With 71% of global industry leaders believing that mobile-first technologies is going to be important to the delivery process within the next five years, the focus for transportation and logistics organisations needs to be on integration of new and existing systems to keep their expansion intentions of track.
A recent global research report by SOTI, which interviewed 550 IT decision-makers within the T&L industry across eight countries , found that almost three-quarters have already committed to mobile technology wearables or IoT solutions to help speed up the delivery process. And with an additional 80% set to invest in similar solutions over the course of 2022, the needs to be confident that merging new and old technology will have a demonstrable, positive effect on the supply chain for many years.
From Manual to Mobile
Over yesteryear 12 months alone, 75% of T&L leaders confirm their organisation has invested considerably in new technology. In an industry that relies on being able to provide services faster, more efficiently, and much more cost-effectively compared to competition, these enablers of quick communication and real-time visibility are game changing. It comes as no surprise, therefore, that 50% of worldwide T&L leaders believe that mobile-first technologies will increase the speed of their delivery process.
Looking into those investments further, the function of IoT has the potential to automate and digitise probably the most manual and time-consuming tasks, while also enhancing the accuracy of knowledge. Concerningly, 45% of respondents says they still update multiple systems manually, so this particular step-change has ramifications far beyond just the speed of delivery.
Elsewhere, almost one-quarter believe that wearables will play a far more important role in this strive towards improved worker productivity, customer satisfaction and real-time connectivity throughout the logistics.
Blaming Legacy
The sector has identified the gaps that should be filled, has witnessed where investments could be channelled to satisfy new levels of consumer demand and are while realising that strategy.
The challenge arises in the implementation stage. The industry has legacy systems, which could be also framed underneath the banner of 'culture.' Decision makers are in a rush to alter things as they are but they are potentially forgetting about the transitional component of the general transformation.
This has resulted in a scenario, despite all of this positive intention, where 57% believe that legacy systems have prevented their organisation from sufficiently upscaling their operations throughout the COVID-19 pandemic. Upon closer inspection, it isn't necessarily those legacy systems which are resulting in the problem. A much higher percentage – 72%, in fact – believe the actual concern is their systems and technology aren't integrated adequately.
There is a nuance between 'replacement' and 'integration' that is delivered to the forefront here. It's not practical, and certainly not feasible, to simply rip out every piece of legacy technology and begin again. Every organisation may have these legacy systems in position, and the instinct should not be to merely discard or disown them in favour of mobile momentum. The emphasis should be on effective integration of the old and also the new.
The Integration Race
That aforementioned inability to effectively integrate new systems causes employees at 98% of T&L companies to get rid of time within their normal working weeks because they deal with technical difficulties. Inevitably, this is not only a nuisance, but a success to shipment delivery successes, and ultimately customer reputations.
And for those wanting proof that it's not only the legacy systems bringing the new installations down, 70% confirmed that reducing downtime of mobile devices within the field is the top concern. Without effective integration the new horizon remains within the distance.
Therefore, probably the race should instead be towards addressing this disconnect between legacy and mobile. For those who have engaged with this particular challenge, the results are quick and undeniable. Reduced support costs, communication costs, input requirements and scanning times counseled me reported by one example client, DPD Ireland, who adopted SOTI's Delivery Connect solution. Similarly, American Airlines estimates it may solve between 90 to 95% of their field device IT issues remotely because of effective integration of their mobile devices into the infrastructure, thanks to SOTI MobiControl.
Integration may be the final link in a chain of investments, which will reward the sector for its positive intention. Not every industries are putting such short-term pressures on themselves to realise digital and mobile benefits, also it will be a shame for the final implementation stage to derail such ambitions. By integrating new systems with their legacy infrastructure, T&L organisations can build their own legacies within the next exciting 5 years.