In 2019, logistics providers face increasing pressures to improve visibility and cross-border execution, and reduce costs, risks, and errors that decimate margins. This requires integration and digitalization of data, automation of workflows, cleansed and verified global data sets, guided decision-making, and machine-driven intervention.
Technologies must converge to enable transparency and data integration. This convergence into wholistic systems, which quickly share accurate, cleansed data, will create deep competitive differences. No outsourced labor will be as effective as machine learning, automation, and intelligent systems supporting skilled logistics professionals.
We see many logistics providers being forced to move away from legacy IT systems, which over the years have necessitated the bolt-on of micropoint systems provided by huge numbers of vendors. While this temporary solution dealt with past problems, the increasing requirement for transparency and seamless data integration across the modes and logistics functions means that these bolt-on systems have become significant pain points, preventing rather than enabling the required data integration.
To address these challenges, at WiseTech, we are accelerating our global reach and investing more than half our global workforce in building out data-integrated logistics eco-systems to give logistics providers more visibility, control, cross-border compliance, fast multimodal movements and more efficient use of high-value skilled resources.
Into 2019, rapid globalization and a jump in international fulfilment e-commerce will increase risk as logistics providers move exponential volumes for low cost through ever-changing regulatory environments and customs regimes, many with severe penalties for non-compliance. To remain viable, manual intervention of the shipment must be reduced, as each “touch” costs money, reducing already slender margins.
New technology as well as legacy systems could be driving some industry challenges, but logistics providers that continue to rely on legacy systems, hundreds of bolt-on applications, and low-value outsourced labor will feel the pressure rise in 2019 and beyond.