VERTICAL SPECIALIZATION: What verticals do your solutions serve?
Where is the Most Demand? We asked vendors where they have seen the greatest increase in demand for new logistics technology. Here’s a sampling of their observations: • “We are seeing a lot of requests lately for complete optimization of supply chains from the inbound side to the last mile.” • “No longer is there just a driver
Consumer packaged goods 88%
Food & beverage 80%
Automotive 75%
E-commerce 75%
Apparel & textiles 75%
Electronics 75%
shortage; there is a worker shortage. AI, analytics, and
Healthcare/biomedical/pharma 72%
automation can help LTL companies accomplish more with fewer staff.” • “Automation of higher-frequency carrier negotiations in sourcing of ocean, air, and ground freight movement to respond to supply
Furniture 67%
Grocery 60%
Chemicals 62%
Agriculture 50%
chain disruptions or to new changes in supply/demand.
Construction & infrastructure 50%
Optimization of carrier awarding in sourcing around sustainability goals. Optimization of sourcing decisions for mode-shifting freight movement (i.e. ocean to air).” • “A lot of new software projects were put on hold in the beginning stages of COVID; things are starting to return to normal and new sales are increasing.” • “We see growing demand across all the regions and verticals we serve, with the biggest growth coming in life sciences and consumer products.” • “We see an increase in demand for a logistics platform that supports smarter operational decisions, integrating operational, tactical, and strategic decisions to make
Energy 47%
Oil & gas 45%
Aerospace 45%
Military/government 26%
No specialization (serves all) 17%
The top vertical markets for logistics IT vendors in 2021 remain the top markets list in 2022, in generally the same order. But the percentage of vendors serving several of those industries has jumped. For instance, 88% of this year’s respondents say they service customers in consumer packaged goods (CPG), a 16-point increase over last year. Eighty percent of respondents this year have customers in the food and beverage vertical, compared with 67% in 2021. The survey also shows similar increases in several other verticals. Automotive and e-commerce both increased from 64% in 2021 to 75% in 2022. Apparel and textiles and electronics both rose from 59% in 2021 to 75% in 2022. The healthcare, biomedical, and pharmaceutical sector increased almost as much, from 59% in 2021 to 72% in 2022. In fact, every vertical market mentioned in the survey is now served by a greater percentage of logistics IT vendors than last year. Clearly, these vendors are finding ways to apply their technologies in a wider range of contexts.
daily decisions in line with the tactical and strategic targets and parameters of the current scenario.”
68 Inbound Logistics • April 2022
Powered by FlippingBook