While the transportation and logistics (T&L) industry has observed steady growth for more than 10 years and now represents an over $300 billion industry, it is still growing. With this continued growth comes three major challenges; agility, sustainability, and visibility. Companies are looking to digital transformation to address those challenges, according to Lux Research.
“Trade globalization, digital consumers, and low oil prices have all driven growth in the T&L industry while imposing new challenges,” explains Harshit Sharma, Lux Research analyst and lead author of a new report.
“For example, there is growing consumer demand for agility through the rapid delivery of products: Air cargo is the best means to achieve this but decreases sustainability significantly due to air freight’s high carbon intensity, not to mention that rapid delivery can also mean often engaging with new vendors, creating visibility challenges. We need to innovate to find better all-around solutions to address these challenges without exacerbating others.”
Global trade has also created supply chain visibility issues for companies due to complex supplier networks, leading to greater risk, shipping delays, and even lack of supplier accountability. There are currently a wide variety of digital use cases being explored in logistics, which are at varying stages of commercial maturity and innovation activity.
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Source: Material Handling & Logistics