Global Logistics Industry Sees Significant Uptick in Supply Chain Management System Investments
Global – July 25, 2023 – The logistics industry is undergoing a rapid digital transformation, with over 60% of logistics companies making substantial investments in supply chain management systems. According to a comprehensive report titled “Unlocking the Future: Embracing Digital Transformation in Logistics,” published by Reuters Events and CargoWise, the sector’s technology investments have surged, with 82% of logistics companies boosting their technology expenditure since 2020.
The report, based on interviews with 468 logistics professionals worldwide, including logistics solutions providers, 4PL, 3PL, manufacturers, retailers, freight teams, and other supply chain employees, reveals that 39% of companies have directed their increased investments towards warehouse automation technologies. This area emerged as the third-highest investment priority among respondents.
The study further highlights that an overwhelming 95% of logistics organizations are committed to either maintaining or further increasing their investments in new information technology systems and technologies within the next 12 months.
Enhanced efficiency, accuracy, and scalability were cited as the primary reasons driving companies to invest in visibility tools. The reduction of manual processes and improvement of data integrity ranked as the second most crucial considerations among survey participants, closely followed by the desire to enhance customer experiences.
Challenges remain in adopting new supply chain visibility technologies, with 53% of respondents reporting a lack of resources as the biggest hurdle faced by their respective companies.
Gene Gander, General Manager at CargoWise, expressed optimism about the industry’s future, stating, “We believe collaborative digital transformation holds the key to the future of logistics. By embracing technology investments and prioritizing customer and employee-centric outcomes, organizations can unlock their full potential. Together, we can shape the future of our industry, drive operational excellence, and deliver unparalleled customer experiences.”
The report emphasizes the industry’s ongoing efforts to embrace technology and innovation to streamline operations, improve customer service, and boost overall efficiency in an ever-evolving global landscape.