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Supply Chain Industry Updates

Old Systems May Mean Logistics Providers Struggle Meeting New Demands

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Outdated processes and legacy systems are putting the brakes on some carriers’ ability to deliver on last-mile expectations.

A new survey of logistics leaders found that the growth of “e-commerce, customer expectations and rising last-mile delivery volumes have created a capacity problem that logistics providers are struggling to fill,” said Bringg, a delivery and fulfillment cloud platform provider. “Over 60% of logistics service providers saw increased demand for last-mile delivery, but a lack of visibility, automation and innovative tech is holding them back. Forty-one percent say their biggest challenge to scaling last-mile operations is outdated business processes and manual operations, followed by legacy technology [36%].”

Other findings:

  • 53% of respondents said their shippers use or have requested real-time visibility tools for end-customers, but only 18% of providers have it — and more than half have no plans to purchase them.
  • 54% of logistics providers are focused on adding automation to improve customer service; 41% have already done so.
  • 64% are planning to offer new premium services and service plans to increase business through last-mile operations this year.

“This past year has forced retailers and service providers to assess their supply chain agility and resilience,” Bringg CEO Guy Bloch said. “While they want to take advantage of growing opportunities in the world of e-commerce, they are challenged by legacy systems, limited visibility and high operational costs.”

Bringg’s “State of Last-Mile Logistics” report can be downloaded here.

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