The world of Logistics is rapidly changing. Technology is the leading reason. Organizations that innovate to transform will thrive.
Almost everything at some point in the supply chain moves on a truck. For most manufacturers and distributors, the most they see of their logistics services is the truck arriving at a dock and either picking up or delivering goods. For the logistics providers making arrangements to pick up and deliver goods, it means getting the best bang for the buck for their Customers, ensuring the highest level of service possible.
Behind the scenes, Commercial Carriers have continuously searched for ways to make their services more cost effective, working to maintain bottom line profitability while fending off competition in the form of other carriers and technology.
The potential changes coming to the logistics industry will only add increasing stress to current organizations.
By 2025, global trade is forecast to almost double to $15 trillion. Somewhere around $5 - $8 trillion of value will be captured by new emerging technologies. That is, new methods of “doing things” will be more cost effective than existing systems. This presents great opportunity for organizations that successfully transform their operations to thrive in this changing environment. But…
Within the next 5 to 10 years, organizations that fail to adapt to these new opportunities face the distinct possibility of being out of business.
Organizations that use logistics and transportation services, and organizations that provide these services, need to figure out which technologies to adopt in order to remain competitive. The challenge is identifying which technologies have the greatest chance of keeping organizations competitive into the foreseeable future.
Added to this challenge is the actual ability of the organization to use these technologies to change the way they operate. Business processes, legacy systems, and strong organizational cultures may not be easily changed.
Some organizations will be faced with external competition or innovation potentially displacing them in industry. Others will fail due to their inability to transform their organization, even if they invest in the correct technology. The key to transforming is ensuring an awareness of industry trends as well as an understanding of internal organizational components that need to be changed to thrive into the future.
The goal of the next series of blogs is two-fold:
· One is to provide insight into industry trends and technology
· The second is how an organization can position itself to transform, how it can learn to adapt to a changing environment
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