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Published in:
2022 | OriginalPaper | Chapter
7. Digitalization in Logistics
Author : Björn Helmke
Published in: Project Management in Logistics and Supply Chain Management
Publisher: Springer Fachmedien Wiesbaden
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Abstract
As a cross-sectional function, logistics touches industry and commerce in equal measure—and in all sectors of economy. In this respect, the digitalization of logistics is a topic that is of enormous importance for the entire economy. This has been evidenced not only by the intensive technical discussions, but also by the broad interest shown by the general business press. The debate as to whether the digitization of logistics is imminent in the coming years is anything but controversial. The advantages of networked and integrated supply chains over the current situation are obvious. Although a lot has already happened, especially in intralogistics, companies still have to deal with inadequate transparency, information deficits, and fragmented transport chains in many areas. The use of digital technology can solve many of these problems—in addition, newcomers from the technology industry can efficiently replace some outdated business models.
Hence investing in digitization is worthwhile. Or is it not? Indeed, according to an annual study by Capgemini, almost half of companies increased their IT budgets in 2017, a quarter of them by more than 10%. Given the considerable challenges of digitization, this seems more like a drop in the bucket. A true revolution looks different—especially since a significant portion of the additional budget flows in updating the legacy systems rather than in innovation projects. In addition to this, the digitization of logistics competes with digitization projects from other areas of the company.
The sluggish investment behavior reflects the fact that the digitization of logistics is about detailed work that has slowed down not only due to small budgets, but also due to a wide variety of technical, commercial, and legal risks and, last but not least, the lack of skilled IT staff. None of this will stop the digitization trend. However, it can be assumed that it is progressing more slowly than many technology providers, in particular, would like to admit.