As supply chains try to find their stride after a difficult few years of unpredictability, shippers are investing in their digital transformation, turning to different technologies to bolster resilience and agility. There is anecdotal evidence that more carriers, logistics service providers, and shippers are taking advantage of new innovations in supply chain digitization — but to fully understand these trends, we need quantifiable evidence.
In this article, we’re looking at the digital transformation of supply chains by the numbers and what companies can do for their own transformation.
The Digital Transformation is Underway
One of the critical drivers of supply chain digital transformation is the need to enhance visibility and transparency across the supply chain for greater resilience. With the help of digital technologies, companies can gain real-time insights into their supply chain operations to proactively identify and address issues and opportunities for improvement.
The digital transformation for supply chains is progressing. A Gartner report indicated that half of the major global companies planned to invest in supply chain visibility technology — but also that less than 5% of companies will have supply chain control towers in 2023. This shows that more companies are at the beginning stages of their technology adoption, like enhancing their shipping visibility.
Carriers Turn to Tech to Optimize Routing and Communication
The most common digital transformation projects for carriers, according to S&P Global Market Intelligence Supply Chain Digital Transformation Survey 2023:
- Cargo tracking 55%
- Operator monitoring 50%
- Remote connectivity 46%
Carriers investing in digital transformation are after the benefits of increased efficiency, reduced costs, improved safety, and enhanced customer satisfaction. By implementing cargo tracking technologies (55%), companies can improve supply chain visibility and reduce the risk of cargo loss or damage, leading to fewer customer complaints and improved satisfaction. With operator monitoring technology (50%), carriers can help improve fuel efficiency and reduce the risk of accidents, leading to lower insurance premiums and reduced liability costs. Remote connectivity tools (46%) enable companies to manage their operations more efficiently, reducing administrative costs and improving customer communication. Carriers gain valuable data insights that they can use to make more informed business decisions and identify areas for improvement.
For LSPs, Tech Provides Capacity Control and Order Management
The most common digital transformation projects for logistics service providers, according to S&P Global Market Intelligence Supply Chain Digital Transformation Survey 2023:
- Purchase order management 60%
- Real-time tracking 58%
- Freight booking/tendering/capacity management 58%
Logistics service providers answered that they are investing in purchase order management (60%) more than any other category of survey responses. This digital tool enables them to reduce processing times, automate routine tasks, and minimize errors, leading to more efficient operations. With investment in real-time tracking systems (58%), LSPs gain advanced visibility into the movement of goods, enabling companies to proactively manage delays, improve delivery times, and enhance overall customer satisfaction. Freight booking, tendering, and capacity management solutions (58%) also help logistics companies optimize their operations for reduced costs and greater efficiency. By embracing these technologies, logistics service providers can better meet their customers' demands, pushing the digital transformation forward.
For Shippers, the Digital Transformation Streamlines Supply Chains from Start to Finish
The most common digital transformation projects for shippers, according to S&P Global Market Intelligence Supply Chain Digital Transformation Survey 2023:
- Purchase order management 55%
- Supply chain planning/route optimization 52%
- Real-time tracking 50%
Shippers are investing in purchase order management (55%), reducing their costs and increasing efficiency by automating and optimizing various aspects of their logistics operations. Supply chain planning and route optimization (52%) is also helping shippers reduce costs while reducing their carbon footprint. Real-time tracking (50%) not only allows shippers to provide better visibility to customers, but it can also be used to inform the previous category, supply chain planning/route optimization. These technologies can help shippers to increase efficiency and stay competitive in the rapidly evolving logistics industry.
Take a Step Forward in the Digital Transformation
With the help of digital technologies, carriers, LSPs, and shippers all benefit from enhanced visibility into their operations, enabling them to be proactive, optimize routing decisions, and improve communication. VIZION API is making this stage in the digital transformation easy for shippers and BCOs. Through an easy-to-implement API, VIZION pushes complete, standardized data to any platform or spreadsheet for real-time tracking data at the container level, allowing shippers and BCOs to increase their visibility and improve their operations. To learn more about VIZION, reach out to us today to schedule a demo.