Changing gears: what logistics could look like in 2025

LOGISTICS OPERATIONS by nature, must be agile to change, and industry leaders will need to know a thing or two about how to stay ahead of the curve to thrive in 2025. Here are a few thoughts on where things might be heading for the sector this year.

A new wave of expectations

Customer expectations are changing – which means that business expectations for their logistics providers are evolving in turn. The ‘on-demand’ consumer culture of today requires faster, more flexible solutions, opening the door for a wave of new, tech-savvy logistics providers which are rethinking how we do things.

The reality is that the logistics sector is no longer just about moving goods - it’s about data, agility, and customer experience. Those businesses that can leverage AI, automation, and real-time data to predict disruptions and home in on ultra-fast last-mile delivery, optimised route planning, or better supply chain visibility will be the ones to watch in 2025.

Strength in numbers

We’ve seen a trend in recent years in which consolidation has become commonplace. Rising costs, shrinking margins - and the potential to integrate and expand service areas – have seen an increasing number of established third-party logistics (3PL) providers joining forces or being acquired by larger players. From a business perspective, this isn’t necessarily just about cost-cutting - it’s about creating scale, cultivating best practice, and driving efficiency.

Take Wincanton, for example, which was acquired by GXO Logistics last year (subject to regulatory approval). The full impact of the deal remains to be seen, but Wincanton and its customers stand to benefit from the international expertise and scale of capabilities afforded by GXO’s existing network. And then there’s DSV, which recently signed to acquire Schenker – a monumental deal set to enable the combined company to open up access to wider markets.

The key for companies reliant on 3PL services will be to build strong, strategic partnerships with the right providers – that is, the ones that can offer both scale and flexibility in a rapidly shifting business world.

The road to sustainability

Logistics decision-makers face a conundrum of competing priorities to navigate within ever-stretched budgets, from investing in automation to accommodating rising costs. This is set against the backdrop of mounting pressures from regulators and consumers for businesses to clean up their supply chains, with transport one of the biggest areas of focus as a traditionally high emitter. This comes at a cost.

But sustainability is not only critical for the health of people and our planet and the ‘right’ thing to do – it plays an important part in procurement decisions today. And looking at the bigger picture, investing in green transport makes good business sense; fuel costs are unpredictable, and with more cities implementing low-emission zones, companies that rely on traditional diesel fleets could find themselves facing heavy restrictions. Getting ahead of this shift now by adopting electric fleets, optimising transport routes, and integrating multimodal solutions could offer companies a competitive advantage in the long run.

With this being said, accessing energy from the grid remains a challenge and resolving this will be key to implementing greener technologies at scale.

Innovate or stagnate

Ultimately, there is an opportunity for logistics providers to thrive in 2025 – if they take it. We’re already seeing new players disrupt the market, established providers consolidate for efficiency, and green transport move from the fringes to the mainstream. Those who capitalise on the opportunity and act sooner rather than later will be well-positioned to succeed. The future belongs to those who are willing to evolve.

Chris Clowes is executive director at global supply chain and logistics consultancy, SCALA.