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Digital logistics is a process of making logistics smarter by making use of various digital technologies and communication and providing companies with enhanced efficiency, profitability, hyper connectivity, lowered costs, customer-centric solutions, automation of jobs, service virtualization, simplification of transactions, remote access and improved supply chain.
Digital logistics ensure that there is end-to-end visibility in inventory, orders, and shipments across the supply chain where stakeholders can view information, add or modify details. It reduces network-wide inventory levels, maximizes customer satisfaction, and responds dynamically to logistics events. There is a central command and control centre to facilitate decision making. All information is accessible online and allows stakeholders to filter information and gain comprehensive knowledge on problems if any.
It also helps in accurate order fulfillment, lost productivity, and maintaining data transparency for all the vendors and partners involved in the process.
The global digital logistics market is anticipated to grow at a tremendously rising CAGR in the years to come.
The growth of this market is attributed towards major relying factors including; the increasing adoption of digital technology in the logistics industry worldwide, the increasing demand for e-commerce, the increasing requirement for cost-effective logistics and supply chain solutions across various industry verticals, the rapid growth of the IT sector, the constantly growing globalization in retail markets, the rapid advancement and high adoption of cloud-based technologies etc.
Additionally, spurring e-commerce activities require logistics providers to operate faster and more efficiently to quickly process small individual orders by fulfilling customers increased expectations regarding order accuracy and simple and effective product return solution etc. Companies are exploring ways to reduce order delivery times and operational costs and to cater to this need, it is essential to create new models and solutions by digitalizing the logistics operations, automating material handling system, warehouse management system, and distribution management system etc.
Moreover, with digital logistics, the new enterprise and supply chain logistics applications are connected with labor management systems, transportation and core warehouse to ensure fulfillment, excellence and enable new process models. It enhances customer satisfaction, reduces network-wide inventory levels, increases employee retention, and labor productivity. This in turn, makes digital logistics increasingly desirable by users all across the globe.
Furthermore, growth in customer base, the increasing volume of data, economic & political developments, increase in the number of digital customers, increasing number of advanced technologies including driverless vehicles, 3D printing and innovative web-based mobile applications which helps customers to track the exact location of shipments further contribute to boost the market growth.
However, high data exchange charges, the lack of data security, privacy and of ICT infrastructure, the non-uniform governance standards, lack of expertise and technology constraints are factors that are hindering the growth of this market. With that said, a few key companies including IBM Corporation and others in the digital logistics domain are investing in their digital infrastructure substantially to overcome the challenges of the digital logistics market.
More importantly, the logistics chains are witnessing massive losses from the disruption caused by the COVID-19 outbreak. The decline of operations in consumer sector, shutdown of factories and scarcity of workforce to de-stuff cargo as well as drivers to operate trucks for cargo clearing has minimized the working of the industry. Also, digitization of core business activities such as fleet monitoring, documentation, seamless networks of communication, the management of revenue, and building digital foundations by modernizing systems in the COVID era has helped logistics companies to shorter innovation cycles and adapt efficiently & effectively.
DIGITAL LOGISTICS MARKET SEGMENTATION:
By Organization Size:
By Deployment Mode:
By End-Use Vertical:
The North American region has been consistently dominating the digital logistics market since the past few years followed by Europe. Also, this region is expected to continue to be in the topmost position and grow at a rapid rate in the coming years owing to the presence of large IT companies and rapid technological advancements, increasing adoption of digital technologies and systems such as radio frequency identification (RFID), electronic data interchange (EDI), the presence of large digital service providers , increasing volume of investments by major economies and market players, the regulatory developments including Compliance, Safety, and Accountability (CSA) and Hours of Service Solution (HOS) revisions and the increasing technological advancements in the field of digitization coupled with their quick adoption etc. The major contributors in the region are The U.S and Canada.
The Asia-Pacific region is the fastest growing regional market for digital logistics and is projected to witness substantial growth in the forthcoming years owing to the booming E-commerce industry, the growing transportation business, growing regional e-commerce sector, adoption of advanced technologies and developing IT infrastructure in the emerging economies of the region etc. The major contributors in the region are India, China and Japan.
The Latin American and Middle East and African regions are anticipated to grow at a steady growth rate in the global digital logistics in the near future. This is because of their growing regional e-commerce sector and the rising adoption of digital services among the regional transportation and logistics industries in the regions along with other associated factors which have an influence on the market. The major contributor in the Latin American region is Brazil.
FEW KEY PLAYERS IN DIGITAL LOGISTICS MARKET:
Timeline Considered for Analysis:
- 2019: Base Year
- 2020 to 2025: Forecast Period
Research Scope and Deliverables
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators of Various Countries Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes the global digital logistics market by the following segments:
Customization: We also offers customization’s in the industry report as per the company’s specific needs.
Key Questions Answered in the Global Digital Logistics Industry Report
The report offers a comprehensive insight on the Digital Logistics Market share, competitor landscape, market trends, growth, revenue, and key driver’s analysis with coverage of key players, top geographies, product types and end user.
Exhaustive secondary research and in-depth primary interviews with industry experts has been conducted to present qualitative and quantitative insights in the report.
We offer customizations as per client’s specific needs.