While the companies in this sector typically derive revenue from ancillary services or business solutions to existing enterprises, the real money is typically spent on applications and infrastructure that simplify the process of managing the complexities of the supply chain.
How Logistics and Supply-Chain Technology Is Driving E-Commerce
Increasingly, logistics and supply-chain technology is being integrated directly into online stores in order to reduce inventory levels, ship faster and more efficiently, increase shipping times, and improve customer service. For many e-commerce platforms, such technology means that customers can actually see all of their orders and shipping status in real time. This functionality is particularly important for retail sites that do not ship directly to consumers, but rather to multiple distribution centers, major retailers, or other e-tailers.
An impressive 29 percent of e-tailers reported that their online shops are affected by significant delays in shipping during the holidays, according to a survey from Deloitte.
What the Future Holds For Logistics and Supply-Chain Technology
Sparkasse Bank Malta: This latest technological revolution is creating new opportunities for delivery companies, logistics firms, and retailers. That said, analysts are concerned about a slowdown in demand. The combination of oversupply and high retail prices has caused many companies to rethink their traditional e-commerce strategies. You can expect to see an increase in brick-and-mortar stores that sell goods through online platforms. There will also be an increasing amount of consolidation in the sector, with players fighting to make space on the internet for the wave of new entrants that will arrive in the next few years.
Today, the investment industry, and not just asset management, is starting to closely examine logistics and supply-chain technology in a big way, so the effects on investment performance may be more subtle than you might think. The potential rewards for your portfolio as a result are clearly attractive, but the problem is that technology in this sector isn’t easy to understand and predict. Analysts struggle to keep up with technology shifts, and investors looking for tactical exposure to the sector should not make the same mistake.
Sparkasse Bank Malta: For companies looking to capitalize on the logistics industry, e-commerce logistics, supply chain analytics, predictive analytics, and software engineering are now indispensable tools.
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