PLATFORM: HOW DO YOU DELIVER YOUR SOLUTIONS?
Other
Over the past several years, the cloud has become the platform of choice for a large majority of logistics IT solutions. In 2019, 55% of respondents said they used a Software-as-a-Service model, and 42% said they o ered both cloud-based and locally hosted platforms. In 2023, 85% of vendors deliver their software exclusively in the cloud. A mere 8% o er software that users host on premise. Another 7% o er other kinds of solutions, mainly hybrid approaches that combine cloud-based and locally based functions.
Local
7%
8%
85%
Cloud/SaaS/hosted
COST BASIS: HOW DO USERS PAY FOR TECHNOLOGY SOLUTIONS?
When a company implements logistics technology, there may be several payment options. With so many solutions hosted in the cloud, the pay-by-subscription model is a popular choice. In 2023, 77% of survey respondents o er subscriptions. If you’d rather buy a system for a flat rate, 41% of respondents can oblige. A similar number, 40%, can charge by the seat or user. Also, 19% of logistics IT vendors o er solutions free of charge, often as part of a package with other services.
Transactional (subscription) 77% System 41% Seat/user 40% No cost 19%
INDUSTRY: WHAT INDUSTRIES DO YOUR SOLUTIONS SERVE?
In the past, when we asked which industries vendors served, a handful of industries dominated the responses. In 2022, for instance, 91% of vendors said they served the transportation industry—a similar proportion to the number who served that industry pre-pandemic, in 2019. But in 2023, only 70% of vendors say they serve customers in transportation. Other dominant industries have seen similar drops in the past year: manufacturing from 88% in 2022 to 61% in 2023; retail from 80% to 61%; wholesale from 84% to 57%; and ecommerce from 81% to 54%. In this tough economic environment, logistics IT vendors are spreading themselves thinner. They might be seeking further afield for new business, courting customers not just in their traditional market sectors, but also in fields that we currently don’t ask about in the survey.
Transportation 70% Manufacturing 61% Retail 61% Wholesale 57% Ecommerce 54% Services/Government 24%
April 2023 • Inbound Logistics 55
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