Logistics and Supply Chain Technology Report 2021

Chapter 2: Technology Strategy

Many of the logistics industry’s long-standing technological inadequacies were thrust out of the shadows and into the spotlight during the past year, with vulnerabilities in manufacturing, distribution and sales systems laid bare by the demands of the COVID-19-era economy. Existing issues with fractured and outdated internal processes compounded as the need for technical investment across the industry grew more urgent. While the past 18 months have demonstrated that not only are technical transformations needed, but that they are possible, digital transformation still requires a careful approach to rebalancing existing practices and ways of working. With a slump in economic activity, businesses across the globe have had the opportunity to take stock of their operations, reviewing and reworking legacy systems, reducing technical debt and consolidating piecemeal infrastructure across their operations. As vaccination rates increase and economies begin to rebalance, the logistics industry finds itself at an opportune moment to invest strategically to maximise gains from pent up consumer demand and emerging online consumption trends.

Spending Which area are you looking to invest in over the next 12 months?

The availability of capital amidst low interest rates and bond yields has further opened the scope of investment available to businesses. Of those we surveyed, we found a wide range of investment strategies targeting various parts of the supply chain, but all working to push a holistic and digitally integrated approach to supply chain management in tandem with emerging legislation and governmental policy. In particular, thanks to the boom in eCommerce trade over the past year, businesses are investing more heavily than ever across the supply chain to meet these escalating levels of demand. As has been the trend for the past few years, technological investment across the industry appears focused upon breaking down silos between inventory, warehousing and transportation management solutions.