Leaders in the logistics industry face a challenge. Logistics technology is advancing quickly, but there aren’t enough IT experts to meet the industry’s needs. Some key tech trends in the industry include the fast adoption of new consumer technologies, higher customer expectations for quick and accurate delivery, and access to real-time data from any device.
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The new industry standards allow successful logistics companies to gain a strategic advantage. However, there is a shortage of IT skills in the industry. This makes it difficult for logistics firms to hire full-time IT technicians who integrate specialized transportation and supply chain technologies.
Accepting Technology Solutions as a Competitive Edge
With technological advancements, WMS/TMS systems, like scanning, printing, and wearable technology, have greatly changed. The benefits of using new solutions and technologies are clear. They include increased transparency, accuracy, efficiency, better customer service, improved workflows, and cost savings. Additionally, the industry’s need for data security is growing as technology solutions for storing, managing, and analyzing data become more common.
Understanding digital solutions is crucial in the logistics industry. They can enhance your business and meet growing customer demands.
According to Kelly Marchese, the leader of Deloitte’s supply chain strategy practice, adapting and innovating will be important in the next decade. Industry leaders also agree. Eighty percent of respondents think the digital supply chain will become the most common model within five years.
Many logistics technology solutions are available, but choosing the right one to meet customer expectations is a challenge. Knowing how and when to incorporate or upgrade these solutions can be difficult. Small—to medium-sized enterprises risk falling behind because their IT departments may lack the time to strategically adopt and integrate IT solutions. Some companies may not have an IT department at all.
Hiring and retaining talent in a hyper-competitive market may be an additional challenge, even with an IT department. However, allowing your logistics company to gain the cutting edge is crucial in an industry dependent on speed, accuracy, efficiency, and communication. All these expectations and options may sound intimidating when added to your existing workload running your company, so this may be the time for you to trust the experts.
An Emerging Industry of IT Specialists as Strategic Logistics Partners
The shortage of IT talent was one of the most discussed issues at ProMat 2019, a conference highlighting technology innovations in manufacturing, distribution, and supply chain management.
The inability to implement and deploy the latest wave of emerging technologies, which meet customer demands for increased speed and accuracy, has hindered business success.
New technology solutions are emerging for the transportation and logistics industry, and more IT experts are now available for this sector. During this technological renaissance, it’s crucial for companies leading the digital era in IT logistics to hire skilled professionals.
However, a report states, “59% of CIOs and other IT executives are encountering a skills shortage.” This shortage can result in high costs for hiring and retaining IT talent who grasp technology and industry trends and deeply understand the industry.
Due to the talent shortage and increased technology solutions for logistics enterprises, a new industry was recently born. A mix of logistics technology integrators and managed IT service provider companies focuses on covering these needs. These new types of companies are offering the value of a full IT department (helpdesk, system administrators, programmers, etc.) with approximately a 35-45% OPEX reduction.
These partners stand out from expensive and hard-to-find permanent IT staff. They offer all the technical support required for daily operations, similar to an in-house IT department. At the same time, they stay updated with logistics industry trends. They also research and implement logistics technologies that align with the business needs.
These specialized IT providers acquire in-depth knowledge of the strategic needs in the logistics industry. They are experts in the technologies that can help businesses overcome these challenges. Their level of expertise positions them as strategic partners that help drive their logistics company customers into the future.
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