Logistics companies are often described as conservative technology buyers, but operational risk helps explain that stance. A small data error can affect warehouse availability, transport planning, partners and final delivery.
A survey of 150 senior logistics and supply chain technology decision-makers, cited in NashTech’s report Differentiating with Custom Software in Supply Chain and Logistics, found that 43% saw better integration with existing systems as a primary reason to develop custom software. Innovation or differentiation was selected by 33%.
The findings point to a sector focused on practical value rather than a lack of ambition. Many operators have accumulated warehouse, transport, enterprise and customer platforms through growth and acquisitions. Replacing the full technology estate is rarely realistic, making targeted integration an important route to improvement. NashTech highlights the role of custom software in improving information flow and reducing manual workarounds.
Artificial intelligence will intensify the challenge. While 71% of technology leaders expect increased AI adoption to have a major effect on custom software development, 46% have struggled to connect advanced AI with legacy systems. A further 44% report a shortage of relevant internal expertise.
The commercial priority is therefore to identify recurring losses of time, accuracy or control before selecting a tool. In some cases AI will be appropriate; in others, integration or a simpler process change may deliver more value. For logistics networks, disciplined technology selection can be a competitive advantage in its own right.
A multilingual professional experienced in Europe, Canada, and China, Herbert has developed invaluable networks in the automotive and energy industries. He has led high-profile projects involving ENBW, Mercedes-Benz Group, Siemens Group, and the Fraunhofer Institute.