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Impact of Digital on Logistics Sector: 2020

Market Analysis

by David McIntire

published on Sep 02, 2020

Access to this report is restricted to logged in clients with access. Login to get full access

Report Overview:

NelsonHall’s “Impact of Digital on Logistics Sector: 2020” 56-page report is based on global interviewing of senior executives across the Logistics sector in four geographies: U.S., U.K., Continental Europe, and Asia Pacific.

The report identifies the principal business issues faced by Logistics companies over the period 2020-2022, the IT and digital initiatives planned in response to these issues, and their anticipated changes in IT spend and sourcing.

In particular, the report analyzes the importance of digital to Logistics firms and focuses on the nature of the digital initiatives planned by Logistics companies by application and technology, together with the key benefits required from digital by Logistics companies and their supplier selection criteria when purchasing digital services.

Who is this Report for:

NelsonHall’s “Impact of Digital on IT Services in Logistics Sector: 2020” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the Logistics sector
  • Vendor marketing, sales and business managers developing strategies to target IT services (ITS) opportunities within the Logistics sector
  • Financial analysts and investors specializing in the IT services and BPS sector

Scope of this Report:

The report is based on interviews with executives in the Logistics sector in the U.S., U.K., Continental Europe, and Asia Pacific.

The report analyzes the worldwide market for IT services within the Logistics sector and addresses the following questions:

  • What are the principal business priorities faced by organizations in the Logistics sector?
  • What IT initiatives are planned by organizations in the Logistics sector?
  • How relevant are digital initiatives to organizations in the Logistics sector?
  • What digital initiatives are planned by organizations in the Logistics sector?
  • What business areas are targeted for digital initiatives by organizations in the Logistics sector?
  • What digital technologies are planned to be introduced by organizations in the Logistics sector?
  • What are the key selection criteria used by organizations in the Logistics sector to select suppliers to implement digital initiatives?
  • What shifts in sourcing approach are expected by executives in the Logistics sector over the next three years?
  • How do companies in the Logistics sector expect their spend on ITS services to change over the next three years?

Key Findings & Highlights:

Logistics companies are focused on improving their business operations through the expanded application of digital. Key business priorities cited by logistics companies, unprompted, focus on reducing costs and improving operations through the expanded use of digital across the organization. Commonly cited target areas include the use of digital in customer services, optimizing warehouse and transport planning, tracking throughout the delivery process, and improving the application of analytics and data. Two primary business priorities to do this, identified unprompted by logistics companies were:

  • Improving customer experience through expanded digital channels
  • Improving operational efficiencies through improved transport planning and warehouse management.

Accordingly, logistics companies are:

  • Implementing tracking capabilities across the production process and IoT in the warehouse
  • Expanding the use of analytics to gain a better understanding of customer needs and improved visibility into service delivery
  • Migrating a larger proportion of the IT landscape to cloud environments and SaaS-based applications and consolidating legacy applications to reduce operating costs.

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