Business intelligence critical for logistics firms as IT investment environment improves
Business intelligence and transportation management technologies are the biggest investment priorities as IT spend for logistics companies improves from 2018
Transport and logistics companies are investing into four key areas above all others: Business intelligence; transportation management; warehouse management; and supply chain visibility. These results are taken from the free-to-download State of Logistics Technology 2019 report, which surveyed more than 500 professionals.
It is clear from these leading areas of investment that companies in the logistics sector are looking to have greater control and visibility over their operations in order to provide high-speed, trackable service that fits into the modern e-commerce and just-in-time supply chain.
Transportation management goes hand in hand with the push towards increased visibility. Service providers spending on robust transport management and execution systems will find themselves set for a reduction in freight costs, more granular access to last-mile delivery data and asset-tracking across complex distribution networks. This is largely driven by the global e-commerce boom that has rendered last-mile visibility and parcel execution data a must for customers.
These investments come on the back of an improving IT spend environment. Compared to results from eft’s research report from 2018, there are marginally less companies increasing their IT spend overall, however there is a marked reduction in firms looking to decrease spend. Less than 10% are looking to cut back, compared to nearly 30% in 2018, whereas almost 70% of firms are increasing their spending on IT.
This should lead to more integration of technology platforms and data analytics in the future, with concurrent improvements in supply chain management and efficiency.