In today's rapidly evolving logistics landscape, digital transformation is not just an option – it's a strategic imperative. Recent disruptions have forced logistics companies to rethink their strategies and adopt innovative approaches to stay competitive.
To gain deeper insights, we partnered with Reuters Events to survey more than 450 logistics and supply chain professionals worldwide. Our goal was to uncover how they are approaching digital transformation and identify key factors for success.
Here’s what we found:
Top supply chain disruptions
Logistics executives are most concerned about geographical tensions, with one in three citing it as the top threat to their supply chains. Other significant concerns include cybersecurity attacks, natural disasters, and transportation disruptions.
Encouragingly, 85% of respondents have implemented measures to navigate these challenges. They are actively reviewing and diversifying their supplier bases, establishing alternative transportation routes, and partnering with multiple logistics providers to build redundancy.
However, there is a clear opportunity for companies to enhance their preparedness through more rigorous scenario planning. Our research reveals that only 32% of respondents regularly engage in scenario planning, while 41% do so occasionally, and 27% seldom or never plan for disruptions.
Technology investment priorities
Digital transformation is crucial for logistics companies. Our research highlights the key investment priorities for logistics leaders, including transportation management systems (42%), digital documentation (41%), and warehouse automation (35%).
Respondents identified several opportunities with these digital investments, most notably increased operational efficiency, improved customer service, and cost reduction.
Despite the clear benefits of digitalization, companies must address internal concerns that can impede progress. The survey identified data and cybersecurity as the top obstacles, with 77% of respondents expressing concerns about the cyber risks associated with a multi-platform tech stack.
Building an effective technology framework
The survey indicates that most companies (55%) currently employ a fragmented mix of global and local solutions for their technology stack. However nearly half (48%) would prefer a more unified global solution to streamline operations across their global operations.
Interestingly, our research also shows that 64% of logistics leaders believe a multi-tech stack approach hinders productivity across their operations.
Centralizing technology platforms can reduce operational redundancies, minimize integration challenges, and enhance overall system interoperability. This cohesive approach facilitates smoother data flows, real-time visibility, and strengthens decision-making capabilities, enabling companies to respond more effectively to market dynamics.
Our research underscores the critical importance of digital transformation and strategic technology adoption in navigating supply chain disruptions. By diversifying supply bases, engaging in scenario planning, and investing in unified technology solutions, logistics companies can build resilient, future-proof supply chains.
Methodology
Over 450 logistics and supply chain professionals from around the world were surveyed between March and April 2024 for this report. They included logistics solutions providers, manufacturers, 4PL, 3PL and freight teams, retailers, and other supply chain professionals throughout the North American, Latin American, EMEA (Europe, Middle East & Africa), and Asia-Pacific regions.