Around 90% of transportation and logistics (T&L) companies see data and analytics as the key drivers in redefining the sector over the next five years, according to a new report by PwC.
The new Shifting Patterns – the future of the logistics industry report indicated that digital technologies, data analytics and platform technology will help to shape new business models, create new sharing opportunities and also help new organisations enter the marketplace.
However, despite these predictions, 50% of the T&L companies that participated in the report said that the absence of a digital culture in their own organisation is their single biggest challenge.
“Technology is changing every aspect of how T&L companies operate and digital fitness will be a prerequisite for success,” said Andrew Tipping, vice president of Strategy& (part of the PwC network). “The winners in this race for transformation will be those who best understand and exploit a range of new technologies from data analytics to automation and platform solutions – those who don’t will be the losers and risk obsolescence.”
PwC’s report also suggested that T&L companies will need to focus on scaling cost efficiency, asset productivity and innovation across the enterprise. In addition, they will need to anticipate how their capabilities must evolve and establish strong relationships with key customers to actively shape the future.
“An established network may become a hindrance rather than an advantage as new technologies will change the industry’s cost model and call existing business models into question,” said Tipping.
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