Inbound Logistics | April 2023

SALES: DURING YOUR LAST MEASUREMENT PERIOD, WERE SALES UP OR DOWN? BY HOW MUCH?

1% Down 5%

3% No change or 0%

Not only are shippers embracing logistics IT, but they’ve been making significant investments in those solutions. In 2023, as in 2022, 96% of survey respondents report increased sales in the most recent measurement period. In 2023, 55% have seen sales increase by 20%. Another 32% have seen growth of 10% or more. Only 3% report no change, and just 1% saw revenues drop—and that by only 5%.

Up 5%

9%

Up 15%

15%

55%

Up 20%

17%

Up 10%

0% Did not report 0% Down 10% or more

PROFITS: DURING YOUR LAST MEASUREMENT PERIOD, WERE PROFITS UP OR DOWN? BY HOW MUCH?

1% Down 10% or more

Up 5%

Logistics IT is a profitable market as well as a growing one. In 2023, 87% of vendors who responded to our survey report that profits increased in the last measurement period. For 76% of vendors, growth was strong, with profits up 10% or more. This continues the trend of 2022, when 86% of vendors reported that profits were up, and 75% saw an increase of 10% or more. Some vendors—12%—saw no change in profits. Only 1% netted less in the most recent measurement period than in the previous one.

11%

No change or 0%

Up 20%

12%

40%

Up 15%

14%

0% Did not report 0% Down 5%

22%

Up 10%

GROWTH: WHAT LED TO GROWTH IN THE PAST YEAR?

1% M&A

Mergers and acquisitions might have been all the rage in recent years, but among suppliers of logistics IT that trend is slowing. Only 1% of respondents attributed their growth over the past year to M&A. Twelve percent of vendors say their growth came from a mix of organic sales and M&A, compared with 18% in 2022. In contrast, 87% say their growth came thanks entirely to organic sales, an increase over the 81% who cited direct sales in 2022.

Both

12%

87%

Organic sales

60 Inbound Logistics • April 2023

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