International Transport and Logistics Service Providers Association, UTIKAD, shared the 2020 assessment of the logistics sector and the association's activities, its predictions for 2021, and the results of the Logistics Trends and Expectations Research at an online press conference held on the Zoom Platform on Thursday, March 11, 2021.
To the meeting; UTIKAD Chairman Emre Eldener, Vice Chairman Cihan Yusufi, Board Members Ayşem Ulusoy, Barış Dillioğlu, Cihan Özkal, Ekin Tırman, Mehmet Özal, Serkan Eren, UTİKAD Executive Board Members, Dokuz Eylül University Maritime Faculty Dean, Dokuz Eylül University Maritime Faculty Head of Logistics Management Department and press members attended.
Within the scope of the press conference, agenda items regarding the Turkish logistics industry were evaluated by the UTIKAD Executive Board Chairman Emre Eldener, and an important report that would guide the sector was presented to the press. Dr. Prepared in collaboration with Okan Tuna and his team "Trends and Expectations in the Logistics Industry 2020" It attracted great attention from press members.
Press conference held online within the framework of pandemic conditions; UTIKAD started with a promotional video covering the 2020 activities. Saying that the logistics industry has successfully emerged from a tough war in 2020, UTIKAD Chairman Emre Eldener said, “No one could have predicted a global epidemic. Even if it was said 'Let's draw the worst scenario', we could not predict that all borders would be closed. Even in such a situation, as the Turkish logistics industry, we recovered in a very short time and showed our strength. Roads were closed, we found alternative routes. Our drivers remained in quarantine, we immediately took our breath away in Ankara, tried to resolve the issue and succeeded. We opened a COVID-19 section on UTIKAD's website to support our members and industry players. We have conveyed the epidemic and logistical developments all over the world from our COVID-19 page, which was the first example in the world. This page was highly praised by our industry, ”he said.
Stating that they organized various webinars to come together with the industry during this period, Eldener said, “In addition to our road, airline, maritime and digitalization webinars, we also brought together experts in education with you. We tried to reach all stakeholders of the industry through our social media accounts. A meeting with young people sohbet We also prepared the series. We have included their expectations into our future plans. " he spoke.
Stating that they decided to launch Mobil UTIKAD in the last month of 2020, Eldener said, “We are currently working on it. We will have a mobile application in 2021. Our association's services will also be available via an application on the phone. We are continuing our work on this subject, ”he said.
"TRENDS AND EXPECTATIONS IN THE LOGISTICS SECTOR 2020"
Following the completion of the annual evaluation of UTIKAD Chairman of the Board Emre Eldener, Dokuz Eylül University Maritime Faculty Dean Prof. Dr. Durmuş Ali Deveci gave a speech on the “Trends and Expectations in the Logistics Industry 2020” prepared in collaboration with UTIKAD and Dokuz Eylül University Maritime Faculty and emphasized the importance of developing cooperation between the industry and universities. Dean Prof. Dr. Taking the floor after Durmuş Ali Deveci, Dokuz Eylül University Maritime Faculty Head of Logistics Management Department Prof. Dr. Okan Tuna made the presentation of '' Trends and Expectations Research in the Logistics Sector 2020 ''.
Prof. Dr. Okan Tuna said in their research that they reached the conclusion that 2020 was a good year for the logistics sector and that the sector was hopeful for 2021. In the research where price competition stands out; Stating that e-commerce offers new business opportunities, Prof. Dr. Okan Tuna said, “Companies that want to invest in the logistics sector want to invest in technology, human resources and infrastructure. The logistics sector sees its future in terms of investment and is hopeful about it. For example, 2020 has been a very good year for those who focus on e-commerce and retail, and the figures show this. But when we look at some details, we can see that it was bad for some. The study contains different analyzes in itself and the results differ according to the variables, ”he said.
TRENDS OF 2020
- The year 2020 has been stable for the industry, and businesses are hopeful for 2021.
- 46% of logistics enterprises stated that their business volume increased in 2020. The rate of those who gave negative feedback in their jobs was also 25%. The fact that none of the enterprises participating in the research makes a “very negative” assessment gives positive signals for the industry in 2021.
- The level of trust of customers in the logistics industry has increased compared to the previous year (2020 Confidence level 46% Medium, 41% High, 9% Low, 2% Very Low, 2% Very high).
- In 2020, companies tried to be competitive in price levels (83%) and service speed (42%).
- Firms mostly faced problems in price-oriented competition (72%) and lack of strategic plans (57%).
- Similar to last year, the E-commerce / retail sector was the sector with the most opportunities in 2020 (68% Very High + 24% High).
- Unlike last year, more than half of the participants gave importance to the strategies of expanding the service network and gaining new customers. Digitalization strategy is not on the agenda of companies.
- The budget allocated to education remained the same at 61%.
- COVID-19 had the greatest impact on the management of logistics processes (48%) and human resources management (48%). The companies tried to cope with the problems experienced in terms of technological infrastructure (76%) and strong customer relations (61%).
- Many businesses have taken measures such as working remotely (54%) and reducing working hours (37%).
EXPECTATIONS OF THE FIRST HALF OF 2021
- Logistics sector, Turkey's ambivalent about the realization of macroeconomic goals (54% Confidence Level Medium, Low 30%, 9% High).
- The sector is more optimistic about growth (43% growing - 46% unchanged) and foreign capital (31% increase) than 2019.
- 70% of the participants are planning to invest in the next six months. Technology and human resources issues stand out as the most important areas for investment.
- The industry is willing to employ new staff (74%).
- Investing in sustainable / green projects is not on the agenda this year (57%).
- Tax regulations / financial incentives (76%) and necessary legislative changes (67%) stand out as issues that need to be addressed in the name of sustainability.
- Accordingly, the expectation from the public for legislative arrangements (74%) continues.
- Projects are not considered within the scope of university-industry cooperation (66%).
- In terms of digitalization, it is expected that Robotics and Automation systems (5%) and Big Data Analysis (74%) will have the greatest impact on the sector in the next 67 years.
Trust Environment: With the pandemic, the intense demand increase in the e-commerce sector has positively affected the demand for the logistics sector (46% positive and very positive). Turkey's macro is observed to contain a prudent assessment of the confidence level for the achievement of economic goals (84% medium and low). The sector is on the rise (41% high) within the scope of the "perception of trust" reflected in its customers
Logistics Ecosystem: 72% of the participants stated that the main problem faced by the logistics industry is “price-oriented competition”. logistics sector in Turkey "price" in the face of very strong competition. This situation may cause important problems regarding the sustainability of small and medium sized enterprises in the sector. Unlike the previous year, more than half of the participants focused on expanding the service network and retaining existing customers while gaining new customers. The increase in the business volume of the sector in 2020 has changed the focus of "new customer acquisition" observed last year to "expanding the service network". Again, as an important factor, “customer relations (81%)” stands out, even more than last year. In the sector, where competition is mostly price-oriented, it is observed that “competitive prices” play the least role in gaining customers compared to other factors (44%).
Financing and Investment: The sector is expecting growth in the next six months. Investments are mostly planned to focus on technology and infrastructure, while 2021% of the participants do not expect a significant change in the financial volume of the sector in the first half of 46, 43% expect growth. One out of ten people expects to shrink in the logistics sector in the six-month period. Seventy percent of the participants think that the interest of foreign investors in the logistics sector will increase or remain at the same level. In investment planning, mostly "Technology (58%)", "Human Resources (59%)" and "Infrastructure (35%)" issues come to the fore.
Human Resources: An increase in employment is expected in the logistics sector. Budgets allocated to education remained relatively the same. In 2020, 44% of enterprises increased the number of white-collar employees and 28% increased the number of blue-collar employees. Most of the enterprises in the sector stated that there is no significant change in the number of employees.
Digitization and Industry 4.0: Regardless of the field of investment, the participants answered the questions "What are the technological developments that you think will have a greater impact on the logistics sector in the next 5 years?" It has been observed that they agree with "Robot Technologies" and the prediction that there will be an increase in productivity (5%).
Public Affairs: Unlike the previous year, “infrastructure problems (48%)” were among the top problems expected to be solved by the public. The reason for this can be considered as the inability to obtain sufficient efficiency from the existing infrastructures, in applying the solutions produced to the problems arising with COVID-19, and especially in meeting the increasing demand in the e-commerce channel.
COVID-19: The global logistics sector is one of the leading sectors where the negative effects of the coronavirus pandemic that left its mark on 2020 are felt. Most of the pandemic enterprises are "Logistics Process Management (48%)", "Human Resources Management (48%)", "Customer Relations (46%)" and " Marketing Activities (46%) ”. The rate of those who think that the effect of the epidemic on the demand for the sector is high is 35%. In terms of reducing the effects of the COVID-19 epidemic, businesses stated that the subjects "Strong Technological Infrastructure (76%)", "Strong Financial Structure (61%)" and "Customer Relations (61%)" made the biggest contribution.
In the Q&A part of the UTIKAD Press Conference, the changes and additional costs to be brought by the European Green Consensus affecting the logistics sector, the intensity at the border gates, the impact of the epidemic on transit passes and the effects of inter-country problems on transportation were answered by the UTIKAD Board Members. It ended after the questions of the press members were answered.