Moving Towards Automation

With transforming portfolios and about a quarter of the companies making investments in digitalization based on priorities identified through analytics, logistics lags other industries in a vision-driven approach to transformations. Also, the data highlights vulnerability of a majority of the companies that are outside the vision-driven quadrant.

Since there is some room for error in the rapidly transforming logistics industry, the proportion of companies pursuing sub-optimal transformation for the digital era is a cause for concern. The fast pace of change sets the tone for CEOs to drive rapid transformations to remain competitive.

>Digital Transformation in a Highly Competitive Market

Top Concerns for CEOs in the Logistics Industry

Logistics CEOs are facing a world that is moving toward rising protectionism, forcing them to deal with multiple political and economic challenges and regulatory needs. Here are the top five concerns logistics leaders will need to address in the digital era:



Regulatory changes, especially those with a nationalistic fervor across the Atlantic are impacting Logistics Transportation industry, threatening organizations’ global reach and growth prospects. Data security and privacy concerns too have led to introduction of new regulations such as GDPR. With digitalization of assets, processes, and operations, it is imperative for the logistics industry leaders to remain compliant with these regulations that address data security and privacy.

New Channels of Operation

New Channels of Operation

With the onset of new competition, increasing operational costs, and volatile energy bills such as fluctuating crude oil prices, logistics companies are being forced to explore new ways of transportation and delivery.

Talent Acquisition

Talent Acquisition

Logistic CEOs are concerned about attracting digital equipped talent for the industry. In response, companies are heading toward adopting a digital work culture.

Cybersecurity Threats

Cybersecurity Threats

Cyber threats are slowly growing in the sector. CEOs are focusing towards modernizing their technologies like implementation of blockchain for various process.

Macroeconomic Instability and Uncertainty

Macroeconomic Instability and Uncertainty

Over the past 4-5 years, political development across the globe has led to macroeconomic instability. This has forced business leaders to address fissures in their supply chain and undertake risk assessment before charting their business strategies. Trade wars, volatile fuel prices, growing wages, and supply-demand mismatch have kept the logistics CEOs alert and responsive to disruptive changes.

The Most Successful Digital Transformations Are Powered by Analytics Capabilities

Our benchmarking services are powered by over 1.5 million data points in addition to our primary research and data collection capabilities. With access to leaders across more than 40,000 companies in various size segments, industries, and geographic locations, we can quickly gather additional data to address how your business is performing against the competition.

A graph showing which industries are investing the most in digitalization.

Source: Trasers

Data analyzed in this report comes from 4,000+ responses. For the logistics industry, data from 297 companies have been used.

Our logistics industry experts can offer insights into the following sectors:

  • Freight Management and Contract Logistics

  • Distribution and Logistics

  • Courier Management and Postal Services

  • Inventory and Warehouse

  • Transportation Support Services

  • And More


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Industry Dynamics

The logistics industry has historically been slow in digital transformations, but with the changing global trend, logistics companies are sensing the urgency for holistic digitalization. Large-size companies are leading the way, which sets the pace forcing small and medium incumbents to reinvent continuously just to survive. There is a serious thread of disruption from disparate players in other industries who are sensing an opportunity to capitalize on their experience and digital capabilities.

The ecosystem of VCs and private equity have eased the entry barriers for new entrants who are disrupting the business models with their digital products and services portfolios. As a result, the logistics, industry is heading towards innovation in pursuing transformation in the digital era. The rapid pace of change means that losing momentum even temporarily will lead to an irreversible decline.

Only 7% of Companies Are Delivering on Their Transformational Initiatives

Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).

Digital Enterprise Evolution Model™

An image showing the stages of analytics capability evolution.

Copyright © 2021 Trianz

DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.

Rethinking the Value Chain

Changing customer expectation and mounting demand is the foundation for value chain reinvention in the logistics industry. Globalization, urbanization, advancement of technology, improved infrastructure, and shrinking of user lifecycles create entry opportunities for disruptors. Born-digital companies use cloud, AI, ML, and automation to reduce incumbency advantages.

Striving to keep pace with industry average is not a recipe for leadership in this segment. Instead, logistics companies need to use digitalization to deliver connected experiences throughout the value chain and to all stakeholders. Nearly half of the large enterprises are planning total digital transformation or reinventing experience, falling outside the industry average for digital adoption. Logistics companies need to increase their investment for survival and positioning in the market place.

Critical Digitalization Trends

The logistics industry is still in the early stages of disruption. Majority of the companies are still outside the quadrant of vision-driven digital transformation. This indicates that there is a perceived urgency in the logistics industry to pursue digitalization relentlessly. On average, only one-fifth of the respondents report investments in process digitalization and analytics.

Clearly, there is an immense scope for improvement for a majority of the logistics companies in terms of an integrated strategic point of view for the digital era. Technologies like unmanned aerial vehicles (UAV) are taking shape in the logistic sector and is in the initial stages of mass implementation.

Investment in Human Capital Management (HCM)

The logistics industry stands among the top three in planned human capital management investments in terms of both processes and analytics. Given the importance of talent in this space, it is not surprising that investments in advanced analytics and AI-based automation for human capital outpace all other functions in the logistics industry. A digital-savvy workforce is most crucial as transformation won’t be successful with technology adoption alone. The logistics industry will need a workforce that is ready to harness the true potential of new technologies and maximize the value across the value chain.

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Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology experiences and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital and security paradigms. Reach out to get in touch or learn more.


State of Digital Transformation
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