Driving the future: Key logistics trends to watch in 2025

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E-commerce growth and last-mile delivery innovations

Global e-commerce sales are projected to surpass $4.1t in 2024, driven by consumer demand for convenience and variety. Logistics providers are adapting to these shifts with technologies that enhance last-mile delivery efficiency.

For example, City Logistics employs the OnRoute platform, which uses real-time traffic data to optimise delivery routes and ensure timely arrivals. The platform also offers electronic proof of delivery, reducing paper waste and streamlining processes for clients. These innovations improve operational efficiency while meeting customer expectations.

Automation revolutionising operations

Automation has been a transformative force in logistics, enabling companies to process packages quickly and efficiently while minimizing errors. This trend is expected to accelerate in 2025, with automation being integrated into various stages of the supply chain.

“Automation allows industries like manufacturing to produce at unprecedented scales,” experts note. For example, Volkswagen uses automation to produce approximately 40,000 cars daily across 70 plants worldwide. Similar advancements are reshaping logistics, and reducing handling times and costs while enhancing reliability.

Sustainability takes center stage

Sustainability is increasingly influencing logistics strategies, as 71% of consumers express concerns about the environmental impact of their online orders, according to a recent study (Source). To address this, logistics companies are adopting greener practices, including:

• Introducing fuel-efficient delivery vehicles.
• Implementing “sign-on-glass” digital tools to minimize paper waste.
• Developing eco-friendly facilities, such as City Logistics’ Green Star-rated depot in Bellville, South Africa, which features water recycling systems and other sustainable measures.

These initiatives not only reduce carbon footprints but also align with growing consumer demand for environmentally responsible operations.

Reverse logistics gains importance

The rise of e-commerce has led to an increase in product returns, highlighting the importance of reverse logistics. This process involves managing returned goods, recycling end-of-life items, and repurposing materials for resale or proper disposal.

Efficient reverse logistics systems add value to supply chains, benefiting consumers, retailers, and logistics partners alike. SA logistics companies are integrating reverse logistics into their broader operations to streamline processes and reduce environmental impact.

Transformative trends in logistics

“City Logistics is excited about the transformative trends shaping logistics in 2025, from automation to sustainability and the rapid growth of e-commerce,” says Ryan Gaines, CEO of City Logistics. “We’re integrating these advancements to streamline operations and create more eco-conscious solutions for our customers.”

As the industry continues to innovate, these trends will play a critical role in addressing consumer expectations, environmental challenges, and the demands of a rapidly evolving market.