Bad Integration Tools Cost Logistics Companies Millions, Survey Says

Changing times means that transportation companies like Titan Transline have to adapt, or be left behind. This includes integrating technology to streamline the supply chain, but that doesn’t always go so well, as noted by a survey conducted by Dimensional Research, with sponsorship from Cleo, an ecosystem integration software company.

The survey isn’t out yet, as it will be published in Q1 2021, but the data that the researchers have published show that around 34% of logistics companies are losing $250,000 annually due to technology integration problems, with another 9% saying that they’re losing $1mn to the same issues annually.

The survey had a sample size of 200 logistics experts, noting that about 97% of logistics businesses are actively working to ensure that supply chain disruptions are kept to a minimum, which have been a bigger issue in 2020 due to the COVID-19 pandemic as well as the resulting boom in e-commerce.

According the respondents of Dimension Research’s survey, the cultural shift towards working from home is the biggest concern, with 51% of them saying that it’s the top supply chain disruption for them in 2020, followed by manufacturing slowdown and restrictions in international trade, at 45% and 33%, respectively.

34% of the respondents have admitted that they’re too reliant on manual integration processes, with 32% saying that they have slow decision-making, and 27% say that they have trouble integrating back-office applications.

Cleo Director of Market Strategy Frank Kenney explained that logistics companies need real-time end-to-end visibility, and the agility to make changes on the fly, among other things. They say that it’s all about controlling the customer experience, making sure that the business ecosystem is well optimized, and creating value through integration.

Kenney appeared with Dooner and The Dude during the “WHAT THE TRUCK?!?” segment of the North American Supply Chain Summit virtual conference, where they discussed the report and offer insight and advice for the people that tuned in for the stream, which was accessible for free.

The one-day event was presented by Ryder System, with ArcBest providing regional support. It was held on December 15, 2020, and talked about the current state of the logistics industry in North America, as well as what stakeholders and companies can expect in the future.

 

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