Skip to content
Search AI Powered

Latest Stories

newsworthy

Report: Technology is transforming the logistics industry

Communication technology and integrated platforms top list of software investments that will yield the highest ROI for logistics operations.

Technology is transforming the logistics sector, but smart software investments can help companies keep up with the rapid pace of change, according to a report from communications software provider Front, released September 18.

Front's 2019 Logistics Tech Trends Reportsurveyed more than 400 IT, operations, and customer service leaders in the transportation and logistics industry to discover why companies say technology is critical for scaling their business, how the landscape of logistics technology is changing, and to uncover the software investments with the highest potential for return-on-investment (ROI). 


The study found that 56% of companies spend more than $100,000 on software every year, and that most logistics and transportation companies are using technology to transform their business and "digitize" the supply chain: 

  • 81% said they expect their software spending to increase over the next two years.
  • 84% said they are interested in introducing some sort of automation into their supply chain.
  • 77% said they have digitized their operations.
  • 71% said they spend more than five hours using workplace technology every day (including email, software, and collaboration tools).

Among the technologies most likely to yield the highest ROI, the study identified the following: 

  • Communication technology. Half of logistics leaders surveyed said that scaling to meet demand is their biggest challenge and 54% cited managing high email volume. "Investments around email and phone will provide lasting benefits, as they continue to be the epicenter of customer and team communication," the researchers said.
  • Integrated platforms. Tools that "play nice" with your existing technology will provide the most visibility and yield higher adoption, the researchers also said.
  • Workflow automation. "You don't have to overhaul your entire supply chain or install robots before you can see efficiency gains from automation," according to the researchers. Making workflow improvements to existing systems can help companies reap big rewards, they added, saying that companies should "start small and try using automation to improve your existing workflows."
  • Customer service tools. Almost all firms surveyed said that customer service is a critical piece of their company's overall business strategy. "People will increasingly expect to be served anytime, from anywhere around the globe, which means you need a platform that can scale to meet rising demand," the researchers said.

The Latest

More Stories

Keepin' it fresh

Keepin' it fresh

Meal kit producer HelloFresh relies on automation to guarantee fresh and accurate shipments to customers—and that reliance has only increased as the company has grown from a small German startup to a global enterprise serving consumers in 18 countries. Surging demand, expanding menus, and the ever-present challenge of meeting high food quality and safety standards add complexity to the HelloFresh model, necessitating a focus on technologies that can give the business an edge as it grows.

Zeroing in on the U.S. market, company leaders took a leap nearly five years ago that would help HelloFresh meet burgeoning local demand and set the stage for further expansion of its menu and capabilities. They added a brand-new distribution center (DC) in Irving, Texas, that would feature the most advanced technology in the company's North American fulfillment network to date.

Keep ReadingShow less

Featured

instawork screen cap of warehouse worker profile

3PL LVK will partner with Instawork to find warehouse labor

The third-party logistics provider (3PL) LVK will partner with Instawork, whose app connects hourly professionals with local jobs, with the partners saying the move will answer a structural shortage of warehouse workers.

The deal will work by integrating LVK’s warehouse operations software with Instawork's network of vetted hourly workers, creating a lever to scale up warehouse operations across North America, they said.

Keep ReadingShow less
chart of consumer spending

Consumers “took a breather” on January spending after holiday rush

Shoppers spent less in January than they did during the busy holiday month before but retail sales had strong year-over-year gains nonetheless, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released today by the National Retail Federation (NRF).

“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season,” NRF President and CEO Matthew Shay said in the report. “Despite the monthly decline, the year-over-year increases reflect overall consumer strength as a strong job market and wage gains above the rate of inflation continue to support spending. We’re seeing a ‘choiceful’ and value-conscious consumer who is rotating spending across goods and services and essentials and non-essentials, boosting some sectors while causing challenges in others.”

Total retail sales, excluding automobiles and gasoline, were down 1.07% seasonally adjusted month over month but up 5.44% unadjusted year over year in January, according to the Retail Monitor. That compared with increases of 1.74% month over month and 7.24% year over year in December.

Likewise, the Retail Monitor calculation of core retail sales (excluding restaurants in addition to automobile dealers and gasoline stations) was down 1.27% month over month in January but up 5.72% year over year. That compared with increases of 2.19% month over month and 8.41% year over year in December.

NRF says that unlike survey-based numbers collected by the Census Bureau, its Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.

chart of trucking costs per mile

Uber Freight: Trump tariffs will likely be avoided after pause ends in March

As U.S. businesses count down the days until the expiration of the Trump Administration’s monthlong pause of tariffs on Canada and Mexico, a report from Uber Freight says the tariffs will likely be avoided through an extended agreement, since the potential for damaging consequences would be so severe for all parties.

If the tariffs occurred, they could push U.S. inflation higher, adding $1,000 to $1,200 to the average person's cost of living. And relief from interest rates would likely not come to the rescue, since inflation is already above the Fed's target, delaying further rate cuts.

Keep ReadingShow less
chart of US imports

NRF: Container imports remain high after Trump tariff threats

Days after tariff threats by the Trump Administration against Canada and Mexico were paused for a month, imports at the nation’s major container ports are expected to remain high, as retailers continue to bring in cargo ahead of the new deadline and to cope with elevated tariffs on China that did occur, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

Part of the reason for that situation is that companies can’t adjust to tariffs overnight by finding new suppliers. “Supply chains are complex. Retailers continue to engage in diversification efforts. Unfortunately, it takes significant time to move supply chains, even if you can find available capacity,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release.

Keep ReadingShow less