbon dioxide all segments of the supply chain must change to
(CO2) and carbon dioxide equivalents (CO2e) in the eliminate CO2e emissions from operations. However,
atmosphere. Decarbonization involves burning less while many business-to-business (B2B) and business-
fuel for the same transport work and burning clean by to-consumer (B2C) organizations and other companies
increasing the share of clean, carbonneutral transport have set zero emissions targets and are taking important
movements with the aim to reach carbon neutrality steps, more progress is needed to decarbonize the
and to ultimately reach carbon negative operations. supply chain. The development of this trend is expected
to accelerate once regulations require disclosure of the
carbon footprint of products and services, particularly
With international concern about climate change as this will create an important point of comparison and
and numerous new policy initiatives and regulatory competition between organizations.
obligations such as the European Council Green Deal and
the European Union (EU) Sustainable Finance Dis-
closure Regulation (SFDR), the pressure is on
organizations to decarbonize. This is particularly true
for logistics – supply chains generate around 60% of all
carbon emissions globally, about 80-90% of a product’s
emissions derive from its supply chain, and logistics
accounts for ~10% of global GHG emissions. Therefore, it
is crucial for logistics organizations to decarbonize their
operations and remain competitive.
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Carbon Accounting & Tracking

Besides that, more regulations and standards are being
introduced, contributing to a future global framework
for carbon accounting. These include the Greenhouse
Gas (GHG) Protocol, ISO 14064 standard, and Carbon
Disclosure Project (CDP) as well as recent regional
examples include the EU SFDR and California Climate
Corporate Data Accountability Act (CCDAA).
In future, more granular data will be obtained. Carbon
accounting software platforms like Sage Earth can
help companies maintain compliance and accuracy
by translating financial data into a measurable carbon
footprint. And the use of carbon calculators, estimates,
and externally verified reports provides further
transparency in carbon accounting and reporting. As
Today, comprehensive accounting of Scope 1, 2, and sensor technology rapidly permeates the supply chain,
3 product emissions (direct, indirect, and upstream it will be possible to accurately calculate and track this at
and downstream, respectively) remains a challenge. shipment level and even product level. With this sensor
Many businesses, including logistics organizations, do data, logistics will not only provide companies with
not account for these emissions at all. The ones that more accurate carbon footprint figures but also identify
do may rely on various secondary sources of carbon areas along the supply chain for decarbonization
calculation with generalized values and assumptions, improvements.
and often fail to factor in emissions by second-tier and
third-tier players. This makes it difficult for B2B and B2C
customers to accurately compare and choose suppliers
and service providers that meet their environmental
Green Laws & Regulations
standards, especially when evaluating on a product-
level basis.
However, steps are being taken to address this
customer need. For organizations that currently
struggle with carbon accounting, partners like DHL
offer carbon calculators, estimates, and externally
verified reports. This enables companies to account
for Scope 3 emissions from a single shipment across
all trade lanes, including data from our third-party
service providers. Transparency holds the key as
achieving visibility will likely stimulate compliance
across all value chains and sectors. This in turn will
ensure dependable comparisons between all players
in the supply chain. Part of the World Business
Council for Sustainable Development (WBCSD),
the Partnership for Carbon Transparency (PACT)
organization has developed a suitable framework Greater awareness of climate change is pushing policy
which increases transparency, enables uniform makers to do more, and citizens are increasingly
calculation, and allows product-level emissions data supportive of this, although environmental protection
to be shared across all value chains and sectors. measures may raise the cost of living. Logistics
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FUTURE OF LOGISTICS
organizations should anticipate new regulations, Norway’s capital city, Oslo as an example has
prepare for compliance, and recognize the opportunity implemented a car-free zone and aims to achieve a
for first-mover advantage. Transportation is profoundly fully electric taxi system by 2024. The city also employs
impacted by electrification legislation which is rapidly a combination of toll rings and differentiated parking
developing. It incentivizes the production and purchase fees based on vehicle emissions. Also, the Californian
of electric vehicles (EVs) and in some cases even bans city of Santa Monica now has a Zero Emission Delivery
the use of combustion engines. Examples include the Zone where electric delivery vehicles, cargo bikes, and
US Inflation Reduction Act providing EV incentives, walking deliveries are prioritized. In summary, rules and
China’s New Energy Vehicle (NEV) mandate ensuring regulations are increasingly affecting all parts of the
automaker production levels, and the UK’s Road to Zero supply chain.
Strategy cleaning up road transport by 2030. Another
crucial lever in the decarbonization of the supply chain
is packaging, given its pollution potential, resource Optimizing Operations
utilization, and carbon footprint.
Many regulations aim to minimize harm from non-
recycled material leaking into the environment, decrease
greenhouse gas emissions associated with packaging
functions, and improve the circularity of recycled
materials throughout the supply chain.
The EU’s Packaging and Packaging Waste Directive sets

recovery and recycling targets for packaging waste
and encourages minimization of packaging volume
and weight, designing for reuse and recycling, and
reducing hazardous substances in packaging materials.
California’s Rigid Plastic Packaging Container (RPPC)
law mandates these containers have recycled post-
consumer content, are reusable, or are sourced from
recycling programs. In Japan, the Containers and
Packaging Recycling Act requires businesses to sort and
recycle containers and packaging. Manufacturers and
importers of products are responsible for packaging
recycling, which promotes the effective use of resources. As supply chains are responsible for around 60%
of global CO2 emissions, there is significant
scope for improvement in logistics operations.
Decarbonization is also supported by the rise Logistics organizations need to understand the
of zero-emission zones (ZEZs), designated areas carbon impact of each facet of their operations as the
foundation to drive change and accurately track results.
restricting or banning vehicles that emit pollutants.
Available levers to achieve carbon reduction and
These zones help cut emissions, improve air quality,
eventually neutrality include electrification,
reduce noise, and encourage the use of clean carbon-neutral building design, and sustainable
transportation alternatives like electric vehicles, fuel sources such as liquified natural gas,
bicycles, and public transport. sustainable aviation and maritime fuels and
hydrogen power cells . Logistics organizations
can also cut emissions by optimizing the
transportation mode mix; shipping via ocean and
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FUTURE OF LOGISTICS
and rail instead of air and truck is more carbon- heating, fuel e-vehicle fleets with local renewable sources,
efficient, if time-to-delivery can be extended. and implement smart facility management systems.
Measuring the total delivery time travelled and The initial costs of these and other environmentally
determining optimal routing for last-mile fleets is friendly solutions may be higher than wasteful
another way to shrink the carbon footprint. The alternatives.
German software developer Greenplan provides But customers demand greater sustainability in
ways to track, measure, and evaluate the the supply chain. As CO2e emissions become more
carbon impact of logistics activities. A further way to identifiable, commoditized, and framed as operating
optimize operations is to ensure logistics facilities are costs, logistics players are finding ways to make the
carbon neutral. At DHL, we aim to leverage the latest necessary investments while also reducing the financial
green technologies to have carbon neutral buildings and environmental cost of logistics operations.
across our businesses worldwide. Back in 2021, DHL
pledged to design all new buildings with a zero-
carbon footprint, increase green electricity and
Graphic source: Greenhouse Gas Protocol (2013): Technical Guidance for Calculating Scope 3 Emissions
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OVERVIEW
Challenges Outlook
Standardized carbon accounting practices are not The social and regulatory pressure to be carbon neutral
yet global and legislation continues to develop or even negative on logistics is stronger today than ever
around emissions and offsetting. before. More than 4,000 businesses around the world
are already working with Science-Based Targets to
As it is hard to predict the ramifications of policies achieve corporate climate pledges and reduce emissions
and regulations, financial risk is involved in techno- in line with the Paris Agreement goals. Given that supply
logy and new market selection. chains lie at the heart of decarbonization conversations
and agendas, it is imperative for logistics organizations
Inconsistent, generalized, decentralized, and opa- to make the necessary moves early. Now is the time to
que data may be used to calculate product carbon adapt to decarbonization changes, ensuring the supply
footprints (PCFs) and logistics emissions; this ma- chain operates and delivers effectively in this era of
kes it difficult to assess and compare values. sustainability.
Decarbonization solutions often require heavy This trend should be actively monitored with use
upfront investment and potential implementation cases in some applications that can already be
downtime. addressed today.
Economies of scale in decarbonization solution

investments are not yet available to logistics provi-
ders, so customers may have to pay more for pro-
ducts and services.
Circularity Renewable Energy

Yellow goes green: DHL’s 2050
Infrastructure
Sustainability commitment
DHL Express’ roadmap to de-

Sustainable Fuels Vehicle carbonization
Electrification
DHL Group- Sustainability

United States of America
Sources
Accenture (2023): How supply chain sustainability Carbon Neutral Buildings
helps unlock resilience and growth
DHL (2023): The Report – A retrospective on the Era of Sustainable Logistics
Accenture (2023): How supply chain sustainability helps
unlock resilience and growth.
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Diversity,
Equity, Inclusion
& Belonging
The trend of Diversity, Equity, Inclusion & Belonging Within logistics and the supply chain – previously
(DEIB) refers to four concepts that work jointly to predominantly male domains – there is growing
bolster the effectiveness, productivity, dynamics, recognition of benefits of greater diversity at operational
and creativity of an organization while ensuring and leadership levels, especially as this alters the ways
individuals have equal opportunities and feel valued. in which team members interact within the workplace.
Guided by mutual respect, trust, openness, and Employee engagement increases as inclusion is realized
honesty, this trend both encompasses and extends and, in turn, this increases the need to belong – which
beyond the borders of gender, race, religion, age, can be seen both as a “longing to be” and “being for
different ability, sexual orientation, national origin, long,” an affective and sequential dimension that
and other characteristics protected by law. delivers psychological safety. Ultimately, inclusion and
belonging lead to better corporate results.
One of the most rapidly developing social and business
trends in the last four years, DEIB has evolved from When employees see their employer prioritizes DEIB,
diversity and inclusion to now also recognize individuals especially the belonging dimension, they are less likely
as being a long-term, integral part of the organization. to leave. Among a range of other benefits, research
This is the frame in which employment seekers consider shows organizations that promote and support DEIB are
potential employers. Companies cultivate DEIB as 2.6 times more likely to increase employee engagement
part of corporate culture as it helps attract and retain and improve retention. In the US, the annual cost of
talent and boost employee performance. Here at DHL, workplace bias is projected at US$ 64 billion. This
we additionally see this trend developing from the estimate is based on the expense of losing and replacing
individual level to the organizational level. The imminent more than 2 million workers due to unfairness and
realization of this trend shows people and companies discrimination – a key consideration for organizations
understand the importance of increasing DEIB. seeking competitive advantage.
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Supplier Diversity
selection. According to Gitnux, compared to companies
that don’t have diverse suppliers, companies that do show
a 133% greater return on procurement investments.
This indicates the potential benefits of supplier diversity.
Being more inclusive with its suppliers also allows the
organization to reach a wider audience. Clearly, vendor
diversity benefits everyone. Companies gain new value
and minority-run businesses gain new opportunities.
In recent years, there has been a significant rise in

Diversity in Leadership
companies preferring to trade and do business with
diverse companies. Vendor selection and the process
of auditing a potential supplier now focus more keenly
on social responsibility and enabling minority-owned
businesses to thrive. Companies use supplier diversity
programs to unlock new value; for example, to drive vendor
competition, enhance brand perception, encourage
innovation, positively impact the local economy, and
improve the bottom line. In logistics, considerations are
increasingly influencing vendor selection processes,
with companies prioritizing partnerships with vendors
that demonstrate a commitment to diversity and equity
practices.
Diversity in leadership enables greater depth and
breadth of experience, perspective, and knowledge;
These programs also help promote diversity by sharing this, leaders are better able to relate to
across each company’s ecosystem. Research employees, partners, customers, and prospective
customers. This, in turn, helps the business to grow.
suggests industry-leading companies globally are
It also facilitates change and fosters innovation so the
aware of this, as they have committed more than organization can retain and build market position.
$50 billion to partner with minority and women- Seeing diversity in the leadership team acts as a catalyst
owned business enterprises (MWBEs) in the next that empowers and enables the entire organization. For
decade. Further boosting the economy, MWBEs example, having women in leadership in predominantly
are 67% more likely to employ minority talent and male-dominant industries such as logistics positively
develop these people into higher positions. changes the perspective of other female employees.
The same applies when leadership roles are filled by
people from minority groups – those of different races,
religions, abilities, sexual orientation, national origin,
According to McKinsey, if spending with certified MWBEs and other previously underrepresented groups. Within
doubled, so $2 trillion rather than the current $1 trillion, these companies, everyone feels encouraged to bring
this could generate $280 billion in additional income their skills and talents to the workplace. The leadership
and 4 million jobs for minority populations and women. team must come together to make collective decisions
Corporations have the potential to add value and help during times of challenge and uncertainty. When this
boost the global economy by prioritizing MWBE vendor team is diverse – representing a rich kaleidoscope
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of perspectives, different vantage points, and wide- Traditionally, many industries are male dominated at
ranging experiences – conversations are more candid all levels of seniority, including logistics. Today this is
and decisions more innovative. changing, often thanks to technology. For example, by
using exoskeletons in a warehouse, people with less
physical strength than the average man can now lift
Talent Inclusion Through heavy objects with relative ease, broadening the pool of
Technology potential candidates for that warehouse role.
Similarly, robotics that automate operations within a

distribution hub can easily be supervised by differently
abled people to ensure workflows run smoothly. The
talent pool expands exponentially when a company
commits to DEIB – all can be included and all should
belong – and technology-enabled innovations inspire
positive change across the organization, encouraging
more people to apply for work in logistics and the
supply chain.
Graphic source: Adobe (2023): 2023 B2B Commerce Growth Strategies Survey
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OVERVIEW
Challenges Outlook
Employee perception may not match organizational Diversity, equity, inclusion, and belonging go far beyond HR
claims; for example, 97% of human resources (HR) concepts. When successfully embedded in the organization’s
leaders say their organizations have made changes that core values, they leverage the collective backgrounds
improved DEI but just 37% of employees strongly agree. and experiences of everyone in the organization and this
inspires new ways of thinking and sparks fresh ideas. When
To facilitate change and drive DEIB, organizations need DEIB is at the forefront of a job applicant’s mind and is a
to address underlying unconscious bias and enable open priority item on the business agenda, this is pivotal to the
dialog during recruitment and career advancement company’s future success.
conversations.
This trend should be carefully monitored with use
Overcoming entrenched cultural norms and systemic cases in some applications that can already be ad
barriers that hinder inclusivity and equality at all levels dressed today.
can be challenging, especially in large organizations.
Workforce Focus Silver Economy

Diversity, Equity, Inclusion &
Belonging (DEIB)
DHL Group receives awards for diversity,

Exoskeletons Remote Operations inclusion, and equal opportunity
Sources
Business Leadership Today (2024): How Does DEI Affect Employee Retention?
Procurement Tactics (2024): Supplier Diversity Statistics 2024- 35 Key Figures
Harvard Business School (2023): Research: Where Employees Think Companies DEIB Efforts Are Failing
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Digital
Marketplaces
The trend of Digital Marketplaces incorporates digital Digital marketplaces are having a significant impact on
brokerage platforms that match demand for products logistics, especially because of increasingly complex
and services with available supply. These platforms supply chain networks and countless options of logistics
give suppliers and customers access to a greater services and providers. These marketplaces take
market while also offering them comprehensive transparency to a welcomed new level. However, there
transparency and additional services. is a shortage of scalable solutions in some areas; for
example, in matching available workforces and logistics
providers. This means it will take another two to three
Customers value the ease of comparing shipping options years before logistics marketplaces achieve market
and pricing and the access to labor in a digital logistics maturity at scale.
marketplace. Due to this growing demand, logistics
providers and others have expanded their offerings in
recent years and new, specialized marketplaces have
emerged. For example, companies can access available
logistics labor during peak seasons and compare
shipping alternatives on various platforms. Many of
these platforms are becoming more versatile thanks to
growing numbers of participants, deeper data analysis,
increasing transparency, and the creation of a better
customer experience.
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Transparent Freight Forwarding On-Demand Warehousing
In today‘s highly competitive and fragmented freight On the one hand, warehousing and storage providers are
forwarding market, it is difficult for shippers to get not fully utilizing space in facilities, with vacancy often
a comprehensive overview of the variety of logistics reaching 25% while waiting for long-term, high-volume
providers, their services, and related costs. The contracts. On the other hand, to meet customer demand it
transparency of digital freight forwarding marketplaces is increasingly important for manufacturers and retailers
is therefore a big attraction for companies. to be flexible and agile in times of market volatility,
from predictable demand fluctuations to unexpected
Another important feature of digital freight marketplaces, geopolitical events. On-demand warehousing, delivered
which also distinguishes them from traditional freight via a digital marketplace, benefits both sides.
exchanges, is that they are deeply rooted in all process
steps of freight allocation, including booking, tracking, Companies like Warehouse Exchange in the US and
and invoicing. Digital freight marketplaces can access Spacefill in France link retailers with warehouse
everything from the transport request through to providers under agreements more fluid in terms of
invoicing data and can crunch this information using timeframes and volumes than is normally expected with
smart algorithms to obtain critical insights. For example, warehouse rentals. With these on-demand warehousing
DHL’s partner DigiHaul in the UK helps connect business- and fulfillment solutions, retailers and manufacturers
to-business (B2B) shippers with the country’s largest can rapidly respond to disruptions and dynamic market
carrier base and uses digital technology to optimize the demands, shifting goods quickly from one warehouse
operations of its platform users. This reduces operating to another. Meanwhile, logistics companies can make
costs, asset reliance, and carbon footprints. more use of each facility, reach out to a much wider pool
of potential customers, and realize higher margins from
The need to seamlessly connect freight networks in short-term or low-volume commitments.
different markets and across national borders using
digital freight platforms will become increasingly
important for companies operating on a global scale.
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Labor Gap Alleviation

The International Road Transport Union (IRU)
reported similar findings in 2023, estimating that
in 36 countries representing 72% of the world’s
gross domestic product (GDP), 7% (or more than 3
million) truck driver positions remain unfilled.
Establishing workforce marketplaces that connect logistics

providers with available workforces for a short period of
time can help these organizations optimize personnel
resources and address the volatility of workforce demands
across regions and seasons. Czech company Grid, as one
example, offers an emergency network of local drivers to
help logistics companies meet acute delivery demands
during peak seasons. With a labor shortage forecast
As detailed in DHL‘s 2022 Future of Work in Logistics Trend over the next few years, these marketplaces for labor
Report, the aging workforce and greater labor shortages solutions can help logistics organizations avoid headcount
are having a major impact on the global logistics industry, deficiencies, better manage volatility, and keep up with
especially in warehouse operations and truck driving. customer demand.
Graphic source: Adobe (2023): 2023 B2B Commerce Growth Strategies Survey
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OVERVIEW
Challenges Outlook
In logistics, digital marketplaces must guarantee that Digital marketplaces are already having a major impact on
sensitive customer data is kept confidential. the logistics industry. In the future, platform providers will
be able to use not only big data and smart algorithms but
Digital marketplaces require a minimum level of artificial intelligence to even better forecast and match
demand and supply to operate successfully and this can supply and demand as well as tailor the best possible
prove difficult to attain, especially in remote locations
and for specialized logistics solutions. This trend should be carefully monitored with use ca
ses in some applications that can already be
A strong application programming interface (API) is addressed today.
required to integrate every single supplier and customer
on a platform and provide a seamless, transparent user
experience.
Related Trends
E-Commerce Everything As
Evolution A Service
Mass Supply Chain

Personalization Diversification
Here (2020): Waste not want not: SpaceFill helps you turn warehouse space into profit, Datex (2021): 2021 supply chain labor shortages and the role of techno-
logy, Forbes (2022): Supply chain predictions for the coming year, IRU (December 2023): Global driver shortages: 2023 year in review.
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E-Commerce
Evolution
The E-Commerce Evolution trend encompasses also their data-driven management of the supply chain,
a new wave of globalization in the e-commerce specifically their network of suppliers and sellers. Also
market, with successful players exhibiting both crucial to success will be the ability to sustainably offer
innovative and effective supply chain strategies and products at low prices, taking into account the costs
marketing techniques to engage with customers. associated with international deliveries. The impact
Apart from offering inexpensive products, successful of this trend on logistics will be high, as it significantly
companies are leveraging discovery-based shopping impacts cross-border deliveries and global supply
and gamification to keep consumers glued to chains.
their platforms, while incorporating influencer The COVID-19 pandemic supercharged the e-commerce
marketing as well as mobile and social commerce. sector, pushing regular online shoppers and traditional
This especially appeals to the younger generation brick-and-mortar shoppers towards digital platforms
– Generation Z and Millennials who are more price due to lockdown and health concerns, and today we see
sensitive and digitally confident. a drastic shift in consumers’ daily routines in the digital
realm. By 2025, McKinsey estimates cross-border
Many e-commerce and social commerce players are e-commerce in goods will expand to around US$ 500
already aggressively expanding their presence and billion and reach $1 trillion by 2030. The evolution of
operations internationally; an example of this is current e-commerce is largely shaped by the behaviors and
competition in the US between Shein, Temu, and TikTok preference of Gen Z and Millennial consumers, the
Shop. This is why, here at DHL, we see the realization growth of data and artificial intelligence (AI), and the
timeline for this trend within the next five years. The fact that Chinese e-commerce and tech companies are
success of e-commerce and social commerce companies turning their attention overseas. Along with accelerated
joining this evolution will depend on not only their digital global trade, other phenomena driving this trend include
marketing strategies and social media integration social media integration and eventually data crawling
(merging shopping and entertainment to engage (the automated process of systematically exploring the
website visitors with so-called shoppertainment) but internet and indexing data sources).
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Large-Scale Automated Test &
Reorder (LATR) Model
reflected in an influx of products online, and these are
often transported in smaller, faster, and more regular
shipments. For example, the deployment of this model
enabled Shein to generate 20 times as many new items
as more traditional retailers H&M or Zara in 2021.
Social Commerce & Gamification
The large-scale automated test and reorder (LATR)

model is used by companies like Shein and Temu to
enable identification of innovative and inexpensive
items of merchandise and then commission just a small
order from a partner factory. If that item proves popular,
the model allows production volumes to be rapidly Continuous digital transformation and evolution,
increased. Already, this “test-before-mass-production“ initiated by the advent of the internet and its subsequent
approach is directly matching consumer demand to transition to mobile internet on smartphones, plus the
dispersed production by a very large number of suppliers. emergence of social networks, have together given rise
to novel forms of online shopping. One in particular,
Relying heavily on the use of big data and data shoppertainment, is highly popular with Gen Zers
crawling, the model helps companies understand what and Millennials. The aim is to give consumers a fun
products consumers respond to. Ultimately, it guides and immersive buying experience, as this helps build
how companies manage their network of suppliers in stronger connections, increase conversion and sales,
producing these goods. With this model, companies can and foster brand loyalty. Content is delivered through
analyze data to create more successful products and, if livestream selling, shoppable videos, contests and
design flaws are identified, quickly make changes and giveaways, gamification, and augmented reality (AR).
scale production. They can also use algorithms to guide Platforms such as Facebook and Instagram with billions
consumers with purchases and match manufacturing of users have inadvertently become sought-after
capacity to consumer demand. apps through which to promote and sell goods. And
e-commerce companies continue to integrate social
Deploying the LATR model gives companies significant commerce and gamification features on their websites
competitive advantage in the e-commerce market, to further fuel consumer purchases.
allowing them to respond to consumer preferences Examples include the Chinese online shopping platform
in an extremely agile manner, while keeping inventory Taobao which has huge followings and sells billions of
lean and responsive. The success of these companies is dollars of products. TikTok Shop delivers shoppable
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short and live videos and gets creators to make media influencers can normalize and even glamorize
captivating promotional videos, rewarding them with these products, particularly with younger consumers.
sales commission. The luxury brand Gucci partnered Perception plays a part too. Not everyone associates
with Snapchat for the world’s first AR shoe try-on with a specific brand image or set of values, making
campaign; it generated a positive return on advertising them more likely to seek alternatives. And some dupes
spending and achieved an 18.9 million unique reach. offer similar aesthetics or functionalities as brand-name
For now, these new forms of online shopping are fueling products at a fraction of the cost, creating a perceived
astounding growth in the e-commerce space. Supply value proposition for consumers. Examples of explicit
chains must be agile and responsive to meet these copies include Dior’s low-top sneakers which cost
increased demands. $1,050 on Dior websites – the counterfeit shoes cost
$68 on the Chinese cross-border platform DHgate.
Temu offers a wide range of goods at unmatchable prices
Social Acceptance of Dupes & such as an electric cooking pot for $2.14, a retractable
storage rack for $6.58, and a swimsuit for $6.18 with
Counterfeits free shipping. The social acceptance of dupes and
counterfeits is impacting supply chains too. For example,
logistics companies serving the e-commerce channels
of multinational corporations may be liable to fines and
penalties if caught storing, handling, and transporting
counterfeit products, as these goods are illegal in
many countries. As volumes continue to grow, logistic
companies must navigate complexities and ensure
regulatory compliance in all countries of operation.
Volume-Driven Supply
Chain Implications
Another shift in consumer behavior among the younger
consumer base is a general social acceptance of dupes
(products that mimic those of other companies without
claiming to be the original nor including reproduced
protected logos) and counterfeits (products that are
copies of trademarked consumer goods and aim to
appear as the original). Counterfeit goods account for
$991 billion in international trade each year. Brands with
the highest volumes of identified counterfeits include
Celine, Dior, Goyard, Prada, and Saint Laurent.
Drivers behind the rise of dupes and counterfeits are cost-
of-living concerns and inflation, resulting in consumers
looking for cheaper alternatives to luxury brands. Also, Due to the rapid rise of cross-border shipments, the
online marketplaces, social media platforms, and e-commerce evolution has potential to disrupt the
mobile e-commerce applications have made it easier transportation industry. Traditionally, cross-border
for consumers to browse and purchase these products. e-commerce products are consolidated and shipped
In addition, promotion of dupes and replicas by social in bulk. However, to meet consumer demand for faster
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delivery, smaller orders of fast-moving products are now The surge in demand for fast fashion and inexpensive
generally shipped via air freight. This means cross-border products may have long-term implications for supply
e-commerce retailers are increasingly competing for chains such as inflated air transportation prices, lack of
limited air cargo space to achieve quick shipping times. air cargo capacity in the event of emergencies or crises,
and e-commerce companies having to build logistic
infrastructure globally to shorten transportation time.
Cargo Facts Consulting estimates Alibaba ships This puts further pressure on the supply chain to meet
from China around 1,000 tons of packages daily, consumption and customer expectations.
Shein 5,000 tons, Temu 4,000 tons, and TikTok
Shop 800 tons – volumes equivalent to about 108
Boeing 777 freighters per day.
Graphic source: McKinsey & Company (2022): Signed, sealed, and delivered: Unpacking the cross-border parcel market‘s promise
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OVERVIEW
Challenges Outlook
There are growing concerns in some countries, Overall, e-commerce has become part of everyday life
particularly the US and Europe, about the data privacy for consumers, notably Gen Zers and Millennials, and
practices of technology and e-commerce companies; continues to evolve. The e-commerce market will continue
this can potentially inhibit the global expansion of to grow with established retailers jostling for market share
these organizations. and customers, with greater use of tools such as data
crawling, LATR models, gamification, and shoppertainment.
Fast fashion and hyper-consumerism often raise concerns Additionally, expect to see Asian companies adopting supply
about environmental impact and labor practices. chain diversification, setting up supply chain operations
closer to markets in Europe and the Americas. This move,
Companies accused of selling counterfeit products may however, may trigger these regions to impose tighter
be found guilty of infringing intellectual property rights. import regulations in the form of custom duties on
products.
Maintaining consistent manufacturing standards and E-commerce companies will need to consider and manage
product quality can be difficult, especially when working the complexities of international logistics, including
with a large network of suppliers in China. transportation mode options and the availability of logistics
infrastructure in each region and country, all while paying
The race to offer the lowest prices in the context of intense attention to ever-changing consumer behaviors.
competition can erode profit margins and make it difficult
for companies to invest in long-term growth strategies. This trend should be actively monitored with imple
mentations available for many use cases today.
Fast, reliable delivery is key to customer satisfaction,
especially in e-commerce, but it may be impossible to
deliver as quickly as a local competitor because of long
distances between countries in different regions.
Advanced Analytics Digital Marketplaces

Should you look to China to see the
future of e-commerce?
Mass Supply Chain

Personalization Diversification
McKinsey & Company (2022): Signed, sealed, and delivered: Unpacking the cross-border parcel market’s promise, Shopify (2023): What Are Virtual Fitting
Rooms and How Do They Work? (2024) , Frontier Economics (2017): The Economic Impacts of Counterfeiting and Piracy, Financial Times (2023): Why young
shoppers are cool with counterfeits, Reuters (2024): Focus: Rise of fast-fashion Shein, Temu roils global air cargo industry
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ESG Advocacy
The trend of Environmental, Social and Governance (ESG) prioritize sustainability efforts. As a result, businesses are
Advocacy encompasses the growing awareness and ack gradually developing and publishing clear ESG agendas;
nowledgment of the significant and observable negative however, there is still progress to be made in embracing
impact that human and business activities are having on a sustainability along all ESG dimensions comprehensively.
set of aspects, including environmental issues, social issu In addition to monitoring conventional key performance
es and corporate accountability and transparency across indicators (KPIs) associated with carbon accounting,
all stakeholder groups. This recognition extends beyond a such as carbon emissions tracking, a growing number
narrow focus on decarbonization and emphasizes the im of companies recognize the imperative of adopting a
portance of adopting a holistic perspective that considers comprehensive, holistic approach to sustainability. This
the interconnectedness of the above areas. ESG advocacy entails considering the direct and indirect environmental
aims to mitigate the negative sustainability and ethical im impacts and ramifications of all activities. In logistics, efforts
pacts of human and business activities and promote a be to decarbonize transportation are currently underway,
havior of decision makers that prioritizes the well-being of however, it is imperative to acknowledge that certain
employees, customers, the society, and the planet. aspects within the realm of sustainability are still not fully
receiving the necessary level of attention they require.
Comprehensive action is required on holistic monitoring
Climate change is negatively impacting the environment and reporting of environmental data on biodiversity,
and the world we live in. Today, one million plants and animal welfare, ecosystem restauration, actively protecting
animals are threatened with extinction, the annual natural habitats and driving social and governance topics
deforestation rate is 10.2 million hectares (more than the such as labor rights and ethical sourcing. This will require
size of Iceland) and 75% of the earth’s surface has been companies to disclose impact and promote sustainable
altered. Additionally, global supply chains encounter practices. It will take over five years for industry-wide
challenges around social issues, including labor rights implementation of ESG advocacy, due to the complexity
violations, unethical sourcing and unsafe working of the issues at stake, the overall regulatory landscape, the
conditions in certain regions. Growing environmental and current lack of clear reporting standards, and the need for
social challenges have prompted societal and business accountability and incentives. But right now, if progress is
shifts. Initiatives such as the ‘Fridays for Future’ movement to be made, it is crucial to implement proactive measures
and the Science-Based Targets network have exerted as this will establish the foundation for this transformative
significant pressure on companies, compelling them to mindset shift.
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Sustainable Sourcing
and unprecedented decline in biodiversity, and this is
primarily attributed to human activity compounded by
accelerated global warming. According to the United
Nations Environment Programme (UNEP), approximately
half the world‘s gross domestic product (GDP) is directly
or moderately reliant on nature. Although vital to global
trade, logistics operations can have a negative impact
on biodiversity while simultaneously relying on diverse
ecosystem resources to sustain activities.
Sustainable sourcing – the integration of social,
ethical, and environmental performance factors in
the supplier selection process – represents a critical Importantly, the industry is capable of positively
pathway to addressing environmental and social influencing the biodiversity of local and regional
challenges in supply chains and responding to the
ecosystems. For example, logistics can adopt
growing environmental consciousness of consumers
advanced technologies and practices to mitigate
and companies. It is essential for logistics to proactively
engage in sustainable sourcing, fostering a more air, noise, and soil pollution to improve public
sustainable and resilient global economy. However, health, protect against climate change, and
it may be difficult to fully adopt sustainable sourcing. safeguard biodiversity.
Challenges include longstanding contracts with existing
suppliers, limited transparency across the entire
supply chain, and the often higher costs associated An effective measure for mitigating the risk of
with sustainably sourced products. In this increasingly biodiversity loss involves the implementation of
regulated business landscape, logistics managers have rigorous monitoring and control measures for traffic
a key role in promoting environmentally conscious noise, coupled with proactive promotion of initiatives
sourcing practices. They can prioritize transparency, risk aimed at its reduction. Sustainable mobility plans
management, and stakeholder engagement to enhance can be implemented and hazardous materials can be
not only their own but also their customers’ resilience handled safely to prevent environmental contamination.
and sustainability. Similarly, logistics can help prevent the inadvertent
spread of invasive species. This may necessitate finding
ways to prevent the introduction of such species in
imported goods. And it may mean adopting rigorous
Biodiversity measures to stop proliferation of accelerants such
as algae on ocean vessels. Stricter regulations are
imminent, requiring logistics companies to integrate
biodiversity conservation into their operations. For
example, all ships must be fully compliant with the
Ballast Water Management Convention by September
2024. While it may appear biodiversity has no direct
business implications, companies must preemptively
integrate biodiversity conservation measures into their
operations. Not only does this have future benefits, but
it also strengthens the current strategic position.
Biodiversity refers to the array of life forms across
ecosystems, species, and genetic compositions within
the biosphere. In recent years, we have seen a concerning
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Consumer Consciousness
same time, there is increased scrutiny of sustainability
claims, with growing demand for substantiation of
advertising claims and product descriptions. Similarly,
findings from a 2023 study by Deloitte indicate
a significant impact of ethical and sustainability-
related concerns on consumer behavior. One in three
consumers reported discontinuing purchases of certain
brands or products due to such concerns, highlighting
the critical importance for companies to address
their sustainability agenda. Clearly, companies must
focus both on the sustainability of their own supply
The paradigm of conscious consumerism is reshaping chains – including decarbonization and mitigation
the business-to-consumer (B2C) landscape, with of environmental impacts – and collaborating with
customers now prioritizing sustainability and ethical upstream and downstream partners and stakeholders.
practices in their purchasing decisions. They actively Failure to do so risks ESG-related scandals that may
seek brands that align with their values and they adversely affect the organization.
demand genuine commitments to environmental Logistic is a pivotal component of global supply chains
and social responsibility. The influence of conscious and can play a crucial role in driving sustainability efforts
consumers extends beyond individual transactions, across value chains.
compelling brands to enhance their sustainability
and social credentials to stay competitive in the
marketplace. Increasingly, consumers are seeking
products and services from companies that align with
their values and demonstrate social responsibility. B2C
Regulatory Framework
companies must adapt by integrating sustainability into
their core strategies, offering eco-friendly products and
logistics, as well as maintaining transparency regarding
their sustainability efforts. Concurrently, as conscious
consumer behavior continues to evolve, it is crucial for
business-to-business (B2B) enterprises to recognize
and actively address these changes. The influence
of end consumers is now extending to suppliers,
leading to a growing demand from B2C companies for
increased transparency regarding emissions and social
aspects of supply chains. Consequently, B2B companies
must conduct comprehensive assessments of their
value chain. This entails evaluating scope 1, 2, and 3 The regulatory landscape surrounding sustainability
emissions, as well as broader environmental impacts indicators and requirements has evolved significantly in
resulting from their own operations, their customers, recent years, with growing emphasis on carbon accounting,
partners, and downstream stakeholders. particularly focusing on greenhouse gas (GHG) emissions.
A 2023 study by McKinsey shows products which claim This has become a priority for every medium-sized and
to environmental, social, and governance (ESG) qualities large company. But in the absence of a comprehensive
exhibited an average cumulative growth of 28% over framework to address broader environmental impacts such
five years, while products without such claims achieved as biodiversity, companies need clear key performance
a 20% growth rate. The consumer’s commitment to indicators (KPIs), measures, and regulations to guide their
sustainability is reflected in purchasing behavior. At the analysis and effective alignment of business practices.
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Logistics decision makers must acknowledge areas of human rights, combat child labor and exploitation, and
business activity that impact local ecological systems, address environmental risks across their supply chains.
identifying where compensation is required and in In Europe, the Corporate Sustainability Due Diligence
which cases compensation represents only incomplete Directive (CSDDD) will be legally binding from 2029.
mitigation. Assessing this using standardized quantitative It requires large companies in the region to conduct
approaches is, of course, challenging as each location of supply chain audits to address issues such as forced labor
business activity is likely to have unique characteristics. and environmental harm, adhere to human rights and
Companies should therefore make qualitative assessment environmental standards, implement preventative action
of local ecological impacts, which introduces additional plans, and ensure contractual compliance by direct business
complexity. Emerging initiatives address this issue; for partners. At DHL, we anticipate the implementation of
example, The Taskforce on Nature-related Financial regional and national biodiversity targets by governments,
Disclosures framework seeks to empower organizations along with enforceable guidelines. As the regulatory
to report and respond to evolving nature-related risks. landscape evolves, it will be imperative for companies
It offers a set of disclosure recommendations and to adhere to social topics as well. These measures will
guidance intended to encourage and facilitate businesses not only hold businesses responsible for detrimental
and financial institutions in evaluating, reporting, and environmental practices but also encourage initiatives
addressing their dependencies on nature, along with that foster nature conservation and enhance human well-
associated impacts, risks, and opportunities. Governmental being. By embracing both environmental and social
bodies are increasingly holding companies accountable for governance, companies can strive for a sustainable
their procurement and sourcing practices. For instance, the future that preserves biodiversity and promotes a
German Supply Chain Protection Act requires companies thriving society.
with at least 1,000 employees in Germany to uphold basic
Graphic source: pwc (2023): Nature and biodiversity: Measuring your impact for a stronger business and better world
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OVERVIEW
Challenges Outlook
Many companies are still not proactively shaping their Companies must cultivate positive relationships based
approach to sustainability that goes beyond politically on actions with stakeholders as ESG expectations grow.
and regulatory mandated topics such as GHG reduction. Climate change is likely to exert more influence on business
strategies in future, so the industry needs comprehensive
The opaque framework for driving and measuring broa- guidelines on quantifiable metrics, such as emissions, and
der sustainability initiatives, which is still being defined, more nuanced, challenging-to-measure factors, such as
makes it difficult to compare KPIs across industries and impact on biodiversity. For logistics organizations, it will
use cases and limits standardized procedures. become imperative to monitor operational impacts on
regional ecosystems including forests, grasslands, and
It is difficult to track, evaluate, and assess the integri- marine environments. Intact ecosystems are crucial to
ty and environmental as well as social and governance buffer against climate extremes, regulate hydrological
impact of every party within complex supply chains; this cycles, protect soils, control urban temperatures, manage
prevents full transparency in the supply chain. diseases and pests, reduce food insecurity, enable economic
diversification, and more. As regulatory frameworks tighten
Companies struggle to address sustainability risks if the and consumer awareness regarding sustainability expands,
ecosystem is diverse, there is insufficient site-specific companies will need to advance their sustainability agendas
information on biodiversity hotspots, and there are sig- to encompass environmental considerations beyond
nificant nature-related impacts in the upstream supply emissions and develop an institutional ESG advocacy.
chain. A proactive approach is essential to maintaining
competitiveness in the market amid evolving sustainability
Companies must proactively allocate budgetary re- expectations.
sources towards ESG measures to ensure financial
preparedness for future compliance regulations, while This trend should be carefully monitored with de
simultaneously driving ESG advocacy by investing in velopments and use cases on the horizon.
measures such as biodiversity conservation, SAF sour-
cing and ensuring fair working conditions.
Bio-Based Materials Circularity

Sustainable Investment
Decarbonization Sustainable Fuels
Food and Agriculture Organization of the United Nations (2020): Global Forest Resources Assessment 2020, IPBES (2019): Summary for policymakers of the
global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services,
McKinsey (2023): Consumers care about sustainability—and back it up with their wallets., Deloitte (2023): The Sustainable Consumer 2023
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Everything As
A Service
The trend of Everything as a Service, otherwise user to pay for the number of cooled hours. This shift in
known as XaaS or Servitization, is the shift away from business model incentivizes a company to maximize the
buying and selling products towards the vending time its products are available to be used and minimize
of services to achieve an outcome. In this economic the cost of upkeep. Consequently, XaaS is often also
model, instead of committing to a one-off purchase seen as a tool when working towards sustainability
of a product, the customer would consistently pay on goals, as equipment parts are made more durable and
a per-unit basis, like the amount of time utilized, the more easily replaceable with emphasis on products
number of products produced, capacity provided, or to be more repairable and reusable than disposable.
the number of tasks fulfilled, for results that meet Increasingly, technology providers are offering as-a-
their needs. service usage to logistics organizations for robotics,
drones, warehouse management systems (WMSs), and
XaaS business models bring a new way of doing more. This enables logistics professionals to redirect
business to both business-to-consumer (B2C) and their focus from acquiring hardware and software to
business-to-business (B2B) relationships. For instance meeting demand, dealing with volatility, and reaching
in the medical field, we here at DHL see change in how strategic customer engagement goals.
hospitals acquire medical capabilities. While in the past While the foreseen impact is not very strong on logistics
computed tomography (CT) scanning equipment had and the supply chain, this adds an alternative to pure
to be purchased, now many hospitals buy the service of investment decisions for logistics professionals and
that equipment and only pay per CT scan. Additionally, greatly impacts end users of products, both consumers
altering the patterns of consumer behavior and the and businesses. Companies can keep customer
way customers engage with products, individuals and experience at the core of their business by choosing
companies alike can opt to pay for equipment usage for everything as a service, reducing investments, enabling
a specified period of time or output, and not pay when scalability, and building resilience to external disruption.
equipment sits idle or broken. For example, rather than
buying air-conditioning (AC) units, XaaS allows the
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Logistics Services Diversification

customer for their private vehicle. Now, utilizing Internet
of Things (IoT)-enabled sensor technology, Michelin
offers tires-as-a-service to its B2B customers, measuring
temperature and pressure in tires to prevent tire failure
and unnecessary operational downtime. The company
has since expanded its offering to a complete tire
management system, coordinating tire replacement
and other maintenance offerings with its customers,
while simultaneously helping subscribers reduce fuel
consumption through optimized driving and training.
Co-Located & Distributed Service

Companies are broadening the lens of business potential
to solutions that can be obtained as a service, and the
Logistics Facilities
providers of these services may choose to outsource
operational processes to logistics organizations –
introducing a new level of diversification. For example,
many technology providers across industries offer
automation solutions not as products but as services to
their clients.
Whether it is for picking pieces on an assembly

line or transporting assets around a factory,
these solution providers charge on a per-piece-
As product ownership and responsibility for uptime
picked or per-kilometer-travelled basis, thereby remain with the XaaS provider rather than with the user,
self-incentivizing robot upkeep and seamless the response time for necessary predictive maintenance
continuous operations. is a key differentiator. One solution to faster response
times is co-located and distributed service logistics
facilities of and for these service providers.
This means that, when a robot does break down, the
provider scrambles to get service back up running as Co-located and distributed facilities and spare parts
soon as possible, shipping new spare parts or an entire networks, including inventory positioning, must be a
replacement machine. As these companies look to strategic building block in support of the business. As
expand their service market beyond their home region, such, logistics plays a vital role in this new equation
they start to seek specialized logistics providers who can as the seamless supply and delivery of parts is
support timely and careful delivery of their solutions to critical to maintaining asset or fleet performance
their customers. when provided as a service. The need for co-located
Another example is popular tire manufacturer Michelin’s inventory may be reduced, however, by onsite on-
movement towards selling mileage and kilometers demand three-dimensional (3D) printing and there
instead of tires. Previously, Michelin sold tires to logistics may be no need for a technician to visit if they can
providers, such as road freight carriers, mining operators, instead use augmented reality (AR) to provide remote
and airlines, similar to how they would sell to a B2C repair and maintenance support.
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Service Billing Models & Tools

As companies transition from selling products to providing
them as a service, new service billing models and tools
are required. Rather than managing inventory to record
the products that have been sold, companies moving to
XaaS must enable more complex usage-based invoicing.
This is achieved with accounting tallies across multiple
users on predetermined bases (per hour, per kilowatt, per
kilometer, per use, per pick, and more). Smart contracts
using blockchain technology can automate complicated
processes in a transparent way, performing steps when
pre-agreed conditions are fulfilled.
Graphic source: Siemens (2019): Everything as a service: a closer look at the business model for the future
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OVERVIEW
Challenges Outlook
The shift from offering products to services requires The global XaaS market expanded from US$ 436.82
a deep understanding of not only the needs of billion in 2021 to $699.79 billion in 2023, with growth
the customer, but also the many components and projection to $3,221.96 billion by 2030, based on a
systems in the customer’s domain that interact with compound annual growth rate (CAGR) of 24.4%. This
the in-use product. imminent market development means business models
are changing B2C and B2B relationships from product-
XaaS increases the complexity of the billing model and centric to user-centric and so are the logistics
therefore requires a strong IT infrastructure to ensure
resilience. This trend should be monitored to some extent
with developments and use cases on the horizon.
To integrate, deploy, and manage an XaaS platform
in what is still an emerging field requires adequate
yet scarce IT skills; development will therefore come
with initial high costs.
For the XaaS supplier, data analytics capabilities

are crucial to business success, providing insights
into customer behavior patterns as well as asset
maintenance and inventory management.
Related Trends
Circularity Indoor Mobile

Robots
Outdoor Autonomous Smartification

Vehicles
Fortune Business Insights (2023): Global Everything as a Service (XaaS) Market
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Green Urban
Transformation
The trend of Green Urban Transformation refers to the comprises applications that translate raw data into alerts,
development of urban spaces and cities towards smarter insights, and actions. And the third is usage and adoption
environments. By using digital solutions (smart cities) by members of the public, companies, and city authorities,
as well as regulatory actions, traditional networks, resulting in behavioral changes. For example, people are
services, and infrastructure are utilized more efficiently, encouraged to use public transit during off-peak hours
sustainably, and in business-friendly and/or citizen- or change their routes, use less energy and water and
friendly ways. The objective of this transformation is to do so at different times of day, and use preventative self-
support behavioral change and ensure urban areas are care to reduce strain on the healthcare system. Today
livable, sustainable, and vibrant places. entire new cities are planned from scratch using the same
principles of green urban transformation. Saudi Arabia’s
The population shift from rural to urban areas puts NEOM initiative describes these as places where “People‘s
pressure on authorities to ensure cities remain livable, health and wellbeing will be prioritized over transportation
sustainable, and vibrant, with particular focus on efficient and infrastructure, unlike traditional cities.” Examples of
use of space and infrastructure. Artificial intelligence (AI), traditional cities that have succeeded in turning smart
Internet of Things (IoT) sensors, and other technologies include Singapore, which is planning entirely vehicle-free
are being integrated into core infrastructure and services city zones and Finland’s capital, Helsinki, which has created
(smart cities) to achieve green urban transformation. This a three-dimensional (3D) representation of the city – a
is redefining how residents, businesses, and governments digital twin – to improve internal services and processes,
will live, exist, move, interact, and operate in the future. provide data for further smart city development, and drive
By 2025, smart cities are expected to generate 60% of the city’s green agenda of sustainable consumption and a
the world’s gross domestic product (GDP). Green urban healthy environment.Logistics plays a significant role in the
transformation is already underway in numerous big cities urban space, enabling the exchange of goods within cities.
but is not yet so obvious in mid-sized cities. To reduce Logistics activities require space, infrastructure, contribute
emissions in urban areas, the current focus is on mobility to 20% of all urban traffic, and generate 30% of all urban
and transportation, especially last-mile delivery, and emissions. The impact of green urban transformation on
on enablers such as a smart, integrated infrastructure. logistics is somewhat indirect: logistics is both a “player” in
Urban transformation projects involve three layers. The the urban space and “contributor” to urban life. The rollout
first is a technology base, which includes a critical mass of this next evolution of urban logistics will not be uniform
of smart devices and sensors connected by high-speed, globally but varies from country to country and region to
high-performance communication networks which are region. However, first initiatives are currently seen in China,
essential to every smartification project. The second layer Southeast Asia, North America, and northern Europe.
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Zero-Emission Zones Underground Urban Freight
Key issues in urban areas today include environmental

impact and density of traffic. Governments are
legislating to reduce the levels of traffic, ensure the use
of cleaner urban (freight) vehicles, and achieve more
efficient movement of goods and people. An example of
this is setting up urban zero-emission zones. As urbanization brings more people to cities,
To meet these new emissions rules, and given that public transportation activity on urban roads around the world
space may be scarce, it is essential to focus on more is projected to more than double by 2050. Freight trucks
efficient planning, innovative consolidation solutions, taking goods in and out of cities will contribute to this and
and clean freight vehicles. Effective ways to reduce impact the environment, and logistics organizations will
heavy- and light-duty traffic, energy consumption, and feel the consequences – longer and less reliable delivery
emissions include off-peak deliveries, leveraging micro- times for customers.
depots with cargo bikes and using e-vehicles and cargo Foreseeing this issue, the Swiss government in 2022 gave
bikes at consolidation centers on city peripheries. the go-ahead to Cargo Sous Terrain to begin constructing
In addition, an increasing level of white-label logistics its privately financed underground system with phase 1
services (which effectively anonymize the logistics operations starting in 2031. In this first phase, specially
provider) can be used in zero-emission zones. This designed cargo pods, including refrigerated units, each
makes shipment consolidation independent of carriers loaded at a surface facility with up to two pallets of
and logistics providers, achieving a more efficient and freight will be lowered to an underground freight-only
eco-friendly approach to logistics operations. highway that connects 10 destinations along 70 km (43
miles) between Zurich and a regional logistics center.
At DHL, we recognize that a further, much discussed Using electric motors, the pods will travel to the required
delivery method – urban air logistics – will not play an destination, where they will be lifted to the surface and
essential role in the near future. However, the potential unloaded. In this way, freight can be delivered directly
for this should be assessed in each location, as it will into urban centers without adding to or being affected
become relevant for some niche use cases. by road congestion. If successful, by 2045, phase 2 will
expand the system to include other major Swiss cities like
Geneva, Bern, and Basel. However, concerns are being
raised about this project by municipalities and citizens
affected.
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In March 2024, the European Hyperloop Test Center Here, multiple logistics players arrange last-
opened in the Netherlands, a significant step forward for mile delivery (the most expensive segment of the
this futuristic transport technology. The newly launched
fulfillment supply chain), effectively achieving
420-meter (quarter-mile) white steel tube will be a
parcel-load pooling. This represents a significant
proving ground for capsules floating on magnetic fields,
with the potential to achieve speeds of around 700 kph shift away from hubs traditionally located on the
(435 mph). This evolving technology could usher in a edges of a city, far from the primary customer base.
new era of passenger and freight transportation.
With urban roads around the world projected to suffer
large increases in congestion in the coming decades, Reacting to these changes, many quick commerce
logistics organizations should monitor these and other providers are opening and operating so-called dark stores
underground system developments. In time, they may (micro-fulfillment centers housed in what used to be
provide a valuable way to protect urban delivery times retail space) in central neighborhoods or at the back of
despite traffic delays. large suburban retail stores. These allow quick commerce
providers to get closer to customers and ensure promised
delivery times. As the dark store ecosystem grows,
Urban Fulfillment specialized services are appearing. For example, the
American software company Mapbox offers mapping
technology to help retailers pinpoint the perfect location
for their next dark store.
Dark stores provide several benefits. They allow for faster

picking and delivery. They can also achieve a lower cost
per pick and delivery due to their more specialized product
assortment and the fact they are closer to city consumers
than traditional warehouses. While there may be higher
fixed costs when renting these centrally located properties,
dark stores offer savings that can make all the difference in
last-mile delivery. At the same time, complaints are being
raised about the presence of dark stores as critics claim
they are a hazard to the public and too noisy.
In the transformed urban environment, municipalities

act as regulators of major logistics flows, with authorities
typically taking over control tower functionality.
In addition, authorities may seek to reduce inner-city vehicle
numbers by creating white-label hubs – consolidation
points managed by a third party.
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Smart Infrastructure
friendly mobility, energy, heat, water, sewage, and
waste concepts. And, to fully achieve a smart city, it
is essential to integrate infrastructure and processes
in energy, information, communication technologies,
and transportation. With smart city concepts for
transportation, municipalities can provide real-time
public transit information and road navigation data.
They can also integrate multimodal information,
deliver intelligent traffic control and smart parking
management, introduce congestion pricing, and offer
on-demand micro-transit services.
There are several benefits for logistics. For example,
logistics providers can digitally interact with the
infrastructure to plan logistics activities and adjust
Many governments have made progress with their delivery windows according to real-time events. This is
digital agendas, achieving widespread adoption of already possible for Helsinki, using its virtual rendering
digital technology. Municipalities are promoting eco- (digital twin) of the city’s environment, operations, and
changing circumstances.
Graphic source: McKinsey & Company (2018): Smart cities: Digital solutions for a more livable future
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OVERVIEW
Challenges Outlook
Not every region offers the necessary urban infrastructure Legislation will have a significant impact on green urban
to apply new technologies; for example, there may be transformation, especially in the last mile of the supply
insufficient grid-level charging infrastructure. chain. Cities will implement connectivity layers to enable
increasing volumes of data collection about infrastructure,
It is difficult to use interactive smart technologies such traffic, buildings, energy consumption, and more. Logistics
as LoRa radio communication networks and private/ players will therefore need to adjust, comply, and participate
public 5G networks in cities and areas with different in the green urban ecosystem.
communication layers. The biggest push will be towards more sustainable and
emission-free mobility and transportation systems, and
Managing space is a challenge; retailers and logistics we expect significant investments in alternative energy
companies are affected by new modes of transit, changing technologies including electric vehicles (EV) and the use of
transportation policies, and the need to implement smart hydrogen fuel cells, which will in turn elevate the importance
parcel lockers and urban consolidation centers. of connected technology trends.
A critical mass of participating stakeholders – citizens, This trend should be monitored to some extent with
companies, and the public sector – is required to developments and use cases on the horizon.
change behaviors; politics plays a crucial role in this, and
incentives can be offered to encourage participation, but
unpopular decisions will likely be challenged by voters.
Public funding is required upfront; for example,

investment in telecommunication networks, data spaces,
and other infrastructure.
Decarbonization Vehicle
New DHL Group subsidiary launches open-
Electrification supplier parcel terminals on the market
Renewable Energy Smartification

Infrastructure
IIoT World (2017): Smart City and Industrial IoT Applications

ESCP (2021): RETAILING 4.0 CHAIR Urban Logistics 4.0
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Mass
Personalization
The trend of Mass Personalization refers to the creation of their distinct needs and expectations and more than 50%
highly personalized commercial experiences for individual expressed the belief that companies should proactively
customers that are designed to be applied on a mass anticipate these. Looking for deeper engagement with
scale. This trend utilizes advanced analytics of customer end customers, larger companies especially will adopt
data, from geographic region to personal preferences and generative, analytics-based artificial intelligence (AI)
past customized purchases, to detect patterns at both models and deploy AI algorithms. This will drive more
the individual level and collective level and offer bespoke relevant recommendations and offerings based on end
products and services. customer needs. Logistics is not immune to this business-
to-consumer (B2C) expectation, and supply chain leaders
are already looking into how their organizations can better
Personalization differs from customization, which is when utilize data to improve the customer experience. Also,
customers can choose from a set of attributes or amenities, logistics players are the enablers of their business-to-
like the color of their next sneakers or their seat position business (B2B) customers’ personalization strategies and
on a flight. Rather, personalization is when organizations must anticipate the shifting agendas of these customers to
proactively tailor the customer experience based on ensure high-quality service and cost-efficient offerings.
individual user and aggregated data such as demographic
categories and past customization choices, in attempts Mass personalization has relatively low impact on the
to make the user feel more special and valued. Looking logistics industry. While particularly relevant for B2C
across global e-commerce markets, Asia has become one logistics engagement, the trend has only limited application
of the earliest adopters in driving the majority of purchases to date in B2B logistics relationships. While supply chains
through personalized recommendations. A few years ago should be capable of adapting to handle more customized
in China, the majority of online purchases, approximately products, it is not expected that overall operational
80%, were initiated through search, while only 20% were changes for logistics will be disruptive. However, to stay
influenced by product recommendations. However, the relevant for certain customers, it will be crucial to offer the
current landscape has witnessed a reversal, with product right logistics services to companies with more complex
recommendations now driving 80% of online purchases. product portfolios. Looking for deeper engagement with
Companies must elevate the accuracy and relevance of end customers, larger companies especially will adopt
these recommendations in the near future. Already in 2022, generative, analytics-based artificial intelligence (AI)
a Salesforce survey revealed 73% of customers expected models and deploy AI algorithms. This will drive more
companies to have a comprehensive understanding of relevant recommendations and offerings based on end
customer needs.
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Tailored Logistics Services

By handling the end-to-end supply chain, the logistics
provider gains visibility over all aspects of the end
customer’s journey and desires. This will allow the
logistics provider to offer a more tailored program in
the future.
There is a lot more opportunity for logistics organizations
to offer B2C personalization, given the vast pool of
customer data and varied preferences. Many logistics
organizations already have websites where consumers
can customize their shipments, like choosing delivery
dates and types of packaging. However, logistics
organizations can use more data and undertake deeper
analyses to proactively create a more tailored customer
experience. For instance, if a customer has a history
Logistics providers themselves can be adopters of of selecting greener options like recycled packaging,
mass personalization strategies for their own B2B and the logistics provider can also recommend other
B2C customers to grow competitive advantages. By environmentally friendly options – like carbon-neutral
tailoring offerings based on each customer’s needs shipping and delivery by cargo bikes – before the
and preferences, logistics professionals can increase customer reaches the payment stage.
customer retention while possibly also increasing verall, logistics providers can achieve competitive
revenue from value-added services. reveals that differentiation by providing more personalized services
customer demands are a major force for transformation to B2B and B2C customers. By tailoring offerings based
in the logistics sector, with 91% of companies on each customer’s needs and preferences, logistics
recognizing that customers now prefer comprehensive professionals can increase customer retention while
logistics services from a single provider. Customers possibly also increasing revenue from value-added
are seeking more than just conventional offerings like services.
freight forwarding and customs brokerage; they expect
logistics companies to provide added services including
reverse logistics, e-commerce management, and
analytics.
In ways, many logistics leaders already do this on a
rudimentary level for B2B relationships, offering specific
services to companies based on their industry and the
products being handled.
As an example, logistics providers are already

personalizing risk analysis of the supply chain for
customers, helping to leverage customer-specific
personalization of supply chains with predictive AI
and application programming interfaces (APIs) as
enabling technologies.
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Enabling B2B Customer Agendas

greener packaging and delivery mode alternatives to
include these as personalized recommendations to
customers. We here at DHL predict retailers will offer
more delivery options to customers based on their needs
and demographic data, as many digital marketplaces
already do. This can be in the form of different delivery
times, from free 5-day shipping to premium same-day
shipping, as well as the ability to drop the shipment
off at a neighbor’s address or a nearby parcel locker.
We recognize that, in order to provide these offerings,
retailers will be pressuring logistics partners to develop
such services; if the partner cannot do this, the retailer
will turn to other logistics companies that can meet
these requests.
Overall, in order to stay competitive and retain
customers, logistics organizations will need to expand
service capabilities, from enabling more inventory space
to ensuring greener, faster last-mile delivery.
Many manufacturers and retailers are exploring and

implementing mass personalization techniques to
AI-Driven Customer Experience
enhance the customer journey in different channels.
Logistics organizations will be expected to collaboratively
support these agendas, providing a newer, wider range
of offerings to B2B customers.
For some logistics providers, this may mean holding
an inventory of more products for quick fulfillment. To
illustrate, personalized vitamin subscriptions – in which
dozens of vitamins and supplements are combined in
pre-dosed packets and delivered monthly or even daily
to customers based on their health needs – are becoming
popular and are offered by nutritional supplement
giants GNC and Nature Made and startups like Perelel,
Persona, and Ritual. Unlike typical purchases, when
products may come from different fulfillment centers
and be delivered individually, these subscription service
purchases require the logistics organization to have
the right stock available in larger volumes at a single As organizations get better at collecting and organizing
fulfillment center. granular customer data, we here at DHL expect the growing
Furthermore, logistics operations may feel increased capabilities of AI to drive both internal and customer-
pressure from B2B customers to offer more sustainable facing recommendations, leading to an enhanced level of
and quicker delivery services. As younger consumers personalization in logistics services.
show higher willingness to pay more for sustainable There is a meteoric rise in the accessibility and capabilities
goods, e-commerce retailers are actively seeking of generative AI. A Klarna report on the future of retail
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revealed 26% of US Gen Zers and Millennials imagine Service providers can capitalize on advanced analytics
a future in which AI-driven customization in shopping by proactively recommending service offerings based
becomes so advanced they will be able to completely avoid on a customer profile. To unlock a new standard of
the need to shop if preferred. personalization for customers, logistics organizations can
E-commerce and retail organizations have the best access leverage B2B customer account data. This will enable
to consumer data as it relates to purchase history and hyper-personalized supply chain offerings including
social media interaction with products, allowing these mode of transportation, based on delivery needs and
businesses to profile customers accurately. Added to this, sustainability standards, and location of storage and
they have a high product mix which allows them to drive fulfillment for short-term end customer orders.
greater diversity in personalized recommendations than
service-based organizations.
Graphic source: Twilio Segment (2023): State of Personalization Report
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OVERVIEW
Challenges Outlook
Realizing a mass personalization approach requires The trend of Mass Personalization will continue to progress
comprehensive knowledge of customer preferences as the customer expectation and demand for tailored
and a deep understanding of data analytics. experiences grows. Logistics organizations can be the
enablers of their B2B customers’ mass personalization
Reacting to changing customer preferences strategies but need to adapt service offerings to these
necessitates flexible production lines and supply chains customers and B2C customers in order to also fulfill
in order to fulfill customer needs on time. demand for customized logistics services by using the
ever-enhancing capabilities of AI-driven analytics. As the
Logistics must be able to maintain the same cost-to- B2B customers of logistics organizations seek to fulfill the
serve level for individualized goods and even partially increasingly personalized expectations of end consumers,
customized goods as for standard products. this may – in practice – look like structuring the supply chain
based on anticipated consumer demand or devising fully
In the pursuit of Mass Personalization, organizations automated service triggers based on consumer purchases.
often seek to collect more data than necessary, which
can infringe on user rights to data privacy. This trend should be monitored to some extent with
developments and use cases on the horizon.
Advanced Analytics Digital Marketplaces Customize Delivery - On Demand

Delivery
Improve customer relationship with

Everything As Gen AI customized logistics by MyDHL+
A Service
Hyper-personalization explained:
What you need to know
Personalization in B2B E-Commerce: Top

Forbes (2023): E-Commerce 3.0: The Future Of Retail Is Hyper-Personal-
ized, Salesforce (2022): State of the Connected Customer Report, Accenture Tips to boost your conversions
(2021): Logistics: Full service. Full stop., Klarna (2023): Future of Retail
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Metaverses
The Metaverses trend refers to a three-dimensional core to the hype around metaverse economies. On
(3D) virtual environment that is open and the front end, NFTs can take many forms, like digital
interoperable, much like the internet. Users can artwork and representations of real-world objects
enter in the form of avatars to gain knowledge, such as clothes and cars; on the back end, they are
enjoy entertainment, interact with each other, work digital non-interchangeable receipts that act as proofs
collaboratively, and consume assets and services in of ownership of digital or physical assets. These
a virtual world that is linked to the real world. doubts were reflected by Google search trends. The
search term “metaverse” reached highest popularity
in 2022 and subsequently declined. But, despite these
First realized in online video games in the early 2000s, indicators, the metaverse market is still predicted to
a metaverse is conceptualized as the next stage of grow. Between 2024 and 2030, an annual growth rate
social connection and engagement after the internet. A of over 35% is anticipated.
metaverse environment is typically but not exclusively
built on extended reality (XR) technology. Prior to the For all industries, including logistics , the metaverses
metaverse, XR applications occurred in contained digital vision remains relatively distant in terms of realization.
environments with targeted functionalities; for example, Currently, different metaverse approaches exist,
solutions supporting employee training. Instead, the resulting in multiple “multiverses” that are fragmented,
metaverse is a shared, and immersive world connected not interoperable, and unconnected. It is yet to be
to the wider online ecosystem. It can be accessed with or seen whether a single metaverse (or several large and
without an XR headset, such as the Microsoft HoloLens, connected metaverses) can form to the extent that the
Meta Quest 3, or Apple Vision Pro. concept suggests. At DHL, we believe the possible impact
Once the metaverse hype peaked in 2022, critical of the metaverses and its relevance to logistics and the
voices started to be heard, declaring the trend in supply chain are yet to be understood. Nevertheless,
decline because of continued losses at Meta’s Reality companies should be monitoring developments around
Labs division, amounting to US$ 11.5 billion in 2023, this trend today as the course towards the infrastructure
and to the downturn of non-fungible tokens (NFTs). for a single metaverse is being set.
The trade and sale of blockchain-supported NFT were
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Industrial Metaverse
Evidencing progress, BMW already uses the NVIDIA
Omniverse solution to connect all relevant data sources
and create a collaborative virtual simulation environment
for better planning of new production facilities.
Meanwhile, in logistics there is strong progress towards
greater visibility in a data-driven industry, particularly
using the Internet of Things (IoT) and digital twins to
connect physical assets. There are also well-established
use cases in areas of collaboration, simulation, and
training.
As more and more data sources are connected into a
single all-encompassing data source, the vision of a
single metaverse to consume and interact with available
information starts to make sense. Within the logistics
industry this could be of particular value in the design,
simulation, and monitoring of complex supply chains and
operations. The metaverse could act as a virtual control
room, bringing together information from various data
sources and enabling consumption of information in
Metaverse experiences continue to develop from virtual a very visual way, with the added advantage of easier
gaming platforms, social networks, event spaces, virtual collaboration.
and new sales channels, and in time will also impact Having a vision of the metaverse in mind can help with
more industries. It is easy to imagine the benefits of setting up the required IT infrastructure from outset,
an industrial metaverse that connects the virtual and enabling interoperability between different application
real worlds. Managers across all industries, including spaces and allowing all spaces to connect, ultimately, in
logistics, should consider ways of incorporating this a single metaverse environment.
trend into not just consumer-focused activities but also
operations.
An industrial metaverse is the convergence of

different technology trends, an all-encompassing
digital twin that seamlessly integrates all sources
of data and information relevant to the enterprise.
Within this digital twin, employees can interact virtually;

they can access and share information, collaborate,
experience simulations, and receive training, making use
of XR technology for a virtual interconnected experience.
In 2022, Accenture coined the term “Metaverse
Continuum,” extending its offering to help enterprises
lay the necessary groundwork to advance towards and
build up an industrial metaverse in the future.
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New Customer Channels

such as Gucci, H&M, and Nike, to name a few, have been
early adopters, launching digital showrooms and NFT-
based fashion collections to position their brands in the
metaverse, starting in 2022. In April 2024, Nike released
the second collection of its iconic Air Max sneakers to
Fortnite, a popular metaverse gaming platform with over
220 million monthly users. Within the “Airphoria Vol. 2”
experience, users can explore an Air Max Dn-themed
virtual world and play mini games.
While brands experiment with new sales channels within
still-forming metaverse environments, the question is
unanswered: Will the metaverse become the next version
of the internet or will it remain a niche environment for
Retailers and marketeers are exploring metaverses as specific tasks – in this case, for brands to engage with
an opportunity for another channel to drive customer specific target groups? Either way, the implications for
engagement and business. The immersive Roblox logistics are expected to be rather limited.
platform, for example, is growing steadily, with 70.2
million daily active users as of Q3, 2023. Fashion brands
Graphic source: MeTech (2024): Metaverse (VR/AR/XR)
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OVERVIEW
Challenges Outlook
Today’s fragmented landscape of non-interoperable The Metaverse trend is exciting but the path towards a
metaverse environments leaves uncertainty about broader implementation is still not outlined; applications
whether a single metaverse or set of connected are rather isolated and limited. Although metaverse
metaverses will ever materialize. environments now represent a growing channel with
tens of millions of potential users, so far the foreseeable
The potential of metaverses as a retail channel is impact on logistics is limited. However, as more
not yet clear, even though users can access several individuals and companies participate in metaverse
metaverse environments today and these are economies, greater insight can be expected. The vision
continually expanding. of an industrial metaverse is important today when
building infrastructural groundwork for XR use cases or
While the industrial metaverse is an aspirational digital twins, helping to enable interoperability from the
concept calling for infrastructural groundwork today, start. However, the degree to which this vision will be
its value for businesses remains unclear and the realized in future is unclear, as this heavily depends on
extent of realization uncertain. business value – something that is yet to be proven.
This trend should be passively monitored with

developments still needed and use cases still
being explored.
Related Trends
Blockchains Digital Twins
E-Commerce Extended Reality

Evolution
Statista (2023): Meta‘s Money Pit: Metaverse Bet Bleeds Billions, Forbes (2024): The Rise And Fall Of NFTs: What Went Wrong?, Statista (2024): Metaverse –
Worldwide, Backlinko (2024): Roblox User and Growth Stats You Need to Know, Demandsage (2024): Fortnite Statistics 2024 (Active Players, Revenue)
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Supply Chain
Diversification
The trend of Supply Chain Diversification refers to the with disruption increasing by 183% since 2019 (33%
proactive strategy that involves embedding one or in 2023 alone)2. The record highs also disguise the
more of these four dimensions into the supply chain challenge of agility and resilience in supply chains,
network: multi-shoring, multi-sourcing, adding modes which prevent companies from responding effectively.
of transport, and diversifying logistics operations. Understanding the complexities and dimensions
It enables rapid adaption and reconfiguration of of supply chain diversification and how they can be
the supply chain to enhance customer centricity, leveraged strategically beyond resilience can ultimately
resilience, sustainability, and agility which can be a key to gaining a competitive advantage. Adopting
improve competitive advantage. Supply chain a proactive approach to supply chain disruption is a
diversification along the entire supply chain is strategic move for organizations, enabling them to
facilitated by technology and proactive relationship increase sustainability, customer centricity, resilience,
management along the entire supply chain enabling agility, and profitability in an uncertain business world.
multi-stakeholder collaboration.
In recent years, many companies have conducted
Since 1980, global trade has increased more than strategic reviews of their supply chains to evaluate the
tenfold, reaching a record high of over $32 trillion in need for diversification. For many organizations, these
2022. DHL’s own analysis of global connectedness reviews have become a routine practice, and several
confirms that globalization hit a peak in 2022 and have already implemented corresponding changes.
remained near that level in 2023.1/ These changes come in many forms, with the level
Hidden behind these figures is a complex network of intensity depending on each company’s markets,
of globally interconnected supply chains with an strategies, objectives, and risk-taking appetite.
ecosystem of countless customers, suppliers, service Given the strategic importance of resilient and agile
providers and partners. The recent accumulation of supply chains for global trade as well as for a sustainable
shockwaves caused by COVID-19, geopolitical crises, long-term success of organizations the impact of supply
and natural disasters has led to considerable volatility, chain diversification is considered to be very significant.
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Multi-Shoring The
Supply Network
LEGO 5 Group says that they position their factories
close to their biggest markets to shorten the distance
their products must travel, allowing the company to
rapidly respond to changing consumer demand and
better manage their carbon footprint.
Multi-Sourcing The
Supply Network
The first dimension involves geographical

diversification. Multi-shoring means introducing
redundant manufacturing capacities or additional
supplier locations in separate areas. This might include
adding locations in other countries or even continents
to mitigate operational, compliance, or reputational
risks. Multi-shoring can involve the same supplier but
from an additional location – for example, getting the
same part from two different plants.
The spectrum of multi-shoring diversification ranges
from a supply network built on one country (low) to
one widely dispersed across multiple countries or even
continents (high).
As an example, after years of manufacturing most of Multi-sourcing focuses on quantity rather than
their products in China, many technology companies geography. The most common approach involves
are now seeking to add manufacturing capabilities adding redundant suppliers, although integrating
elsewhere, mainly in other Southeast Asian countries, additional manufacturing capacities is also standard
often referred to as the “China+1” strategy. practice. Diversification can take place within local or
For instance, HP is shifting its laptop production to regional ecosystems, such as adding a new supplier
Thailand, and Foxconn is moving a portion of its assembly located in the same city. Multi-sourcing is primarily
capabilities from China to Vietnam3. Tech-giant Apple used to mitigate financial or operational risks, such as a
is also shifting production from China, where currently supplier’s inability to deliver on time or at all.
most iPhones, iPads and other Apple products are
produced, to India, Vietnam, and other Asian countries.
Apple now builds around 14% of its iPhones in India, The breadth of a company’s supply network can
twice the amount it produced there the previous year4. range from having a single supplier for a specific part
Also in 2022, LEGO Group announced plans to invest
or product (low) to maintaining multiple suppliers
more than US$1 billion in a new factory in Chesterfield
on multiple tiers for each part or product (high).
County, Virginia, their first in the United States and
seventh factory globally.5 The company has served the
North American market from their site in Mexico.
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Although multi-sourcing is not a new concept, and makes a supply chain more diversified than it was before.
companies across all sectors continually assess and Modes include air, ocean, rail, and road. Simultaneously,
adapt their supplier bases, there has been a noticeable using various modes of transport or multi-modal
increase in recent years driven by higher supply chain solutions for a part or product also typically diversifies
volatility. The 2022 EY Industrial Supply Chain Survey shipping routes, which can reduce operational risk and
found that 62% of industrial 6 companies surveyed had buffer volatilities in demand.
made significant changes to their supplier base in the It’s important to note that adding modes of transport is
previous 24 months and 77% had or were planning to not a contingency plan but rather a parallel transportation
increase their total number of suppliers. method for the same point-to-point connection.
One of the world‘s largest fashion groups provides a Furthermore, different modes of transport offer varying
prominent example of a business effectively leveraging lead times, which must be considered and aligned with
multi-sourcing on a global scale. The company the business model. Mode diversification spans from
strategically spreads their supply chain across thousands one mode for each part or product (low) to parallel
of facilities and direct suppliers worldwide. This strategy modes for each part or product (high). A retail market
allows the company to adapt swiftly to peak customer leader for example provides a best-practice example of
demand and leverage the unique strengths of each this dimension of supply chain diversification. Aiming to
supplier. Multiple suppliers also mean they can respond respond rapidly to consumer preferences and trends
quickly to disruption, redistributing production to ensure within 10 to 14 days, the company utilizes all modes of
products are always in stock. transport across all supply lines, opting, for instance, to
ship goods via air freight between regions rather than
using slower ocean freight. This allows swift and flexible
stock reallocation between markets based on customer
Parallel Modes Of Transportation requirements and disruptions.
The third dimension centers on utilizing more modes

of transport for the trade lane of a particular product
or part. Adding at least one transport mode to any part
of the supply chain (first mile, long haul, last mile, etc.)
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Diversifying Logistics Operations

also involve outsourcing certain logistics activities. Like
multi-shoring and multi-sourcing, a diversified logistics
operation provides alternative options that maintain
continuity in the supply chain during disruptions.
The spectrum of logistics operations diversification
ranges from a single logistics operation for a specific
need (low) to multiple redundancies across diverse
geographies (high). A global sportswear and athletic
equipment manufacturer provides an excellent example
of a company transitioning from a centralized to a
decentralized and diversified logistics network. While
the company aims to optimize profitability, the goal of
its supply chain strategy is also to improve resilience.
The final dimension of supply chain diversification They deliver products from production sites directly to
involves expanding logistics capabilities. This means regional and local warehouses, enhancing resilience
augmenting the logistics infrastructure with additional and cost efficiency. The company has also increased
capacities, such as hubs, warehouses, and distribution its logistics footprint, establishing a presence in South
centers. Depending on the requirements, this could America and India, opening a new hub in Southern
include redundant logistics capabilities in other locations Europe, and expanding operations along the east and
both near and far. Diversifying logistics operations may west coasts of the United States.
Graphic source: DHL Group (2024): Supply Chain Diversification Trend Report
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OVERVIEW
Challenges Outlook
The process of sourcing, pre-qualifying, onboarding, Supply chain diversification has already become a popular
and managing a larger number of suppliers demands theme in supply chain management. It is an essential
significant time and resources. This challenge becomes strategic lever for building resilience, enhancing customer
particularly pronounced when diversifying dimensions centricity, driving profitability, improving sustainability, and
such as multi-sourcing, multi-shoring, and logistic gaining a competitive advantage.
operations, as they introduce increased complexity into With disruption accelerating, diversified supply chains
the supply chain. are expected to become increasingly significant. Recent
experience demonstrates that companies with strategically
Building a new supplier infrastructure in a different diversified supply chains are better positioned to navigate
country or region for multi-shoring purposes uncertainties and seize emerging opportunities. Today’s
presents challenges, as it necessitates acquiring new new normal demands continuous assessment and more
organizational knowledge and skills. regular reconfigurations of supply chains to meet new
requirements, enhance risk profiles and maintain or improve
In terms of the multi-sourcing dimension, diversifying agility and resilience.
the supply chain network to focus specifically on the Transparency and visibility across the entire supply chain
source of components and materials can reduce the are imperative and the foundation for success, with state-
risk of a full manufacturing or retail backlog, but can of-the-art technology, supply chain management tools and
also increase the likelihood of a partial disruption as strong partnerships playing a decisive role.
each source has its own risk factors.
This trend should be actively monitored with imple
The utilization of multiple modes of transportation mentations available for many use cases today.
can pose challenges concerning the carbon footprint
of companies, as it has the potential to escalate CO2
emissions and adversely affect sustainability objectives.
In general, diversified supply chain setups can increase
the operational costs and therefore reduce profitability.
Related Trends & Downloads DHL Resources
Advanced Analytics Cybersecurity 2.0 Trend Report Supply Chain

Diversification
Decarbonization Digital Marketplaces
DHL (2024): 2024 DHL Global Connectedness Report , Accenture (2023): Resiliency in the Making Report, Bloomberg (2024): Apple’s India iPhone Output
Hits $14 Billion in China Shift, Lego (2022): The LEGO Group to build US$1 billion, carbon-neutral run factory in Virginia, USA, EY (2022): Why global industrial
supply chains are decoupling
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Silver Economy
The trend of Silver Economy encapsulates the As waves of experienced supply chain leaders and
specialized demands and needs of the elderly, as operational staff retire, organizations risk a brain drain
populations around the world progressively age. of time-acquired ‘tribal knowledge’ in an environment
This trend also includes support and services for of growing labor shortages. Logistics organizations
older workers in supply chain operations. are beginning to act to retain elderly employees with
valuable long-tenured experience. Meanwhile, retailers
By 2030, the number of people aged 60 years and are increasingly targeting the older consumer, and
above will grow globally to 1.4 billion, outnumbering the supply chains are adapting to handle more bespoke
total of children aged under 10 years. While a significant products and services.
proportion of this senior demographic category
originally came from Europe and North America, it
is projected that five times more people in this older
segment will come from outside these two regions
by 2050. Recognizing the changing face of the global
population, industries around the world have begun
distinguishing the needs of older people as employees
and consumers from those of younger generations,
creating a specialized but sizable market in its own right
– the silver economy.
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Technology-Enabled Support in
the Workplace Age-Friendly Workplace Policies
Supply chain workers, especially those in operations,

often have arduous shifts and contracts that may not
be a good fit for those who are older and considering
retirement. As much knowledge can be lost when an
employee retires, organizations can stop this brain
Employees in supply chain workplaces must always be drain by reviewing and reforming work policies to
mentally aware and often perform physically laborious accommodate older employees.
tasks. This can be taxing on minds and bodies with the
increasing average age of the workforce. New computer Senior worker support packages, such as flexible
and robotic products and services can empower and hours and part-time employment, can help retain
encourage older workers to continue working in supply retiring talent in an era of labor shortages. With these
chains by improving health and safety while also accommodating policies, time-experienced employees
reducing physical and mental stress. can still support their colleagues and, in particular,
extensively share their valuable knowledge and skills.
Technologies such as exoskeletons and teleoperated Furthermore, leadership can provide suitably ergonomic
driving can reduce the risk of physical injury, while other furniture and communicate to the entire team the value
digital support systems like augmented reality (AR) of its senior members in order to make the workspace
smartglasses, and artificial intelligence (AI)-managed more comfortable for older workers.
dashboards can reduce memory and cognitive demands.
By supporting older employees in their tasks, supply
chain organizations can retain long-tenured talent.
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Elderly-Centric Customer
Experience Last-Mile Value-Added Services
With communities aging around the world and with

more than six in 10 of today’s seniors in some countries
owning a smartphone (and this is likely to increase in
the future), business-to-consumer (B2C) logistics and
delivery businesses must consider senior needs as part
of the overall customer experience, especially in the The lockdown policies of the COVID-19 pandemic
digital realm. Recently, retailers and digital marketplaces cultivated the diversification of traditional delivery
have released ‘elderly-friendly’ versions of their apps, services with the aim of supporting the older population.
with less crowded interfaces, bigger text, navigation With many senior citizens unable to leave their homes
shortcuts, and digital connections with family to share and restricted in their daily activities, businesses and
products and manage expenses. governments collaborated to ensure they still received
essential goods at home.
Additionally, vendors should evaluate offering additional To lower the risk of virus exposure, pharmacies, grocery
services like free advice and pre-purchase and post- stores, and other businesses started offering contactless
purchase support with clear calls-to-action (CTAs) home deliveries. While lockdowns and other restricting
for its elderly consumers. While digital channels are policies have been removed, last-mile services are
growing and becoming more commonplace, support anticipated to continue expanding beyond food and
through phone, mail, and physical locations should not product delivery.
be overlooked. Overall, B2C logistics needs to adapt and
incorporate changes to accommodate and meet the
expectations of older customers along the entire supply
In-home medical check-ups, home cleaning,
chain – from order placement to last-mile delivery – or
transportation services, tech support, and auto-
risk losing market share to age-friendly competitors.
replenishment of goods such as medicines are
speculated value-added last-mile services to be
tested in the mid-term future.
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Senior Product Flow

individualized experiences, but it also represents
a change in the kinds of products demanded. For
instance, according to Rothschild & Co Asset Management
Europe, people aged over 50 have been increasing
their spending on products in healthcare, food, leisure,
communication, housing, and overall goods and services
since 2011 and, simultaneously, decreasing their spending
on transportation, alcohol/tobacco, clothing, restaurants/
hotels, and education. While fluxes are heavily dependent
on the state of the economy, inflation, and other factors,
overall demand for common medical and health
products like medication, wheelchairs, prosthetics, and
nutritional goods is almost certain to rise as more people
The consumer market landscape is shifting towards age. Logistics organizations need to adequately prepare
the preferences of an older population. In many operationally for the gradual increase of these products
geographies, the aging community represents a in the supply chain and the challenges this will present,
demographic with substantial purchasing power especially as providers begin offering more personalized
demanding high quality, longevity, and even more products and bespoke services to older customers.
Graphic source: United Nations Department of Economics and Social Affairs (2024): World Population Prospects 2024
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OVERVIEW
Challenges Outlook
Technologies to handle or assist older workers with The full impact of the Silver Economy trend in supply
every physically and mentally taxing task may not yet chain workplaces and marketplaces has yet to materialize.
exist or be ready for deployment at scale. However, as global demographics continually move
toward higher ages and as more people retire, we here
Compared to younger employees, older employees at DHL see this trend maturing soon, with businesses
may require a different set of resources, settings, taking active steps to retain older talent and attract senior
and learning pathways to acquire fluency with new customers.
technology tools.
Future personnel shortages, especially in seasonal developments and use cases on the horizon.
peaks and line-haul transportation, will still likely
occur despite elderly-friendly policies.
Creating parallel services specifically for older

customers like apps or last-mile delivery will require
additional time and resources.
Business models for new logistics value-added last-

mile services are not yet fully validated.
Related Trends
Diversity, Equity, Exoskeletons

Indoor Mobile Wearable Sensors

Robots
Sources
Statista (2023): Meta‘s Money Pit: Metaverse Bet Bleeds Billions, Forbes (2024): The Rise And Fall Of NFTs: What Went Wrong?, Statista (2024): Metaverse –
Worldwide, Backlinko (2024): Roblox User and Growth Stats You Need to Know, Demandsage (2024): Fortnite Statistics 2024 (Active Players, Revenue)
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Smartification
The trend of Smartification refers to the process of why it is increasingly important for companies to retrofit
retrofitting or producing previously disconnected assets with sensors, achieving a comprehensive data-
analog assets with sensor and wireless technologies, based view of operations.
making them ‘smart’ and connected, bridging the Retrofitting will become more easily scalable as the
analog-digital divide. Smartification enables users cost of sensors falls and as they become smaller while
to collect a variety of sensor data for analysis, improving accuracy and efficiency. And smartification will
performance measurement, simulations, and data- accelerate with developments in IoT, edge computing,
based decisions. This involves the transformation and next-generation connectivity such as 5G. With these
of information into data, allowing for more efficient technologies, a powerful ecosystem emerges in which
and effective operations. IoT devices can seamlessly communicate, process data
at the edge, and utilize high-speed wireless networks
Being connected has become a basic human need for for efficient and rapid transmission.
large parts of the world’s population and this is reflected The Smartification trend will have moderate impact
in the average number of devices and connections per on the logistics industry as it drives visibility and
person globally, which is expected to grow from 2.9 transparency for optimization and enables data-driven
in 2022 to 5.4 in 2028. By the end of 2024, there are decision making. However, it takes time to retrofit
projected to be more than 207 billion „things” connected equipment and assets as well as integrate IT systems.
to the worldwide network of tools, assets, devices, and Therefore, here at DHL we anticipate a few more years
appliances that make up the Internet of Things (IoT). will pass before widespread adoption of smartification
However, many “things” remain unconnected and this is applications across industries.
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Predictive Maintenance Asset Tracking
Traditional asset maintenance methods, which rely on

periodic inspections, may fail to identify abrasion and
may overlook details that could lead to unforeseen
expenses, reduced productivity, downtime, accidents,
and equipment damage. Instead, data-collecting Between 10% and 40% of supply chain assets are lost
sensors can create insights about the condition and globally through misplacement, theft, and breakage
operations of all assets and software analytics can be every year. Smartification of assets such as pallets,
employed to generate reports that highlight potential forklifts, and containers enables localization and tracking.
problems or risks of failure. This explains why more and For example, since 2019, DHL has equipped more than
more companies are developing retrofit solutions to 500,000 roller cages with smart long-lifetime trackers
implement predictive maintenance, especially for older from manufacturer Alps Alpine, providing transparency
assets that are more susceptible to repair and failure. on asset usage and improving distribution to ensure there
For example, DHL is using noise sensors for predictive are always enough cages at every location.
maintenance of its sorters – these machines are the
core component of successful automated sortation Another example is the partnership between shipping
operations and, typically, maintenance is time intensive company Hapag-Lloyd and IoT-technology provider
and not very effective. Nexxiot to create the world’s largest connected fleet of
smart containers. By the beginning of 2024, more than
one million solar powered, cellular asset-tracking devices
Instead, the noise of individual cells can be used with a runtime of 6-10 years have been installed in the
to identify at an early stage whether maintenance shipper’s dry container fleet.
is required. DHL developed an algorithm to analyze
Real-time location system (RTLS) manufacturer Sewio
this cell-noise data and provides visualization and provides a forklift tracking solution to equip vehicles with
alerts on a DHL IoT platform. a tag that transmits a signal to ceiling-mounted anchors.
The anchors send any signal to the RTLS server so each
vehicle’s position can be calculated in real time, within 30
This predictive maintenance solution is cost effective, cm (11.8”) accuracy. The tag can be powered from the
helps avoid outages, reduces unnecessary maintenance vehicle’s battery or by its own battery. Collected data also
activities and overall effort, and enables the switch provides insights into metrics such as distance traveled,
from calendar-based to event- and/or alert-based run time versus stop time, and overall equipment
maintenance. effectiveness.
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Facility Monitoring
Companies also need to monitor and understand facility
energy consumption to identify and quantify potential
energy savings, improving the carbon footprint and
lowering energy costs. Retrofitting warehouses and
production facilities with sensors can help with these tasks,
providing data for analysis and informed decision making.
Companies like Singapore-based BeeBryte can
measure, predict, and even independently adjust
energy consumption-related functions (such as heating,
ventilation, and air conditioning) in smart production
facilities, warehouses, and commercial buildings. By
analyzing data from different sources (for example,
It is crucial to monitor environmental conditions within sensor-based, warehouse activity information and
logistics facilities in order to prevent exposing goods external sources like weather and traffic) the system can
to extremes of heat, cold, and excessive humidity automatically adjust to optimum levels.
– requirements that are especially relevant in the
pharmaceutical, food, and technology industries.
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OVERVIEW
Challenges Outlook
The assimilation of formerly analog assets and As sensor technology advances and the cost and size of
systems into a corporate IT ecosystem and the sensors shrink, more and more smartification use cases
increasing number of connected devices raise the are emerging. This means newly produced assets are
risk of cyberattack. increasingly smart from the outset and there are more
and more opportunities to digitize analog assets by
Integrating sensors from different suppliers requires retrofitting them with sensors. With the general trend
a strong IT ecosystem and various application towards more transparency and data harvesting, the
programming interfaces (APIs) to ensure all data is relevance of the smartification trend will continue to
linked on one platform. increase in the future.
The shift towards smart facilities, connected assets, This trend should be carefully monitored with use
and data-driven processes is expensive as well as cases in some applications that can already be
time intensive. addressed today.
Growing data volumes due to the smartification

of assets and systems means decision makers
must learn to analyze this data and draw correct
conclusions from it.
Not every analog asset can be retrofitted with sensors

and wireless technologies.
Computer Vision Edge Computing

5 ways IoT trackers can save your
ass(et)
The real value of IoT in supply chains

Next-Generation Smart Printables
Connectivity
Statista (2023): Number of connected devices worldwide in 2014 and 2028, by device, Worldometer (2022): World Population Projections, Forbes (2023):
2024 IoT And Smart Device Trends: What You Need To Know For The Future, Hapag Lloyd (2024): One million dry container monitoring devices installed!
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Space Economy
The trend of Space Economy encompasses all will accelerate its growth. These include reusable
activities of exploring, understanding, utilizing, and launch vehicles like SpaceX’s Falcon 9 and Blue Origin’s
administering space for various reasons, including New Shepard, the miniaturization of satellites which
science, telecommunications, resource extraction, reduce costs of development and launches. Another
manufacturing, and tourism. This trend also covers technological breakthrough is in-space manufacturing
the production, transportation, and storage of with companies like Made in Space and Redwire Space
related materials and products on Earth, in space, pioneering 3D printing and other manufacturing
and between the two. technologies in space. There is also the growth of on-
orbit servicing – provision of robotic technologies for
According to The Space Report 2023 Q2 by the Space refueling, repairing and upgrading satellites in space.
Foundation, the global space economy grew to US$ Lastly, other companies are advancing edge computing
546 billion in 2022, and is expected to near the $800 in space with technologies like Exo-Space’s FeatherEdge
billion mark within five years. Global launch activity platform to enable on-board processing of data from
has reached new highs, with 223 launch attempts and satellites.
212 successful launches in 2023 – a record number The trend of Space Economy has a low impact and
of launches for the third year in a row, with 23% more distant adoption for logistics. Currently it is an industry
satellites (2,800) deployed into orbit than in 2022 niche, representing a small percentage of the total
and commercial launch activity increasing 50% over throughput of today’s supply chains.
the previous year. There are several technological
breakthroughs in the space economy industry that
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Satellite-Powered Supply Chains

tracking container ships, optimizing routes, and improving
fuel efficiency. Through data collection, satellites can help
logistics providers optimize supply chains and provide
better services to customers. And there is broad potential
for satellites to provide network coverage across the globe,
eliminating connectivity issues in so-called dead zones.
Supplying Cargo
Global connectivity continues to be an ongoing issue for the

supply chain. Many companies experience poor shipment
visibility when their goods are transported across borders.
However, the satellite internet is poised to revolutionize
connectivity worldwide, providing access especially to
underserved areas and remote regions. Satellite-powered
supply chains feature real-time tracking and monitoring
with GPS and other global navigation satellite systems
providing precise location data for vehicles, containers,
and other assets throughout the journey.
These supply chains benefit from improved

inventory management – satellite imagery can
monitor, for example, raw material sources, crops,
and livestock health, enabling better demand As space activity expands, it will be necessary to transport
forecasting and resource allocation. more provisions, fuel, equipment, and materials into
space to support this growth. There will also be demand
for logistic players to move necessary space equipment
In addition, satellite communication bridges connectivity and supplies between facilities.
gaps in remote regions, enabling efficient logistics
operations in areas with limited ground infrastructure. Logistic infrastructure will be required not only to store
Data-driven optimization can be achieved by combining but also transport space equipment, which could prove
satellite data with other sources like Internet of Things challenging due to stringent space and weight restrictions
(IoT) sensors and enterprise resource planning (ERP) on rockets and shuttles.
systems. These generate valuable insights and help
companies make data-driven decisions on route The number of shipments destined for space is likely
optimization, fuel efficiency, carbon emission reduction, to grown, along with increased diversification of the
and more. Examples include satellites in low-Earth orbit products delivered. Here at DHL, we expect modular
(LEO) constellations, such as Starlink, offering high-speed standardization of packaging and containers to
internet access to users around the globe. Already, Maersk adequately protect products while also minimizing
teams are working with Starlink to use satellite data for volume and weight.
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End-to-End Satellite Logistics

Tens of thousands of satellites are expected to be
launched in the next decade. These satellites will require
logistics services to reach their designated coordinates in
space. This includes not only current logistics solutions
focusing on aspects like launch and in-orbit services but
also an end-to-end approach that demands significant
logistics expertise.
Various logistics activities are involved in the end-to-end
movement of satellites, from reserving rocket freight
space on behalf of customers and sending specialist
teams to pick up satellites at manufacturing sites, to
delivering these to launch sites. Additionally, logistics
providers will be involved in transporting replacement
parts and equipment for maintenance purposes and in
satellite decommissioning at the end of a device’s life.
As the space economy continues to grow, there will be
growth opportunities for end-to-end logistic solutions.
However, this will require significant investment and
infrastructure to reduce the costs of transporting
satellites and other equipment.
Graphic source: McKinsey & Company (2023): A giant leap for the space industry
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OVERVIEW
Challenges Outlook
Extreme conditions, such as zero gravity and frigid Overall, the space economy is booming, with more nations
temperatures, impose limitations on the permissible and private investors pouring resources into space-related
products and materials as well as their transportation activities. The market for end-to-end satellite logistics
methods. continues to evolve, with significant uncertainties alongside
promising opportunities. The pace of technological
Launch vehicle dimensions and weight constraints may advances, regulatory adoption, and cost reductions will
not allow for economies of scale. likely determine the viability and future landscape of the
space economy. For now, the exact impact on the logistic
Commercial cost-benefit propositions for logistics industry remains undetermined and full realization of the
services are untested but developing and operating space economy is still distant.
end-to-end logistic services for the space economy
remain expensive; cutting costs will require significant This trend should be passively monitored with de
investment and technological breakthroughs. velopments and use cases on the horizon.
The legal framework for logistics operations in space is

not yet available and evolving space regulations might
not fully adapt to new business models like end-to-end
logistics, creating uncertainty and hurdles.
Related Trends
Circularity Digital Twins
3D Printing Next-Generation
Connectivity
Space Foundation (2023): Space Foundation Releases The Space Report 2023 Q2, Showing Annual Growth of Global Space Economy to $546B
Space Foundation (2023): The Space Report 2023 Q4 Shows Record Number of Launches for Third Year in a Row,
Technological Firsts, and Heightened Focus on Policy
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Workforce Focus
The trend of Workforce Focus refers to prioritizing and follow a purpose. Younger employees expect
employee needs, desires, and wellbeing as the personalized work experiences that fit their needs,
foundation for organizational success. This involves comparable to the experiences they have as consumers
crafting a work environment that puts employees’ and compelling employers take these topics seriously.
interests first, so their overall experience is Technological developments are influencing and
enhanced, from the first touchpoint during the hiring enabling employee centricity, too. New technologies
process to the moment they leave a company. offer the opportunity to tailor work to the individual,
creating an automated and augmented workplace.
Workforce Focus across all industries, including First and foremost, employers must create an
logistics and the supply chain, will significantly alter employee-centric strategy and work culture in order to
future working conditions. Reasons for this trend are attract and retain talent in the future.
demographic change, changing employee expectations As waves of experienced supply chain leaders and
and needs, and technology developments such as operational staff retire, organizations risk a brain drain
artificial intelligence (AI), robotics, and digitalization. of time-acquired ‘tribal knowledge’ in an environment
This global phenomenon will likely bring challenges of growing labor shortages. Logistics organizations
for logistics leaders across the world. are beginning to act to retain elderly employees with
Overall, there will be fewer available workers and valuable long-tenured experience. Meanwhile, retailers
over time the existing workforce will be replaced by are increasingly targeting the older consumer, and
younger generations with different aspirations; jobs supply chains are adapting to handle more bespoke
they perceive as unattractive, such as delivering parcels products and services. With an employee-centric
and loading trucks, may not be filled appropriately. strategy, logistics organizations can maintain a suitable
Workforce Focus is driven by the younger generation’s workforce in terms of size and skills to match demand
attitudes about work as compared to former and succeed in navigating a challenging, changing, fast-
generations, these people have different employer paced environment. In the next five years, organizations
and job expectations. Focus is much more on work- will increasingly feel the pressures of demographic
life balance, flexible working hours, new work models change. While many are already taking proactive steps
such as the four-day week, and opportunities to learn to attract and retain talent, it will take some time
before these are widely adopted and organizations fully
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implement employee-centric strategies. As companies the office and in operations, and initial trials in office
realize an employee-centric culture is highly relevant in environments have yielded promising results. But
logistics and logistics is inherently a people-centered implementing a new work model like this is challenging
business, it is obvious that employee wellbeing and in logistics operations, where worker shortages are
engagement are essential to successful operations. already high. This is further complicated by any need
Workforce Focus has a significant impact on long-term for night work and shift work. However, jobs must be
success. Companies that invest heavily in the employee made more attractive in an employee-centric company.
experience are 11.5 times more likely to be ranked Innovative solutions are needed, such as self-scheduling
among the best places to work on Glassdoor and 2.1 shift tools and shift-swapping platforms, as the status
times more likely to be listed among the most innovative quo will inevitably lead to more workforce gaps.
companies list by Forbes. Moreover, happiness at work, When asked about flexibility in work locations,
which can result from a good employee experience, is employees have strong opinions, raising significant
one of the most important factors in employee retention, challenges for logistics leaders. 81% of office workers
as half of employees who enjoy their work are 49% less do not want to work exclusively from the office and
likely to say they would consider taking a new job than 11% want to only work from home. Meanwhile, 59%
employees who don‘t enjoy their work. of operations employees want the opportunity to work
from home some of the time. This is hugely challenging
for managers, as many activities in operations require
the physical presence of employees. In future, it may
Flexible Working Models be possible to carry out some work processes remotely
via remote operations; for example, driving warehouse
vehicles. But areas of application are limited, meaning
only specific tasks such as operations training and some
administrative work can be done from home.
Seasonal workers have traditionally played a vital role in
the logistics industry as a way of addressing pre-holiday
and other seasonal fluctuations, but subjecting them to
lay-offs during non-peak periods is not employee centric.
This is why there is growing momentum to establish
collaborative arrangements with companies in diverse
sectors, enabling year-round employment and offering
more enticing contracts accompanied by enhanced
benefits. A strategic approach like this facilitates a
Very important in future to both employees and smoother recruitment process to attract talent and
employers, flexible working models are sure to impact allows implementation of innovative employment
the logistics industry. But “flexible” can refer to working models. For example, individuals may engage in
hours and location and/or to new working models such summer employment within the tourism industry and
as new types of seasonal workers and gig workers subsequently transition to support the logistics sector
(independent short-term contractors with work during a winter pre-holiday season.
arrangements organized via online platforms). Gig workers possess the greatest work flexibility – they
Research shows 77% of workers perceive non- are in charge of their working hours and location, what
traditional working hours as a major advantage over they do, and who they work for. Logistics managers
a 9-5 schedule, apparently driven by the desire to can use the services of gig workers to meet fluctuating
integrate work and private life. Especially in Europe, demand but this has its own challenges; managers may
there is strong demand for a four-day week, both in struggle to ensure consistency in the quality of work and
gig worker availability.
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Physical & Mental H&S

Training courses, awareness days, and access to mental
support services are all useful to logistics providers,
along with a range of innovative solutions from
startups, including app-based resilience training and
comprehensive counseling services to supporting the
mental wellbeing of employees.
Future-Forward Leadership
Minimizing incidents has been a key goal across the

logistics industry for years, and today’s employee-
centric organizations also prioritize mental wellbeing
as well as proactive, data-driven health and safety
(H&S) management aligned closely with the needs of
employees. Physical accidents are, unfortunately, still a
continuing reality in logistic operations. Forklift drivers
have accidents and employees are injured by pallets or
incur musculoskeletal damage from excessive physical
stress, resulting in serious challenges both in and
outside the workplace, and high costs for employers.
Measures to improve H&S are typically taken on the
basis of past events. Technology developments can
help to prevent incidents proactively before they occur.
For example, deploying exoskeletons and using data-
based H&S management. Here at DHL, we are testing
and piloting artificial intelligence (AI)-driven computer To foster an organizational culture and strategy that
vision solutions such as Protex AI to proactively prioritizes employee wellbeing and engagement requires
identify dangerous behavior and hot-spot areas within future-forward leadership. To complement existing
warehousing before any incident occurs. Considered leadership skills and qualities, logistics managers
equally important as physical health, mental health is no today must also further develop emotional intelligence,
longer a taboo subject and it is particularly important to employee autonomy, and change management skills.
the younger generation of employees. Looking at these in turn, emotional intelligence (also
known as emotional quotient, EQ) enables logistics
leaders to effectively navigate complex and high-
Research shows 17% of sickness absences are pressure situations, build strong relationships with team
caused by mental health issues and, regardless members, and inspire trust and collaboration. And as
technology advances and automation is more prevalent,
of whether the cause is work related, logistics
EQ will become even more important in the logistics
managers must appreciate employee mental industry. Leaders with emotional intelligence will be
wellbeing contributes to a satisfied, productive better equipped to deal with change, adapt to new
workforce and affects an organizations ability to technologies, and foster a positive and resilient work
attract talent. culture as industry demands evolve. They will nurture a
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Skill-Based Learning
& Development
culture of psychological safety and although they may
not always know how to do things, they will be able to
integrate employee feelings and thoughts into their
own actions. Employee autonomy is a success factor to
attract and retain talents, as almost half of employees
would give up a 20% pay raise for greater control over
how they work. Logistics leaders must adapt to this
increasingly important development. Managers should
provide individuals with the flexibility and freedom
to make decisions and must trust their employees to
manage their work in a way that suits their strengths
and preferences. With the rise of remote work and the
growing emphasis on work-life balance, employee
autonomy becomes even more crucial. Logistics In the past, training and upskilling have played an
leaders will succeed by prioritizing and supporting important role in the logistics industry to attract and
employee autonomy and empowering their teams to retain talent; in future, we expect these will become
achieve higher levels of productivity, engagement, and even more important. Employees in logistics operations
satisfaction. Together, this will contribute to the future and offices rate training and development among
growth and resilience of the organization. the top three incentives to stay with their current
In addition, constant change management will become employer. In this context, more than 60% of employees
and increasingly important attribute of logistics leaders. see their employers as being (co-)responsible for
In a faster-paced world saturated with information, organizing courses. And to remain competitive, logistics
successful leaders will pierce through the noise and organizations must deliver continuous training and
guide teams with minimal disruption through periods upskilling to keep everyone up to date with rapidly
of great change and consider the individual employees changing technical and regulatory conditions.
and their needs and wishes. Digitization projects are a Companies can achieve employee-centric training
good example of this. Leaders need to be clear about and upskilling with a new skill-based learning and
the different digital personas (from all-digital/tech- development approach. Appropriate in this era of artificial
savvy to traditionalist) and their characteristics in the intelligence (AI), digitalization, and automation in which
team to successfully formulate a common way forward. some tasks will be automated, this approach enables
In this way, a common way forward can be developed, thinking beyond traditional job roles to categorize talent
and employee centricity can be created. based on skills and experience (gained not just at work
but also from other life events) and more effectively
match individuals with evolving industry needs.
This enables organizations to proactively address the

skills gap, foster continuous upskilling and reskilling,
and ensure an agile workforce that is well-equipped to
navigate the challenges and opportunities of the future.
Employer-driven training and development is key to
retaining and attracting talent and having a highly
developed workforce. To provide employee-centric
training and upskilling, all measures must be closely
aligned with the needs and skills of employees, not with
rigid plans or job positions. There is no one-size-fits-all
model for training.
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Workplace Values
technology. In both the office and the warehouse
environment, a technology-forward mentality helps
attract and retain talent and has wider impact – a
suitable working environment (which includes the
right technology) contributes directly to increased
productivity. Logistics leaders need to stay on top of
technology developments, seeking out and deploying
the best digital tools to enable their teams.
Research shows 71% of employment seekers are more

likely to apply for and accept jobs with environmentally
and socially responsible organizations – and nearly half
would accept a lower salary to work for companies with
Two organizational workplace values are key to an a sustainable-forward attitude. Clearly this is central
employee-centric strategy: a technology-forward to attracting and retaining talent. Also, employees are
mentality and a sustainable-forward attitude. These increasingly wary of greenwashing so, to align with
values underpin and support long-established values these employee expectations, logistics organizations
of leadership and teamwork. One out of six young must create tangible and transparent sustainability
employees claim they left a job due to a lack of proper actions and policies, establishing a culture of trust.
Graphic source: Wawera et al. (2022): Arbeitsdefinition für New Work-Settings
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OVERVIEW
Challenges Outlook
Employee needs can vary greatly, which means it may be Employee centricity will continue to grow in importance
difficult to develop a common culture within the team. in the coming years, driven by societal and demographic
changes, changing employee values and needs, and
Balancing employee centricity with other values like technological developments. In future, companies will be
effectiveness and productivity can be challenging, required to increasingly orientate the employee experience
especially in operations. towards individual needs. Only by doing this will the
organization remain an attractive employer and ultimately
Workforce Focus may be neglected during challenging stay competitive.
market conditions but any short-term cost savings are
outweighed by the high cost of subsequently attracting This trend should be carefully monitored with imple
and hiring talent. mentations available for many use cases today.
Cultural transformation is needed to shift from a task-

focused or management-centric culture to one that
prioritizes employee needs and wellbeing, and may
involve redefining leadership styles, communication
methods, and performance metrics.
Related Trends
Diversity, Equity, Gen AI

Remote Operation Silver Economy
BCG (2024): Enjoying Work Matters More Than You May Realize, DHL (2022): Global Workforce Survey, German Federal Ministry of Health (2022): Mental health
in the workplace, PWC (2019): Provide autonomy. Create a competitive advantage through a more engaging people experience. , IBM (2021): Sustainability at a
turning point
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TECHNOLOGY TRENDS Contents Radar
Section Contents
3D Printing 89
Advanced Analytics 94
Audio AI 99
Bio-Based Materials 104
Blockchains 108
Computer Vision 113
Digital Twins 117
Drones 121
Edge Computing 126
Exoskeletons 131
Extended Reality 135
Gen AI 139
Indoor Mobile Robots 143
Next-Generation Connectivity 149
Next-Generation Packaging 153
Outdoor Autonomous Vehicles 158
Remote Operations 163
Renewable Energy 168
Infrastructure
Smart Printables 173
Stationary Robotics 177
Sustainable Fuels 181
Vehicle Electrification 186
Wearable Sensors 191
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Technology Trends Contents Radar
3D Printing
The trend of 3D Printing, otherwise known as additive The 3D printing landscape has grown in diversity and
manufacturing (AM), refers to the production process complexity, so the trend has evolved from niche to
in which a 3D object is fabricated from a digital widely utilized applications. We here at DHL expect this
model file with physical materials typically being production technology to achieve further adoption in
added together or etched layer by layer. 3D printing the next few years. Sales of 3D printers and 3D printing
processes vary greatly, and they can involve a wide materials are estimated to increase at a compound annual
range of materials, such as plastics, metals, ceramics, growth rate (CAGR) of 11% between 2024 and 2034,
and paper, to influence the strength, durability, when this market is expected to be worth US$49 billion.
accuracy, surface finish, and other attributes of the To support this market increase in 3D print production,
finished product.. including business-to-business (B2B) printing services
and delivery, logistics service providers are leveraging
their regional networks in scale and complexity. They
3D printing was initially used for rapid prototyping are also adapting their services to meet the increasing
to accelerate product design processes. Today, with demand for the polymers and other raw materials used
further technology development and maturation, it in 3D printing. The 3D printing landscape has grown in
has been more widely adopted for larger batch size diversity and complexity, so the trend has evolved from
production across automotive, medical, aerospace, and niche to widely utilized applications. We here at DHL
other industries to create many different objects in a expect this production technology to achieve further
variety of materials. It offers the opportunity to reduce adoption in the next few years. Sales of 3D printers and
the weight of parts and to 3D print complex parts in 3D printing materials are estimated to increase at a
one piece. Products that can be 3D printed range from compound annual growth rate (CAGR) of 11% between
custom-made climbing shoes and printed dentures to 2024 and 2034, when this market is expected to be
fully 3D-printed wind turbines. GE Aviation, for example, worth US$49 billion. To support this market increase
began 3D-print production at scale of fuel nozzles for in 3D print production, including business-to-business
aircraft engines back in 2015 and, by 2021, made (B2B) printing services and delivery, logistics service
its 100,000th turbine shroud from ceramic matrix providers are leveraging their regional networks in scale
composite (CMC) using an additive manufacturing and complexity. They are also adapting their services to
process – items which proved to be 25% lighter and 5 meet the increasing demand for the polymers and other
times more durable than traditionally produced parts. raw materials used in 3D printing.
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RELEVANCE TO THE Technology Trends Contents Radar
FUTURE OF LOGISTICS
Mass Personalization
& Customization
can improve efficiency by simultaneously producing
numerous customized end-user parts. The increase
in demand for mass personalized and customized
products provides many new opportunities for
businesses to leverage the capabilities of 3D printing
technology. Examples include manufacturing lenses
and eyeglass frames designed and positioned to fit
unique facial features, prosthetic implants catering to
individual patient requirements, customized hearing
aids, and personalized footwear for users with special
needs. Strong and agile local supply chain networks
will be needed to accommodate efficient distribution of
on-demand 3D-printed mass production items.
Decentralized Production
With 2.64 billion people around the world – one in
three – already shopping online, there is vast potential
for mass personalization and customization of
products using 3D printing technology. Businesses
need to rethink manufacturing and distribution to
meet customer demand.
Not just consumers but also industries can benefit

from mass customization of products. 3D printing
brings value to many sectors, from automotive to
aerospace and from semiconductor capital equipment
manufacturing to healthcare provision. This technology
Effective spare parts management is crucial for

maintaining product uptime, especially with the shift
towards servitization (when customers pay for the
use of equipment rather than buy it themselves),
to avoid high costs and reduce the risk of lost sales
if machines stand idle because spare parts are
unavailable. The irregular and still hard to predict
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Environmental Sustainability
demand for spare parts, coupled with the need to
keep stock for the duration of a product’s lifecycle
(depending on the longevity of the product), present a
challenge for aftermarket logistics. Creating and storing
digital part files on cloud and printing these items on
demand gives companies flexibility in managing the
supply chain, reducing inventory, optimizing warehouse
storage space, and achieving shorter lead times.
This can be attained by setting up decentralized local

3D printing facilities A logistics company can take
advantage of this opportunity and build servicing
capability by, for example, partnering with local 3D
printing services or producing spare parts in-house,
and can use its supply chain network to deliver parts
on time.
3D printing can play an important role in enabling

companies to reach their sustainability strategy
targets, as it reduces waste through the process
of building a product layer by layer rather than
subtracting and discarding materials, which is
common in conventional production processes.
3D printing is also an enabler for decentralized
production reducing transportat distances and offers
ways to optimize product design by eliminating the
design constraints of traditional manufacturing,
which in turn reduces material use.
Increased investment in material research and

development has resulted in the creation of
environmentally friendly materials such as ABS and
bio-based materials which help reduce the carbon
footprint. Leveraging 3D printing therefore results
in less need for waste logistics and reduces overall
carbon emissions during the printing process.
Within logistics and the supply chain, the benefits of
advances in the field of materials science (such as
using more lightweight materials to build airplane
parts and sustainable packaging material) also bring
more opportunities to reduce the carbon footprint.
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3D Printing in the Supply Chain

At DHL, one of our in-house technology teams has used
3D printing to develop a grabber for robotic arms
deployed in supply chains. Creating sample products
for logistics operations could take weeks from design
to prototype but, with 3D printing, this can be reduced
to days, allowing logistics planners to minimize
the optimization window. For logistics applications
requiring high levels of design customization or
flexibility, on-site printed automation parts are likely
to accelerate project turnover and optimize goods
flow. Obtaining bespoke parts is not just much
faster; it can also be much more cost effective and
In logistics, 3D printing enables rapid sustainable. To use 3D printing as an alternative to
prototyping, too. A good example of this is the conventional production methods in the supply chain
creation of parts for automation trials, when it is requires more documentation, along with new quality
better for new concepts to ‘fail fast’ rather than standards and product testing methods suited to this
incur long lead times before a result is achieved. new type of manufacturing
Graphic source: All3DP (2023): 7 Ways 3D Printing Helps You Become Sustainable
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SUMMARY & TREND Technology Trends Contents Radar
OVERVIEW
Challenges Outlook
A small-batch production size compared to 3D printing will remain a good fit for low- to medium-
conventional manufacturing makes 3D printing more volume production. With the right level of planning,
costly and slower than mass production; this restricts engineering, and materials development, it can
widespread adoption across industries. be seamlessly integrated into production. As this
technology moves towards integration into all stages
Another barrier to adoption is the limited range of of new product development from conceptualization
materials that can be used in their raw state for 3D to production, in future we can even expect being able
printing; in some cases it continues to be difficult to print objects embedded with electronic chips and
to achieve the same material properties as in sensors at reasonable cost. This will help reduce reliance
conventional manufacturing. on third-party suppliers, meaning companies gain more
control of their production processes, mitigating risk in
The size of the printable object is restricted by the the supply chain. For the most part logistics will play a
dimensions of the 3D printer chamber; larger items supporting and enabling role within this trend. There is
must be built in parts and then combined manually. significant market opportunity. The global 3D printing
market size is projected to achieve a CAGR of 24.3%
3D printing risks intellectual property rights (IPR) between 2023 to 2030, reaching a value of $105 billion.
infringement as, in the wrong hands, a printer can
make lower-quality counterfeit products; original This trend should be monitored to some extent with
designers and manufacturers incur loss if fake goods developments and use cases on the horizon.
find a way into the supply chain.
Bio-Based Decarbonization
Materials 3D printing: A new dimension
Mass Smart Printables

Personalization
Sources
IDTechEx (2024): 3D Printing and Additive Manufacturing 2024-2034: Technology and Market Outlook
Meetanshi (2024): 45 Online Shopping Statistics to Take Note of in 2024
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Advanced
Analytics
The trend of Advanced Analytics refers to Advanced Analytics lies the paramount importance of
sophisticated techniques and tools used to analyze clean, high-quality data. The accuracy of insights and
and interpret data, aiming to extract insights and the efficacy of predictive models are directly contingent
foresights and provide actionable intelligence beyond on the integrity of the underlying data. Understanding
what is offered by traditional business intelligence this, organizations in various industries have invested
methods today. This trend encompasses a range in robust data management practices, emphasizing the
of methodologies including statistical analysis, cleaning, integration, and governance of data. To achieve
predictive modeling, artificial intelligence, machine strategic agility and operational resilience, companies
learning, and data mining, enabling organizations are increasingly aiming for data-driven decisions and
to leverage data for strategic decision-making and the trend of Advanced Analytics helps logistics and
competitive advantage. supply chain managers navigate the way ahead. In terms
of impact, the importance of Advanced Analytics in
The ascendancy of advanced analytics in logistics and logistics as a trend cannot be overstated, especially
supply chain organizations signifies a notable shift in when considering the critical need for data-driven
the paradigm of data utilization within the industry. decisions in various departments, like operations and
From the early days of accumulating vast datasets and sales, to significantly enhance operational efficiency,
undertaking basic analysis, the industry now employs customer satisfaction, sustainability, and overall
complex analytical methods to unearth insights competitiveness. In terms of adoption, this trend
and enable data-driven decisions along and across is in the mid-future. While much of the supporting
segments of supply chains. Rather than merely having technologies, like low-code/ no-code platforms or
access to large volumes of data (data quantity), logistics data mesh architecture, indeed already exist and
professionals can intelligently use and analyze this data are being currently used by some supply chain
for strategic advantage (data quality, which is essential to organizations, business data collection and analysis
answer the increasingly complex and specific questions initiatives still require more years to be prioritized
asked by businesses today. At the heart of leveraging and implemented before they are considered as
mainstream in the logistics industry.
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Forecasting
models to be trained, tuned, and distributed with
generative AI and machine learning capabilities.
Forecasting also helps build supply chain resilience.
By predicting weather patterns and climate

change impacts, businesses can mitigate risks
related to natural disasters. They can adjust
logistics strategies, reroute shipments, and secure
alternative suppliers in advance.
Moreover, AI-enhanced analytics extend to geopolitical

and social factors, such as anticipating strikes or
political instability that could disrupt supply chains.
Predictive models might analyze social media sentiment
and political news to forecast disruptions, enabling
proactive measures. Companies like Everstream, for
instance, use AI-driven analytics to monitor scores
Forecasting in logistics and supply chain management of data sources globally, providing clients with real-
is essential for operational efficiency, customer time insights into potential disruptions and alternative
satisfaction, sustainability, and strategic planning. routing options to ensure continuity.
Advanced analytics, including the latest AI-driven
techniques, greatly enhance forecasting capabilities.
For financial forecasting and predicting consumer

behavior, advanced analytics enable businesses
to anticipate market demands, adjust pricing
dynamically, efficiently plan resourcing, and optimize
inventory levels. With a trade barometer, for example,
which uses artificial intelligence and big data to
analyze import and export data, companies can
get early indications of future trade and economic
performance – a predictive capability enabling
informed decisions about inventory management,
production planning, and resource allocation, directly
influencing operations and the bottom line. Predictive
models can forecast consumer demand spikes on
particular days or weeks, enabling retailers to stock up
on trending products. And recent advances in AI, such
as machine learning models that can analyze complex
datasets and identify patterns beyond human capacity,
have significantly enhanced forecast accuracy and
timeliness. Tech providers like IBM and its watsonx
platform further refine demand forecasting, enabling
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Low-Code/ No-Code
and optimize routes without requiring users to have
any coding expertise. By integrating these advanced
analytics capabilities, Locus helps logistics companies
in Asia and beyond reduce costs, improve delivery
times, and enhance customer satisfaction through
data-driven strategies, showcasing the potential of
low-code/ no-code platforms to transform logistics
and supply chain management on a global scale.
Data Mesh
The surge in low-code/ no-code platforms represented

a significant tech shift, enabling users across
various sectors, including logistics and supply chain
management, to engage in advanced analytics without
extensive coding knowledge. Platforms like Microsoft
Power BI and Google Data Studio democratized data
analysis, allowing logistics professionals to visualize
and monitor key metrics such as inventory levels,
shipment tracking, and supplier performance through Data mesh represents a novel architectural paradigm
user-friendly interfaces. These tools facilitate rapid, designed to address the complexities and scalability
informed decision-making critical to managing challenges of managing data in large, distributed
complex logistics operations efficiently. organizations, including those in logistics and supply
chains. At its core, data mesh shifts the perspective
Many startups are at the forefront of integrating low- from centralized data management to a decentralized
code/ no-code technologies into their logistics solutions. approach, where data is treated as a product, with
Locus, a logistics API-based platform company based domain-specific teams responsible for its quality,
in India, is an example of such innovation, offering governance, and accessibility. This methodology
advanced supply chain optimization and analytics encourages a more collaborative and efficient data
solutions that utilize AI and machine learning to ecosystem, enabling various departments — such
automate decision-making in logistics operations. as procurement, warehousing, and distribution —
Its platform enables businesses to plan deliveries to manage and share their data autonomously yet
more efficiently, predict transportation volumes, cohesively. For supply chain managers, this means
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having direct access to high-quality, actionable data that supports the democratization of data access and
across different touchpoints of the supply chain, analytics, facilitating the creation of self-serve data
facilitating better decision-making and operational products that can empower domain experts within
efficiency. The adoption of a data mesh architecture logistics to analyze effectively data relevant to their
solves several pressing issues in logistics, including areas. Meanwhile, Ververica offers real-time data
data silos, inconsistent data quality, and the processing and analytics capabilities, which may be
cumbersome process of integrating data from diverse essential for implementing a data mesh in dynamic
sources for analytics. By promoting a self-serve data logistics environments. Its technologies enable
infrastructure, it enables non-technical users to easily logistics companies to build and manage data pipelines
access and analyze data relevant to their specific that process data in real time, allowing for immediate
domain, thus democratizing data analytics across insights and responses to supply chain challenges.
the organization. International startups like Paris- By incorporating these innovative solutions, logistics
based Dataiku, as well as Ververica, headquartered and supply chain organizations can harness advanced
in Berlin, are at the forefront of offering data mesh analytics for more informed decision-making,
services that are reshaping how logistics and supply significantly enhancing operational efficiency and
chains manage data. Dataiku provides a platform resilience.
Graphic source: Gartner (2012): 2012 Gartner Magic Quadrant Report
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OVERVIEW
Challenges Outlook
Ensuring data privacy and security becomes The trajectory of the Advanced Analytics trend in
increasingly complex with advanced analytics, logistics is continued innovation and expansion, driven
as data from various sources must be protected by development of sophisticated analytical techniques
against breaches and unauthorized access. and the proliferation of data across the global supply
chain ecosystem. As organizations embrace data mesh
Implementing advanced analytics requires a well- architectures, low-code/ no-code platforms, and
built data governance framework in an organization advanced forecasting models, we anticipate a deeper
to ensure data quality and compliance across all integration of AI and machine learning technologies,
departments and functions. further enhancing the precision and efficiency of
logistical operations. This evolving landscape not only
The integration of advanced analytics into an existing promises to refine the capabilities of supply chain
IT infrastructure can present significant technical managers in making data-driven decisions but also
challenges, requiring careful planning and possibly sets the stage to explore new frontiers in predictive
substantial investment in technology upgrades. analytics, potentially revolutionizing how logistics
and supply chains operate in an increasingly complex
Navigating the fast-evolving landscape of advanced and dynamic global market.
analytics tools and technologies can be challenging,
making it difficult for organizations to choose the This trend should be actively monitored with
most appropriate and future-proof solutions. implementations available for many use cases today.
Related Trends
AI Ethics Mass
Personalization
Smartification Supply Chain

Diversification
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Audio AI
Audio AI refers to the branch of artificial intelligence network architectures such as convolutional neural
(AI) focused on the analysis, synthesis, and networks (CNNs) and recurrent neural networks
understanding of audio signals, enabling machines (RNNs). Built on different architectures, these either
to perceive, process, and interpret sound in a manner use filters and pooling methods to feed information
similar to human auditory systems. It encompasses forward (CNNs) or feed results back into the network
techniques such as speech recognition, sound (RNNs). The market size for sound recognition
classification, and environmental noise detection alone was valued at US$ 1.2 billion in 2022, and
to enhance human-computer interaction. this industry is projected to grow from $1.38 billion
in 2023 to $4.29 billion by 2032 with a compound
annual growth rate (CAGR) of 15.2%. Here at DHL, we
Audio AI, a subset of artificial intelligence, is a do not foresee this trend having a very high impact on
specialized field which deals with the pattern logistics, but we have identified several audio AI use
recognition, comprehension, and analysis of auditory cases likely to change the way desk-based workers
data. This applies to audio data from humans (voice engage in their daily professional lives. Also, certain
recognition), machines (manufacturing equipment operational workflows can be enhanced with audio AI
and more), and the environment. Analyzing this – examples include predictive maintenance, the use
information provides insights across several use of virtual assistants, and, for operations employees,
cases relevant to logistics.Recent progress in audio language translation. Other trends and technologies
AI include breakthroughs in speech recognition are likely to command the spotlight due to their
accuracy, stylized music generation quality, and disruptive impact on supply chains, changing the ways
environmental sound classification and analysis, goods flow through a warehouse. However audio AI
driven by deep learning algorithms and improved can act as a supporting trend for many technologies,
computational resources. This is due to advances ensuring they operate optimally.
in deep learning techniques, particularly in neural
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Predictive Maintenance
and distribution centers. By detecting irregularities
in conveyor belt sounds, such as excessive friction,
misalignment, or component wear, predictive
maintenance systems can anticipate potential failures
and proactively schedule maintenance tasks, ensuring
uninterrupted material flow, minimizing downtime, and
optimizing productivity.
Predictive Fatigue Detection
In manufacturing facilities, warehouse operations,

hubs, or any loud environment where heavy machinery
is used, it is challenging for the human ear to pick up
sound anomalies that would help identify early-stage
defects in machinery and equipment. With audio AI,
granular sounds which are even out of the ordinary (and Audio AI can analyze the speech patterns and
therefore out of the trained algorithm) can be picked vocal cues of drivers operating vehicles in logistics
up, enabling predictive maintenance before equipment transportation fleets. By detecting changes in
breaks down and causes backlogs and delays. In speech cadence, tone, and articulation which
logistics operations involving vehicle fleets, audio AI indicate tiredness or drowsiness, predictive fatigue
can analyze the vibrations and sounds produced by detection systems can alert both the driver and the
trucks, vans, and delivery vehicles while in operation. By management team that a break is needed or when
identifying patterns associated with mechanical issues it will be needed. An example of this can be found
or component degradation, predictive maintenance in Wombatt, an as-a-service solution which trains
systems can also here forecast maintenance needs, its algorithm on the individual user’s voice prior
including engine tune-ups , tire replacements, and to starting a long-haul driving shift so later it can
brake repairs, optimizing vehicle reliability, reducing detect any fatigue. Initially designed for use in space
unexpected breakdowns, and ensuring timely servicing engineering, we recognize its useful application in
to uphold customer delivery schedules. Audio AI can logistics, too. With this type of solution, through
be used to continuously monitor the sounds produced personally trained algorithms based on individual
by conveyor systems used in logistics warehouses user voice inputs, an audio AI system can provide
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recommendations to manage fatigue in addition to see opportunities to enhance security by implementing

looking at the number of hours slept the preceding access control using voice pattern recognition. This
night but also at other possible contributing factors can be leveraged to identify individuals and to detect
such as food consumption, medicine intake, and emotions in a voice, giving the potential to block access
more. if this person has negative intent.
Voice Sentiment Classification &

Access Control
Language Translation
Companies can use large language models (LLMs)

in conjunction with classical AI to transform service-
related call center experiences. Example applications
for audio AI include predicting customer intent
and creating a tailored tone of voice — especially
important when handling complaints. LLMs can also
be used to summarize calls, generate action points,
and draft customer responses, freeing up employees
to focus on bringing human creativity and empathy
to customer actions where they can add most value.
Furthermore, each new customer interaction serves In logistics operations, we see applications for audio AI
as additional context and data input for AI models, in process and workflow training. This can be within the
improving the relevance and quality of outputs which warehouse for guidance in workflows and on the road
then increases customer retention. Here at DHL, we also assisting drivers with audio in their preferred language,
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translating real-time navigation instructions, traffic

updates, route optimizations, and more. This audio AI In cross-border freight operations, audio AI
system could also monitor driver behavior and provide language translation can assist truck drivers,
alerts in the driver’s first language about potential customs officials, and warehouse personnel to
safety risks, enhancing driver safety and reducing understand and comply with regulations and
accidents. Applications in language translation can also instructions provided in different languages.
positively impact the customer experience. Automated
voice-to-voice translation during customer service
calls (delivered either by a human or through a chatbot) This streamlines customs clearance processes and
can facilitate and enhance customer communication. promotes smooth movement of goods across borders.
Graphic source: Repustate (2021): Repustate IQ Sentiment Analysis Process: Step-by-Step
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OVERVIEW
Challenges Outlook
Audio AI systems can struggle to accurately By leveraging audio AI for predictive maintenance,
distinguish relevant signals from background noise; fatigue detection, process optimization, and more,
machinery sounds, vehicle traffic, and the hubbub logistics companies can streamline operations,
of human activity in logistics environments could be minimize downtime, improve health and safety, and
challenging. maximize equipment utilization, leading to increased
productivity, faster order fulfillment, and a better
Audio data collected in logistics operations may customer experience.
vary in quality, format, and labeling standards,
complicating the training and deployment of audio Integration of audio AI with existing logistics systems
AI models across different locations or systems. enables intelligent automation and decision support
capabilities, facilitating tasks such as inventory
For privacy reasons, companies must comply with management, route optimization, and demand
laws and regulations such as the EU’s General Data forecasting, empowering logistics professionals with
Protection Regulation (GDPR) and corporate policies actionable insights to make informed decisions and
on data collection, storage, and usage. adapt to dynamic market conditions.

Related Trends
Advanced Analytics AI Ethics
Computer Vision Gen AI
Sources
Market Research Future (2024): Global Sound Recognition Market Overview
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Bio Based
Materials
The trend of Bio-Based Materials encompasses all consumers, with 69% and 68% respectively, showing
materials produced exclusively from substances a generally positive correlation between the use of
derived from traditional sustainable biomass, bio-based materials and consumer satisfaction. These
as well as modern bio-synthetic processes. This high levels of consumer demand could push the
trend focuses on the beginning rather than the application of bio-based solutions further in future.
end of the product lifecycle and so it includes both Some bio-based materials have been used in logistics
biodegradable and non-biodegradable materials. for many years already, especially those derived from
conventional biomass. The best example of such a
valuable and long-standing bio-based solution is
With consumers and corporations paying increased the wooden pallet. More recently, additional bio-
attention to sustainability in recent years, and as based materials have been introduced and tested,
expectations rise and demands increase, logistics including bamboo, rice husk, palm fiber, mushroom,
organizations are seeking to eliminate from daily and solutions made of algae. While the development
operations materials seen as unsustainable and to of bio-based materials with comparable properties to
reduce waste. Bio-based materials are identified conventional industrialized solutions is progressing,
as carbon- and waste-reducing resources that can the industry is yet to witness a transformative
be integrated into more sustainable solutions. A development. Therefore, it is anticipated that it will
wide range of potential applications for bio-based take a minimum of five to seven years before bio-
materials exists in various supply chain segments, based alternative solutions are widely adopted as
from building construction to packaging. A survey standard practices. Despite some potential impact
conducted by McKinsey highlights the importance on the sustainability and circularity of a supply chain,
of bio-based solutions in the packaging industry. It bio-based materials are not anticipated to have a
reveals compostable packaging and plant-based profound effect on day-to-day logistics operations.
packaging receive the highest rankings among end
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Building & Construction Material Logistics Operations Assets
The building and construction sector is the largest As the megatrends of global trade and e-commerce
contributor to greenhouse gas emissions, responsible for expand in future, the number of warehouses will
an astonishing 37% of energy-related carbon emissions. grow exponentially along with associated assets
This substantial carbon footprint is primarily attributed such as pallets, racks, and picking bins. Today, the
to the production and utilization of materials such as vast majority of pallets are wooden and mostly bio-
cement, steel, and aluminum, which have a significant based, but they break relatively easily compared
environmental impact. Since logistics organizations use with fully metal or plastic counterparts. Instead
hundreds of thousands of facilities, warehouses, and of replacing them with these less sustainable
offices made from these materials, this represents a great alternatives or with increasingly expensive wood
opportunity to reduce the environmental footprint of the and nails, logistics organizations are steadily
supply chain. Switching to bio-based building materials searching for more durable and reusable bio-
wherever feasible can help meet sustainability goals, based materials. Companies like Origo in Malaysia
and already many tech providers recognize this potential. are developing bio-based alternatives for logistics
Mycelium, derived from fungi, presents a compelling assets and packaging. Origo utilizes agricultural
opportunity as a sustainable construction material. A good waste from palm fibers or rice husks to produce
example of its application in construction is Ecovative‘s pallets that are fully recyclable and compostable.
MycoComposite™ hemp blend. This innovative solution The challenge lies in ensuring these bio-based
boasts strength, water resistance, mold resistance, fire solutions have comparable longevity to traditional
resistance, and other qualities. The material‘s inherent wooden pallets and can be a sustainable and viable
flame-retardant properties ensure heightened safety, alternative. Further testing and scaling are needed
while its insulation and noise-dampening benefits enhance to determine the resilience of these alternative
environmental comfort. Solutions like these can help solutions. detect any fatigue. Initially designed
lower the carbon footprint of the building and construction for use in space engineering, we recognize its
industry, offering logistics providers alternatives when useful application in logistics, too. With this type
planning the construction of greenfield projects. By of solution, through personally trained algorithms
utilizing bio-based materials, logistics organizations based on individual user voice inputs, an audio AI
are empowered to reduce emissions from building system can provide recommendations to manage
construction. When we decided to build the new European fatigue in addition to looking at the number of hours
DHL Innovation Center, sustainability was a high priority; slept the preceding night but also at other possible
amongst other measures locally sourced timber and green contributing factors such as food consumption,
technologies are being used for climate neutrality. medicine intake, and more.
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Packaging & Packing Materials
world are seeking to bridge this gap. Due to the demand
for completely bio-based solutions, a growing number
of startups are developing solutions in a wide variety
of areas. The Australian company Planet Protector
produces insulated wool-based packaging solutions as
an alternative to polystyrene packaging materials.
Furthermore, materials like algae, mushrooms,

and bamboo are also gaining popularity as viable
options for sustainable packaging.
The most visible waste outputs from supply chains

are packaging and packing materials -mostly plastic-, These bio-based materials offer promising alternatives
with less than 9% of plastic products recycled globally to traditional plastic packaging and contribute to a more
in 2022. Bags, wraps, cardboard, and styrofoam are environmentally friendly approach in the industry. By
contaminating natural environments around the world adopting packaging and packing material that are both
and pressure is growing to address this, compelling the biodegradable and bio-based, logistics and supply chain
logistics industry to seek biodegradable alternatives. organizations can better ensure they are tackling the
However, not all biodegradable products come from sustainability challenge for the entire product lifespan,
renewable sources, and several companies, around the not just downstream.
Graphic source: Organization for Economic Co-operation and Development (OECD) (2023):
Towards Eliminating Plastic Pollution by 2040 A Policy Scenario Analysis
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OVERVIEW
Challenges Outlook
Bio-based material production is still relatively Bio-based materials continue to provide valuable
small and there may be supply challenges if such alternative solutions for logistics and supply chain
materials are adopted on a large scale. operations. However, it is important to note that
many of these solutions are still in the developmental
Most bio-based solutions are pricier than less phase, and finding completely bio-degradable and
sustainable alternatives, limiting adoption. environmentally friendly alternatives with properties
comparable to conventional solutions remains a rarity.
While still a worthy step towards achieving
sustainability goals, bio-based materials are not This trend should be monitored to some extent with
always biodegradable and may still contribute to developments and use cases on the horizon.
waste.
Bio-based alternatives to logistics assets and

packaging are more sustainable but often have
limitations in terms of durability or stability
compared to plastic-based alternatives.
Circularity Decarbonization The new European Innovation Center in

Germany prioritizes holistic sustainability
ESG Advocacy Next-Generation

Packaging
Sources
McKinsey (2023): Sustainability in packaging 2023: Inside the minds of global consumers
United Nations Environment Programme (2023): Building Materials and the Climate: Constructing a New Future.
Plastics Europe (2023): Plastic – the fast Facts 2023
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Blockchains
The trend of Blockchains includes the development, expectations as an independent business.” There are
implementation, use, and management of decentra different perspectives on market growth within this
lized, digitally recorded ledgers that are distributed trend. The global blockchain funding market, worth
across networks. By incorporating immutable and US$9.2 billion in Q1 2022, dropped to $6.5 billion
serialized recording, blockchain technology acts as a by Q2 2022 – a quarter-on-quarter decrease of 29%.
single source of truth for its users. But market intelligence company Fortune Business
Insights projects blockchain industry growth from
$17.57 billion in 2023 to $469.49 billion in 2030,
A blockchain in simple terms is a distributed database a compound annual growth rate (CAGR) of 59.9%.
that maintains a continuously growing list of records, Blockchain technology exists today and is applicable
called blocks. These blocks are connected using a to many segments along a supply chain, although not
method where each block has a cryptographic hash necessarily to the same degree. To maximize the benefit
(an equation used to verify the validity of data) of the and utility of blockchain, however, companies need the
previous block, a timestamp, and an item of transaction right data and thus various methods of data collection.
data. These details cannot be altered retroactively This requires coordination and collaboration among
without the alteration of all subsequent blocks as well many players in the typically highly diverse supply
as the consensus of the entire network. This ensures chain ecosystem. Therefore, the small number of
integrity of the data and enables this information to blockchain implementations of today are likely to need
be considered a single source of truth for its users. several more years before they mature to meaningful,
In recent years, logistics leaders in several industries comprehensive integration within the end-to-end
have sought applicable use cases for this technology supply chain. Although there are many players in
in their supply chains. Some logistics service providers, the market offering blockchain-based solutions, the
including DHL and Maersk in partnership with IBM technology has not yet been widely accepted across
and others, launched their own blockchains. However, supply chains and it will take more than 5 years for this
in Q1 2023 Maersk and IBM decided to discontinue to happen at scale. Also, different levels of acceptance
their blockchain-enabled shipping solution as it and thus adoption of the technology by country differs,
“has not reached the level of commercial viability determined by several factors including government
necessary to continue work and meet the financial legislation and funding.
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Digital Product Passports

before making a purchase. Everyone can see from the
blockchain record when a product is new, recycled,
remanufactured, upcycled, or partly sourced from
recycling. This increased visibility and traceability
achieved using blockchain is likely to significantly
boost materials circulation.
Crypto Stamps
Blockchain can track products across their lifetime, all

the way from production to end of life and including
lifecycle circularity. Building a product passport on
blockchain technology is likely to increase the item’s
credibility ,acceptance, and sustainability across
borders, wherever this technology benefit has been There is growing interest among collectors in crypto
accepted. stamps. Companies like DHL are responding to this
All parties involved at any point with the product’s demand by creating these items. Each physical stamp
lifecycle, including logistics service providers, would includes a digital image which, in the blockchain,
be identifiable in the digital product passport so this, is clearly assigned a non-fungible token (NFT). As
in turn, would boost product visibility, traceability, and this data is stored in the blockchain, the collector is
accountability. For example, EU rules could soon require assured exclusive ownership of the NFT; they can
UK toys sold on the continent to come with a digital include it in their personal digital wallet and it proves
product passport. their possession of a uniquely numbered crypto stamp
or a digital piece of art.
A digital product passport would show whether

virgin materials have been used in a product and
whether the entire product or some part of it was
used for a previous purpose. It would also show
where the product and its constituent parts have
been – their physical location, monitored and
recorded using Internet of Things (IoT) technology.
Together, this increases the credibility of any claims to

circularity. This lets the end use take informed decisions
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Traceability & Transparency Smart Contracts
Today, companies have limited visibility of products as

they move through production processes and supply
chains. Manufacturers, retailers, and end customers During its supply chain journey, each product can be
are all demanding better and more reliable track-and- subjected to multiple back-office processes, from
trace capabilities for products, raw materials, and waste. manufacturing invoices and customs forms to retail
Blockchains, paired with logged records from sensors, agreements and delivery payments. These processes
can provide this visibility as a trusted, immutable ledger. can take weeks or even months of human activity,
involving many different parties. Instead, blockchain-
Supply chain professionals and customers can access based smart contracts effectively eliminate delays
a blockchain ledger with an interface from which they and shorten the critical-path timeline.
can see each product’s shipment status and accurately
confirm product attributes, such as whether it was locally The smart contract is essentially an elaborate digital
produced, organically grown, or received certifications. ‘if-then’ statement which self-executes procedures
Additionally, using blockchain technology, companies once pre-determined and agreed criteria are met. For
can quickly identify points of unauthorized removal or example, if a product and all its components have been
the insertion of products, helping to investigate theft, properly recorded, tracked, and traced in a customs
fraud, and counterfeiting. Finally, with hundreds of agency’s smart contract, the product meeting all
international trade laws and regulations, a blockchain- requirements may automatically clear customs
supported level of transparency enables supply chain without any forms. Smart contracts can also perform
organizations to ensure supplier and distributor more advanced functions like splitting payments
compliance. among parties based on the distance each has
travelled or subtracting varying degrees of penalties
By acting as a single source of truth, blockchains can from payments depending on how late or damaged a
bring a sense of fidelity to all partners along the supply package is when it arrives at its destination.
chain.
By implementing blockchain-based smart contracts,
logistics organizations can streamline processes,
reduce clerical errors, and bring transparency to an
automated system.
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Blockchain & ESG

data, and with greater granularity than before. While
achieving more visibility, this helps build trust in the
organization’s compliance and reporting standards.
There are numerous application examples. For a more
sustainable neighborhood in smart cities, blockchain
facilitates smart grid mapping and management to
improve utility usage and control. And for companies
using carbon trading to deliver on net-zero targets,
blockchain ensures accountability and verifiability.
Innovation and alignment are required not only with

blockchain but also with other initiatives to effectively
Blockchain technology can increase transparency tackle ESG challenges. Blockchain technology’s
and accountability around environmental, social, and significant contributions are to introduce much-needed
governance (ESG) reporting for corporates. ESG metrics trust in the ecosystem and evidence the strategic actions
are normally self-reported so, by using blockchain taken. Organizations using blockchain can be held
to securely record carbon emissions, social impacts, accountable for their practices and can showcase their
and governance practices, all parties can track this progress with transparent and verified ESG metrics.
Graphic source: Triple A (2024): The State of Global Cryptocurrency Ownership in 2024
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OVERVIEW
Challenges Outlook
Technical limitations such as scalability and high Many pertinent and impactful use cases have been
power consumption must be overcome to enable identified in the supply chain for existing blockchain
sustainable, large-scale deployment. technology. It is only a matter of time before multiple
players along and across supply chains coordinate
Industry-wide adoption along and across supply and collaborate to create comprehensive blockchain
chains is difficult given industry fragmentation and ecosystems, accelerating the full capabilities of this
competition. technology.
Governance, standards bodies, and industry This trend should be monitored to some extent with
consortia are required to ensure conformity to developments still needed and use cases still being
regulations and interoperability between carriers, explored.
operators, customers, and customs authorities.
Cryptocurrencies are mostly unregulated,

increasing the risk of scams and lowering levels of
trust; this is a barrier to the acceptance of crypto as
payment and assets.
Circularity Cybersecurity 2.0 The new European Innovation Center in

Germany prioritizes holistic sustainability
Edge Computing Metaverses
Sources
Krusche & Company GmbH (2024): The Blockchain and blockchain development sector – statistics and facts
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Computer Vision
The trend of Computer Vision utilizes cameras and – with continual improvements in AI, vision systems,
to capture photos or videos and applies artificial and computer processing – is expected to grow at
intelligence (AI) algorithms to analyze data extracted a compound annual growth rate (CAGR) of 19.6% by
from this digital imagery. Rudimentary visual AI 2026. Today, advanced computer vision technology is
systems are trained to simply differentiate objects perfecting depth perception, 3D reconstruction, and
from each other, while more advanced – increasingly AI- dark and blurred image interpretation, all of which will
enabled – versions can track objects across viewpoints unlock more opportunities in supply chains. Future
and learn on their own and, in recent developments, deployment will be driven by further implementation
enable prediction through pattern recognition. of AI, automated ML, edge computing, the Internet of
Things (IoT), and more. Computer vision will become
Enabled by AI, the trend of Computer Vision has commonly utilized in logistics operations within the
developed in conjunction with advances in deep next five years, and many new use cases are likely
machine learning (ML), leveraging the rising quality to emerge. This technology will underpin and drive
and decreasing cost of camera devices. Several things future logistics success by enabling more automated
are driving the adoption of computer vision technology, and efficient processes as well as sustainable and safe
including the growing need for workflow automation operations. However, to be fully realized, this trend
and optimization across many industries, from auto- will require additional investment. As experienced
mobility to healthcare and banking, financial services, in the early days of sensor adoption, computer
and insurance to retail. In 2023, the global computer vision applications must be scalable for logistics
vision market was valued at around US$ 17.7 billion organizations to maximize benefits.
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People:
Operations, Health & Safety
save costs, and enhance overall warehouse operations.
Additionally, intelligent surveillance systems equipped
with computer vision technology can analyze real-time
video footage using advanced algorithms to enhance
safety and security. They can detect unauthorized entry or
suspicious behavior, generate alerts for prompt response
and proactive intervention, and ultimately reduce theft and
increasing overall safety.
Computer vision and AI technologies offer effective
solutions for enhancing workplace safety in logistics
facilities by monitoring and analyzing movements of Shipments: Measurement,
people and vehicles in real time. They enable proactive
Identification & Inspection
safety decisions, workflow improvements, and prompt
corrective actions to mitigate risk and ensure a safer
working environment. In addition, computer vision used
in human pose estimation (HPE) enables assessment of
ergonomics in the workplace. TuMeke, a tech company,
has developed an AI ergonomic risk assessment platform
using computer vision that enables users to record and
analyze smartphone videos of tasks like lifting boxes in
warehouses to identify unsafe postures and enhance
workplace safety. The workforce should not only use
appropriate personal protective equipment (PPE) but also Accurate measurement and efficient processing
wear it correctly. Using computer vision technology, AI of packages are essential to storing, handling, and
systems can track and ensure compliance with PPE safety- transporting goods. The task of dimensioning can be
at-work protocols, reducing incident risk. automated using computer vision technology – examples
include solutions from MetriXFreight and Qboid. Computer
vision systems can also make valuable contributions
Bottlenecks, inefficiencies, and activity to quality inspection, especially as early detection of
hotspots can be revealed by computer vision- damage during shipment protects brand image and
based heatmaps in warehouses and yards, ensures consumer satisfaction. Items must be correctly
informed by surveillance camera feeds. and legibly labeled, and computer vision technology helps
ensure label accuracy and integrity, identifying errors and
anomalies to facilitate efficient resolution and compliance
With this information, managers can optimize inventory with legal requirements. Startups like Visionify offer
placement and increase operational efficiency. Computer solutions for label checking in various shipping scenarios.
vision systems also offer a solution for efficiently counting To further streamline product identification, companies like
people and vehicles in logistics facilities, helping managers Banner and Zetes offer innovative solutions for decoding
optimize staffing levels and ensure compliance with safe challenging barcodes and ensuring shipping and loading
occupancy requirements. Startups like AIVID provide accuracy. In addition, automated sorting systems utilizing
automated detection and counting capabilities along with AI and neural networks streamline the visual classification
demographic insights. To optimize the pick path, computer of shipments, enhancing efficiency and accuracy. Good
vision can be used alongside ML algorithms. Managers examples are Photoneo singulation and sorting solutions
can analyze camera feeds to identify patterns, trends, and which can recognize parcels with 95% accuracy and high
potential workflow adjustments to increase efficiency, throughput rates using 3D scanners and AI algorithms.
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Assets
When planning capacity to optimize asset utilization,
computer vision can be implemented in asset
management to deliver quicker insights than the human
eye and those from human experience. For example, this
AI-based technology can assess the overall space inside
trucks and containers to calculate available volume
prior to loading – information that helps determine the
optimal arrangement of items to maximize loads and
minimize wasted space. In the warehouse, computer
vision can be used to analyze the dimensions and
orientation of pallets and roller cages, helping ensure
these assets are positioned for optimal load distribution
To protect logistics assets, computer vision technology and peak efficiency. Meanwhile, assets outside the
can be used for predictive maintenance, issuing alerts warehouse can be monitored 24/7 by an integrated
so that the maintenance team can intervene before system combining computer vision with surveillance. To
any issue arises. This also allows managers to schedule restrict yard access to registered vehicles only, cameras
repairs and upkeep to prolong asset life and prevent can identify each truck and log its entry time, exit time,
failure. Combining computer vision with human and number of daily trips. The system can also measure
observation helps capture the full picture, as asset asset usage patterns, including idle time, and use this
performance may be impacted by qualitative factors, data to help optimize fleet operations.
such as the way in which a worker interacts with a device.
Graphic source: Packt Publishing (2021): Computer Vision
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OVERVIEW
Challenges Outlook
If workplace surveillance methods are perceived as Computer vision technology has matured significantly
invasive, this may lower employee morale, increase in the last two years, leading to remarkable growth in
work-related stress, and cause counterproductive implementation and expanding applications in logistics
work behaviors. operations. Increased investment in AI is anticipated
to further advance computer vision solutions, with AI
Cameras may not see everything; for example, serving as the backbone for image recognition.
if the field of view is obstructed during capacity
assessment, perhaps by a stack of goods waiting to While computer vision has proved its value in
be packed, a workflow change may be needed. dimensioning, health and safety, and other applications,
challenges remain. These include technology
Environmental factors such as poor lighting, shadows, acceptance, data privacy compliance, cybersecurity,
and reflection may challenge the capabilities of hardware upgrades, and material identification. Despite
computer vision, in which case a manual process these hurdles, computer vision remains integral to
could also be needed. the automation and digitalization of logistics for more
efficient and sustainable operations.
This trend should be actively monitored with

Advanced Analytics AI Ethics

AI-Driven Computer Vision
Trend Report
Computer Vision AI | Health & Safety

Cybersecurity 2.0 Edge Computing Proof-of-Concept with Protex AI
Sources
Global Data (2023): Computer Vision Market Size, Share, Trends and Analysis by Region,
Industry Vertical and Segment Forecasts to 2026
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Digital Twins
The trend of Digital Twins encompasses virtual into supply chains remains quite a few years away.
models that accurately mirror the real-time Digital twins are moving from single-use applications to
conditions and behaviors of physical objects or utilization in more comprehensive systems, integrating
processes they represent. A digital twin provides all aspects of logistics operations. Larger logistics
value through visualization, diagnosis, analysis, companies like DHL are leveraging digital twins to
prediction, simulation, and optimization without the enhance efficiency, resilience, and sustainability across
need for someone to interact with its physical twin. their operations. As the technology matures, its impact
is expected to grow, eventually but not yet transitioning
from moderate to significant as organizations build
The rapid advancement of sensor technology, cloud more interconnected digital ecosystems.
computing, and artificial intelligence (AI) over the past
few years has significantly enhanced the accuracy
and capabilities of digital twins. These virtual replicas
now include a wide range of objects and systems,
from individual machines to entire cities, providing
unprecedented insights and control. This technological
evolution has caught the attention of numerous
industries, including logistics, where the potential to
revolutionize supply chain operations is immense. The
digital twin market, valued at US$ 12.8 billion in 2024,
is expected to continue to grow, driven by innovations
and increasing adoption rates, with projections showing
a compound annual growth rate (CAGR) exceeding
40% from 2023 to 2035 ($240.3 billion). Adoption of
digital twins in logistics has accelerated due to recent
technological developments, and yet full integration
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Stress-Testing Resilience Optimizing Logistics Processes
Global supply chains are performing under extreme Practically all processes within supply chains can
pressure, navigating disruptions to meet increasing benefit from the use of digital twins. From appropriately
demand and handle ongoing volatility. Recent events allocating workloads to efficiently managing inbound
such as the Covid-19 pandemic and geopolitical tensions and outbound flows, a digital twin can facilitate logistics
have underscored the need for resilient supply chains. optimization through visibility.
Stress testing an entire supply chain with a digital twin
can help build resilience. German drugstore retailer dm-drogerie markt, for
instance, has used digital twins to optimize inventory
Logistics and supply chain organizations can leverage operations, including replenishing products on shelves.
digital twins to simulate disruptions across global The retailer created digital twins of each of its 2,000+
networks, including natural disasters, cyberattacks, stores, including the shelf layout and all product
and sudden market changes. These simulations stock-keeping unit (SKU) locations in every branch. By
provide a comprehensive view of potential impacts having real-time visibility of product availability across
on service levels, the cost to serve, and supply chain all its locations, dm-drogerie markt has been able to
integrity without affecting real-world operations. By optimally combine goods on incoming mixed pallets
applying these scenarios, logistics planners can identify from distribution centers to ensure shelves are properly
vulnerabilities and optimize their response strategies in stocked with the fewest pallets needed. Furthermore, as
real time. Additionally, digital twin technology enables the retailer knows where exactly in each branch every
the modification and rerunning of scenarios to test product belongs, this helps minimize employee in-store
various strategic adjustments, helping to enhance walking distances. On a smartphone display, personnel
overall supply chain resilience. can see the optimal restocking path for each item.
With this proactive approach, more informed decisions In implementing digital twins for specific supply chain
can be taken, strengthening logistics operations in processes, logistics organizations can potentially reduce
the event of unexpected disruptions. This new level the cost, time, resources, and waste previously incurred
of robustness ensures continuity, reliability, and when completing tasks.
sustainability in service delivery.
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Predictive Maintenance
and repairing assets before they break or fail) is seen as
a worthy strategy to effectively cut costs and increase
productivity for manufacturers and logistics providers
alike. Able to provide real-time visibility of the condition
of physical objects, digital twins are often seen as
the ideal solution for predictive maintenance. Kraft
Heinz partnered with Microsoft to create digital twins
of all its 34 manufacturing sites in North America,
with one of the goals being to reduce mechanical
downtime at each facility. Digital twins can additionally
be applied to smaller, individual assets, not just whole
warehouses. The most advanced logistics players and
equipment service providers are creating digital twins
Unplanned downtime is disruptive and of assets like individual robots, forklifts, trucks, and
expensive, costing industrial manufacturers lost other assets, tracking the condition of each one and
time of over 15 hours a week and over $50 billion detecting any wear and tear that should be addressed
a year. to avoid breakdowns. By using digital twins to facilitate
predictive maintenance, logistics providers can save
about 40% of reactive maintenance in any given year,
With equipment failure cited as the cause of almost half boosting operational throughput and reducing costs.
of all downtime, predictive maintenance (anticipating
Graphic source: Vidya Technology (2022): The 3 Levels of the Digital Twin Technology – 2023
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OVERVIEW
Challenges Outlook
Real-time, high-quality data is the basis for any While digital twin technology has existed since the start
digital twin solution but demanding or prohibitive of the 21st century, it is now approaching a tipping point
field conditions can limit data access and degrade where widespread adoption is likely within the next 5-10
the accuracy of a digital twin. years. Initially, the primary application areas focused on
singular assets and contained systems. However, the
Digital twins require considerable investment in future will see digital twins encompassing entire supply
sensor technology, platforms, model development, chains, integrating thousands of assets across various
and high-touch maintenance. players. The continuous development and integration
of AI, machine learning, and Internet of Things (IoT) will
Some qualities of a complex asset like its chemical, further expand the capabilities of digital twins, making
electrical, and thermal state can be extremely them indispensable tools for modern supply chain
costly and challenging to accurately replicate, management.
often forcing users to make generalized, less
accurate assumptions and simplifications in digital This trend should be monitored to some extent with
twin models. use cases in some applications that can already be
addressed today.
With direct connection to physical objects, digital
twins potentially pose a security risk, giving
cybercriminals a possible new point of entry to
disrupt an organization’s operations.
Advanced Computer Vision DHL Supply Chain partners Tetra

Analytics Pak to implement its first digital twin
warehouse in Asia Pacific
Green Urban Smartification

Transformation
Sources
Roots Analysis (2023): Digital Twin Market Size
Forbes (2022): Unplanned downtime costs more than you think
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Drones
The trend of Drones, otherwise known as unmanned navigate reliably even where there’s signal interference.
aerial vehicles (UAVs), refers to the development In addition, computer vision algorithms now enable
and utilization of variously shaped aircraft without drones to „see“ and understand their surroundings,
a human pilot or crew on board. Enabled by identifying and avoiding obstacles in real time. Drones
embedded sensors and transceivers to navigate, equipped with artificial intelligence (AI) and machine
drones are often controlled remotely by a human learning (ML) algorithms can autonomously navigate
pilot, but advanced versions can fly autonomously complex environments, avoid obstacles, and even
beyond visual line of sight (BVLOS) using software- make on-the-fly decisions. In fact, an AI-powered
controlled flight plans. Drones come in a variety of drone has beaten human champion pilots. Arguably the
sizes and form factors; examples include single-rotor biggest development within the Drones trend is swarm
helicopters and multi-rotor, fixed-wing, and fixed- technology. A subfield of AI, swarm intelligence (SI)
wing hybrid vertical take-off and landing (VTOL) is based on the study of decentralized, self-organized
drones. Drones can carry out a variety of tasks, ranging systems; these systems typically comprise many simple
from delivering packages to supporting operations, agents that interact to accomplish a common goal.
enhancing security, and enabling inventory counting. Mostly seen today in entertainment drone displays,
SI can be usefully applied elsewhere; for example, in
disaster relief, where drone swarms cover large areas
Today’s drones are equipped with the latest technological to accurately locate targets during search and rescue
advances, including new energy technology to increase operations. Over the past eight years and still today,
drone endurance. Panasonic developments indicate regulations continue to suppress the realization of
next-generation solid-state batteries will provide this trend. A 2023 survey found almost 75% of survey
significantly longer range and faster charging than responses listed “regulators” as a barrier to widespread
traditional lithium-ion batteries. And companies like adoption of drone operations. Despite this, much
Hylium are using hydrogen fuel cells to achieve flight technological progress has been made. Today, drones
times of five hours. Enhanced navigation systems are capable of supporting delivery applications, both in
are another example of technology advances; sensor urban and remote locations; importantly, this can help
fusion by Teledyne Geospatial combines GPS with alleviate pressure on the scarce delivery workforce.
LiDAR, radar, and other sensors to enable drones to
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Drone Deliveries Security & Surveillance
Logistics volumes continue to grow while available It is challenging to patrol and secure large facilities, and
delivery labor shrinks. Many cities are urgently human vision is limited; if an intruder is hiding, detection
attempting to tackle traffic congestion and companies may not be easy. Rather than risk overlooking intrusion,
want to deliver to customers everywhere. A solution drones with cameras can be deployed. This visual data
that answers these needs could be drone delivery, can help accelerate patrol tasks, potentially increasing
covering the first, middle, and last mile. However, the daily number of patrols at randomized intervals.
for the foreseeable future last-mile delivery will be Enabled by AI-based systems, companies can expect
focused on rural areas. While drones do the work, increased accuracy of threat identification, less chance
existing labor can be upskilled or assigned to value- of missing suspicious activity, and more information
adding tasks, fewer vehicles are needed, safety is captured with a bird’s eye view of the facility.
increased, and rural delivery costs are reduced.
Examples of progress in the area of heavy-lift cargo Drones are also getting smarter, leveraging 5G for
drones include Sabrewing’s pre-production drone real-time data transfer and processing. They can
capable of lifting a record-breaking 376 kg (829 lb) now operate with increased speed, reduced latency,
payload, Dronamics’ cargo drone technology, and Elroy and improved reliability. Some even allow for fully
Air’s first vertical takeoff and landing. autonomous operations. For example, security staff
do not need to manually launch and retrieve drone-
Recently, the US Federal Aviation Administration (FAA) in-a-box security solutions, nor swap and change their
granted numerous drone companies approval for BVLOS batteries, and tethered solutions even allow drones to
flights. Other countries are likely to follow this lead. Even stay airborne indefinitely.
so, DHL anticipates limited growth in commercial drone
deliveries within the next five years, for the same reason There is a disadvantage to consider. As this technology
that growth has been limited since 2013: aviation has developed, malicious use has also increased. Such
regulations. At DHL, we believe there will be growth in activity is today being tackled with counter uncrewed
niche use cases, such as deliveries within large private aerial systems (C-UAS), particularly focused on
compounds and deliveries of critical or medical goods removing the menace of rogue drones disrupting flights
to rural areas, but growth is less likely for deliveries in and having a negative financial impact at commercial
urban and other built-up areas. and cargo airports. “Soft-kill” methods can also be
deployed, such as jamming or cutting off the drone’s
communication with its pilot or source, and “hard-kill”
methods, such as physically taking down a drone, using
nets, ammunition, and even eagles.
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Dimensioning &
Inspecting Large Assets
with inspectors walking around an airplane to assess
its overall condition and compliance with safety
standards. General visual inspections (GVIs) are then
carried out to inspect, locate, and evaluate any visually
obvious damage, failure, or anomaly. Many times,
ladders, scaffolding, and cherry pickers are involved
when something is out of reach and viewed from
the ground. New solutions, such as the solution from
Dutch startup Mainblades, provide a great alternative.
Drones can be used to autonomously inspect all
sides of an airplane without the need for additional
equipment and without putting inspectors at risk. The
Dimensioning and inspecting large assets manually captured data can be reviewed later by the inspector.
can take many hours, as mismeasuring or missing,
for example, an equipment fracture can have costly Using drones eliminates safety risks and significantly
consequences. Also these tasks may risk worker reduces time and staffing requirements. Spending
safety, especially if personnel are required to climb less time on currently manual tasks allows for faster
heights or walk on uneven surfaces to dimension and
inspect large assets. Drone technology can make such
activities more efficient.
Taking the example of stockpile dimensioning,

drones with improved AI and sensor technology
can measure amassed stock volumes with below-
centimeter precision in a matter of hours instead
of days.
Several technologies can be deployed in this

application. Drones may use a global navigation
satellite system (GNSS) receiver to connect to more
satellites for improved precision. They can use real-
time kinematic (RTK) positioning and ground control
points (GCPs) to achieve consistent data alignment
over time. This is vital for monitoring ever-changing
stockpiles – a significant advantage as, without RTK
or GCPs, maps may shift several meters, resulting turnaround and more missions. Warehouses also can
in inaccurate stockpile measurements, especially if minimize personnel numbers for inventory tracking
comparing data from different dates. And to process while also getting updated inventory data more
the captured images, a photogrammetry engine and regularly, thus increasing inventory visibility. As well
software can be used, such as the DJI Terra solution. as lowering operational costs, these efficiencies are
A good example of a large asset to be inspected is likely to have a positive effect on the company’s brand
an airplane. This has always been done manually and reputation.
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Inventory Management
heights, a danger for the workforce. While several
technologies aim to automate this process, drones are
seen as a viable solution for what can be an expensive,
time-consuming, and risky activity. Instead of deploying
dozens of workers to scan codes and record placements,
companies can use drones equipped with cameras to
scan and count inventory quickly. This removes the need
for specialized equipment like aerial work platforms
to examine the higher shelves. A possible future state
would involve fleets of drones operating autonomously,
with only one worker needed to manage and assess
flagged circumstances. As completing inventory counts
Currently, many logistics organizations rely on human would no longer require a large workforce, supply
personnel to check inventory in facilities, particularly chains could benefit from more frequent stock counts.
shelves for pallets. As shipments enter, rotate, and This would lead to increased inventory data accuracy,
leave the warehouse, workers must assess and confirm enable warehouse optimization, and eliminate risk
stock counts and vacancy rates on shelves. This manual for staff. DHL has already tested and deployed drone
approach makes it difficult to obtain a real-time view of cycle counting solutions globally, including the Eyesee
inventory data. Another typical challenge is that counting solution from Hardis for customers such as Dyson, and
inventory in warehouse racking systems may involve continues to collaborate with technology companies in
Malaysia, Spain, and other countries around the world.
Graphic source: Drone Industry Insights (2022): The Drone Market Environment Map 2022
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OVERVIEW
Challenges Outlook
Global and country-specific aviation authorities have Even though drone technology is developing rapidly,
some ways to go in creating a framework that allows enabling many use cases in logistics and supply chains,
drone operators to thrive while protecting public and regulations, social acceptance, and cost remain key
manned airspaces. challenges in deploying commercial drones.
Consumer drones have been used in warfare as For this reason, we here at DHL anticipate drone uptake
unconventional weapons, in organized crime, and occurring in logistics at different paces. There is likely to
in irresponsible ways, creating a negative image of be very slow adoption in the public space, especially for
this technology – an obstacle to regulator and public last-mile deliveries in dense areas. However, we expect
acceptance. the number of applications in remote areas to increase
in the next few years. And we see greater adoption of
Social acceptance is jeopardized by drone noise this trend in the near future for applications such as
levels, as well as privacy and safety fears.a inventory counting within logistics facilities and on
private property.
There is a high price tag for specialized drones
designed for industrial and commercial use; these This trend should be monitored to some extent with
models require advance chips, technologies, and use cases in some applications that can already be
sensors. addressed today.
Computer Vision NextGeneration

DHL introduces use of autonomous
Connectivity
drones for inventory management
Outdoor Remote Operations

Autonomous
Vehicles
Sources
Dronelife (2023): The Top 3 Challenges Facing the Drone Industry: Elsight and P3Tech’s 2023 Drone Market Survey
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Edge
Computing
The trend of Edge Computing refers to the will be essential to remaining competitive in the future.
decentralization of IT architecture, bringing computer Still, only 65% of companies are using edge to some
processing closer to sensors and other data sources – degree today. Of these, only half have deeply integrated
at the edge of a network – and away from remote cloud edge with their digital core. Decentralization with edge
servers and data centers. Deploying computing and computing adds an extra layer of speed, information
storage resources at the location where data is produced, security as data is processed and stored near its source
edge computing minimizes the need for continuous, rather than sent from the logistics facility to centralized
long-distance communication between clients and or cloud servers.The global edge computing market size
servers. It improves processing time, data security, and was valued at US$ 16.45 billion in 2023 and is expected
the speed of response to surrounding changes. to grow at a compound annual growth rate (CAGR) of
37.9% from 2023 to 2030. As edge computing is still
in its relative infancy, it is far from realizing maximum
The increasing use of technologies such as artificial potential. However, already today it is accelerating
intelligence (AI) and Internet of Things (IoT) in digital transformation across many industries, including
enterprises continues to multiply data volumes with logistics. Efficiency in the supply chain can be boosted
unprecedented scale. At the same time, as data strategy by edge computing as it frees up resources and lessens
shifts to the edge, AI is being trained on edge data to reliance on human management. It also significantly
look for patterns in real time. A 2023 Accenture survey increases bandwidth and reduces latency for time-
of 2,100 C-level executives in 18 industries across 16 sensitive activities. Furthermore, it is helping businesses
countries found that 83% believe that edge computing predict, manage, prepare, adapt, and achieve resilience.
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Camera Vision for Operational

Efficiency & Security Data Privacy
A traditional closed-circuit television (CCTV) setup system in the cloud server.

can overload the warehouse internet infrastructure, Data privacy and protecting individual worker identity
constantly streaming high-bandwidth raw video signals are essential in logistics and the supply chain. With
to a cloud server for analysis. Instead, edge computing its decentralized approach, edge computing helps
offers a viable alternative. By applying camera vision companies comply with stringent data regulations
technology in the warehouse, computation of context- such as the European Union’s General Data Protection
rich visual data occurs locally, at the network edge. Regulation (GDPR). Processing data where it is collected
Each camera uses its own internal computer to run at the edge reduces the need to transmit sensitive
a motion detection application, and only this footage information from logistics operations to centralized
is sent to cloud, greatly reducing bandwidth use and or cloud servers. After processing data locally, it may
increasing data security. This achieves real-time still be necessary to transmit some of this information
monitoring and analysis for operational efficiency and to central servers or the cloud. By using encryption at
security; for example, accurate stock counting, location the edge, the data is unreadable without the required
tracking, identification of misplaced items, detection of decryption key, keeping information secure even if
unauthorized access, monitoring of high-risk areas, and intercepted during transmission or storage. As an
quality control. In a collaboration project with DHL Global additional layer of security, established techniques
Forwarding in Denmark, a proof of concept was run with such as tokenization can be used, replacing personally
Protex AI, a solution which uses computer vision and AI identifiable information (PII) with unique tokens. This
to analyze data and generate proactive safety events way, visual data can be used to enhance operational
and dashboards. Edge devices connect to the local CCTV efficiency but worker anonymity is also assured in the
setup and network, processing and storing visual data warehouse or yard.
on site. Only selected clips are sent to the management
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Fleet Management Telematics Supply Chain Resilience
Telematics plays a significant role in fleet management

by providing real-time data and insights about vehicles
and drivers. With edge computing, relevant data can be
captured, processed, and used for rapid analysis and
decision making. Examples include tracking the location,
speed, and movement of vehicles in real time, monitoring
engine performance and fuel consumption, diagnosing
vehicles and receiving real-time maintenance alerts,
and analyzing driver behavior. American IoT company
Samsara uses edge computing in an integrated
platform solution to improve fleet safety, efficiency,
and sustainability. This covers dash cams, telematics, Edge computing offers several specific applications
compliance, trip management, driver vehicle inspection in strengthening supply chain resilience. To meet
reporting (DVIR), trailer tracking, and speed monitoring. growing demands for visibility and enable increasing
For example, the highly effective dash cam uses sensors, levels of ecommerce, better stock transparency is
computer vision, and AI to analyze both the road and required in logistics. This transparency is essential at
the driver at the edge. Through video analysis, edge all times and all stages of the supply chain, ideally with
computing identifies and documents safety-related granularity to individual product level. Responding to
events such as instances of high-risk driver behavior or this need, companies are using IoT devices to monitor
driver fatigue. Edge computing then selects recordings temperature, track real-time location, and watch stock
of only relevant events to automatically upload to cloud levels. This information enables data-driven business
for fleet managers to access. decisions. There are numerous opportunities to increase
resilience by leveraging edge computing in supply chain
processes. During transportation (trucking and lastmile
delivery), an autonomous vehicle is vulnerable to an
increasing number of cyberattacks; if vehicle control is
compromised, this endangers other road users and the
shipment itself.
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When a self-driving vehicle is connected to the location in the facility. The cameras can read barcode
edge, however, it is able to react to situations in metadata and indicate if a box has been placed in the
real time, rectifying any malfunction and correctly correct location. Crunching metadata in real time, the
responding to cyberattack without requiring analytics platform can trigger an alert of fraudulent
human intervention. barcodes and incorrect placements. This data can then
be streamed, connecting the edgeenable devices to
the warehouse management system and enterprise
Within a warehouse, edge-enabled devices share resource planning system via cloud, so that employees
and process data in real time. This improves the are actioned to rectify the situation.
speed and accuracy of warehouse operations. For
example, edge-enabled cameras can scan barcodes
on individual pallets to monitor stock per micro-
Graphic source: Xenonstack (2023): Edge Computing vs Cloud Computing | 8 Key Differences; Muvi (2020):
Cloud Video Encoding vs On-Premise : Pros, Cons and Beyond; 2gig (2021): Edge vs Cloud Computing
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OVERVIEW
Challenges Outlook
The distributed nature of edge computing creates The proportion of supply chain decisions based on data
a broader attack surface for cyberthreats; each from the edge ecosystem is expected to continue to
individual edge device is vulnerable and could render grow. Organizations are shifting away from centralized
the entire network vulnerable. systems towards more distributed networks enabled
by developments in Wi-Fi, Bluetooth, and 5G/6G data
Managing disparate networks and storage systems communication. With edge processing of real-time data,
to edge compute is complex and requires specialized we here at DHL anticipate logistics operations becoming
IT expertise and talent at multiple geographical more dynamic while covering larger networks, with
locations simultaneously. data and decisions originating from the edge. This will
improve warehouse operations, asset utilization, fleet
The physical isolation of devices powered by edge management, and the overall workforce efficiency and
computing, and therefore the data being exchanged safety.
by multiple devices, makes it difficult to monitor,
authenticate, and authorize data access. This trend should be carefully monitored with
implementations available for many use cases today.
Edge computing requires time and investment
which can be challenging while running hundreds
of container clusters simultaneously with different
microservices provided at different edge locations at
different times.
Advanced Analytics Cybersecurity 2.0 Innovation at the edge of the

network
Next-Generation Smartification
Connectivity
Sources
Accenture (2023): Edge Computing to Enable New Business Models in the Next Three Years, According to New Accenture Report
Grand View Research (2023): Edge Computing Market Size, Share & Trends Analysis Report
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Exoskeletons
The trend of Exoskeletons involves wearable resulting in US$ 2.2 billion revenue. A 2023 study
devices built to support or enhance human physical shows more than half of these products are deployed in
capabilities. While passive exoskeletons absorb the manufacturing sector, and others in construction,
energy from movements and relinquish power when the energy sector, agriculture. and mining. While the
support is needed, active devices are externally trend of Exoskeletons will likely have only minor impact
powered and can sense and react to specific on efficiency gains within supply chain operations, the
movements of the human body. technology is widely understood to positively impact
employee health and safety, leading to higher employee
satisfaction and retention rates. Facing an aging
With over 1.7 billion people affected worldwide, workforce and growing labor shortages, exoskeletons
musculoskeletal disorders (MSDs) are one of the most that can reduce physical strain on the human body have
common work-related health issues. Originating from become a topic of interest for logistics organizations
the healthcare and military industries, exoskeletons seeking to limit the particularly high sick leave rates
appeared on the market for industrial use in logistics per full-time equivalent (FTE) affecting the industry.
more than a decade ago, aiming to reduce the occurrence In addition, the implementation of exoskeletons in
of MSDs in the workplace. Since then, performance, operations could provide differentiation to attract and
usability, and comfort of wear have improved in both retain labor. However, large-scale deployments have yet
active and passive industrial exoskeletons. Also, within to be seen. This is mostly because currently available
the last two years, cost has further decreased, with devices typically offer support only for specific sets of
providers standardizing their products and scaling up movement, limiting their application to niche use cases.
production. The exoskeleton market is expected to Also, proof of efficacy is lacking; there are no long-term
continue growing; industrial exoskeleton shipments studies of large-scale deployments to provide evidence
are projected to reach 181 million units in 2030, of the expected health and safety-related as well as
talent attraction and retention benefits.
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Tasks with Frequent

Bending & Lifting Overhead Work
Lower back pain is the main contributor to musculoskeletal

burdens and among the most common workplace
injuries and illnesses – the leading cause of disability
in 160 countries worldwide. This results in days and
even weeks away from work per employee. Manual body areas widely affected by MSDs and associated
handling activities are among the main risk factors symptoms. Activities involving either static overhead
for lower back pain, and employees involved in this work, such as inspecting and repairing the underside of
type of work, frequently lifting items, can benefit from delivery vehicles, or continually handling weight above
using exoskeletons specifically designed for lower shoulder height, like when loading or unloading the top
back support. Key for the technology to be able to spaces of containers, are considered major risk factors
provide support is that a bending movement is involved. for injury. Passive devices such as the IX Shoulder Air
Products currently on the market are diverse, ranging from SuitX by Ottobock are specifically built for these
from passive devices using spring systems such as the activities, acting as support structures for the upper
IX Back from SuitX by Ottobock, or fully textile solutions arms to reduce strain in the neck and shoulders.
making use of rubber bands such as the Apex 2 from Due to the very task-specific design of these devices,
HeroWear to actively powered systems such as the here at DHL we see limited applicability within logistics
Apogee from German Bionic. However, they all serve as there are few or no use cases which consist of
a similar purpose, helping supply chain organizations overhead handling only.
improve employee health and safety in the workplace
and reduce costs arising from preventable injuries.
Neck and shoulders have both been identified as
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Workspaces Without Seating

Many facilities in supply chains do not accommodate
seating in workspaces because of space constraints or
for operational safety reasons. As a result, workers must
always stay on their feet when working – a requirement
that can also further restrict the industry’s talent pool.
Tech companies such as Noonee and Archelis have
developed space-saving solutions often referred to
as ‘chairless chairs.’ Nimbly attached to the legs of the
worker, these devices fold out when the worker squats,
providing them with chair-like support for resting, only
to retract when the worker stands up again. Although
the cumulative impact of these chairless chairs in
logistics has yet to be fully understood, like other
types of exoskeletons, they have potential in attracting
prospective workers who otherwise would not qualify
or not want such physically demanding jobs.
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OVERVIEW
Challenges Outlook
Productivity impacts, cost savings from reduced sick Industrial exoskeletons have yet to find their place for
leave, and other quantifiable data is missing but is large-scale adoption within logistics operations. Here
essential to prove the business case and eliminate at DHL, we recognize further product improvements in
doubts about medical efficacy. terms of performance and usability but we acknowledge
today’s available products still tend to serve only very
User acceptance of exoskeletons requires well- specific subsets of movements. While both the business
organized onboarding and personalization; initial case and medical effectiveness are not yet fully proven,
implementation is similar to a change management due to lack of long-term studies, we see a rise in interest
project rather than a new hardware installation. in the topic. With worker health and safety being a
top priority and logistics organizations coming under
Most available exoskeletons are not entirely increasing pressure to find and retain their operational
effortless to wear and still add a significant amount workforce, the potential value of exoskeletons increases.
of weight; this creates a trade-off between benefit in These products have a role to play in improving worker
certain movements and perhaps a burden to other health and safety, expanding the pool of candidates
movements. who qualify for physically strenuous tasks, and overall
making the workplace more attractive.
A lack of long-term studies of large-scale It is likely that the recent drop in cost for many devices
deployments to provide evidence of the expected could pave the way for further testing and adoption.
health benefits leaves room for skepticism and
remains an entry hurdle for those who do not want to This trend should be monitored to some extent with
take the risk of a first mover. use cases in some applications that can already be
addressed today.
Related Trends
Diversity, Equity, Extended Reality

Inclusion Belonging
Silver Economy Wearable Sensors
Sources
World Health Organization (2022): Musculoskeletal health
ABI Research (2023): Exoskeletons
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Extended
Reality
The trend of Extended Reality, otherwise known as years have included MR. One example is the Microsoft
XR, encompasses the different experiential technology HoloLens, a holographic device for business use.
genres of augmented reality (AR), virtual reality (VR), and Another example, launched in early 2024, is the Apple
mixed reality (MR). AR enriches the physical world with Vision Pro, which introduces the term ‘spatial computing’.
purely visual digital screens or overlays in the right place With these devices, users experience a unified perceptual
at the right time; VR is a fully immersive digital experience reality in which virtual three-dimensional (3D) content is
requiring special headsets; and MR is at the intersection spatially aligned with the real world.
of both, infusing interactive virtual content within the
physical world.
This creates a combined reality in which users can naturally
interact with both virtual and real objects or content.
As the most basic form of extended reality (XR), AR has While these capabilities open up new possibilities to
been around for over a decade allowing two-dimensional achieve truly interactive training content and simulations
information to be displayed on top of real-world images. that allow for enhanced remote collaboration, further use
While mass market popularity of AR reached its peak cases where MR can offer real differentiation have yet to
in 2016 with the launch of interactive smartphone and be implemented. In time, these capabilities will achieve
tablet apps like Pokémon GO, it first appeared in enterprise much more than just enhancing the user experience. Unit
applications as early as 2013 with the launch of Google sales of XR headsets dropped significantly in 2022 and
Glass. DHL was an early adopter of the technology using 2023, following a massive increase during the pandemic.
wearable smart glasses for workflow guidance and More recently, announcements about new devices have
seamless, hands-free remote support, completing first helped renew the hype, especially the 2024 launch of the
pilot projects in 2014. With the development of VR, a fully Apple Vision Pro, and analysts predict unit sales in 2024
immersive virtual experience could be achieved through will bounce back by more than 40% over 2023. It remains
headsets. The gaming market was an early adopter but, to be seen whether mainstream adoption will follow. In
over time, many enterprises, including those in logistics, logistics , some XR use cases are now well-established,
recognized the potential of 360° virtual content for mature solutions; for example, workflow guidance during
training, especially for scenarios which are difficult or the warehouse picking process. However, available
maybe even dangerous to replicate in reality. Following XR technology has not yet been used to full potential.
this, the most groundbreaking XR developments in recent While the wider application of XR within logistics will not
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revolutionize how businesses are run, it will most likely instructions for maintenance of complex machinery –
deliver many benefits. It will enhance the employee other suitable use cases are yet to be explored.
experience, increase safety, improve the effectiveness
of training and onboarding, boost productivity by
reducing error rates, and enable information sharing Remote Support & Collaboration
with employees wherever and whenever needed.
Workflow Guidance
AR technology enables a remotely located expert to be

connected to an on-site operator wearing smart glasses
via a live video call; this allows both people to see the
same things at the same time, and it keeps the operator’s
hands free. With dedicated software, the expert can
provide instructions, sketches, and annotations to guide
Making operational processes more efficient and less the operator. The combination of workflow guidance
prone to human error as well as quickly onboarding new and remote support promises significant gains for
employees are crucial to success in the logistics industry. maintenance, service, and any other process requiring
The use of AR or MR headsets with dedicated software expert knowledge which is not always available locally.
enables companies to provide hands-free, step-by-step For example, the global energy company TotalEnergies
instructions to employees while they are performing uses RealWear smart glasses for faster equipment
operational tasks. Here at DHL, we were a first mover in diagnosis and repair of refinery equipment. This
using smart glasses for workflow guidance in the picking solution makes specialist knowledge available via
process, with pilot projects completed as early as 2014 remote support calls, reducing travel time and therefore
and a productized solution scaled to more than 25 sites lowering the risk of production stoppages. In addition to
globally today. What has worked for the picking process providing immediate access to expert knowledge, some
can easily be replicated in other processes – for example, software solutions are specifically designed for remote
upskilling labor so workers can provide more complex collaboration with a smart glasses user, and even allow
value-added services to customers and accelerating for automated report generation for documentation
new employee onboarding time. With the increasing purposes. If higher levels of collaboration are required,
availability of quick-to-build no-code applications, it is it is interesting to consider using VR and MR headsets.
now very easy to digitalize workflows and run them on With an MR solution, people in multiple locations can,
smartphones, tablets, and smart glasses. Using MR to for example, meet in a single virtual collaboration space
guide employees through a workflow, via the Microsoft and use 3D holograms to design products, solutions,
HoloLens for example, provides an enhanced user and processes. Another example application is holding
experience. But it is not always necessary to spatially conferences and events in a fully virtual way, with
relate 3D virtual objects to the real world to achieve delegates using VR headsets to meet as avatars in a
what is needed. Although there is some applicability virtual space.
for MR in logistics – for example, offering step-by-step
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Training & Simulation

pallets and containers with shipments. Leveraging
gamification, participants are awarded more points if
they use space optimally and pay attention to special-
handling labels. Using VR for training is ideal to simulate
a real-world situation, allowing people to learn and take
decisions in a safe environment, and it can also ensure a
fun experience. Here at DHL, we see potential to use VR
for operational health and safety (OHS) training within
logistics , due to the global scalability of training content
across operations globally. A few start-ups, such as
While AR and MR add virtual content to reality, VR can Pixaera and Next World, have recognized this potential
be used to create immersive training experiences, early on and are offering easily customizable, almost
simulating realistic scenarios in a fully virtual ready-to-use library modules to cover standard OHS
environment. Participants in a fully immersive VR topics such as line-of-fire training and working around
training session learn four times faster than in a forklifts. With ongoing improvements in MR and spatial
classroom setting, possibly because participants computing capabilities, virtual content is integrating
show a significantly higher emotional connection to into the real-world environment so successfully that
virtual content and are far less distracted. For years, the human brain perceives the two as a single, unified
DHL Express has been using VR as a training and reality. This has significant potential for more hands-
engagement tool for employees and external audiences. on training experiences to occur within the real world
In a gamified approach, people can learn how to load instead of a fully immersive space.
Graphic source: Carrasco, Moisés & Chen, Po-Han (2021):

Application of mixed reality for improving architectural design comprehension effectiveness
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OVERVIEW
Challenges Outlook
Most XR use cases involve specific hardware. Used at Here at DLH, we expect new XR applications to emerge
scale this requires significant investments and may in the near future. Following the launch of Apple’s
require onboarding if employees are not yet familiar Vision Pro developers are already working on Apple’s
with these devices. new platform. It will be interesting to see if Apple can
generate sufficient hype around XR to enable mass
Time, effort, and often significant investment are adoption of MR and spatial computing by consumers
needed to create fully immersive content and and by users in the industrial context.
workflow content; however, this barrier decreases With more and more software companies offering no-
as more and more platforms support no-code app code solutions and ready-to-customize library content,
building. we already see one of the entry hurdles to creating XR
experiences disappearing.
Mobile networks may not offer the coverage or Further development towards improved remote
bandwidth that applications need for live connectivity; collaboration by making use of spatial computing
this limits the ability to pull data from a system via technology is likely to take global collaboration among
live video call connectivity and to live stream fully team members within an organization to the next level.
immersive 3D content.

use cases in some applications that can already be
addressed today.
Exoskeletons Metaverses DHL makes augmented reality a

standard in logistics
Leveraging technology to get airports

Next-Generation Wearable Sensors ready for disaster during a pandemic
Connectivity
Sources
CNBC (2023): VR market shrinking as Meta pours billions of dollars into metaverse
Circana (2023): New Devices Increase the Appeal of Extended Reality
Computerworld (2024): 2024 will be a big year for AR/VR, but mainstream adoption will lag
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Gen AI
The trend of Gen AI refers to artificial intelligence at US$ 29.00 billion in 2022 and is projected to grow
(AI) techniques that can autonomously produce new from $43.87 billion in 2023 to $667.96 billion by
content, such as images, text, audio or videos, based 2030, with a compound annual growth rate (CAGR) of
on patterns learned from existing data. It utilizes 47.5% during the forecast period (2023-2030). North
algorithms and neural networks to generate original America accounted for a market value of $14.49 billion
outputs that mimic the style or characteristics of the in 2022, representing approximately 49.93% of the
input data. global market. The trend of Generative AI is set to have
a relatively high impact on logistics , with widespread
adoption in logistics anticipated within the next three
Gen AI grew from advances in machine learning (ML), to five years. Here at DHL, we mostly expect generative
particularly in the development of currently the two most AI developments to impact use cases involving image,
widely used generative AI models. One type is generative video, or text generation. We also anticipate use cases
adversarial network (GAN) models, which enable within logistics that will impact both white-collar and
technologies to create visual and multimedia artifacts blue-collar employees. Applications that will automate
from both imagery and text input data; the other type certain back-office processes will continue to expand,
is transformer-based models including technologies as well as supporting operational processes. These
such as generative pre-trained (GPT) language models can range from streamlining IT helpdesk requests,
that can use information gathered on the internet to automating simple HR enquiries, or generating
create text content. These models have introduced translations- to name a few. In addition, we believe
new methods for training neural networks to generate there will be a steep increase in adopting sandboxed
realistic and novel data by learning underlying patterns environments in which companies can use generative AI
from large datasets. The field has since expanded to tools to try new ideas and initiatives. For example, within
encompass various techniques and applications, leading DHL we have developed our own GenAI Hub to test out
to widespread use in creative tasks, data augmentation, automating certain processes, developing content, and
and more. The generative AI market size was valued generating information.
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Optimized Route Planning

service responses, streamlining communication within
logistics operations and improving efficiency. It can also
generate visual representations of inventory items or
warehouse layouts to help with inventory management.
Other image generation applications include creating
designs for packaging that maximize space efficiency
and protection of goods. These AI generated images can
help in prototyping new packaging solutions quickly.
Generative AI can also automate the creation of scripts
for data analysis, optimize algorithms for route planning,
and build predictive models for demand forecasting.
This enhances data-driven decision-making processes
AI algorithms can be used in logistics to optimize route and operational planning in logistics companies.
planning for deliveries. By considering various factors
such as traffic patterns, weather conditions, and delivery
priorities, AI-powered systems can generate efficient
Customer Experience Automation
routes while providing transparent explanations for
the decisions made. This ensures logistics providers
can trust the accuracy of the suggested routes and
understand the rationale behind them. In logistics,
which relies heavily on location services, generative
AI may also be used to accurately convert satellite
imagery to map views, enabling the exploration of yet
Content Creation
Chatbot interfaces offered by generative AI can be used
in many ways to enhance customer-centric supply chain
networks. This technology can also help customers get
immediate and satisfactory responses to their enquiries,
with their input processed through commonly used
communication channels. E.g., each customer can
receive a prompt and customized email response or
automated phone call or text message. Generative AI
can also swiftly analyze various unstructured customer
feedback sources such as online reviews and social
media sentiment. So, for example, when multiple
customers make comments about a particular product,
uninvestigated locations. generative AI can help rapidly integrate these insights
Generative AI offers the creation of text, images, and into product development workflows. In e-commerce,
even coding. For logistics, this means the potential generative AI helps to improve the shopping experience
for acceleration across a number of functions. The and increase customer satisfaction. A good example
technology can for example automate the creation of text of this is personalized product recommendations
for product descriptions, inventory reports, and customer generated by AI-driven algorithms based on customer
preferences and past purchase history.
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AI Assistants
schedules, and enhance overall operational efficiency
within warehouses and distribution centers.
Another useful type of AI assistant in logistics is

a supply chain visibility assistant. These provide
real-time visibility of the entire supply chain,
tracking the movement of goods from suppliers to
end customers, helpfully identifying bottlenecks,
Currently, several different types of AI assistants mitigating risks, and optimizing logistics processes
are being developed at scale but not all are suitable for enhanced transparency and responsiveness.
for deployment in the logistics industry. Here at
DHL, we see logistics operations making use of
AI-based predictive analytics assistants, which In the logistics back office, administration, legal
can forecast demand, optimize inventory levels, documentation, finance, or HR department, we see AI
and anticipate potential supply chain disruptions, assistants providing support such as screening lengthy
enabling proactive decision making and resource texts and summarizing the key points. This could
allocation. We also expect the industry to make use accelerate tasks, ensuring faster turnaround times for
of warehouse management assistants, which can non-disclosure agreement (NDA) processing, contract
optimize inventory placement, automate picking and processing, candidate curriculum vitae (CV) screenings,
packing processes, monitor equipment maintenance and financial report summarizing and forecasting.
Graphic source: Zendesk (2024): A beginner’s guide to generative AI for business
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OVERVIEW
Challenges Outlook
Implementing and integrating generative AI into Here at DHL, we have witnessed developmental leaps
existing logistics systems and workflows is likely to in AI over recent years. This explains why AI continues
be resource intensive and requires specialist AI and to generate interest and investment and is predicted to
data science expertise not commonly available in the grow in the long term, with an ever-expanding range of
industry today. generative AI applications capable of driving significant
business value.
Logistics companies may face challenges in adapting The three key building blocks of more data, continuous
their infrastructure, training personnel, and ensuring advancements in algorithms, and stronger computing
seamless integration with existing software plat- power indicate these use cases are likely to materialize
forms. and scale.
Logistics and the supply chain are integral to soaring
It can be difficult for stakeholders to assess the relia- AI adoption levels every year. By adopting generative
bility of output from generative AI models (which ty- AI, the logistics industry will be able to better respond
pically operate as „black boxes“); this lack of interpre- effectively to the operational challenges of growing
tability can lower trust in a solution, even preventing business-to-business (B2B) and business-to-consumer
acceptance. This trustworthiness of AI is a challenge (B2C), and more recently emerging consumer-to-
that can be addressed through AI Ethics. consumer (C2C) demand.

AI Ethics Audio AI Generative AI: Answers to

frequently asked questions
Computer Vision Mass

Personalization
Sources
Fortune Business Insights (2024): Generative AI Market Size, Share and Industry Analysis, By Model
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Indoor Mobile
Robots
The trend of Indoor Mobile Robots encompasses the 2029, driven by factors such as the rising demand for
various types of movable robots that fulfill tasks automation in e-commerce and the healthcare, retail,
primarily inside facilities without direct input from food and beverage, and automotive industries. DHL
human operators in a collaborative way. Automated expects that up to 30% of its global material-handling
guided vehicles (AGVs) follow predetermined visible equipment will use some form of robotic process
or invisible paths, while their next-generation automation by 2030. In markets with high labor costs,
successors, autonomous mobile robots (AMRs), use rising consumer expectations for rapid order fulfillment
real-time path planning and can more freely move has driven the adoption of robotics to higher levels. The
around obstacles. deployment of mobile robotic solutions plays a crucial
role in the area of driving automation within warehouses.
In fulfillment operations, it also helps in driving real-time
Mobile automation has progressed through two- insights for inventory management to provide accurate
dimensional (2D) lidar autonomy to three-dimensional estimates on delivery time. There has been significant
(3D) visual autonomy, which has developed since interest in early-stage market offerings following recent
the last edition of the Logistics Trend Radar with an developments in mobile robotic solutions that specialize
increase in accuracy, capabilities, and offerings across in case manipulation. However, cost remains a barrier to
the robotics component market. This has significantly widespread introduction in logistics. As soon as indoor
advanced autonomous mobile robots (AMRs) in various mobile robots can be deployed at scale, they have
applications and boosted uptake. The logistics robotics enormous potential to increase efficiency and resilience
market (including indoor mobile robots) is projected to within operations. Therefore this trend is considered
grow from US$ 7.11 billion in 2022 to $21.01 billion by highly impactful for the logistics industry.
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Point-to-Point Transportation
handling robot from the French company Effidence,
which also has a follow-me mode to follow humans
and carry loads of up to 300 kg (660 lb). This allows the
system to be utilized in environments that continue to be
too complex or dynamic for most AMR technology today.
It is clear from these examples that many solutions are
available for point-topoint transportation. They are
capable of significantly reducing repetitive workloads
and walking distances, saving time for logistics staff.
Container (Un)loading
Moving goods between predefined locations within a

warehouse is an essential yet highly repetitive process
that takes up a lot of warehouse staff time. Using indoor Loading and unloading containers and loose-load trucks
mobile robots is an effective way to save resources, with can involve some of the most physically demanding
just a few employees overseeing a fleet of indoor mobile activities in logistics. Workers are exposed to harsh
transportation robots while the rest of the workforce is climate conditions and must repeatedly move heavy
free to perform more value-adding tasks. When selecting goods in confined spaces as quickly as possible to ensure
the appropriate autonomous solution for point-to-point downstream operations can continue uninterrupted.
transportation, there is a distinction between device More and more companies are exploring ways to
types – either 3D (such as an autonomous forklift) automate these tasks. To unload pallets from a trailer,
or 2D (such as an autonomous jack lift, pallet jack, or Fox Robotics has developed the Automated Trailer
tugging robot). Within DHL Group, we are accelerating Unloading solution which allows one operator to control
the commercial deployment of autonomous forklifts several robots simultaneously via a tablet. Boston
and pallet movers in more than 1,500 warehouses Dynamics has developed the Stretch robot for a range
worldwide, focusing on sites in labor-tight markets of different warehouse tasks, but initially this indoor
across Europe, the United Kingdom, Ireland and North mobile robot will enable autonomous unloading of
America. Fleets of autonomous high-reach robots take floor-loaded containers and trucks. Stretch consists of
over pallet-picking and put-away tasks, lifting goods to three components: a lightweight robotic arm that can lift
a height of up to 11 m (36 feet) while also performing cartons of up to 22.7 kg (50 lb), a relatively small mobile
double-deep storage activities. In addition, there are base designed to easily fit inside trailers and containers,
solutions such as the EffiBOT, a fully autonomous and the perception arm that includes depth sensors
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and 2D cameras to help the robot identify cartons of by shortening the distance walked by humans and re-
different shapes and sizes and provide insights that ducing the time between picks. There are different ty-
help Stretch perceive its operational environment. pes of order fulfillment applications including goods-to
Future models may be capable of loading, building person solutions, and solutions that fall into a zone pi-
up pallets, and depalletization. In January 2023, DHL cking category. A classic goods-to-person AMR solution
Supply Chain became the first company to achieve comes from Geek+ with robots able to pick up inventory
commercial application of Boston Dynamics’ Stretch shelves and transport them to the required picking or
robot developed for carton unloading of trucks. Today’s pack station where an employee prepares the order for
deployed solutions are typically for unloading uniform fulfillment without having to walk anywhere. In zone-pi-
cartons or pallets. Loading and unloading of mixed cking applications, workers are assigned to operate in
cases are complex tasks and it will take further research a specific predefined warehouse area. Locus Origin is a
and development before scalable fully autonomous prime example of a direct zonepicking solution, where
solutions come to market. However, with advances totes are placed on robots that travel to pickers in va-
in robotic software and computer vision capabilities, rious work zones and then visually indicate the closest
indoor mobile robots will soon achieve additional pick option for each tote via a screen. At DHL, we have
autonomous tasks in mobile piece manipulation. recently expanded on our partnership with Locus to en-
compass a total deployment of 5,000 Origin bots across
Order Fulfillment warehouses and distribution centers globally and we
have celebrated our 500 millionth pick by Origin bots
& Assisted Picking
globally. Using AMRs to support order fulfillment allows
workers to focus on the accuracy of their picking and
significantly diminishes the distance they must cover
each day and the required travel time.
In the unautomated warehouse environment, workers

can sometimes be required to walk up to an average of
14.5 km (9 miles) each day. This puts an enormous phy-
sical burden on workers and at the same time presents
an opportunity and a strong argument for the introduc-
tion of indoor mobile robots. Assisted picking robots can
drive efficiency in the overall order fulfillment process
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likely that indoor mobile robots will play a significant
role in intelligent facility support infrastructure.
Inventory Management
Automation
Significant progress in the development of perception

technology and AMR capabilities has encouraged
further investment in automated solutions to
support facility functions like cleaning, security, and
maintenance and repair operations (MRO). Since 2020,
the global warehousing market has seen significant
growth, driven largely by the surge in e-commerce Warehouse space utilization is becoming increasingly
and increasing demand for more sophisticated important. For example, the overall cost of warehousing
logistics. Such growth in the footprint of warehousing properties across 52 international markets rose by an
operations has driven additional investment in and average of 8.4% (12 months to June 2022), largely
deployment of intelligent cleaning robots. Solutions due to heightened demand for warehouse space,
like the Karcher KIRA bot have enabled smartification a consequence of the pandemic, and e-commerce
of the cleaning process by deploying cloud-based expansion. One way of boosting storage density is to
artificial intelligence (AI); KIRA can learn and improve introduce an automated storage and retrieval system
its cleaning performance over time. Additionally, smart (ASRS). These computer-controlled robotic storage
detection systems allow for safe navigation of the bots systems can be used for autonomous handling, storage,
around the people and obstacles that are present in and retrieval of totes or shelves in a warehouse.
the warehousing environment. With increasing sprawl ASRS solutions, such as the cube-based system from
and the resulting higher requirements for security Norwegian company AutoStore, have many advantages
infrastructure, today’s warehouses are also at risk of over traditional picking solutions. AutoStore’s solution
theft. Companies can integrate autonomous security offers a high-density system reducing the required space
robots (ASRs) to better monitor and control these by a factor of up to 4 and can speed up manual picking
facilities. Use cases range from automatic license by up to 5 times compared to conventional picking.
plate recognition to the detection of blacklisted mobile Although the initial investment for such solutions is
devices or suspicious devices and video surveillance. relatively high, this can be economically viable, especially
The four-legged mobile robot Spot, from Boston when handling large volumes of stock-keeping units
Dynamics, can be used as an ASR, equipped with (SKUs) of slow- and medium-velocity goods, optimizing
additional cameras and night-vision technology. the throughput and operational efficiencies of the
Designed to walk stairs and uneven terrain, this robot system. DHL Supply Chain is currently involved in nine
can live monitor different levels in a warehouse or AutoStore deployments across Singapore, the US, and
operations facility and can be operated remotely Germany, with four more in planning. Through this
via a tablet or follow pre-mapped routes. The use of partnership, a fleet of over 1,000 robots has significantly
cleaning bots and ASRs in warehouse cleaning and boosted operational efficiency and throughput in DHL’s
security functions remains limited but, in future, it is fulfillment warehouses.
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Humanoid Robots
sense to construct legs if wheels are the swifter option
for moving around the warehouse. Similarly, there may
be no need to equip the machine with two arms if one is
sufficient to do the job.
Rather than recreating the human body, it may

be better to design robots according to their tasks
and for optimal interoperability.
There is significant development potential for

In recent years, there’s been steady development and humanoid robots, particularly in achieving a completely
commercialization of humanoid robots – machines autonomous and non-externally controlled flow of
designed to resemble humans and perform similar activities. Companies like Boston Dynamics with its Atlas
tasks using human-like movements and interactions. In robot, the humanoidspecialized company Figure AI, and
logistics operations, these robots could relieve personnel the Chinese company Unitree, which offers its G1 at a
from monotonous tasks that cannot be performed by relatively low price point, are making significant progress
conventional stationary robotics, such as loading and in this technology field. Nevertheless, in future, even
unloading pallets and containers. While humanoid robots the most advanced robots will not completely replace
may appear to provide an ideal solution, it may not make humans in logistics.
Graphic source: Interact Analysis (2022): Mobile robot shipments grow by 53% in 2022
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OVERVIEW
Challenges Outlook
Adequate Wi-Fi or cellular network coverage is There are already many different indoor mobile robot
required throughout the facility for frictionless use cases and applications currently being scaled in
integration of a large-area AMR solution, which must logistics. However, it is not yet feasible to implement
also meet IT security requirements. the entire indoor mobile robot technology suite in every
warehouse. Before further solutions can be scaled and
Deploying a fleet of numerous automated robot used in a variety of applications, the technology must
solutions from different manufacturers requires further mature. In addition, decision makers must gain
a very robust software platform enabling efficient confidence in this technology before they are to willingly
route planning and mission dispatching. deploy indoor mobile robot solutions in mission-
critical tasks. More steps are being taken towards full
In crowded facilities where many people are working warehouse orchestration so, in the notso- distant future,
and numerous obstacles block the way, an indoor indoor mobile robot solutions together with stationary
mobile robot may encounter so many obstacles that robotics will start to automate and support a large part
this interferes with its ability to integrate seamlessly of warehouse work.
into operations.
Indoor mobile robot system integration can be implementations available for many use cases today.
challenging given the wide variety of warehouse
management platforms in use.
In an environment where indoor mobile robots DHL Resources

operate alongside personnel, a comprehensive
safety and risk analysis must be performed due to DHL Supply Chain and robotics technology
the added complexity of navigating in close proximity company AutoStore announce partnership
to humans. expansion to further automate global warehousing
Related Trends & Downloads DHL Supply Chain Passes Unprecedented 500
Million Picks Milestone Using Locus Robotics
Autonomous Mobile Robots
Computer Vision Drones
DHL Supply Chain Further accelerates commercial

deployment of its fleet of autonomous forklifts and
pallet movers
Outdoor Stationary Robotics

Autonomous
DHL Supply Chain achieves first commercial
Vehicles deployment of Boston Dynamics’ Stretch™ robot to
unload trailers and containers in the warehouse
Sources
Fortune Business Insights (2024): Logistics Robots Market Size, Share & Industry
Savills (2022): Global warehousing costs
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Next-Generation
Connectivity
The trend of Next-Generation Connectivity is the early 2030. With the growing number of Low Earth Orbit
development and implementation of evolutionary (LEO) satellite networks and some 5,000 LEO satellites
communication and connectivity technologies orbiting planet earth already at altitudes ranging from
and their supporting infrastructure. It includes the 160 to 2,000 km (100 to 1,245 miles) , and with 1,700
utilization of various frequencies and bandwidths more satellites per year anticipated to 2030, there are
across the electromagnetic spectrum to help connect, significant additional opportunities for logistics. These
ultimately, everyone and everything everywhere. resources provide a pathway to connectivity everywhere,
This trend expands on the earlier trend of Next- bridging the digital divide by providing internet access
Generation Wireless to include all connection types. to remote and underserved regions where terrestrial
infrastructure is lacking or insufficient. With advances in
the connectivity space, logistics organizations can attain
The introduction of wireless internet to the supply a new level of speed, accuracy, efficiency, and resilience
chain ushered in the first major wave of digitalization for the supply chain. While next-generation wireless had
in logistics, from pharma shipment sensors to some moderately low impact on the logistics industry, next-
of the earliest autonomous mobile robots and indoor generation connectivity is expected to have far greater
localization. Most recently, fifth generation (5G) mobile impact. The required technologies exist already and are
networks have become reality, with more and more use developing steadily, which indicates they are relatively
cases around the world benefiting from lower latencies close to realization. With vast benefits to be gained
and better ability to transfer large amounts of data via from instant and continuous visibility of shipments,
cellular networks. The full scale of 5G capabilities is still assets, and inventory, logistics organizations are paying
to be tapped on a global scale and yet 6G network testing close attention to this trend and adoption of these
is underway and commercial readiness is expected for technologies continues to accelerate in all supply chain
segments around the world.
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5G & 6G Cellular Networks Satellite-Based Connectivity
By 2022, around one tenth of all connections worldwide

used 5G technology and this is set to surpass 50% by
2030. Vast regional disparity is expected, with more
than 90% adoption in North America, developed Asia
Pacific, Europe, and the Gulf Cooperation Council (GCC)
region, but below 20% adoption in sub-Saharan Africa.
At rollout of 5G mobile networks, expectations were
high about this technology’s transformative nature, but
it is questionable whether these have been met. For
most use cases, better network stability and smoother The global Low Earth Orbit (LEO) satellite market was
data transfers were predicted along with faster data valued at just under US$ 4,190 million in 2022. With
transfers, thanks to lower latency, and – for logistics an expected compound annual growth rate of 18%, this
– enhanced warehouse automation. 5G‘s low latency should reach almost $11,348 million by 2028. While costs
and high bandwidth is expected to enable advanced remain relatively high, LEO satellites are cheaper than
automation technologies to be used for picking, packing, regular satellites and are gaining popularity in Internet
and sorting warehouse goods. Another example in of Things (IoT) applications as they provide extensive
logistics is a 5G-powered artificial intelligence (AI) coverage, reduce delays, and are highly reliable. More
warehouse management system. This leverages both and more providers are offering LEO satellite services.
5G technology and AI solutions for robotic inventory Current applications for these satellites include disaster
management to provide enhanced and efficient recovery and resilience in remote areas, providing a
multistory warehouse management at optimum resilient communication infrastructure during a natural
standards. In future, there is potential to operate around disaster or other emergencies when terrestrial networks
the clock utilizing 5G technology and AI. A barrier to 5G are disrupted. Another important application is IoT and
developments is the absence of universal standards machine-to-machine (M2M) communication, as LEO
across companies and countries. This makes scaling satellites can provide ubiquitous, low-latency coverage.
difficult and there can be high entry barriers. Also, when Capabilities continue to expand. For example, in early
the required infrastructure is available, users may be 2024, T-Mobile announced that SpaceX launched the
deterred by high costs imposed by network operators. first set of Starlink LEO satellites with direct-to-cell
capabilities, meaning communication can be supported
even in cellular “dead zones.” In logistics, maritime
While 5G rollouts are continuing, by the 2030s there shipping is already benefitting from new tracking
will be 6G laboratory tests and early introduction. This capabilities and global connectivity to smart containers.
newest technology brings the potential to move from In 2023, logistics provider Maersk teamed up with
the current ecosystem of “Connected Things” to a new Starlink to use satellite data to track container ships,
ecosystem of “Connected Intelligence.” And with this, optimize routes, and improve fuel efficiency, and there
end-to-end (E2E) mobile communication systems will are plans to use this connectivity solution to digitize
optimally support AI and machine learning (ML). vessel operations.
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Private Network Sharing & Slicing

context of 5G and beyond, network slicing allows a
single physical network infrastructure to be divided into
multiple virtual networks, providing greater flexibility
in the use and allocation of network resources. This
can support a wide range of services and applications,
including enhanced mobile broadband, IoT services,
mission-critical communications, and industrial
automation. Here at DHL, we anticipate industrial
deployments will feature more use of existing networks,
infrastructure democratization, and network slicing. All
Next-generation connectivity enables private network this offers significant benefits for logistics operations,
sharing and slicing, allowing a single network to be including customized services, quality of service,
used for multiple purposes by isolating channels to efficient resource utilization, enhanced security, and
guarantee security and enhanced user experience. A resilience. Recent applications include the Hamburg,
great example of this is Amazon Sidewalk, designed to Bremerhaven, and Wilhelmshaven Port’s private
extend the coverage and functionality of smart home networks, a solution providing committed network
devices by pooling a small portion of users‘ internet resources for the container terminal operator Eurogate’s
bandwidth. A similar example of democratization of internal data traffic. Another example is the final-mile
infrastructure is how Apple AirTags operate – they use goods tracking application used by logistics company
the shared network created by all Apple users. In the OnAsset Intelligence, which is based on the Amazon
Sidewalk mesh network.
Graphic source: Huawei (2021): 6G: The next horizon
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OVERVIEW
Challenges Outlook
Currently, there is a lack of global standards and little The trend of Next-Generation Connectivity brings
or no organizational alignment on frequencies. new ways of connecting and overcoming existing
challenges, such as connectivity white spots. It also
Regulations and inter-political realities are limiting enables more communication, including M2M, with
factors for technology capabilities. greater ease of deployment.
Network and infrastructure security will be critically In the world of logistics, many connectivity technologies
important to the development of this trend, as are already deployed today. Some are complementary
each connected device can act as a gateway for but there may be many that are redundant, resulting
cybercriminals. in additional costs. Utilizing existing connectivity
technologies and exploiting their convergence with
Multiple players along the supply chain and a lack automation, big data, and AI will likely increase the range
of collaboration between organizations may mean of potential future use cases. With new developments,
multiple tags and sensors are needed for each especially the launch of 6G, next-generation connectivity
shipment and supply chains may need to register is capable of not just enabling the Connected Intelligence
data through multiple communication networks. ecosystem but also allowing it to enrich all aspects of
logistics operations.
This trend should be monitored to some extent with

use cases in some applications that can already be
addressed today.
Green Urban Indoor Mobile

Transformation Robots SmartSolutions IoT
Smartification Smart Printables
Sources
IEEE Spectrum (2024): The LEO Satellite Industry Needs More Engineers
Statista (2024): 5G - statistics & facts
Industry Analysis (2024): Global LEO Satellite Market Professional Survey by Types, Applications, and Players, with Regional Growth Rate
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Next-Generation
Packaging
The trend of Next-Generation Packaging refers to packaging market has seen rapid growth in recent
the evolving options for materials used for primary, years. With a 2023 market size of almost US$ 13
secondary, and tertiary packaging as well as the billion, the global next-generation packaging market
technology added to this packaging. These materials has a predicted 10-year compound annual growth
and new technologies enable packaging to sense and rate (CAGR) of 6.43%, reaching a market size of almost
react to changes in the environment and changes in $24 billion by 2033. Recent advances in packaging
the packaged contents. This trend also incorporates technology include the incorporation of radio-frequency
elements of sustainability, using new packaging identification (RFID) tags, other IOT sensors, and
materials that are often more bio-based, recyclable, indicators for content conditions, as well as redefining
reusable, and biodegradable. the way packaging materials are sourced.
With developments in this trend set to continue over
the next five years, more and more companies are
From the continued boom and rise of e-commerce to reconsidering the materials and technology used in
the global drive for sustainability, the need is growing and for their packaging. As more companies change
for smarter and yet cost-efficient packaging solutions the ways they use materials and sustainable goods,
with a strong focus on the reduction of CO2 footprints. logistics organizations also need to make adjustments,
In order to meet customer demand, there is emphasis implementing next-generation packaging practices and
on recyclability, reusability, compostability, and reevaluating current operations to ensure new types of
biodegradability and a rising demand for antimicrobial packaging can be processed safely through conveyor
packaging. At the same time, there are pressures to belts, scanners, and more. And, of course, the contents
improve package traceability and condition-monitoring. of this packaging can be delivered to recipients without
It is increasingly important for logistics organizations damage. Furthermore, the cost of packaging remains a
to meet these needs. Propelled by population growth, factor that is crucial to extensive scalability. Especially
technological developments, and changing consumer during unstable economic periods, companies may opt
expectations about product packaging, the global for a cheaper solution rather than spending extra on a
more sustainable and technology-enabled alternatives.
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(Active) Packaging & Tracking

conditions such as temperature, shock, light, humidity,
inversion/tilt, location, and thermal runaway. In any
case, the use of active trackers is limited by the fact that
their batteries are classified as dangerous goods, too,
adding complexity to air shipping. Bluetooth trackers
represent a cost-effective alternative, leveraging existing
infrastructure like smartphones for status monitoring.
The small batteries in Bluetooth trackers are not
classified as dangerous goods. However, their one-time
usage contributes to growing e-waste whereas active
trackers can be used in circular solutions.
Intelligent Packaging Solutions

Active packaging incorporates additives to maintain or
for Asset Monitoring
extend product quality and shelf life.
Active packaging solutions today account for

an over 36% share of the global next-generation
packaging market and are predicted to remain
dominant for the next 10 years.
Examples of active packaging include antimicrobial

packaging, heating/cooling packaging, items including Intelligent packaging systems monitor the internal
gas emitters, absorbers and scavengers, moisture/ odor/ condition of packaged goods to give information on
flavor-absorbing and releasing packaging, corrosion quality during transportation and storage. Simply
control packaging, and spoilage retardant items. These defined as packaging which senses and informs, these
types of packaging are engineered to respond and react systems integrate hardware components such as time
to changes in the external and internal atmosphere of temperature indicators (TTI), freshness and ripening
a package and are therefore of utmost importance and sensors, and RFID and other tags. This helps maintain
significance to e.g. the pharmaceutical and nutraceutical the quality of products, contributing to a reduction
industries as well as for lithium-ion batteries . Logistics in global waste. The healthcare and pharmaceutical
organizations, in turn, need to have fresh chain and industries are considered major growth markets,
cold chain operational capabilities in place to ensure highlighted by the Covid-19 pandemic, as there is
product delivery meets the standards set by customers a growing need to improve supply chain visibility in
and aligns with varying fresh and cold chain legislation. these sectors. Application opportunities for intelligent
Logistics companies today are developing more packaging are not limited to just these industries,
solutions to improve active temperature retention and however. Within logistics and supply chain operations,
eliminate reliance on dry ice or liquid nitrogen which smart packaging solutions are vital to goods in many
have to be handled as dangerous goods , particularly other industries, better protecting them with real-
in air freight scenarios. Sensors and Internet of Things time tracking as this cuts the risk of theft, lastmile
(IoT) monitoring are increasingly used to check various delivery diversion, counterfeiting, and other crimes.
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Monitoring solutions play a vital role in fresh and cold The Covid-19 pandemic also highlighted the need for
chain packaging, ensuring temperature stability during MAP solutions to facilitate global vaccine shipments,
transit and enabling shipment status checks upon particularly controlling and modifying atmospheric
arrival. Previously, active trackers were often used for temperature during transportation. One example of
location checking but this need is overtaken today by this is the development of packaging that incorporates
requirements for temperature stability monitoring.An internal dry ice.
example of this is the Digital Shipping Label & Asset
Tracker from the British start-up Envio that lets the
shipper remotely track and re-label a shipment using
Green Packaging Alternatives
an e-ink digital shipping label. This solution also sends
out notifications when a shipment is opened, dropped,
or exceeds a temperature threshold.
Modified Atmosphere Packaging
Sustainable packaging is a significant and evolving

topic. It encompasses the optimization of packaging, the
utilization of recycled or bio-based materials, and the
implementation of circular or refillable systems within
The vast expansion of global shipping and transportation the supply chain. However, there are notable challenges
capacity has enabled rapid transportation around the to the adoption of sustainable packaging solutions in
world of perishable goods and atmosphere-sensitive the logistics and business-to-business (B2B) sectors,
products. Within this complex process to ensure products with limited integration beyond specific industries.
arrive in best condition, the internal atmosphere of the Wider implementation is hindered by the lack of return
storage container or packaging must be continuously services for reusable solutions, the influence of pricing
monitored, maintained, and may need to be changed. As considerations, and more. Research conducted by DHL
such, the use of modified atmosphere packaging (MAP) eCommerce reveals that, while 28% of global customers
becomes central to the effectiveness of transportation express willingness to pay for sustainable packaging,
and delivery. The benefits of MAP technology include an equal percentage would not. Extensive exploration
reducing global food wastage, extending shelf life by of innovative alternatives, encompassing watersoluble,
days and even weeks, and achieving a more profitable edible, plantable, and biodegradable options, is
and secure global food supply chain. For nutraceuticals, currently underway to effectively address sustainability
goods that tend to deteriorate through oxidation can be challenges. In order to replicate the properties of
protected by actively replacing oxygen with nitrogen. conventional packaging, these sustainable solutions
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FUTURE OF LOGISTICS
must be compatible with sensitive products, ensuring the for its timing belt kits with a water pump, resulting in a
safe storage and delivery of each package’s contents. A 70% package size reduction, reduced CO2 emissions,
growing number of companies are additionally embracing and fewer truck trips for logistics. Regulations and
minimalistic packaging approaches, such as employing governmental legislation, such as recent new rules on
non-colored kraft box packaging and optimizing package sustainable packaging in the European Union (EU), will
sizes to reduce shipment size, packing material usage, drive companies towards adopting green and efficient
and overall CO2e emissions. As an example, Continental, packaging solutions. This EU agreement sets packaging
the German automotive parts manufacturer, has reduction targets (5% by 2030, 10% by 2035, and 15%
implemented smaller and more sustainable packaging by 2040) and mandates EU countries to reduce plastic
packaging waste.
Graphic source: Packmojo (2024): What is Smart Packaging & How Does it Work?
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OVERVIEW
Challenges Outlook
Next-generation packaging sometimes includes Next-generation packaging has the potential to

components such as batteries, sensors, displays, and enhance visibility, boost security, and optimize supply
circuits which are challenging to recycle; the long- chain reliability, particularly for cold-chain shipments.
term viability of such solutions is determined by their As technology advances, even more will be achieved,
environmental impact. effectively improving the efficiency and dependability of
logistics and the supply chain. Future developments in
Different regulations apply in various countries and sustainable packaging will focus on reliability, durability,
regions, and specific additional regulations often pricing strategies, and regulatory guidelines to tackle
apply to the multiple components of smart packaging, the problems of unrecycled single-use plastic and non-
so significant time and resources are needed to sustainable packaging. The financing of closed-loop
ensure compliance in a fast-changing world. solutions will likely play a vital role in promoting a circular
economy, minimizing waste and maximizing resource
The successful implementation of sustainable efficiency for a more environmentally responsible and
packaging solutions necessitates substantial economically viable packaging landscape.
investments and collaborative efforts among various
supply chain stakeholders, but collaboration is crucial This trend should be carefully monitored with use
to the adoption of innovative, circular packaging cases in some applications that can already be
solutions. addressed today.
Bio-Based Circularity
Trend Report: Rethinking
Materials
Packaging
Exploring the benefits and trade-offs

Smartification Smart Printables of sustainable packaging
Sources
Future Market Insights (2023): Next Generation Packaging Market Outlook for 2023 to 2033
European Parliament (2024): Deal on new rules for more sustainable packaging in the EU
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Outdoor
Autonomous
Vehicles
The trend of Outdoor Autonomous Vehicles Autonomous Vehicles trend will have high impact in
encapsulates the variety of self-driving vehicles logistics as it will significantly change the operational
operating primarily outside on land or water, both tasks performed by human workers and alter the way
within private property and on public rights of that customers interact with logistics providers in the
way. This trend focuses on vehicles that are either last mile and elsewhere. Overall, this trend’s realization,
completely driverless or at least highly automated however, is quite distant. While implementation has
with occasional control by a human driver. already begun with some use cases on private, gated
properties, autonomous driving on public rights of
way requires societal confidence. It will take more
Bolstered by rapid developments in artificial intelligence time before people trust fully autonomous technology
(AI), edge computing, and sensor technologies, self- and regulations permit unhindered application on
driving vehicles have come closer to reality in recent a global scale. Enabling technologies for this trend
years with all modes of highly automated vehicle making are improving, particularly in terms of sensors and
an appearance on the market and fully automated navigation, but adoption is delayed by regulations, cost,
vehicles making test debuts. Successful examples and safety concerns. Outdoor autonomous vehicles are
include autonomous delivery robots created by the therefore about six or seven years away from wide-
Estonian robotics company, Starship Technologies spread adoption in logistics, and experts anticipate
which accomplished over 6 million autonomous greater scaling across geographies within 10 years. The
deliveries by January 2024, reflecting a steady growth impact of these vehicles is likely to be high, especially
trajectory since commercial launch in 2017. The Outdoor within countries facing high labor costs and workforce
shortages“.
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Automated Yard Operations

In the Port of Rotterdam, an autonomous yard truck
initiative has been launched – a collaboration between
Kramer Group, a major depot and container terminal
operator, Terberg, Europe’s largest manufacturer of
yard trucks, and StreetDrone, a leading provider of
autonomous yard truck technology. Together, they aim
to achieve a new standard for safety, efficiency, and
competitiveness at the port, with pilots running in two
locations until early 2025.
New Last-Mile Models

An effective way to increase safety and respond to
workforce shortages is to use autonomous tractors
to move objects from point to point in the outdoor
environment of a logistics yard, port or the like. Manually
moving assets, containers, and cargo within a yard is
repetitive work that adds minimal value, so automation
is an excellent alternative. Digitalized processes include
the ability to track and sequence movements, ensuring
first-in-first-out (FIFO) inventory management.
Container location within a facility can be integrated
with the yard management system and scheduling, The last-mile segment of supply chains is expensive,
task assignment, and movements can all be planned in representing about 53% of today’s total shipping costs.
advance. With the number of online orders consistently rising and
straining delivery services, outdoor autonomous vehicles
DHL Supply Chain has deployed proof-of-concept EX9 are seen as a solution that cuts costs while keeping up
autonomous shunting robots to reduce the arduousness with demand. Examples include DHL’s autonomous
and risk of accidents on site and improve operational last-mile express deliveries in Tallinn, Estonia using a
performance while enabling a negative CO2 footprint. robot created by freight autonomy startup Clevon. This
Trials at airports are paving the way for their adoption initiative was launched in late 2022 and by September
within private property in logistics and the supply chain. 2023 the autonomous robot carrier had delivered more
than 1,500 packages. Meanwhile, in Latin America a
At Frankfurt Airport, a first-of-its-kind trial in 2023 delivery robot called ADA is helping in the last mile by
proved an autonomous electric tractor can augment autonomously calling and riding solo in elevators to
ground handling by towing baggage trailers or cargo deliver orders in Brazilian cities – a successful initiative
trailers along the relatively long apron, driving at a between iFood and the country’s first autonomous
maximum speed of 13 kph (8 mph). In a similar trial delivery startup, Synkar.
which started in 2023 at Singapore’s Changi Airport
, driverless baggage tractors have been enabling
autonomous operations on the tarmac. TractEasy Proving the scalability of last-mile autonomous
vehicles moved around Terminal 3 without a safety delivery is a JD Logistics fleet of over 600 vehicles
driver and Aurrigo driverless baggage trailers were used across 30 cities in China, including 100 indoor
in a proof-of-concept trial. delivery robots deployed in malls and office
buildings in more than 10 cities.
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JD Logistics’ Generation Five Autonomous Delivery autonomous trucking.

vehicles can carry up to 200 kg (440 lb), travel up to 100 Long-haul autonomy lowers reliance on human
km (62 miles) per charge, and some are equipped with drivers and will likely reduce accident rates and carbon
an advanced cold and heating storage system for food emissions. It enables better planning and scheduling,
deliveries to customers’ doorsteps. Also in China, Cainiao and more dependable estimated times of arrival (ETAs).
– the logistics arm of Alibaba Group – broke a new For drivers, it also promises a better work-life balance
record for autonomous last mile delivery in China. By with fewer (potentially even no) long-haul trips and
March 2023, Cainiao’s autonomous Xiaomanlv logistics more focus on operating within their local area to
robots had delivered more than 29 million orders. These support the long-distance journeys undertaken by
examples illustrate the range of automated solutions for autonomous vehicles.
logistics providers to investigate and implement to help
manage costs, service levels, and environmental impact In the US, Maersk and Kodiak Robotics have launched
in the last mile. a commercial autonomous trucking lane between
Houston and Oklahoma City. Autonomous vehicles with
53-foot (16-m) trailers make four round trips per week
on a 24-hours-a-day, four-days-a-week basis.
Long-Haul Autonomy
Also in the US, an innovative DHL-Volvo partnership aims
to operate hub-to-hub autonomous transportation by
creating autonomous freight corridors in Texas running
from Dallas Forth Worth to El Paso and from Dallas to
Houston.
In China, a TuSimple trial in 2023 showcased the

country’s first fully autonomous semi-truck run on open
public roads without a human inside the vehicle and
without human intervention. Conducted on designated
public roads approved by the Shanghai government,
the vehicle’s route include the Yangshan deep-water
port logistics park and Donghai Bridge, one of the
The growing shortage of drivers globally is a huge world’s longest cross-sea bridges. The vehicle travelled
challenge. Added to this, mechanical or vehicle failures over 62 km (38.5 miles) and navigated complex road
are not the main cause of road accidents, but humans are. and weather conditions in both urban and highway
Drivers can lose focus especially on long, monotonous environments within the port area, including traffic
journeys; they get tired and they may exceed the speed signals, on-ramps, off-ramps, lane changes, emergency
limit. Often, excess carbon emissions are attributed to lane vehicles, partial lane closures, fog, and crosswinds.
poor driving habits like aggressive acceleration. This demonstration of Level 4 autonomy was the result
of two years of intense development.
Together, this provides a compelling opportunity to
use automation for long-haul trucking. Although there
is a very limited number of roads and highways that
currently allow fully autonomous trucking, it is possible
for trucks with drivers to deliver and pick up from
locations serviced by autonomous trucks. And in the
next few years, more highways are expected to allow
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Graphic source: Ali Haseltalab et al. (2017): Autonomous Ship Systems: from Theory to Practice
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OVERVIEW
Challenges Outlook
Legal restrictions in various regions may prevent or The trend of Outdoor Autonomous Vehicles is slowly
slow adoption. advancing towards broader adoption in logistics.
Numerous countries such as China, Germany, Japan, and
Potential hacking and the risk of software bugs raise the US have already approved the limited testing and
security and safety concerns. piloting of outdoor autonomous vehicles on public and
private roads. Such approvals will encourage logistics
The cost advantages of self-driving solutions organizations to actively adopt self-driving vehicle
may be difficult to calculate; there are often high technology in facilities and in supply chain transportation
implementation costs and it can be hard to fiscally segments. While it may still be many more years before
quantify the benefits of consistency, efficiency, fully autonomous vehicles handle outdoor operations,
accuracy, and sustainability. we here at DHL anticipate highly autonomous vehicles
with occasional human guidance will be commonplace
Upskilling and retraining programs may be needed in many locations within the decade especially in yard
for employees who are affected by the introduction operations.
of driverless vehicles.
This trend should be carefully monitored with
Computer Vision Digital Twins

The big benefits of
5G technology in logistics
DHL & EHang jointly launched

Indoor Mobile Next-Generation AAV Delivery Solution | EHang
Robots Connectivity
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Remote
Operations
The trend of Remote Operations refers to the use of is a broad range of applications. In logistics, it supports
telecommunications technology to remotely control remote operation of unmanned forklifts, tuggers, yard
and operate devices or machines located in a different trucks, and robots. In healthcare, it enables remote
physical location from the operator. This can include surgeries, patient care, and precise interventions. For
the use of remote control devices, sensors, and other manufacturers and companies involved in mining,
technologies to transmit data between the operator it allows remote operation of heavy machinery and
and the machine. equipment, sometimes for intricate operations, in
hazardous and what can be remote environments. The
The global remote operation market was estimated to be automotive industry uses telerobotics for testing, quality
US$ 403 million in 2022 and is expected to reach $3.19 control, and even autonomous vehicle operations. In
billion by 2032 at a compound annual growth rate (CAGR) agriculture, remote operation systems support remote
of 23.1%. Key drivers of this market include the growing handling of robots for crop monitoring and spraying. And,
adoption of industrial automation, rising demand for in space exploration, these systems enable astronauts to
unmanned vehicles and drones, the development of explore uncharted territories, conduct experiments, and
these types of autonomous vehicles, and the growing repair equipment remotely. The adoption timeline for
trends of smart manufacturing and Industry 4.0. These this trend in logistics is within the next five years. With
developments are driven by advances in artificial the increasing uptake of unmanned vehicles and robots
intelligence (AI) and machine learning (specifically in warehouses and logistics operations, a cost-effective
their integration which enables predictive analytics, and safe way to monitor and use these assets is through
autonomous decision making, and adaptive control remote operation, whenever possible and reasonable.
systems) and connectivity improvements in 5G and other The impact of remote operation on the logistics industry
networks and low-latency communication technologies will be rather low. While ways of working will continue
(facilitating real-time remote operations with reliable to change, the supply chain will not be significantly
connectivity). In addition, advances in computer vision affected. With a shifting demographics in the workforce
and sensor technology are paving the way for application (with older workers retiring and digital natives entering
in an ever-widening range of scenarios; for example, the workforce), the possibility of remote operation and
remote operation of various robotic arms and hands to remote work has broader appeal to the younger workforce
tackle different manual tasks. The ability to operate a and opens an even wider pool of talent.
system or machine at a distance is already proving useful
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Remote Operations
as Safety Fallbacks
include the six autonomous yard trucks deployed in the
Port of Rotterdam – a pilot project between partners
StreetDrone and Terberg to alleviate several hazards
and challenges in the port and enable the workforce to
move containers with greater precision, efficiency, and
safety. The pilot runs until early 2025, after which the
partners aim to scale operations rapidly and add several
additional autonomous yard trucks to the fleet.
StreetDrone is also partnering with Nissan to trial 40-

ton self-driving trucks, aiming to prove last-mile delivery
for capabilities. Uniquely, 5G enables the removal of any
safety drivers from these vehicles and remote operations
will be used to overcome abnormal situations.
Norwegian chemical company Yara and its technology

partner Kongsberg have created the world’s first fully
electric and crewless cargo ship with zero emissions –
MV Yara Birkeland. It uses cloud technologies to provide
all required data to an on-shore remote operations
office, allowing human takeover if this is ever needed.
Remote operations represent a valuable addition to
autonomous driving. Autonomous vehicles require AI Examples of remote operations with autonomous
models to be trained and it is challenging to ensure each robots include systems created by Sarcos Technology
vehicle responds correctly in every different driving and Robotics Corp that augment humans to improve
scenario. Standard control processes can certainly be worker safety and efficiency.
performed by AI but, when a situation gets tricky and
requires complex decision making, a remote human
operator can take over. In a successful trial for the US Navy, two
robot types were remotely operated to work at
A common scenario that may require human height both on board and alongside a ship – they
intervention is that of a double-parked delivery vehicle. performed visual inspections, removed rust and
If the autonomous van is prevented from driving over paint, and undertook various other repairs.
a solid line, it will remain where it is until the remote
operator intervenes. Another scenario is when a
construction site has not yet been incorporated into Meanwhile, up to 2,000 little AI-powered sidewalk food-
the automated system. A remote operator would need delivery bots will be deployed across the US via the Uber
to guide all vehicles safely into and out of this location. Eats platform by partners Serve Robotics and Ottopia.
And a further scenario requiring human intervention A remote assistance platform using remote operation
is the decision on whether an autonomous vehicle can software will enable human operators to monitor the
safely overtake a stalled moving truck that is blocking a fleet and lend a hand if the bots ever run into a complex
lane. Examples of remote operations as safety fallbacks or unpredictable safety situation.
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Remote Controlled Vehicles
The COVID-19 pandemic made the option of remote

work essential across businesses and functions. This
presented technology providers with an opportunity
Remote Controlled
finding ways to maintain operations while also ensuring
employee safety in various environments. Operations Using Digital Twins
Examples of Remote Controlled Vehicles include

material-handling forklifts, tuggers, and the like.
Solutions from Phantom Auto as well as Teleo allow one
person to control multiple machines, with supervised
autonomy, from the comfort of a command center.
Germany has its first remote-controlled inland waterway

shipping center, a Seafar solution that enable captains
on dry land to remotely navigate vessels on inland
waterways. In another solution, Europe’s first smart
railway logistics terminal, East-West Gate located in
Hungary, leverages the 5G network and AI. One worker
can control four cranes at the same time from an office
location, boosting efficiency by 20% and attracting new
people to the role of crane operator.
Similarly, remote operations will enable truck drivers

to steer vehicles from their desk, making the job more
attractive by creating a better work-life balance and
providing a safer workplace.
Further efficiency in remote operations can be achieved
by using digital twins. A virtual representation of the
physical elements of machinery, facilities, or an entire
production system eliminates the need for a human to
physically go to a location to undertake any task.
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For example, Shell has launched a digital twin initiative In another example, a researcher from the University of
at its Singapore manufacturing site, enabling engineers Edinburgh has demonstrated human-robot interaction,
to receive live information on operations via augmented with VR and digital twin-based remote operation of
reality (AR) and virtual reality (VR). They can remotely a robotic arm. The researcher used a VR headset to
operate troubleshooting on the digital twin before control the robot arm located 320 km (200 miles) away
deciding on the best course of action at the actual site. through cloud using VR and deep-learning technology.
Graphic source: EE Times (2023): Next Time You Hear „Teleoperation“, You‘ll Know a Lot More
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OVERVIEW
Challenges Outlook
The absence of physical sensing makes it difficult for With a significant rise in demand for autonomous
the remote operator to take an informed decision on vehicles and growing adoption of remote-controlled
behalf of an autonomous vehicle. operations in logistics, this trend will likely be realized
within the next five years.
When remotely operating both autonomous vehicles
and machinery, the lack of human cognition and Remote operations not only improve efficiency and
perception may present a “blind spot” in situational safety when carrying out certain tasks but also address
awareness, spatial awareness, and/or depth the challenge of labor shortages in the industry by
perception. allowing a single remote operator to control multiple
vehicles from one location.
If there is a malfunction that cannot be supported
or resolved remotely, this introduces a security and This trend should be passively monitored with
IT risk; a flexible, agile response would be required use cases in some applications that can already be
from the human operator. addressed today.
It will be challenging for remote operators to maintain

their attention over a long period of time, due to the
lack of physical stimuli and overwhelming amounts
of information .
Related Trends
Computer Vision Digital Twins
Next-Generation Outdoor
Connectivity Autonomous
Vehicles
Sources
EIN Presswire (2023): Teleoperations Market to Reach US$ 3.19 Billion, Globally,
by 2032 at 23.1% CAGR: ABB Ltd. , Alphabet Inc
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Renewable
Energy
Infrastructure
The Renewable Energy Infrastructure trend refers distribution systems need to be upgraded and expanded
to developing sufficient and reliable networks for to accommodate growing demand. According to the
efficient generation, transmission, distribution, and IEA, governments and businesses must collaborate to
storage of energy generated by and from solar, wind ensure the world’s electricity grids are ready for the new
and geothermal sources, hydropower, ocean power, global energy economy. The logistics industry is strongly
biomass, and hydrogen from renewable processes. impacted by this trend and will also play a key role in
Applications range from electric vehicle (EV) and setting up and maintaining the future renewable energy
hydrogen charging stations to entire networks such infrastructure. Logistics companies encounter significant
as energy carrier grids. challenges stemming from the escalating electricity
demand brought about by vehicle electrification. This
Concerns about climate change are driving the shift is particularly evident in the case of delivery truck and
from fossil-fuel based power generation and usage van fleets, necessitating robust charging infrastructure.
towards renewable power generation and consumption. Furthermore, the pursuit of carbon-neutral buildings
Renewables account for an increasing proportion of the adds to these challenges, with warehouses, distribution
power mix, estimated to be 45-50% of generation by centers, and other supply chain facilities requiring
2030 and 65-85% by 2050. Particularly in emerging energy-efficient technologies, practices, and the
markets, where energy needs and electrification are integration of onsite renewable power generation and
growing apace, demand for electricity is expected storage. While organizations focus on expanding their
to more than double from 25,000 TWh in 2022 to own onsite renewable energy infrastructure, they are
between 52,000 and 71,000 TWh by 2050. As homes, also dependent on government initiatives and regulation
businesses, and industries steadily switch from fossil to expand the overall infrastructure, including public
fuels to electricity-based systems for transportation, charging points along transportation routes. In many
heating, industrial processes, and more, the rise of countries, governments are already strengthening the
renewables and the associated increasing electrification renewable energy infrastructure through appropriate
are putting strain on the electric grid infrastructure. policies and measures, but implementation often takes
Its power generation, transmission, storage, and several years.
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Distributed Energy Resources

For example, the US startup Aeromine Technologies has
developed a bladeless wind energy solution for rooftops
that captures and amplifies wind as it strikes the side of
a building, accelerating its flow over a flat roof. The wind
passes through a pair of aerodynamic fins (similar to
those on a race car) to maximize wind speed. As it passes
through, the wind creates a vacuum at the base of the unit,
which spins an enclosed propeller and generates power.
Meanwhile a startup in Spain, Vortex Bladeless , is

developing a new wind power-generating technology
without blades, gears, or shafts, encouraging a new urban
Small-scale energy resources, such as solar panels, wind opportunity for wind power. Instead, the light cylindrical
turbines, and energy storage systems that are usually machines oscillate perpendicular to the wind stream,
situated near sites of electricity use are referred to as creating an aeroelastic resonance in which energy can be
distributed energy resources (DERs). They can help harnessed from the wind.
logistics organizations reduce the carbon footprint and
cut energy costs by generating electricity onsite, reducing On-site energy storage is a challenge for companies using
reliance on grid electricity. solar panels or wind power solutions for their facilities
and buildings, but so-called gravity batteries like those
DERs create new power system opportunities but also new from the British company Gravitricity offer an innovative
challenges, particularly when a grid has not been properly solution. When there is a surplus of green energy, gravity
prepared. Many orgnisations have installed rooftop solar serves as a storage device by pulling a weight upwards
panels, which have proved highly effective and some via electric motors and, as soon as demand increases, for
organizations are using small wind-power systems. example at night, this weight can be lowered to release the
However, utilization is likely to increase as new, more cost- stored energy.
effective solutions become available.
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Logistics Hubs As Power

Distribution Centers
Examples include the opportunity for energy
trading in the electricity market (if permitted) to
generate additional revenue by optimizing energy
usage, generation, and storage, and by providing
energy to the market when needed and demand
energy when there is overcapacity.
As power distribution centers, logistics organisations

can collaborate and partner with energy companies,
local governments, and other stakeholders to develop
innovative energy solutions. This can involve exploring
shared energy infrastructure, joint investment in
renewable projects, and participating in energy
The electricity grid is evolving from a traditional one- exchange programs.
way flow of energy to a future power market where
everyone can generate and consume energy. And this
goes beyond installing DERs to generate clean energy
onsite; it also includes the ever-increasing installation Charging Infrastructure
of onsite charging stations for electric cars, vans, and for Electric Trucks
even electric trucks. In the near future, this will also
include vehicle-to-grid (V2G) technology allowing EVs
to not only consume electricity from the grid but also
supply electricity back to the grid. In essence, it allows
EV batteries to serve as energy storage devices that can
be utilized to support the stability of the electricity grid.
With these changes, logistics centers will ultimately
become virtual power plants and storage facilities
connected to the grid system. Future energy management
systems must consider issues such as the size of the grid
connection (average and peak power consumption of
the electrical loads that will be connected to the grid),
the AC/DC charging infrastructure (charging power,
energy needed for given number of vehicles), and the Electrification of long-haul heavy-duty transportation
sizing of the DERs (number of solar panels or capacity is an important lever for reducing carbon emissions in
of energy storage). logistics, and all major truck manufacturers now offer
fully electric trucks. However, the existing infrastructure
Although this future demand for energy management for these vehicles is insufficient in many places. These
will require technological advancements and grid trucks need DC fast charging facilities to keep charging
investments, it will also open up new opportunities. times below 1.5 hours, but expanding the charging
infrastructure to provide rapid charging is restricted by
high costs, limited grid capacity, and associated power
peaks. Electric trucks will massively impact future elect
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FUTURE OF LOGISTICS
Electrification of long-haul heavy-duty transportation Chinese battery manufacturer and technology company
is an important lever for reducing carbon emissions in CATL has released a battery-swapping solution for
logistics, and all major truck manufacturers now offer heavy-duty electric trucks. This system, called Qiji
fully electric trucks. However, the existing infrastructure Energy, consists of exchange stations, battery packs,
for these vehicles is insufficient in many places. These and a cloud platform. The battery-swapping process is
trucks need DC fast charging facilities to keep charging said to take only a few minutes.
times below 1.5 hours, but expanding the charging
infrastructure to provide rapid charging is restricted by Alongside innovations like these, there are government
high costs, limited grid capacity, and associated power initiatives to improve the electric truck charging
peaks. Electric trucks will massively impact future infrastructure. The US trucking-as-a-service startup
electricity consumption. For example, one DHL linehaul WattEV will build three electric truck-charging depots
truck requires as much electricity as 60 pick-up and in California using US$ 75.6 million in federal grants.
delivery vans due to higher mileage and average electric All three depots will include solar panels and battery
consumption. Battery swapping as a bridging solution storage to provide clean power and reduce their hefty
can compensate for unsatisfactory charging speeds. The draw on power grids.
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OVERVIEW
Challenges Outlook
The expansion of the renewable energy infrastructure Renewable power generation and vehicle electrification
involves multiple stakeholders and many regulatory are further expanding and, with this, there is greater
frameworks, so effective coordination and planning need for a capable infrastructure. This foundation is
are required. particularly important for logistics organisations, with
their growing fleets of electric vehicles and as they
The implementation of V2G and smart energy increase onsite power generation and storage systems.
management necessitates the presence of advanced Today‘s renewable energy infrastructure and especially
smart grids, which are currently lacking. the electricity grid are not yet up to the demands of
tomorrow in most parts of the world. However, expansion
The realisation of large-scale infrastructure projects requires government commitment and investment and
span over several years. always takes place over a long period of time.
Developing renewable energy infrastructure often This trend should be actively monitored with
requires high initial investment, which is a major developments and use cases on the horizon.
hurdle for project implementation and scaling.
Logistics relies on governments and their policies

to ensure grid stability, as the intermittent nature of
renewable energy sources puts strain on the grid.
Related Trends
Decarbonization ESG Advocacy
Sustainable Fuels Vehicle

Electrification
Sources
McKinsey (2024): Global Energy Perspective 2023: Power outlook
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Smart
Printables
The trend of Smart Pintables refers to the next battery device to be thin, flexible, and customizable in
generation of smart labels made of printed paper, size and shape for various applications. With BLE and
plastic, or fabric and upgraded with special intelligent an LTE-M or NB-IOT wireless connectivity protocol,
inlay technology. This technology digitally captures less power is needed to support data uploads from the
and communicates more information than is printed device, further increasing the smart printable’s battery
on the physical label and can be attached to any life. This special intelligent inlay technology is likely to
product, shipment or asset. have significant impact on logistics and the supply chain.
For example, it can help minimize manual touchpoints,
enable end-to-end visibility, support proof of delivery,
As the next generation of smart labels, smart printables increase speed and throughput in distribution centers,
will be both smart and printable. The anticipated and accelerate order picking in fulfillment centers.
technologies to be integrated in these labels include Advances in this technology are still in the mid-future
printed batteries, ever-smaller microchips, and efficient as the stability of printed batteries must improve before
communication capabilities with the outside world via scaled deployment in logistics operations. Also, the
Bluetooth Low Energy (BLE) and cellular technology challenge of global coverage is yet to be overcome before
(LTE-M and NB-IOT low-power wide-area networks). anticipated end-to-end use cases are achievable. As
For example, special printing techniques will be used this technology is still in an early stage of development,
to layer battery components such as electrodes on a commercial viability is uncertain until deployment price
substrate in a precise pattern, allowing each printed points can be defined.
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Combatting Counterfeits &

End-to-End Visibility & Efficiency Providing Proof of Delivery
With rising demand for shipment visibility, live location

tracking of goods can be achieved with smart printa-
bles. This capability is highly relevant to the customer
experience and to logistics operations. It also equips ma-
nufacturers to track products (particularly high-value In addition to location tracking and condition monito-
goods) from production through delivery to end users. ring, there are also applications for smart printables to
address a historically common challenge in the supply
The startup Sensos, founded by Sony Semiconductors, chain: counterfeit products. Particularly in the pharma-
offers a solution that enables customers, manufactu- ceutical, nutraceutical, and cosmetics sectors, counter-
rers, and logistics experts to know shipment location feit products pose a severe threat to corporate reputati-
and condition (including temperature, humidity, and ons and consumer health.
shock) in real time via an active cellular tracker. Coming
in a thin sub-5mm form factor, its cellular label is an in-
novative step towards smart printables. Covert features typically used to tackle coun-
terfeiting are found in labels that use UV ink, tag-
The software startup Tag-N-Trac has taken an alter- gant inks, and infrared ink (which is often used
native approach. With printable BLE-based labels, its for pharmaceutical and nutraceutical shipments).
solution uses the existing shipping label printing infras- These inks are only visible to or detected by more
tructure, integrated with current operations via normal sophisticated hand-held readers.
smartphones or plug-and-play gateways.
Smart printables have potential to enhance end-to-end Smart printables can also be used as a hidden measure,
supply chain visibility and increase speed and efficiency allowing manufacturers to monitor and ensure genuine
in logistics operations. As the process involves decentra- goods do not fall out of the authorized supply chain. In
lized printing and placing labels on each shipment, sca- addition, these devices can provide proof of shipment
lability is relatively quick and easy, and there will be no delivery and evidence of product use.
need for a complex and costly scanning infrastructure in
the supply chain. Tying each product’s unique identifier to blockchain
technology can also achieve a new level of security.
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Perishable Goods Quality Control

For groceries and nutraceuticals, there are increasing
applications for smart printables which enable the
supply chain to contribute to product freshness and
quality. For example, color-changing technology can
be used in labels to clearly highlight item condition –
information that is useful to businesses and consumers.
Similar applications can help assure cold-chain integrity.
Taking that a step further, new opportunities for smart

printables can be enisioned. For example, they can be
placed on prescription pill caontainers to track and
monitor location and use – an innovation that may help
improve patient care and outcomes.
Graphic source: Khan, Yasser et al. (2019): A New Frontier of Printed Electronics: Flexible Hybrid Electronics
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OVERVIEW
Challenges Outlook
Technology stability has yet to be achieved for Today, smart printables usage is only economical for
printable electronics and printed battery devices, and niche applications such as high-value shipments. The
connectivity is not yet available everywhere. reality is that this special intelligent inlay technology is
not yet mature enough nor are any current solutions
Single-use labels that are powered by batteries globally scalable.
represent electronic waste – a sustainability
challenge for organisations; these devices must be Here at DHL, we anticipate mass uptake will be aligned
disposed of in a green, safe manner. with improvements in printed battery technology,
particularly more reliable battery life, reductions in
Relatively high price points are stalling large-scale unit printing prices, and further developments such as
implementation; costs will likely reduce in later sensor technology covering all sides of a parcel or box
stages of this technology and when there are higher to maximize security. And before widespread airfreight
production volumes. use, airlines will have to allow smart printables on
cargo. We expect that, one day, smart printables will be
As smart printables enable data transfer, they also deployed by the millions.
introduce the risk of data tampering; this can be
mitigated by pairing certain applications with, for This trend should be actively monitored with
example, blockchain technology but may increase developments and use cases on the horizon.
the cost and complexity of implementation.
Edge Computing Next-Generation Smart Printables: What the future

Connectivity of smart labels means for logistics
Next-Generation Smartification
Packaging
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Stationary
Robotics
The trend of Stationary Robotics encompasses all range, and high speed, and they usually operate in a
robots that perform value-adding tasks from a fixed segregated area surrounded by security fencing. As
location. Attached to the floor, ceiling, or other machine learning and perception technology continues
surfaces, these devices often take the form of or to develop in laboratory and real-world settings, we at
resemble robotic arms. DHL see more applications of interoperability across
mobile and stationary robotic systems in logistics.
Especially in light of labor shortages and demand
The first stationary robots were introduced in the late volatility, many companies are realizing the significant
1950s, primarily in manufacturing and automotive economic potential of implementing stationary robots
production. More recently, for logistics applications for repetitive logistics processes. Several logistics
the continued development of sensor technologies organizations are now implementing or actively engaged
and artificial intelligence (AI) has resulted in increased in testing stationary robotic systems in applications such
throughput of market offerings across a broad range as (de)palletization as well as sortation, picking, and
of use cases. Stationary robots can be considered in singulation. Based on anticipated further development
two types – collaborative and industrial. Collaborative of stationary robotics hardware and software and larger-
robots are designed for flexible applications that require scale production, we here at DHL expect companies will
interaction with humans. Industrial robots are used be able to extensively scale these solutions within the
mainly in applications requiring a high payload, long next 2 to 4 years. This will have a high impact on the
logistics industry.
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Automated Shipment Sorting Robotic Picking & Placing
Sorting shipments is a very repetitive, monotonous The manual separation and alignment of parcels,
task that nevertheless requires high-quality output. letters, cartons, and flyers to prepare them for further
Operators who are required to perform this task for processing downstream is very monotonous and labor
hours on end in the warehouse tend to lose concentration intensive. The automation of this process via stationary
after a certain amount of time; their work becomes robots has gained a lot of traction in recent years.
prone to error, leading to additional rework costs. Robotic induction, the act of picking an item and placing
Sorting is therefore an ideal application for automation, it with a specific orientation on a conveyer belt as well as
particularly the implementation of stationary sorting identifying its characteristics, is a very scalable solution
robots. These devices often use cameras and AI given its widespread applicability.
capabilities to differentiate shipments and use pre-
defined characteristics to classify and sort them. Technology providers such as Plus One Robotics ,
Körber , and Osaro continue to develop AI-based
While some automated sortation systems use a series computer vision systems to meet the rising throughput
of independently moving robots, often called a table- requirements of logistics operations across the world.
sorting (t-sort) system, other solutions like FlexBuffer
by ABB Robotics leverage robotics arms, dynamic
racking systems, and inbound and outbound conveyors Combining advanced computer vision solutions
to provide a comprehensive sorting system for uniform with robotic arms for specialized package
or mixed goods. manipulation creates potential for consistent
throughput and reduced reliance on a fluctuating
Automated sortation solutions can help a facility meet labor market.
its throughput requirements for order fulfillment. At
the same time, they also guarantee proper handling of
shipments to prevent sorting errors and protect against With this automation, the manual burden of highly
damage to outbound orders. repetitive tasks in operations is reduced, allowing a shift
of focus to upskilling workers who are responsible for
singulation. However, robotic solution providers will
need to continue to prove laboratory throughput rates
in operations where the package mix is high.
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Palletizing & Depalletizing

from and onto a pallet, mixed (de)palletizing describes
the handling of pallets with items of various sizes
and weights. In general mixed (de)palletizing is more
complex than uniform (de)palletizing as it requires
much more powerful AI to stack disparate, unwieldy
packages as securely and efficiently as possible.
In Jirny, Czech Republic, DHL Supply Chain has

implemented a collaborative robotic arm by Universal
Robots to palletize goods from two production lines,
with a separate Fanuc industrial robotic arm in Jažlovice
for similar functions.
Stationary robotics hold great potential for the
automation of palletizing and depalletizing in inbound Currently, stationary robots that can palletize and
and outbound warehouse or hub operations. depalletize individual shipments are already widely
deployed. Mixed depalletizing solutions are also reaching
Distinction should be made between uniform and maturity, and at DHL we expect to see widespread use
mixed (de)palletizing. While uniform (de)palletizing of stationary robots for mixed palletizing throughout the
is the movement of same-shaped, unvarying goods logistics industry in the near future.
Graphic source: Databridge Market Research (2024): Global Robotics Arm Market - Industry Trends and Forecast to 2031
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OVERVIEW
Challenges Outlook
Stationary robots are usually designed to handle The growing number of successful proofs of concept
specific shapes of package and are not designed to and pilot projects using stationary logistics robotics
handle a wide variety of sizes and weights. across a wide range of industries and environments
is increasing the future implementation of stationary
Under real-world conditions, many stationary robots robotic systems. The development of stationary robotics
fail to achieve the throughput rates indicated by has not yet reached its peak and it is anticipated to be
laboratory experiments. advanced by the heightened capabilities of camera
systems and machine learning algorithms. As a result,
Brownfield facilities may lack the required technical widespread deployment will eventually lead to more
infrastructure, necessitating costly changes to complex applications such as robotic orchestration of an
implement stationary robots on a broad scale. end-to-end process by introducing automated handoffs
between both stationary & mobile robotic solutions.
Even with progressive automation of processes,
a human being will always be needed to oversee This trend should be actively monitored with
and support applications; this means that complete implementations available for many use cases today.
automation without human supervision is unlikely in
the near future.
When stationary robots are added, facilities require

more safety infrastructure and – with each new
automation investment – this infrastructure must be
reevaluated.
Computer Vision Drones DHL and AWL collaborated to develop

cutting-edge robot depalletizer
DHL Supply Chain

introduces robotic arms to its
Indoor Outdoor distribution centers in Jirny and Jažlovice
Mobile Robots Autonomous
Vehicles
DHL Supply Chain Korea | Robotic Arm

Packing Solution
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Sustainable
Fuels
The trend of Sustainable Fuels refers to energy the net increase of CO2 in the atmosphere. Production
sources that can be produced and consumed in a capacities of sustainable fuel production are expected
manner that minimizes negative environmental to grow substantially in the next few years as
impacts; these fuels are used to power vehicles, producers react to proposed mandates and growing
machinery, and other equipment. Typically derived demand. To date, over US$ 150 billion of sustainable
from renewable or low-carbon sources, sustainable fuel production capacity investments have been
fuels include conventional biofuels, such as ethanol announced. There are two types of sustainable fuels:
and biodiesel, drop-in fuels such as hydrotreated biofuels and synthetic fuels. Their environmental
vegetable oil (HVO), and more advanced synthetic impact varies depending on the respective source,
fuels like electrofuels (e-fuels) and e-kerosene. the production process, and where they are used,
such as in air, ocean, or road freight. These fuels are
so called drop-in fuels, which means they can be used
Demand for sustainable fuels is projected to grow directly in existing vehicles and infrastructure without
as the world strives to meet decarbonization targets. any modifications. This contrasts with non-drop-
They are highly applicable in the transportation in fuels, which require modifications in order to be
industry – providing a much-needed alternative used (such as liquified natural gas). Biofuels use raw
to fossil fuel usage – and could support faster materials such as feedstock and agricultural waste
decarbonization of existing fleets in the near term. that absorb carbon dioxide when being produced.
Sustainable fuels are projected to play a particularly When burned in an engine, they release the same
important role in aviation and maritime shipping, amount of carbon dioxide as absorbed, making the
while passenger cars, commercial vehicles, and other process of combustion carbon neutral. Synthetic
sectors will rely more on electrification. Sustainable fuels, or e-fuels, are made using captured carbon
fuels are currently the most effective solution dioxide emissions and hydrogen. Here too, the carbon
for decarbonizing supply chains at scale. During dioxide released when e-fuels are burned is equal to
‘production’ of sustainable fuels, CO2 is absorbed from the amount taken out of the atmosphere to produce
the air. Only this previously absorbed CO2 is released the fuel. E-fuels are considered carbon neutral if the
during combustion of the fuel, making it a closed hydrogen is produced with green electricity. Synthetic
carbon cycle. However, as the fuels are produced fuels will not become abundant until enough green
from renewable sources, they do not contribute to electricity is available. However, biofuels are available
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now and being scaled up rapidly across the air, ocean, In 2023, SAF volumes reached over 600 million
and road freight sectors as production sites ramp liters (0.5 Mt), double the 300 million liters (0.25 Mt)
up worldwide. Here at DHL, we believe now is the produced in 2022. but still only amounting to only
time to switch away from fossil fuels to help meet 0.2% of the annual aviation fuel demand.
environmental goals and emissions requirements.
In October 2023, DHL Express and World Energy agreed

Sustainable Aviation Fuels a global partnership to speed up aviation decarbonization
via SAF certificates (SAFc). Within the terms of a seven-
year agreement – one of the longest and largest in the
aviation industry to date – the partners intend to provide
668 million liters (0.6Mt) of SAF to replace jet fossil fuel.
This will enable DHL to reduce approximately 1.7 million
tons of CO2e on a lifecycle basis, equivalent to one year
of carbon-neutral operation of the entire DHL Americas
aviation network. Another area of sustainable aviation
research is the use of hydrogen fuel. Startups like H2FLY
and ZeroAvia are working on promising concepts but
experts do not expect commercial application of sub-
regional and regional hydrogen fuel cell aircraft before
2030.
In aviation, sustainable aviation fuels (SAFs) are

considered by the industry as the only option today Road Transportation
to replace fossil fuels in wide-body long-distance
airplanes from a technical point of view, as hydrogen
and battery options are currently still in early stages of
development. Today’s SAFs can, for example, reduce air
freight emissions by 70-99% in some cases. Production
is ramping up, so companies can switch from fossil fuels
now to meet decarbonization targets in the short- and
mid-term.
Although the use of SAFs is currently the most promising

emissions-reduction solution for air cargo, availability
and high cost are barriers to widespread adoption. SAFs
are fuels from renewable sources such as biomass,
animal fats, oils, and, alcohol which can be blended with
conventional kerosene. Initiatives like the Clean Skies for
Tomorrow coalition, led by the World Economic Forum, Electric vehicles (EVs) are already a widespread
bring together stakeholders across the aviation industry sustainable solution for road transportation. However,
to drive carbon-neutral flying in future, leveraging the this applies mostly to smaller vehicles travelling short
availability and use of SAF. to medium distances, due to the still-limited range and
long charging times of EVs.
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Sustainable Marine Fuels

While battery electric trucks for long-haul, heavyweight
cargo are already on the market, there is limited
availability of suitable models with the required range
and payload capacity. This means the industry continues
to rely on combustion engines running on fossil fuels.
Sustainable fuels offer advantages over electrification
in terms of utilizing existing vehicles and infrastructure.
This is reflected in the International Energy Agency
(IEA) forecast that the share of biofuels in road
transportation will rise from 5% in 2022 to 12% in 2035
and – anticipating electric vehicles will subsequently
be used almost exclusively – then fall to 3% in 2050.
Sustainable fuels for trucks are mainly biodiesel or
hydrotreated vegetable oil (HVO). The former is derived
from vegetable oils or recycled fats from, for example,
the catering industry. Truck biodiesel is also known as
fatty acid methyl esters (FAME) and this can be used
directly or blended with conventional diesel fossil
fuel. In the European Union, blends of up to 7% FAME
biodiesel are common. The other type of sustainable
fuel for trucks, HVO, is vegetable oil that has been
treated with hydrogen; interestingly, after reaction with
hydrogen, the properties of the oil are very similar to
those of diesel. And like biodiesel, HVO can be blended
with conventional diesel or can replace it completely.
Another type of sustainable fuel that is in early stages
of development and commercialization is electrofuels International maritime transportation accounts for
(e-fuels), a class of synthetic fuels manufactured using approximately 3% of global greenhouse gas (GHG)
captured carbon dioxide or carbon monoxide with emissions, and this includes a wide variety of vessels,
hydrogen from water split by low-carbon electricity from small recreational boats to massive, ocean-going
sources including wind and solar. Adoption of these container ships. More than 90% of global goods are
drop-in replacement fuels is currently limited. Helping carried by cargo ships, and many of these ships are
to boost uptake of sustainable fuels, governments in powered by heavy fuel oil (HFO), a residual fuel produced
several countries are supporting biofuel production from petroleum refining which emits relatively large
and consumption for road transportation. In addition, amounts of GHG when combusted. Sustainable marine
the major companies historically producing fossil fuels fuels (SMFs) are a recognized pathway for lowering
are increasingly shifting focus towards the production GHG emissions compared to HFO and other petroleum-
of biofuels and e-fuels; examples include Neste, based marine fuels.
TotalEnergies, and Shell.
Compared to traditional petroleum-based marine fuels,
sustainable alternatives emit lower levels of sulfur and
other toxic air pollutants during combustion. This helps
reduce the negative impact on air quality for the millions
of people living near seaports, without requiring
expensive emissions controls for marine engines.
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FUTURE OF LOGISTICS
Overall, vessels powered by SMFs represent the oil or heavy fuel in vessels, effectively eliminating sulfur
cleanest mode of transportation per kilogram of moved emissions and significantly reducing CO2 emissions.
goods available today. An example of SMF innovation is Looking ahead, Lloyd’s Register, the maritime shipping
provided by the Dutch startup, GoodFuels. The company advisory firm, projects two different future scenarios.
produces sustainable second-generation biofuels from In one, the marine biofuels share increases significantly
certified waste or residue feedstock. Its innovative over time, reaching 11% by 2030 and 79% by 2050.
process addresses land-use challenges and ensures no In the other scenario, the hydrogen-based e-fuel
impact on food production or deforestation. GoodFuels e-ammonia is the leading candidate for decarbonizing
biofuel oil is an effective substitute for low-sulfur fuel shipping; on average, it can make up 14% of the total
fuel mix by 2030 and reach 66% by 2050.
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OVERVIEW
Challenges Outlook
Biofuel production volumes are restricted by the Here at DHL, we recognize sustainable fuels will play a
limited availability of feedstock and e-fuel volumes critical role in efforts to reduce the environmental impact
will only increase when sufficient amounts of green of transportation. We anticipate markets for sustainable
electricity become available. fuels and technologies will grow and become more
robust, and we expect this will drive development
Production of sustainable fuels from agricultural and scalability, increasing competitiveness against
crops can create competition for land and resources, traditional fossil fuels.
impacting food security and potentially driving
deforestation, habitat loss, and biodiversity decline, This trend should be actively monitored with use
all of which have a negative climate impact. cases in some applications that can already be
addressed today.
Lack of consistent standards and definitions make it
difficult to verify sustainability claims and navigate
complex certification processes.
Demand for sustainable fuels exceeds current supply

by far; production processes can be expensive and
require further technological advances to reduce
costs.
Governments, suppliers, and shippers find it difficult

to fully understand the opportunities and challenges
of sustainable fuels due to various complexities
including multiple fuel types, technology pathways,
and available materials.
Decarbonization Renewable DHL Global Forwarding and

Energy GoodShipping accelerate sustainable
Infrastructure shipping via insetting with 60 million
liters of Sustainable Marine Fuel
Sustainable Fuels Vehicle DHL takes green logistics to the next

Electrification level with Formula 1®
launching a first truck fleet powered
by biofuel to reduce carbon footprint
Sources
McKinsey (2024): Global Energy Perspective 2023: Sustainable fuels outlook, IATA (2023): SAF Volumes Growing but Still Missing Opportunities,
DHL (2023): DHL Express and World Energy agree to global partnership to speed up aviation decarbonization via Sustainable Aviation Fuel Certificates,
LR (2023): Shipping industry faces two alternative decarbonisation paths with hydrogen-based fuels and biofuels vying for prominence, IEA (2023): Road
transport - Net Zero Emissions Guide
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Vehicle
Electrification
The trend of Vehicle Electrification refers to the 45 million in 2023 to 250 million in 2030 and reach
replacement of traditional internal combustion 525 million in 2035. As a result, more than one in four
engines (ICEs) in various vehicle types with electric vehicles on the road will be electric by 2035. The global
powertrains. This involves the adoption of electric outlook for vehicle electrification is promising for a
motors and batteries or fuel cells to power the vehicle, variety of reasons. There is growing demand both from
which reduces or eliminates reliance on fossil fuels. industry and private households wanting to become
Vehicle electrification not only cuts carbon emissions more sustainable. In support of this, many governments
and air pollution but also promotes sustainability in have implemented policies and incentives to encourage
the transportation sector. uptake of electric vehicles, such as subsidies, tax
incentives, and stricter emission standards. Another
reason for this positive global outlook is significant
One of the biggest levers in achieving net-zero emissions progress with related technologies. There have been
is electrification – in other words, transitioning various improvements in battery capacity and the charging
applications and sectors to use electricity instead of infrastructure, as well as cost reductions that make
fossil fuels as the primary source of power. This involves EVs more accessible and attractive. Manufacturers are
replacing traditional or non-electric systems with electric increasingly investing in EV development and many
alternatives. Vehicle electrification is an important area major automakers have announced plans to transition
of focus for logistics. Road freight is responsible for to fully electric vehicle lineups in the coming years.
around 70% of the 3.4 billion metric tons of emissions Vehicle electrification is especially important in the
generated during overland transportation. Fortunately, transportation sector, with its potential to greatly reduce
developments in green technologies, such as battery CO2 emissions. However, realization of this trend varies
electric vehicles (BEVs) and hydrogen fuel-cell electric along the supply chain and between different vehicles
vehicles (FCEVs) are advancing at an accelerated pace. and modes of transportation. For example, the trend is
Based on today’s energy, climate and industrial policy relatively mature in last-mile transportation but vehicle
settings, the number of EVs will grow from less than electrification has yet to be widely adopted in long-haul,
air, and ocean transportation.
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Electrified Vans & Trucks
In particular, grid connection is the main

limiting factor for the further roll-out of e-trucks
as, in main markets, the process of grid extension
can take up to six years.
Truck electrification is being driven by established

companies such as Volvo and Mercedes-Benz, the
e-mobility frontrunner Tesla, and startups such as Nikola.
Improvements are underway as, for example, in October
2023 the Mercedes-Benz eActros truck was launched with
a range of up to 400 km (248 miles).
Much progress has been made in electrifying and Also, solutions exist to bridge the transition from diesel
decarbonizing last-mile transportation using electric vans. trucking to fully electric. The US startup Revoy offers a
For example, at DHL 37.6% of our pick-up and delivery SixWheel electric add-on that attaches between any diesel
vehicles are electric with the aim to increase this share to semi-truck trailer to provide an independent electric
60% in 2030. powertrain, turning it into a hybrid vehicle. Just like a pedal-
assist bike, when the truck ‘pedals,’ the SixWheel ‘assists’.
Today‘s market already offers a diverse array of electric
vans, each designed to meet specific needs in the supply
chain. From compact models adept at navigating narrow
urban streets to larger variants equipped for more cargo
capacity, this versatility allows logistics organizations to
integrate different models into various stages of operations,
from distribution center transits to final delivery.
While the last mile of logistics is close to adopting

widespread electrification, with solutions expanding
and the wait for existing non-electric vehicle contracts
coming to an end, the situation is different for middle-mile
and long-haul transportation. Although there are some
electrification developments, these are still restricted by
range limitations and insufficient charging infrastructure.
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Fuel-Cell Electric Vehicles

distances due to their larger range (up to 1,000 km or 620
miles), quick refueling capabilities (less than 15 minutes),
and fit for heavy, energy-demanding assignments.
These trucks generate electricity from fuel cells powered

by hydrogen, stored in the tanks of the truck. An
electrochemical reaction (combining hydrogen and oxygen)
occurs inside the fuel cells which generates electricity,
heat, and water. This means that, unlike a battery electric
truck, a fuel-cell electric truck does not need to charge up
from an external electricity source – ideal in countries with
a limited electric grid and few opportunities for fast battery
charging. Transportation over long distances generates no
exhaust emissions except water and, if the hydrogen used
is produced with energy from renewables, these are zero-
emission journeys.
However, there are several restrictions on the widescale

roll-out of these hydrogen fuel-cell electric trucks. Firstly,
there is limited availability of hydrogen refueling stations
(only 1,100 globally in 2023), and secondly it remains
relatively expensive and energy-intense to produce general
In the realm of road transportation, it is predicted that and green hydrogen. A third restriction is the cost of
there will be a mixture of different technologies, as no producing and implementing fuel-cell systems is currently
single alternative drive technology has emerged as the higher than with internal combustion engine systems
clear winner. Therefore, it remains crucial for logistics and for battery electric vehicles. Finally, to date there is
organizations to maintain a technology-neutral approach only a limited range of truck models to choose from. One
and continue testing various sustainable solutions. example of a production-ready hydrogen fuel-cell truck
is the special-purpose commercial vehicle made by Paul
This includes not only battery electric trucks but also Nutzfahrzeuge, currently being used by DHL Group in a
hydrogen fuel-cell electric trucks, which excel at longer distribution and line-haul pilot project in Germany.
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FUTURE OF LOGISTICS
Air & Ocean Transportation

airplanes with a range of 460 km (250 nm) to kick-off
the electrification of its fleet. Another area of sustainable
aviation research is the use of hydrogen fuel. Startups
like H2FLY and ZeroAvia are working on concepts but
experts do not expect commercial application of sub-
regional and regional hydrogen fuel-cell aircraft before
2030.
Also, the carbon-intensive shipping industry is looking

into vessel electrification. Ferries, tugs, and inland
waterway vessels can easily benefit from full electric
propulsion. DHL is piloting the use of an electrically
To reduce the environmental impact of air transportation, powered solar ship in Berlin, Germany, which has
companies can choose to use sustainable aviation fuel already delivered more than 50,000 parcels in the
(SAF). An additional option is to create electric airplane capital since October 2022. Meanwhile, the world’s first
engines. The Alice electric aircraft from the startup fully autonomous cargo ship is all electric: the MV Yara
Eviation, scheduled for market launch in 2024, can be Birkeland, commissioned by Norway-based chemical
used for short-haul flights and is likely to become a viable company Yara International, is powered by a 7 MWh
sustainable solution for national and even regional air battery. It is designed to replace 40,000 trips carried out
transportation. DHL Express has therefore ordered 12 by diesel trucks per year, has a top speed of 13 knots,
and can carry 103 standard-sized containers.
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OVERVIEW
Challenges Outlook
Infrastructure is holding back vehicle electrification Many solutions for vehicle electrification are already
– although the number of EV charging stations is available but some industry-revolutionary technologies
growing, it is not yet comparable with conventional are still in pilot phase and not yet scalable.
gas (filling) stations and there may be limits on
power grid expansion; hydrogen refueling stations However, with sufficient market demand, rapid
are almost non-existent globally. Electrified drive development is achievable. This is clearly evidenced
systems on average still have a much shorter range by the progress and expansion of BEVs for ground
than vehicles with combustion engines running on transportation. Investment in research and development
fossil fuels. (R&D) and infrastructure, as well as corporate
commitment to new solutions, will be crucial to achieving
EVs often have reduced payload capacity due to timely sustainability solutions.
the weight of their battery systems – a limitation of
particular importance in trucks and airplanes as it can This trend should be carefully monitored with use
impact the ability to transport heavy cargo efficiently. cases in some applications that can already be
addressed today.
Compared to conventional counterparts, EVs
generally have a higher upfront cost; this cost
differential is challenging for logistics companies in
terms of fleet acquisition and operational expenses.
Despite a clear sustainability advantage over fossil

fuel solutions, EVs have some downsides in terms
of natural resources – minerals must be extracted,
manufacturing is energy intensive, and there are
battery disposal challenges.
Decarbonization ESG Advocacy The making of a

sustainable vehicle fleet
DHL Group deploying

Sustainable Fuels hydrogen trucks in Germany
Renewable Energy
Infrastructure
Sources
IEA: Global EV Outlook 2024, IEA (2023): Global Hydrogen Review 2023
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Wearable
Sensors
The trend of Wearable Sensors encompasses startup, for instance, recently raised US$ 58 million for
sensors that are worn on, close to or even in the its development of the world’s smallest biosensor worn
human body with the purpose of tracking body just beneath the skin to measure a person’s glucose
movement or vital functions. Depending on the type levels. Many companies, including those in the logistics
of information to be captured, different sensors like industry, have started to recognize the value of extracting
gyroscopes and accelerometers are integrated into data from wearable sensors for industrial applications,
wearable products, from badges and wristbands to particularly in the realm of employee health and safety.
smartglasses and clothing. As such, many logistics organizations have begun
procuring various forms of smart wearable devices and
setting up wireless communication infrastructure in
For many individuals, it has become hard to imagine their facilities, like Bluetooth Low Energy (BLE), Wi-Fi, or
doing sports without a fitness tracker or smartwatch to – if a real-time location system (RTLS) is needed – even
track performance via built-in sensors. The technology ultra-wideband (UWB). While the impact of this trend
holds a lot of potential especially within the healthcare on the logistics industry is expected to be moderately
sector where wearable sensors could, for example, pave low, wearable sensors represent one of the building
the way for improved remote diagnostics being able to blocks towards making better, data-based decisions.
capture physiological data and transmit it via low-power Already today wearable sensors are leveraged within
wide-area-network (LPWAN) technology. Wearable logistics to provide valuable insights, making working
sensors are continuously developing to become smaller environments safer and more efficient. It is important to
in size. This opens new possibilities; for example, they note that many applications involving wearable sensors
can be worn as part of a person’s clothing or even are already technically feasible. However, anonymity
integrated in the human body. Biolinq, a California-based and data protection are very important and must be
considered, which can often be a limiting factor.
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Location Identification
a Norwegian startup, is leveraging BLE or ultrasound
technology to make use of real-time indoor localization
for automated labor reporting, geo-fencing, or indoor
navigation purposes.
Process Intelligence
The ability to track employee location opens an array of

application fields. There are various health and safety
(H&S)-related use cases such as the localization of
a worker in the event of a person-down alert. Also, to
prevent accidents between pedestrians and forklifts
inside an operational facility, a collision warning can
be issued both to the worker and the driver so they can
take preventative action – a use case that requires high
accuracy and data transmission in real time. Another Optimizing operational processes is essential, especially
interesting use case is leveraging wearable sensors for for those where visibility is typically lacking. It is
automated reporting. The collection of data about an therefore very useful for companies to deploy wearable
operational employee’s time spent in certain physical sensors capable of automating the collection of data
areas of a facility that serve multiple customers can and insights during logistics operations. For example
automate the capturing of work hours attributable to DHL Supply Chain is already using Motion-Mining®, a
each customer; this also allows for a fully automated general data protection regulation (GDPR)-compliant
billing process. solution developed by a German startup, that leverages
data collected from purpose-built wearable devices
during a temporary installation to identify process
In addition, wearable sensors can automate waste and improvement potential. The automation of
access control within a facility, restricting access data collection leads to larger, more detailed data sets
to certain areas or to the use of particular vehicles which are free from observation biases. Data can be
and tools based on the individual’s experience or automatically analyzed using algorithms to generate
training level. detailed insights and enable data-based decision
making. As more and more wearable devices such as
smartglasses and wearable scanners get implemented
Typically the trade-off between cost and the required in logistics operations, new possibilities open up to
accuracy as well as speed of data transmission dictates generate insights on a more permanent, continuous
which type of technology is used for localization. While basis leveraging the built-in sensors of these devices.
ultra-wideband-based solutions provide high-accuracy For example ProGlove, a startup known for its wearable
tracking in real time, the high cost of the required devices scanners, offers a platform called ProGlove Insights
and infrastructure makes it unrealistic to scale. Where alongside its products to provide useful process insights
BLE can offer sufficient accuracy, it is preferred due to that boost visibility.
the lower cost of implementation. Sonitor for example,
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FUTURE OF LOGISTICS
Ergonomic Health
have to retire early. Wearable sensors can be used to
lower the MSD risk in two ways – either by using data-
driven insights to evaluate and mitigate the ergonomic
risk of a process or workplace or by training employees
to adjust their actions to more ergonomically friendly
movements. Soter Analytics and Kinetic are two
examples of providers that offer wearable sensors for
ergonomic training purposes.
The idea is to give real-time feedback to a user by

vibrating or beeping when a hazardous movement such
as bending and twisting is performed. These solutions
create awareness and trigger a change in behavior over
Ergonomic hazards in the workplace are one of the main time, reducing the amount of hazardous movements
causes of musculoskeletal disorders (MSDs) which are performed. Also, vital body data captured through
the most common work-related health issue in the wearable sensors has various applications such as
European Union (EU). This results in high costs for the fatigue detection and alerting when certain stress levels
organization as workers require sick leave and may are reached. The sensitivity of this type of data calls for
strict anonymization in order to obtain user acceptance.
Graphic source: Kong, Xiang (2019): Industrial wearable system: the human-centric empowering technology in Industry 4.0
193
196
OVERVIEW
Challenges Outlook
Wearable sensors raise data protection concerns As more wearable devices such as smartglasses for
about sharing personal and performance information vision picking and wearable scanners are introduced
with the employer; to succeed, solution providers into logistics operations, here at DHL we are already
must ensure GDPR-compliant anonymization of data. starting to see decisions to leverage data from built-
in sensors rather than introduce new purpose-built
As more wearable sensor use cases arrive, there is a devices for each and every use case. For use cases
risk of overloading the employee with wearables and requiring accurate localization of employees, we still see
sensors; where possible, companies should avoid cost as a limiting factor to scalability. In future, however,
introducing new hardware for every new application. we anticipate a democratization of devices and support
infrastructure, bringing down the cost per use case,
Infrastructure requirements are highly dependent with generic gateways lowering the entry barrier for
on the level of precision and the frequency of data these kinds of applications. We also see technological
sharing required; especially for RTLS use cases, advancements – like the miniaturization of electronic
infrastructure investment is significant and may not components and flexible printed circuit boards (PCBs)
provide sufficient return on investment for a single and increases in battery life – accelerating the subtle
application. integration of sensors into clothing. Relatedly, but
in another direction and further into the future, we
anticipate the development and possible movement of
sensors from on the human body to inside the body as
multifunctional implants.

Computer Vision Exoskeletons Leveraging Wearable

Sensors for Process Optimization |
Pilot Project with MotionMiners
Extended Reality Smartification
Sources
MedCity News (2024): Biolinq Snags $58M for ‘Smallest Biosensor in the World’
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THE TEAM Contents Radar
SPECIAL THANKS
Special thanks go to all our colleagues from the various DHL teams
and divisions – Supply Chain, Express, Global Forwarding,
Freight, eCommerce, and Post & Parcel Germany – who supported
us with invaluable input and expertise. We additionally would like to
thank our external partners, including consultancies and academia,
providing further valuable insights that shaped this edition of the
Logistics Trend Radar. Furthermore, we would like to express our
sincere thanks to all our customers, partners, and colleagues who
visit our DHL Innovation Centers every year and share their know-
DR. KLAUS DOHRMANN ledge in workshops, tours, events and trend insights sessions.
VICE PRESIDENT, HEAD OF
INNOVATION & TREND RESEARCH, STEERING COMMITTEE
PROJECT DIRECTOR & CO-AUTHOR
Christopher Fuss Stefan Fuehner
Senior Director, VP Strategy & Commercial
Head of DHL SmartSolutions IoT Development, DHL CSI
Olande Stols Thomas Dammann

VP Marketing, DHL CSI VP Sector Development,
DHL CSI
CORE DHL RESEARCH TEAM

André Hartig Tanja Grauf
Jordan Toy YingChuan Huang
EMILY PITCHER OTHER CONTRIBUTORS

SENIOR MANAGER INNOVATION, Abdulla Fayis Kristin Szekat
GLOBAL PORTFOLIO LEAD, Akihiro Tan Lars Pappe
EDITOR-IN-CHIEF & CO-AUTHOR Amy Henshall Loic Bosch
Andre Keune Matthäus Pruski
Angela Hills Maurin Broil
Bastiaan Snaterse Max Franck
Bachi Spiga Michael Lai
Ben Gesing Niki Frank
Benjamin Dippolito Noah Tombs
Bjoern Krause Obie George
Brian Gaunt Paul Schlinkert
Corinna Klempt Peter Rolfes
Dave Allcott Philip Jensen
Dina Falk Prerit Mishra
Dirk Zimmermann Richard Foster
JULIAN SELDERS Eva Mattheeussen Robert Jeffrey
INNOVATION MANAGER, Florian Schwarz Samer Kaissi
RESEARCH LEAD & CO-AUTHOR Franz von Bismarck-Osten Sebastian Lamberts
Holger Schneebeck Tim Tetzlaff
Irina Albanese Tobias Maier
Jill Yu Wieland Mundt
Joan Eva Sainte Claire Yung Chiun Ooi
Joan-Wilhelm Schwarze Jordan Zineb Darkouch
Racek
BRAND DESIGN & MARKETING EDITORIAL SUPPORT

AGENCY
Words Europe
THE STUDIOS excellence
in brand design GmbH
CITATION
SUSANNE LAUER Dohrmann, K. et. al. (2024). Logistics Trend Radar 7.0. DHL Group.
MARKETING DIRECTOR INNOVATION https://www.dhl.com/de-en/home/innovation-in-logistics/
& CONTENT MARKETING LEAD logistics-trend-radar.html
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Insights. Shaping Tomorrow.

Your guide to innovation in logistics.

THE LOGISTICS TREND RADAR 7.0 07

SOCIAL & BUSINESS TRENDS 08

SPECIAL THANKS & CONTRIBUTION 195

The DHL Logistics Trend Radar

Insights. Shaping Tomorrow.

DR. KLAUS DOHRMANN

LOGISTICS TREND RADAR 7.0

Graphic source: DHL (2024)

DHL Trend Research Innovation Funnel

Graphic source: DHL (2024)

TREND RADAR 7.0

HIGH IMPACT LOW IMPACT ADOPTION

Trustworthy & Explainable AI Ethical End User/ Use

Explainable AI is the ability to trace back an algorithm

AI Legislation & Democratization

This trend should be carefully monitored with imple­

Advanced Analytics Cybersecurity 2.0

Diversity, Equity, Gen AI

The Rise of Recommerce

Forming win-win partnerships across the value chain

Graphic source: DHL Group (2024): Era of Sustainable Logitics Whitepaper

Changes in the supply chain set-up for companies to

Smart, affordable, and convenient return solutions

Related Trends DHL Resources

Bio-Based Decarbonization Return to sender? Reverse

Rise of Cybercrime in Logistics

Anticipation & Resilience

The logistics industry is identified as being among the

As intelligent security expands in operations through

Graphic source: ENISA (2023): ENISA Threat Landscape 2023

Blockchains Computer Vision

Edge Computing Next-Generation

IBM (2023): Cost of a Data Breach Report 2023

Carbon Accounting & Tracking

The EU’s Packaging and Packaging Waste Directive sets

Economies of scale in decarbonization solution

Related Trends DHL Resources

Circularity Renewable Energy

DHL Express’ roadmap to de-

DHL Group- Sustainability

In recent years, there has been a significant rise in

Similarly, robotics that automate operations within a

Related Trends DHL Resources

Workforce Focus Silver Economy

DHL Group receives awards for diversity,

Transparent Freight Forwarding On-Demand Warehousing

Labor Gap Alleviation

Establishing workforce marketplaces that connect logistics

Mass Supply Chain

Social Commerce & Gamification

The large-scale automated test and reorder (LATR)

Related Trends DHL Resources

Advanced Analytics Digital Marketplaces

Mass Supply Chain

Related Trends DHL Resources

Bio-Based Materials Circularity

Decarbonization Sustainable Fuels

Logistics Services Diversification

This trend should be carefully monitored with imple