Page 80 - Inbound Logistics | April 2017 | Digital Issue

FIG. 1 CHALLENGES: Which transportation and logistics challenges are most critical to your customers? increase in sales and more than
Cost Reduction 840.7= 85% 12 percent in profits, year-over-year.
Integration (Business Process, Technology, etc.) 750.0= 75% The customer base for technology
Visibility 720.2= 72% solutions also experienced substantial
Customer Service 640.6= 65% growth, with IT companies reporting an
Transport Optimization 580.3= 58% average of slightly less than 13-percent
Data Management (Big Data, Quality, Synchronization) 560.9= 57% customer growth.
Inventory Management 380.2= 38% Good old-fashioned elbow grease
Omni-Channel Management 360.8= 37% takes the credit for most of these
Vendor Management 330.3= 33% gains, with 85 percent of technology
Demand Forecasting 310.3= 31% companies reporting organic gains,
Security 290.9= 30% though 15 percent achieved gains
Global Expansion 260.4= 26% through mergers and acquisitions or a
Risk Management 260.4= 26% mixture of the two methods (Figure 2).
Labor 220.9= 23%
Sustainability 200.1= 20% At Your Service
Corporate Social Responsibility 90= 9% There’s no shortage of need for
logistics and supply chain technology
Having the right information helps an ability to integrate into existing in the transportation sector, with nearly
users and buyers of all sizes stand on business processes. 88 percent of technology company
even ground with an equally varied set of Seventy-two percent cite visibility respondents providing services to
competitors, but staying on top of trends as an issue, only a slight drop from 3PLs, carriers, forwarders, brokers, and
in such a rapidly changing environment 2016. Customer service, transport everything in between—an increase of
can be difficult. Fortunately, Inbound optimization, and data management nearly 3 percent over 2016 (Figure 3).
Logistics’ annual logistics technology also deserve honorable mentions as Manufacturing experienced a slight
perspective research provides decision drop year-over-year, with 79 percent of
makers a pulse of the industry so they FIG. 2 providers reporting that they support the
can make informed decisions about LOGISTICS IT PROVIDERS REPORT GROWTH industry. This is a reversal of the 2016
where, what, when, why, and how to trend, which saw manufacturing on
implement new solutions. We surveyed an uptick.
nearly 150 logistics IT solutions providers Retail took that jump instead, with
to keep you abreast of what’s happening companies served in that sector clocking
in the marketplace, and showcase trends in at 79 percent, an increase of 5 percent
that will help in your decision-making. over the previous year in a strong
The annual IL Top 100 Logistics showing for brick-and-mortar, especially
IT Providers list (page 80) celebrates with e-business showing a 4-percent drop
companies on the forefront of supply to 58 percent. Providers also increased
chain technology solutions that their services to the wholesale sector by
continually enable shippers to operate about 3 percent over 2016, and services/
with best-in-class supply chains. Organic Sales 85% n government held steady at 44 percent.
M&A 1% n It’s often difficult to differentiate
At What Cost? Both 14% n between logistics and supply chain
Logistics technology aims to limit solutions, but each year IL splits that
headaches and increase performance major concerns, though all experienced hair by asking respondents to report
for supply chain stakeholders. As such, slight declines over 2016 figures. separately on which logistics and supply
we asked IT providers to name the The logistics IT sector remains hot chain solutions they offer.
biggest hang-ups for their customers for another year, with respondents Logistics solutions such as load
(Figure 1). Cost still tops the chart, reporting an average 14-percent planning and inventory management
with 85 percent of respondents naming
the overall cost of logistics ownership FIG. 3 INDUSTRY SERVED: What industries do your solutions serve?
as a concern. Integration claims the Transportation (includes 3PLs, warehousing, carriers, global trade) 870.5= 88%
number-two spot, with 75 percent Wholesale 790.9= 80%
naming it as a pain point, up 7 percent Manufacturing (all kinds) 790.2= 79%
from 2016, suggesting that the rapidly Retail 790.2= 79%
changing pace at which solutions are e-Business 570.6= 58%
developed has customers nervous about
Services/Government 430.8= 44%

78 Inbound Logistics • April 2017