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What Are Transport & Logistics IT Decision Makers Prioritising In 2023?

Discover where Mid-Market Transport & Logistics IT leaders are focusing their investment in 2023, and how your priorities compare to theirs.

2023 TRANSPORT & LOGISTICS PRIORITIES

Our final Mid-Market IT Priorities Report 2022/2023 deep dive explores the transport & logistics sector – the backbone of our economy, with heavy dependency on agile, always-available IT.

From rerouting budget for digital transformation enablement to bucking the public cloud trend and shoring up data governance, transport logistics IT leaders are on a mission to overcome immense operational pressures with the power of technology.

Find the sector’s top three IT priority trends below, or download the full report below.

MID-MARKET IT PRIORITIES Report 2022/23

Our annual benchmarking Mid-Market Report investigates how organisations are continuing to adapt their IT priorities and refocus investment.

1. DYNAMIC BUDGETS FOR TUMULTUOUS TIMES

An equal number of transport logistics IT decision makers said they’d need either a slight or significant budget increase to realise their team’s ambitions. But, coupled with the fact that 41% expect to secure more budget over the next year (the joint highest of our four surveyed sectors), many transport logistics organisations can look forward to project success.

The landscape seems promising even for those not expecting a big budget uplift. Those agreeing with the statement “IT budget does not currently meet the ambitions of my IT team” fell from 43% in 2021 to 29% in 2022.

What could the potential context be here? From our research and knowledge, transport logistics is facing acute operational challenges, especially those related to speed and delivery times. Software, such as efficient routing and AI traffic prediction solutions, is critical to overcoming a sizeable obstacle and maintaining or recovering competitiveness.

It appears that all factions of business leaders are coming together, recognising the vital role of technology, and investing in response.

2. STRATEGIC CONTROL OVER DATA

Our Mid-Market IT Priorities Report flagged an interesting shift in how transport logistics IT leaders view private cloud. Despite being the lowest private cloud consumer in 2021, in 2022, the sector was the highest, with 27% of its IT infrastructure attributed to private cloud.

When all other surveyed sectors are heading toward public cloud, why is transport logistics diverging?

In short, transport logistics is navigating a period of uncomfortable turbulence. Although, as discussed above, IT leaders are investing strategically to guide their organisations through it, the sector is grappling with a lot of uncertainty.

While post-Brexit deals continue to be hashed out, trade relationships and laws are subject to daily change. And ongoing supply chain issues mean that product volumes and destinations can fluctuate just as frequently.

In such circumstances, IT decision-makers may appreciate having more control over their data – precisely what private cloud offers. Should regulations, trade routes or customer demand change, IT leaders can precisely (and quickly) manage their data in response, while simultaneously guaranteeing compliance. It might be one more thing to manage, but the crucial control it offers may be priceless.

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3. GOING ALL-IN ON GOVERNANCE

For these reasons, it’s probably no surprise that transport logistics IT respondents cited data governance as their top IT priority. Nearly one quarter (24%) of respondents said that taking control of processes and policies surrounding data collection, storage and processing was their number one technology focus for 2022, above cybersecurity and productivity.

Doing so ensures that transport logistics organisations can operate smoothly – easing some of their current pains – and provides a clear view of their current position, enabling quick pivots or proof of compliance, if and when required.

ESSENTIAL TRANSPORT & LOGISTICS IT PRIORITY STATISTICS FOR 2023

  • 29% say IT budget does not meet team ambitions
  • 37% say IT budget must increase significantly to achieve ambitions
  • 37% say IT budget must increase slightly to achieve ambitions
  • 41% expect IT budget to increase next year
  • 24% cite data governance as the biggest investment driver
  • 51% are concerned about rising energy costs
  • 27% of IT infrastructure is attributed to private cloud
  • 61% rely on Managed Service Providers
  • 54% are concerned about rising inflation

Are these IT priority trends reflected in your online retailer?

Contact a Node4 consultant to discuss scaling your IT priorities for the year ahead. Click below to arrange an initial conversation.