Logistics companies turn to “cognitive technologies,” Deloitte says
Survey shows 80% of executives plan investments in data-driven decision making, but smaller firms lag behind.
Logistics organizations are increasingly embracing a shift to digitalize their largely physical operations in a search for improved efficiency and agility under pandemic conditions, according to a report released today.
The strategy could help companies power more intelligent movement of goods through the use of “cognitive technologies,” the consulting firm Deloitte said in a report on the future of the movement of goods, titled “Holistic Decision-Making: Creating tomorrow’s more intelligent movement of goods network.” The report is the initial article in a planned three part series, “Connected communities: Creating a competitive supply chain advantage.”
Deloitte drew its data from an online survey with 182 supply chain leaders operating across trucking, ocean, rail, manufacturing, and retail in early 2020. The firm supplemented that research with conversations with supply chain and industry figures in multiple segments of the transportation value chain, the company said.
According to Deloitte, the trend includes four main themes. First, data is king. It is powering connected analytics to help manage the flow of goods, and inspiring 80% of executives to say they see the value of data-driven holistic decision-making capabilities, and say they are investing or planning to invest.
Second, Deloitte pointed to a growing digital divide. Fully half (50%) of large, integrated players are digitalizing the value chain and looking to new data sources for insights, but only 13% of smaller sized players are doing so.
Third, next-gen adoption has a way to go. While artificial intelligence (AI) and machine learning are among key enablers that help optimize critical supply chain functions, only 40% are actively using it, signifying that adoption of these cognitive technologies is still in the early stages.
And finally, data complexity requires new solutions. As data sets grow in complexity, Deloitte found that companies are seeking alternative data management solutions. More than a third (38%) are focusing on cloud and security solutions to prepare for the added cyber risks.