News / The longer you delay digital transformation, the further you fall behind

Supply chain stakeholders are increasingly integrating digitalisation, which is paramount to “staying ahead of the curve”, according to Maersk. 

Supported by Maersk, Economist Impact conducted a research project based on insights collected from senior executives working in supply-chain management.  

This report identified the short-term challenges, long-term benefits and practical solutions for supply chain digitalisation. 

It acknowledged: “Developing digital capabilities to meet growing consumer demand is both expensive and disruptive.” 

However, it stressed that those slow to invest in digitalisation would see a 23% reduction in their cash flow by 2030, compared with peers that are already investing. And, embedding AI into supply chains could lead to a 118% increase in cash flow by 2030, largely due to operational efficiencies. 

“These technologies will also help to reduce the industry’s environmental impact by forecasting customer demand and helping companies adjust accordingly,” explained Economist Impact. 

Technology investment is certainly under way. 

Logistics provider Wincanton, expected to be acquired by Ceva Logistics, announced today it had acquired exclusive UK and Ireland software rights for Zeus’s digital freight management technologies. This will allow hauliers to automate their subcontracting processes and provide drivers with access to routes through the dedicated driver app. 

This is set to enhance EyeQ, Wincanton’s digital transport planning and optimisation product. 

And Maersk recently announced its online spot booking tool for airfreight, and revealed it had plans to enhance the platform’s capability in the near future.  

The Danish shipping line told The Loadstar: “The tool offers instant prices and online booking requests only, but the capability for contract customers to book is going to be available soon.” 

Meanwhile, Hermes Logistics Technology (HLT) announced today that its latest cloud-based cargo management system, Hermes 5 Software as a Service (SaaS), was now live across all Groundforce Portugal’s cargo stations, at Lisbon, Porto and Funchal.  

This enables HLT to monitor the ground handler’s servers, manage software updates, perform regular security audits and recognise and solve issues before they arise.    

In the Economist Impact study, a lack of human skills was identified as the foremost challenge to adopting new technologies. 

“Even in really, really big firms, household names, most [data management] is in Excel,” said Gad Allon, director of the Jerome Fisher Program in Management & Technology. 

 “Most brands stay in Excel, because they just cannot recruit and retain the talent needed to go beyond that,” he explained.  

Maersk concluded by urging stakeholders to “act now and stay ahead of the curve by capitalising on new customer experiences”.  

It said: “After all, the longer you delay your digital transformation, the further you fall behind.”