While 2024 is going to be another challenging year for the logistics industry plagued with many disruptions and provide chain challenges, it’ll even be a year of continued investment in logistics technology.
The focus are going to be on back-to-basics investments which will support major business processes and make massive value to the organization. once I ask back to basics within the context of supply chain and logistics technology investments, I specifically consider the subsequent evolutions in 2024.
First, expect a stress on core infrastructure and data quality through modernization of legacy systems. Many companies still believe outdated legacy systems for his or her core supply chain functions. In 2024, we’d see a shift toward investments in modernizing these systems with solutions that are cloud-based, flexible and offer better data integration.
We will see higher adoption transportation solutions driven by newer, dynamic sorts of TMSs aided by intelligent optimization. These TMSs will simultaneously offer data cleansing and standardization to make sure accurate and reliable information throughout the availability chain and can help strengthen foundational processes using automation and best practices that cause significant efficiency gains without requiring complex new technologies.
Second, there’ll be a rebalancing specialise in operational visibility and transparency. Real-time visibility into the situation and standing of products continues to be crucial for managing disruptions and optimizing delivery. Additionally, investments in additional advanced track and trace technologies like RFID tags or sensor-based tracking systems that provide better insights into inventories at rest will gain traction.
These newer solutions also will leave improved communication and collaboration. this is often important as companies are often still very siloed and therefore the lack of accessibility of data across the organization and therefore the lack of collaboration between different stakeholders can hinder efficiency. Investments in newer sorts of foundational technologies that provide solutions for scenario planning, supplier diversification and contingency planning will support building more resilient supply chains which will withstand disruptions.
Third, embracing low-tech solutions alongside high-tech will enable lean process optimization. Implementing lean principles and methodologies to eliminate waste and optimize workflows can provide significant benefits without requiring expensive technology. But the human element will remain critical as we’ll still utilize existing human expertise as a core a part of transportation processes. Leveraging the expertise and knowledge of existing workers through training and upskilling programs are often simpler than relying solely on automation in certain situations.
Overall, the TMS technology market is poised for continued growth in 2024, driven by strong demand for cost optimization, e-commerce fulfillment and advanced technology features. Companies that develop flexible, AI-powered solutions catering to specific industry needs and offer seamless integration with existing systems are going to be well positioned to maximize this growth.
While investments in cutting-edge technologies like AI and automation will continue, there’s a growing recognition of the importance of addressing the basics in 2024. Back-to-basics solutions, within the sense of that specialize in core applications like TMS, data quality, operational visibility and risk management, are likely to ascertain increased investment to strengthen the inspiration upon which more advanced technologies can operate effectively.
