Logistics is an important element in supply chain management as it involves the management and planning of services and goods from source to destination. The traditional methods adopted by logistics service providers are ineffective in the present business landscape. However, this has induced many logistic service providers to adopt the digitized approach in their business to meet the current requirements. Digitalization has transformed logistics supply chain operations. It has made the activities more customer-centric, efficient, and agile.
The growing demand from various end-user sectors like railways, construction, electronics, and general manufacturers will escalate the growth of the global digitization in logistics supply chain market. Moreover, the proliferating e-commerce industry is likely to make remarkable digital transformations in the logistics supply chain in the forthcoming years. There is a significant surge in the production units across all the sectors in the developing economies thereby, it is further likely to steer the demand for digitalization in the logistics supply chain during the forecast period. However, the large-scale demand for the transportation of bulky raw materials from procurement sites to manufacturing units and finished good storage warehouses need robust digitized solutions to handle huge transportation. Moreover, the emergence of advanced technologies like artificial intelligence and the internet of things are likely to unravel many untapped avenues for digitalization in the logistics supply chain in the forthcoming years.
The global digitization in logistics supply chain market can be segmented into industry verticals, organizational size, component, and region.
By industry verticals, the market can be segmented into oil & gas, healthcare, IT & telecom, manufacturing, BFSI, automotive, and others.
By organizational size, the market can be segmented into large enterprises and small & medium enterprises.
By component, the market can be segmented into services, solutions, and others. The solution segment can further be bifurcated into customer relationship management, order management, fleet management, EDI, tracking & monitoring, and others. The service segment can further be bifurcated into integration and consulting.
Asia Pacific accounts for the largest share in the global digitization in logistics supply chain market due to the influx of several multinational firms in emerging economies like China and India. Moreover, the requirement for real-time monitoring of operations, as well as tracking of supply chain activities during the transit will steer the growth of the regional market.
Some of the significant players in the global digitization in logistics supply chain market are Wipro Ltd., Tata Consulting Services Limited, SAP SE, Oracle Corporation, IBM Corporation, Hexaware Inc., Capgemini SE, Cognizant, Advantech Co. Ltd., and Accenture. To cite, in 2020 Pagero and SAP PE signed a deal to offer extended reach to the SAP Ariba Solutions and Ariba Network globally. In turn, Pagero will offer B2G and B2B exchanges of messages, e-voices, e-orders, and order responses.