HERE Technologies publishes results of multi-country survey of the challenges and opportunities facing T&L professionals
● Only 34% of US T&L organizations using AI in supply chain mix, and half lack basic data analytics
● Less than half of US T&L companies have specific sustainability goals despite growing pressure to reduce emissions
● However, supply chain visibility is very strong with 86% reporting notable progress
HERE Technologies, the leading location data and technology platform, today revealed insights from its latest ‘On The Move’ survey. This study of the United States (US) transportation and logistics (T&L) market, developed in part with Amazon Web Services (AWS), spotlights the evolution of how American firms are increasing supply chain visibility after a multi-year period of volatility and supply chain disruptions.
The survey, conducted by YouGov, also identifies gaps in artificial intelligence (AI) and technology adoption, the current state of sustainability goals and the progress made toward supply chain visibility in the US and how it compares to T&L companies in the United Kingdom (UK) and Germany.
“On one hand, this study shows the progress being made by companies towards increasing their supply chain visibility. On the other hand, it’s clear the industry currently lacks the contextual data, AI capabilities and tools needed to optimize fleet deployments, routing, and appropriate mode switching,” said Remco Timmer, Vice President of Product Management at HERE Technologies. “As a result, we’re seeing increased demand for location data and services that enable logistics companies to overcome disruptions in real-time while reducing emissions and improving employee safety in the process.”
Gaps in AI, data analytics and technology implementation
The survey found 50% of US T&L companies are utilizing basic data analytics, with 34% citing use of AI capabilities in their operations. This quantifies the underutilization of processes and solutions that will modernize logistics operations, streamline processes and inform strategic decision-making, such as route optimization and machine learning.
Where there is room for growth in technology implementation, there are also barriers - the study identified that US T&L companies cite cost (23%), fear of disrupting existing processes/services (12%) and trouble identifying the right partners/suppliers (11%) as the biggest barriers to implementing technology into their organizations’ supply chain management.
However, according to the multi-country survey, the US is leading in this category as logistics firms in Germany (71%) and the UK (60%) reported higher underutilization of basic data analytics and AI implementation.
Despite room for improvement in overall implementation, the study analyzed a few solutions that are taking hold within the American T&L market that show progress toward technology adoption:
● Location data and IoT are being utilized the most (38%) is the realm of real-time tracking of shipments and inventory
● Nearly half (44%) of American logistics firms are leveraging mapping and location data for driver routing purposes
● When considering building or buying technology, 35% of respondents answered they would fully develop in-house, 29% would buy off-the-shelf solutions from external providers and 29% would use a hybrid approach of purchasing systems from external providers and integrating their own data
US leads in sustainability with room to grow
Despite an increased emphasis on sustainable practices in the US, the study reveals a significant gap in the prioritization of sustainability among logistics companies in the US, with more than half of American logistics companies (55%) indicating an absence currently of sustainability goals tailored for their T&L operations.
When it comes to the factors that are considered most important to end-to-end supply chain and logistics management, respondents emphasized increasing customer satisfaction (23%) and drivers’ safety (19%) as the most important, and about a third of respondents (33%) ranked sustainability as the least important.
Although there is progress to be made for sustainable supply chain management in the US, according to the multi-country survey, US logistics companies are leading Germany and UK companies in supply chain sustainability, with German (66%) and UK (60%) logistics companies, respectively, not having currently tailored sustainability goals for their T&L operations. These findings are especially relevant as more legislation is passing in the US and EU to mandate emissions reporting.
Steady progress toward visibility
The survey of US T&L companies revealed a vast majority (86%) of companies have made notable progress toward supply chain visibility. While a smaller percentage of respondents (18%) consider their progress significant, the results reflect the steady adoption of technologies and processes required to enhance supply chain visibility. The increasing value of visibility becomes evident as decision-makers leverage data and information to create competitive advantages, particularly in the face of ongoing supply chain disruptions such as labor disputes, severe weather events and geopolitical conflicts.
The modes respondents cited to have the most real-time visibility were truck operations (50%), followed by air freight (18%) and last-mile (17%). The mode reported to have the least real-time visibility is ocean operations (45%).
The study also analyzed where US companies are placing the most value when it comes to improving supply chain visibility, with leading responses including real-time tracking (58%), route optimization (38%), inventory management (34%), demand planning (32%) and communication with trading partners (32%).
