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Why are businesses reluctant to embrace logistics tech?


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  • Feb 26,2024
  • By Admin

The business of logistics is one of the key components of the UK economy. It facilitates the success of countless other industries, while itself being worth a huge sum in added revenue. In fact, logistics comprises of all non-financial business in the UK.

But despite more and more companies’ reliance on logistics  – particularly in the wake of the current eCommerce boom – it is curious that business leaders seem reluctant to investigate more sophisticated, tech-based logistical solutions. And in doing so, businesses’ might not be providing their customers the most effective service possible.

With all of this in mind, it is worthwhile considering which factors are holding companies back from embracing logistics tech fully.

Innovation in logistics

The Logistics Business Index, for one, sees technological innovation as the most significant improvement for both 2020 and 2021 among logistics businesses in the UK. It is evident that within the sector, businesses are focussed on innovating their software and technologies to ensure long-term viability in a congested market.

Positively, this reflects on a culture of constant innovation and improvement within logistics. In a crowded field, it is positive that so many are always looking for marginal improvements to their performance to steal a competitive edge – however, evidence suggests that many organisations are still dragging their heels.

Business need is evident

Recent research has found that more than two thirds (67%) of small to medium businesses are using cloud-based software to track courier activities, while 30% use CRM tools and 21% have invested in software to link up their sales and supply chain processes. This indicates that there is a willingness among businesses to invest in technology, but a far deeper level of saturation for some of the most crucial value-adding options.

At One World Express, we are proud that our Ship2world platform has helped thousands of small merchants to access first-class logistics solutions, helping them turn their business global. Powered by our innovative Smarttrack technology, the platform offers a unified interface which takes in all levels of order fulfilment, from sales to receipt creation, to selecting the optimal shipping route and tracking its progress. All of which is presented transparently and in real time, allowing businesses to keep their customers assured their order will be fulfilled.

Such transparency is critical to the modern consumer, and invaluable to businesses looking to attract their custom in an increasingly competitive online retail space. While many opt for a simple timeline approach to delivery tracking, there are options on the market which allow companies to monitor closely the reliability of their courier, and offer alternative solutions in the case of repeated dissatisfaction with the provider. Keeping a keener eye on these processes, while providing the customer with more detailed information throughout their journey, will go a long way to securing repeat custom.

As there are a wide array of shipping software options available for businesses, careful consideration should be paid to finding the right one for the specific needs of each operation. Small businesses in particular would be wise to seek out the help of a logistics consultant to help assess their operations and develop a robust and scalable strategy which incorporates the level of technological advancement they need to thrive.

The logistics industry is increasingly a technological one. The variety of consumer and business requirements, spread across countless global markets, demands smarter and larger software solutions to keep in check. When combined with a culture of competition and innovation in the sector, we can rest assured that businesses will continue to see improvements in performance from their logistics solutions in years to come.

To maintain this culture and avoid stagnation, the next step will be to improve communication and relationships across sectors, to improve awareness of the excellent products already on the market which can improve on operational costs, business resources, and customer retention. After all, there is little business sense in innovating if customers cannot see what is innovative about the product.

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