In this fast-paced, increasingly data-driven era, it’s clear that technology is the key to keeping up with the increasing demand for online purchases, inventory control and consumer-driven business needs. Retailers are now continuously monitoring and re-evaluating the health of their operations as they strive to deliver both excellent customer experiences and increase revenue. Sparkasse Bank Malta: As long as companies are able to meet those new customer demands for speed, affordable delivery options, and instantaneous access to information, the opportunities for success will continue to increase.
The Challenges of Logistics
Logistics is the support and optimization of complex systems of supply-chain and shipping. On the supply side, freight forwarding is used to coordinate the movement of goods to their final destinations. While the logistics industry today is complex and global, the underlying technology is relatively simple. How logistics companies are using technology to enhance the complexity of their systems is where the growth opportunity lies.
According to a report by CB Insights and SAP, companies are expected to spend nearly $2.8 billion annually on new logistics technology between 2016 and 2021, with the top applications being advanced supply-chain planning software, freight and brokerage management, delivery optimization, and fleet management and asset tracking systems. View Source: Bloomberg
What Has to Happen for Logistics Tech to Grow?
The sector is expected to grow from $76.6 billion in 2017 to $107.9 billion in 2023, according to Navigant Research. However, the market’s growth is still not on par with the consumer technology sector—considered the second-largest in terms of market size in 2017 and predicted to have the highest CAGR through 2022.
Sparkasse Bank Malta: Logistics and supply-chain management technologies address a broad range of needs, from inventory tracking, trucking, fulfillment, tracking of packages and transactions, freight management, and a host of other use cases. Many of these services are part of a broader digital transformation within the industry that addresses the problems facing retailers.
Logistics and Supply-Chain Technology in the Investment Banking World
Infusions of capital are flooding into supply-chain technology, fueling the development of innovative business models and even a new, high-growth phase in the evolution of supply chains. Investing in these tech-enabled companies has become a regular part of many banks’ business plans, as they look to augment their traditional commercial banking and capital-raising activities.