8 logistics industry statistics you need to know
The logistics industry is experiencing rapid growth and expansion due to customer demands, the boom of global e-commerce, rising trade agreements, and advancements in information technology. These logistics industry statistics will change the way you think about information management, your digital transformation strategy and how you can achieve your strategic goals.
In this article we’ll reveal:
- The state of the logistics industry worldwide through current statistics and data
- Overviews of how a modern enterprise content management platform can give you a competitive advantage and optimize your logistics process
Here are the 8 key statistics and why they matter:
1. Logistics is expected to be the fastest-growing industry between 2023–2030 (Precedence Research).
The logistics industry is experiencing a huge surge in growth with booming e-commerce. What’s more, customer expectations will be the driving force behind shifts in logistics.
The UK logistics industry employs around 1.25 million people across the UK. Together with the transport sector, the Office for National Statistics (ONS) predicts it will become the country’s fastest-growing industry, with an ever-increasing number of jobs on offer.
The US freight and logistics market size is expected to reach 1.62 trillion US dollars by 2029 and the Europe freight and logistics market is expected to reach 1.26 trillion with the sea and inland waterway segment experiencing huge growth due to infrastructure investments from Germany, France and Italy.
Why it matters
As your business grows, so does the volume of information you have to handle. Logistics business are going through a huge transformation and organizations are trying to move from what was once tactical and executional to that of a commercial innovator. This involves:
- Managing complex networks with different suppliers and how to make data and document management processes more streamlined and efficient
- Managing data across partners, suppliers and converting data into actionable insights to inform business decisions
Being scalable, managing data and managing talent is essential in a fast growing industry like logistics. ECM systems play a huge part in scalability, managing data effectively and managing talent. Having a central place where all employees – individuals, teams and departments globally – can get a real time view of the information they need in an intuitive and user-friendly interface is key to streamlining processes across global operations.
DHL has the world’s largest commercial document archive and they use a modern ECM platform to support their 66 different document types across operations, customer service, finance and even aircraft maintenance. Their current document archive houses billions of documents, and it continues to grow every day.
2. 34% of shipping and logistics firms do not have a digital transformation strategy in place, but are considering one. (SP Global)
With two-thirds of logistics companies having a digital transformations strategy in place, there are still a third who don’t have one in place, but are considering one, according to S&P Global Market Intelligence's Supply Chain Digital Transformation Enterprise Survey 2023.
The sector's biggest inhibitor to reaching its ambitious goals is a shortage of people and skills, which can be at least partially overcome through the adoption of digital-enabling technologies such as cloud computing, IoT connectivity and AI/machine-learning analytics. This adoption is underway, but remains in its early stages.
Why it matters
In a rapidly evolving industry, not having a digital transformation strategy that promotes streamlined operations and collaboration can hinder organizational progress and leave your business trailing behind competition.
In our recent digital maturity survey we found that the most important goals for companies planning their digital transformation strategies are
- digitizing and automating,
- facilitating collaboration and
- creating a single source of truth to eliminate information silos.
However, the top barriers to digital transformation are lack of expertise and the lack of a holistic concept or strategy.
AI-powered ECM platforms are the linchpin for digital transformation, centralizing critical documents and making them accessible to employees regardless of geographical location. This does wonders for collaboration and means your workforce can collectively make data-driven insights and ensure you stay ahead of the curve.
A unified platform is also needed to take advantage of innovative machine-learning services to harness the value and information in existing content. AI methods rely on large pools of high data quality.
Not sure where your company ranks on the digital maturity scale?
Ask yourself these 5 questions:
- Does your company have a cross-departmental information management system?
- Are there information silos in your organization that could be removed or connected with each other?
- How comprehensively digital are the business processes in your company?
- Are there digital processes for collaboration and information exchange with customers, partners and suppliers?
- Can employees access business processes remotely or do your digital processes stop at the organizational boundary
Think about your current digital transformation strategy and these questions, and if the systems you currently have serve their purpose. If not… it might be time to re-evaluate your current systems and replace them in favor of something future-proof that enables information sharing and collaboration.
3. 38% of enterprises are optimizing supply chain technology, with a focus on optimizing end-to-end processes. (Gartner)
Growing complexity and volatility in the world of logistics is causing organizations to adjust their supply chain technology investments to improve resiliency, agility and make operations more intelligent.
Why it matters
In today’s competitive landscape, optimizing end-to-end processes by fine-tuning operations across your warehouses, inventory and delivery processes is crucial for enhancing the performance of your business.
By automating workflows and streamlining document management, you can begin to improve decision-making and make some significant cost savings by switching out legacy systems. Global leader SEW-EURODRIVE experienced huge cost and time savings by harnessing the power of an Intelligent Content Automation platform.
Read more about the benefits of cost and time savings SEW-EURODRIVE experienced here.
4. 50% of supply chain organizations will invest in AI-powered applications and advanced analytics through 2024 (Gartner).
The COVID-19 pandemic amplified the need for supply chain organizations to seek tools that help them make more informed decisions faster, which is why the need for artificial intelligence is apparent. AI can help users understand the vast amounts of data they’re dealing with and what is happening in their business now and — more importantly, in the future.
Companies will continue to invest in applications that embed, augment or apply AI to address foundational areas such as data quality or connecting disparate silos, or strategic objectives such as migrating to more automated, resilient and smarter applications.
Why it matters
As the logistics industry advances, artificial intelligence is set to play a huge role in shaping its future. AI can take away a lot of the heavy lifting of repetitive, manual tasks and free up time for more important tasks. Supply chain leaders need to adopt a broad and holistic perspective when it comes to AI.
Companies that have a solid foundation for process and information management can use intelligent automation to identify and locate missing information, use AI for insightful decision-making, prioritize urgent tasks and keep up with compliance.
With intelligent business capabilities, such as the extraction of valuable structured content, you can turn your business data into actionable insights. AI is here to change the game.
Learn more about AI-powered process automation and optimization.
5. 70% of organizations have real-time supply chain visibility as one of their top three strategic goals (Geodis).
The GEODIS Supply Chain Worldwide Survey found that only 6% of the 623 companies surveyed claimed to have achieved full supply chain visibility, despite being the third most important priority. Given the increasing demand for product availability and transparency from consumers, this figure is extremely low.
To address visibility challenges, many startups are investing in technology and AI. However, accurate visibility depends on effective communication between supply chain partners.
Why it matters
Real-time visibility is essential in modern logistics operations. An ECM system can help with supply chain visibility by becoming the go-to centralized repository for all documents and data, ensuring all stakeholders have access to up-to-date information.
By bringing all your company data together under one roof, you have a complete 360° view of information your business. This enhances communication and enables businesses to respond to changing situations and circumstances quickly – making logistics operations agile and responsive.
6. More than 80% of warehouses have no automation (Business Wire).
Business Wire reports that more than 80% of the warehouses today have no automation whatsoever. However, it's expected that companies will ramp up investment in warehouse automation in the next few years.
Why it matters
With a significant reliance on manual operations, there is a huge gap for businesses to automate and optimize their processes. Customers today expect agile and responsive operations. To meet the needs of customers and to scale the business, automation and optimization need to be at the top of the agenda.
By automating document management and workflow processes, you can reduce the reliance on manual labor. This not only minimizes human error, but also frees up valuable time and resources for higher-level strategic operations.
7. Cloud computing (40%) is considered the most impactful technology for digital transformation among shipping and logistics firms (S&P Global).
As an industry that is heavily dependent on data, analytics, and collaboration across various stakeholders, cloud computing offers several advantages that can enhance logistics and supply chain management.
Why it matters
Cloud computing is a for logistics. ECM systems with a cloud-based architecture mean that everyone in your organization has secure access to critical documents and data. When data can be accessed anytime, anywhere, it has a huge impact on the ability and speed to make real-time decisions as well as fueling collaboration.
This 24/7 accessibility gives your organization the power to adapt to any market changes or situations. Cloud operations also bring enhanced security and data protection, improve cost efficiency and allows companies to scale operations to their liking.
“With Doxis, we have a sustainable, future-oriented ECM SaaS solution that we use to guarantee our business operations and, e.g., deliver customs documents on time. In this way, we improve our customer service and reduce the loss potential for our customers,” says Christian Franz, Commercial Manager, of Kombiverkehr.
8. At least half of companies in all subsectors have freight tracking in place, ranging from 59% among logistics service providers to 55% among carriers and 50% among shippers (S&P Global).
Whether labeled "real-time tracking" or "cargo tracking," knowing where deliveries are at every step on the journey is one of the most important priorities in logistics. At least half of companies in all subsectors have this capability in place, ranging from 59% among logistics service providers to 55% among carriers and 50% among shippers. Fittingly, the connected endpoints from which shipping and logistics firms collect data reflect the need for freight tracking.
Why it matters
Consignment notes can result in piles of paperwork from bills, invoices, customs forms, export licenses and more from a variety of different parties – suppliers, carriers, customs authorities and regulatory bodies.
Modern document management systems enable your digital information to be stored in one single place. Having one defined place removes the chaos that comes with piles of paperwork and making information retrieval easier, saving you time and improving operational efficiency.
ECM systems work brilliantly by integrating seamlessly with tracking and ERP systems. This means that all relevant documents and data related to shipments are accessible from one location alongside tracking information, providing a comprehensive view of the logistics process.
Better yet, storing freight information digitally with strong security features, user access controls and data backups keeps your data safe – a considerably better alternative to managing mountains of paperwork.
From compliance and collaboration to improving supply chain visibility and operational efficiency, it’s clear that having a modern ECM as part of your logistics operations is a prerequisite for success. Learn more about how Doxis can help your logistics operations here.