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As we are approaching the end of the year, we can reflect back on 2023, but we should also start making preparations and provide some predictions for 2024. Well, here’s my technology prediction for next year:
While 2024 will be another challenging year for the logistics industry plagued with many disruptions and supply chain challenges, it will also be a year of continued investment in logistics technology.
The focus will be on back-to-basics investments that can support major business processes and create massive value to the organization. When I refer to back to basics in the context of supply chain and logistics technology investments, I specifically think of the following evolutions in 2024.
First, expect an emphasis on core infrastructure and data quality through modernization of legacy systems. Many companies still rely on outdated legacy systems for their core supply chain functions. In 2024, we might see a shift toward investments in modernizing these systems with solutions that are cloud-based, flexible and offer better data integration.
We will see higher adoption transportation solutions driven by newer, dynamic types of TMSs aided by intelligent optimization. These TMSs will simultaneously offer data cleansing and standardization to ensure accurate and reliable information throughout the supply chain and will help strengthen foundational processes using automation and best practices that lead to significant efficiency gains without requiring complex new technologies.
Second, there will be a rebalancing focus on operational visibility and transparency. Real-time visibility into the location and status of goods continues to be crucial for managing disruptions and optimizing delivery. Additionally, investments in more advanced track and trace technologies like RFID tags or sensor-based tracking systems that provide better insights into inventories at rest will gain traction.
These newer solutions will also allow for improved communication and collaboration. This is important as companies are often still very siloed and the lack of accessibility of information across the organization and the lack of collaboration between different stakeholders can hinder efficiency. Investments in newer types of foundational technologies that offer solutions for scenario planning, supplier diversification and contingency planning will support building more resilient supply chains that can withstand disruptions.
Third, embracing low-tech solutions alongside high-tech will enable lean process optimization. Implementing lean principles and methodologies to eliminate waste and optimize workflows can provide significant benefits without requiring expensive technology. But the human element will remain critical as we will continue to utilize existing human expertise as a core part of transportation processes. Leveraging the expertise and experience of existing workers through training and upskilling programs can be more effective than relying solely on automation in certain situations.
Overall, the TMS technology market is poised for continued growth in 2024, driven by strong demand for cost optimization, e-commerce fulfillment and advanced technology features. Companies that develop flexible, AI-powered solutions catering to specific industry needs and offer seamless integration with existing systems will be well positioned to capitalize on this growth.
While investments in cutting-edge technologies like AI and automation will continue, there is a growing recognition of the importance of addressing the fundamentals in 2024. Back-to-basics solutions, in the sense of focusing on core applications like TMS, data quality, operational visibility and risk management, are likely to see increased investment to strengthen the foundation upon which more advanced technologies can operate effectively.
About the author
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.
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