48 %
Labor
47 %
Customer Service/CX
46%
Compliance
CHALLENGES: Which supply chain, transportation, and logistics challenges are the most critical for your customers? 86 % CHALLENGES: Which supply chain, transportation, and logistics challenges are the most critical for your customers? 86 % 41% 39 % Sustainability, ESG Initiatives
Cost Reduction Cost Reduction
Capacity
39 %
70 %
70 %
Visibility
Risk Management
Visibility
38 %
55 %
Transport Optimization
Growth Management
55 %
34 %
53 %
Transport Optimization
Data Management
Demand Forecasting
53 %
32 %
50 %
Inventory Management Data Management
Security
28 %
48 %
50 %
Labor
Ecommerce/Omnichannel Enablement
Inventory Management
26 %
47 %
Customer Service/CX
Vendor Management
48 %
23%
46%
Compliance Labor
Global Expansion
13%
41%
47 %
Sustainability, ESG Initiatives Customer Service/CX
Supply Chain Asset Redeployment
39 %
Capacity
46%
Up 20 % Although the U.S. labor market is slightly looser than it was at this time last year, we still find more IT vendors name labor as a critical challenge for their customers this year (48%) than in 2023 (37%). On the other hand, concern about capacity has plunged: 39% of vendors list that as a critical challenge in 2024, vs. 61% in 2023. It’s interesting to note that only 28% of vendors mention ecommerce or omnichannel enablement as a critical CUSTOMERS: During the last year-on-year period, did your customer base grow or shrink? About how much? 31 % In an era of inflation, cost reduction tops the list of critical challenges for IT vendors’ customers. In 2024, 86% of vendors cite cost reduction as a critical issue. That’s up from 78% in 2023, although not quite as high as the 94% who mentioned this challenge in 2022, when supply chains still struggled with the worst effects of the pandemic. Another common challenge today for shippers who implement logistics IT solutions is how to maintain visibility into their operations; 70% of vendors cite that issue. 25 % 19 % Up 5 % Up 10 % 0 % challenge, compared with 41% in 2023. We doubt that shippers are less interested today in multichannel sales and fulfillment strategies. Perhaps most companies that need those functions have already put good solutions in place, eliminating this issue as a significant pain point. 10 % Up 15 % 13 % After that, the list of most critical issues depends on whom you ask. About half of vendors mention transport optimization, data management, inventory management, and labor.
Risk Management Compliance
39 %
41%
38 %
Growth Management Sustainability, ESG Initiatives
34 %
39 %
Demand Forecasting
Capacity
32 %
Security
39 %
28 %
Ecommerce/Omnichannel Enablement Risk Management
26 %
38 %
Vendor Management Growth Management
23%
Global Expansion
34 %
13% Demand Forecasting Supply Chain Asset Redeployment
32 %
Security
28 %
1 % Down 5 %
Ecommerce/Omnichannel Enablement
April 2024 • Inbound Logistics 47
0 % Down 10 % or more
26 %
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