A comprehensive survey reveals the transportation and logistics industry’s journey towards enhanced supply chain visibility and sustainability, highlighting the challenges and opportunities in tech adoption.
Industry Pulse on Technology and Sustainability
The transportation and logistics sector, pivotal to global trade, is navigating a transformative era marked by the need for increased efficiency, cost reduction, and sustainability. A recent survey by HERE Technologies, in collaboration with Amazon Web Services, offers insights into the industry’s tech adoption across Germany, the U.K., and the U.S., focusing on supply chain visibility, data analytics, AI, sustainability, and adoption barriers.
Visibility and Operational Optimization
A significant majority of industry professionals in Germany and the U.K. (72%) and the U.S. (68%) acknowledge progress towards real-time supply chain visibility, yet less than a quarter in each country report substantial advancements. The quest for complete visibility is complex, urging organizations to invest in technologies that improve transparency across transport modes. Prioritizing fleet utilization, route planning, and tracking is essential, with 30% of respondents identifying these as key to gaining operational insights and enhancing visibility.
Cost: The Adoption Barrier
Cost emerges as a primary obstacle to technology adoption, with 31% of German, 23% of U.K., and 23% of U.S. professionals citing it as a hindrance. The demand is for cost-effective, user-friendly solutions that integrate smoothly into existing workflows without necessitating extensive tech expertise or overhauls.
Navigating Service Disruption Concerns
Service disruption is a notable fear, with 12% of professionals viewing it as a significant barrier due to the industry’s reliance on precise schedules and complex networks. Addressing this concern requires meticulous IT planning, phased tech rollouts, and robust change-management strategies. Training and partnerships with tech experts can ease transitions, reduce downtime, and enhance efficiency.
Bridging the Expertise Gap
The survey points to a lack of internal expertise (11%) as an obstacle, highlighting the need for accessible tech solutions and the development of in-house skills. Training, workshops, and collaborations with tech providers can build industry proficiency, fostering a culture of continuous learning and tech adoption.
Sustainability: A Work in Progress
Despite the global focus on sustainability, the survey reveals a disconnect, with 33% of respondents indicating a lack of organizational sustainability goals and 27% noting goals are in development. This poses questions about the industry’s dedication to environmental stewardship and regulatory compliance.
Fuel and Route Optimization: Starting Points
Fuel and route optimization are critical starting points for companies aiming to cut costs and emissions. With trucking as a dominant freight mode and fuel as a top expense, leveraging automated fleet planning and driver routing applications can significantly impact efficiency and sustainability. Advanced tools like “eHorizon” can offer 3% to 5% reductions in fuel consumption.
Embracing the Tech-Sustainability Nexus
The transportation and logistics industry faces the dual challenge of tech adoption and sustainability integration. By tackling cost issues, easing disruption fears, enhancing expertise, focusing on sustainability, and improving visibility, the sector can harness technology’s full potential. Collaboration and a dedication to continuous improvement are key to a future of efficiency, visibility, and resilience.
