The global transportation and logistics industry has been in a state of turbulence in recent years, with fluctuating resource shortages and inventory glut. Accuracy, transparency, and timely service delivery are critical success imperatives in an industry functioning in a brittle, fast-changing business landscape. There is also increasing pressure on supply chain leaders to implement technological responses to disruptions, shortages, and security incidents. It is essential to consider a multidisciplinary approach to identify innovative technologies and orchestrate the right technology investments at the right place and right time.
34% of supply chain leaders feel adaption to new technologies will be the most significant strategic change that organizations will embrace in the next five years –– Gartner
Convenience and connectivity will dominate the market in the future, encouraging on-demand and flexible logistics. In this blog, we dissect the logistics technology landscape in 2022 and highlight what’s coming in 2023 and beyond, leaving you with useful insights on how to maximize your tech investments and drive higher ROI for your organization.
2022 in a Nutshell
In the past year, logistics leaders invested heavily in technologies such as data analytics, telematics, and cloud to gain exceptional operational efficiencies. Moreover, achieving end-to-end visibility into the supply chain was also a top priority for 2022. Here are some of the technologies that became a priority in 2022 for the logistics industry:
Apart from the technologies highlighted here, Blockchain, digital twins, and RFID also stole the spotlight in 2022 and are set to rock the logistics industry in the coming years. 2022 witnessed breakthroughs in logistics technology that are transforming the way shippers and carriers move freight including upgrades to self-driving cars, smart fleets (with GPS tracking), and more. Supply chains are growing smarter with real-time data insights, and more companies are embracing sustainability in a bid to stay ahead of the game.
The Stage Is Set for 2023
In 2023, we anticipate a greater focus on green technology and supply chain visibility using cloud-based logistics systems, smart fleet management through IoT devices and freight tracking, and the continued use of AI and Blockchain to simplify accounting and business operations. The below diagram outlines the adoption and impact of emerging technologies in 2022 and beyond:
While keeping pace with emerging tech trends, it is equally important to ensure agility in business processes that are likely to impact critical supply chain operations.
Where Should You Place Your Investments in 2023?
Recurring expenses, implementation obstacles, and integration complexities can make additional investments in logistics technologies challenging. Before you invest a considerable amount of time and money in these initiatives, be certain of the beneficial impact on your business.
New solutions with lower risk and greater rewards have emerged in the logistics industry due to advancements in new-age technologies such as AI/ML, the Internet of Things (IoT), cloud computing, big data, Blockchain, etc. Here are some of the advanced technologies that will offer powerful value:
- The use of advanced relationship management tools, such as telematics systems, accelerates and improves business development. By 2030, telematics-related data sharing is expected to be worth $750 Trillion, according to McKinsey.
- For business insights and market updates, AI-powered analytics in the workplace provide unparalleled data quality.
- Advanced automation solutions free employees from hours of administrative work, increasing productivity and efficiency.
- According to a Deloitte survey, less than 40% of supply chain leaders tend to be confident in the capabilities of their workforce. By enabling tech democratization across the organization, companies can gain critical insights into their ability to manage new supply chain technologies.
- Cloud data warehousing and management systems can offer a high ROI. According to Gartner, 84% of chief supply chain officers believe data-driven insights may help them better serve their consumers. An equal number feel that more accurate data is needed to foresee the future and make better decisions.
More Bang for the Buck
Technology acceleration will help the logistics industry become more adaptable and resilient. Digital technologies will continue to evolve in 2023 despite the threat of an uncertain economy, global recession, and potential supply chain bottlenecks and shipping delays. Logistics and supply chain leaders need to plan tech investments wisely, without losing focus of the primary goal – ensuring better supply chain resilience, sustainability, and efficiency. Organizations will need to place an increased emphasis on effective planning, demand and supply forecasting, and inventory management while deciding on future strategic technology investments. Implementing advanced digital technologies such as AI / ML, big data analytics, 5G, and IoT is key to ensuring complete operational visibility, leading to the creation of resilient, sustainable supply chains.
Another critical development we foresee in the coming years is an increased focus on data analytics to facilitate intelligent planning and smarter decision-making. Intelligent planning will improve supply chain visibility, allowing organizations to identify and address capacity and inventory shortages without impacting performance. This extended view into the supply chain also helps ensure a positive overall customer experience. Sustained investments in advanced and emerging technologies will help logistics and supply chain organizations drive efficiencies and create exceptional customer relationships – two critical components for success.
61% of business leaders envision technology as a great source of competitive advantage –– Gartner
Digital acceleration – although a critical growth imperative – can be challenging, especially in an industry where technologies are evolving by the day. This is where an experienced technology partner is an invaluable asset. For over a decade, Bridgenext has been at the forefront of advanced and emerging digital technologies disrupting the logistics industry. Whether it is building robust platforms for logistics management systems, smart integration into existing Transportation Management Systems, or data engineering and analytics for better visibility into the supply chain, we’ve got you covered.
Our digital experts help assess your current technology landscape, evaluate your organizational readiness for new technology adoption, and create an agile framework that enables smooth adoption of digital technologies helping you achieve operational excellence and revenue growth.
Reach out to our technology consulting team today!
References
https://www.gartner.com/en/newsroom/press-releases/2022-06-08-gartner-reveals-the-top-supply-chain-technology-themes-in-2022
https://financesonline.com/supply-chain-trends/
https://www.deloitte.com/content/dam/Deloitte/global/Documents/Process-and-Operations/gx-operations-supply-chain-talent-of-the-future-042815.pdf
https://www.dhl.com/global-en/home/insights-and-innovation/insights/logistics-trend-radar.html
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/telematics-poised-for-strong-global-growth
https://www.gartner.com/smarterwithgartner/gartner-predicts-the-future-of-supply-chain-technology
