While the vast majority of IT vendors say their customers are trying to cut costs, customers’ budgets still find room for IT investment. This makes sense, as digital solutions can yield insights and efficiencies that help companies spend less and earn more in the long run. In 2024, 86% of respondents report that their customer base has grown since last year. Forty-one percent have seen growth of 15% or more. Ten percent of IT vendors have about the same number of customers as they did one year ago, and only 1% have lost customers. CUSTOMERS: During the last year-on-year period, did your customer base grow or shrink? About how much? CUSTOMERS: During the last year-on-year period, did your customer base grow or shrink? About how much?
2024 IL MARKET RESEARCH: LOGISTICS IT STEPS UP
WHAT DRIVES DEMAND FOR LOGISTICS IT? We asked vendors where—function, vertical market, or geography—they see the most growth in demand for new supply chain, logistics, and transportation technology. Here’s a sampling of their answers: • The transportation industry has always dealt with fraud, but nothing compares to the fraud that has infiltrated the industry in recent years. There is growing demand for fraud detection technologies, including load tracking and scheduling technology. • Emerging markets like Southeast Asia witness a rising need for last-mile delivery solutions due to urbanization. In developed regions, demand is prominent for predictive analytics and AI-driven optimization tools to enhance overall supply chain visibility and efficiency. • In response to labor challenges, we’ve observed a notable surge in demand for labor management systems across various sectors, notably in warehouses and distribution centers. These organizations face mounting pressure to enhance throughput while optimizing resources. • In Europe, some countries have started imposing a CO2 tax, and fuel costs have risen dramatically, so the logistics sector has a strong interest in reducing fuel usage through optimized routes. • In the realm of real-time tracking and visibility, there’s a surging demand for IoT [Internet of Things]-enabled devices and advanced analytics platforms. These technologies allow businesses to monitor shipments in real time, predict potential disruptions, and optimize routes. • We are seeing a rapid increase in companies below $500M in annual revenue looking to invest in digital supply chain transformations and move away from current homegrown, point- based or spreadsheet-based solutions toward end-to-end orchestration.
Down 5 % 1 %
No change 10 %
Up 20 % 31 %
Up 15 % 10 %
Up 5 % 25 %
Up 10 % 19 %
48 Inbound Logistics • April 2024
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