- The World Economic Forum estimates logistics providers could benefit from a $1.5 trillion boost, with an added $2.4 trillion societal benefit if they embrace digital transformation, according to a recent report.
- Digitally enabled logistics would satisfy the need for faster same-day delivery; facilitate industry adoption of emerging technologies like IoT, self-driving cars, drones and 3-D printing; and allow companies to better curb emissions in support of sustainability goals.
- Companies should consider whether improving present infrastructure or investing in new data analytics technology will best help them digitize and best connect their services.
Globalization used to be the supply chain's obsession, as companies embraced access to foreign suppliers and greater trade capabilities to boost their competitive advantage and reduce costs. Now, as the world has become globalized, the supply chain has turned to data, the cloud and connected technology for the same purpose.
The Internet of Things is becoming less of a gadget and more of a requirement within supply chains, as greater visibility and transparency demands require a constant flow of data. Yet high capital costs mean technology is often the last feature companies upgrade.
Fortunately, a recent survey by Supply Chain Digest suggests we are at an inflection point for technology adoption as more than 80% of managers expect to adopt cloud technology by 2020. Whether it is rising consumer demands, capital availability or simply an expectation of greater benefits and capabilities, digitization appears to be the path to the future — at least until the next buzzword comes up.