The adoption of technology among logistics companies worldwide has a long way to go, while sustainability efforts are lagging even further behind, a major new study reveals.
The study shows huge variation across logistics in the deployment of data analytics and AI solutions.
The by-country tech uptake figures differ markedly. In the US, 63% of logistics businesses are utilising basic data analytics, way ahead of Germany (50%) and the UK (41%).
The publication focuses on Germany, the UK and the US because these countries “represent critical cross sections of global trade and transportation and logistics operations”, the paper explains.
The authors explain that Germany is one of the world’s leading exporters of goods, the UK is one of the largest importers, while the US is the world’s largest national economy and a leader in global trade.
Transportation and logistics professionals from across the three countries were quizzed on progress being made on achieving more optimised, digitised and sustainable operations.
On AI, just 19% of UK organisations deploy it in areas such as demand forecasting. In Germany the figure is 19%, while in the US it is 34%.
The report says these low figures “underscore the untapped potential of AI for route optimisation, modernising logistics operations, streamlining processes, and informing strategic decision making.
Cost main cause of sluggish logistics tech adoption
Cost is cited as the main reason for lack of widespread adoption, with disruption to existing services and a lack of internal expertise coming second and third.
In terms of progress on supply chain visibility a total of 71% across the three countries believe some progress is being made here, with 39% citing ocean freight as least visible mode of transportation, and 45% saying last-mile logistics enjoys most visibility.
An average of just 19% are utilising location data, IoT and sensor technology for better visibility
There are also marked disparities in the countries on sustainability efforts. In Germany, 66% say they do not have sustainability goals in place currently for their T&L operations. The figure for the UK is 60%, while in the US it is 55%.
The report says these low figures are likely to increase “as regulations, customer expectations and soaring transportation costs demand more-sustainable operations”.
Across the three countries, an average of 33% who lack any sustainability
goals say they have no plans to develop metrics, with just 11% ranking increasing sustainability efforts as the most important consideration, ranking behind issues such as driver safety and improving customer satisfaction.
“It’s clear the industry currently lacks contextual data, AI capabilities and the tools needed to optimise fleet deployments, routing, and appropriate mode switching,” said Remco Timmer, HERE Technologies Product Management VP.
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About HERE Technologies HERE has been a pioneer in mapping and location technology for 40 years. Its location platform powers location-based products, services and custom maps for organisations and enterprises across the globe – From autonomous driving and seamless logistics to new mobility experiences.