Logistics is the lynchpin for global economies and continues to grow due to constant technological advancement. Modern logistics entails the integration of multiple processes. Yet, it faces an increasing wave of disruptions driven by shifting consumer behaviors, the rise of e-commerce, and the ever-evolving technology landscape, all amid a backdrop of enduring market uncertainty.
To ensure sustainable logistics, advanced technology and IT infrastructure development are critical. Independent Software Vendors (ISVs) catering to the Transportation and Logistics (TLS) domain are struggling to keep pace with advanced technologies in the face of recession. They need an ever-ready infrastructure that can power business-critical applications while offering the agility and flexibility to stabilize, optimize, and manage their business effectively.
Speaking of challenges being faced by the TLS sector, the leader of a reputed container trading company in the US elaborates, “We face high demurrage and detention charges, operating costs, and other charges pertaining to container storage and transfers. The demand is not coming back anytime soon; on the other hand, the capacity and supply of containers are abundant. Most of us are trying to build resilience and consistency in our operations. This is business critical.”
A recent survey found that nearly 70% of global logistics executives are preparing for a potential recession. They anticipate higher costs, reduced demand, ongoing supply chain disruptions, tight labor markets, and volatility.
In response to these challenges, global talent and managed infrastructure services providers harness emerging digital technologies to automate processes and provide real-time performance data on output, agility, and quality. These solutions address a spectrum of critical issues for TLS ISVs, spanning database infrastructure, security, network connectivity, compute management, data storage, regulatory compliance, and asset management.
Partnering with technology experts can fuel innovation through infrastructure management solutions, unlocking personalization, fostering growth, and ensuring competitiveness.
Infrastructure Challenges are Often Complex and Call for Recession Resilience
Managing mission-critical workloads with an end-to-end infrastructure requires deep expertise. This is where managed infrastructure services, led by global talent, come to the rescue of ISVs. They not only keep their business ahead of the technology curve but also free up in-house teams to manage business-critical tasks. It also plays a significant role in insulating supply chains from the potential consequences of an economic downturn that can impact networks and distribution channels in a big way.
Some of the most daunting challenges TLS software providers need to address in these difficult times include:
- Automating business processes
- Integrating and managing complex systems
- Managing IT infrastructure
- Provisioning and configuring infrastructure
- Maintaining backups and upgrades
- Upholding cybersecurity requirements
- Providing technical support to the workforce and clients
- Addressing storage and server needs
- Managing threats in real-time
Responding to Recession with Managed Infrastructure Services At the Helm
Managed infrastructure services providers possess the power to build a resilient future of mobility and connectivity. They have the right tools, applications, and platforms to optimize global supply chains and empower logistics companies to develop sustainable strategies, resolve inefficiencies, and improve cost performance.
Here’s how they can help achieve distribution reliability while ensuring customer satisfaction even during the economic slowdown. Take a look.
1. Leveraging Advanced Digital Technologies to Optimize IT Infrastructure
Modern logistics companies rely on data visualizations to see the bigger picture and streamline processes with automation. Managed infrastructure services providers can empower these companies with advanced technologies like Machine Learning (ML), Artificial Intelligence (AI), Blockchain, Augmented Reality (AR), and Virtual Reality (VR), moving them toward a digital infrastructure that, in turn, speeds up innovative developments. In an industry where competition is high and margins are low, IT infrastructure management services help manage technology, information, and data in a proactive manner to minimize downtime and keep your business productive. They help reduce time-to-market, cut costs, achieve operational efficiency, and improve on-time delivery and customer experience.
So when a small FreightTech company struggled to manage its infrastructure due to the high cost and limited resources, it had to deal with severe consequences. Frequent downtime and data loss were primary concerns, but things changed dramatically when they sought the services of technology experts. It optimized the digital infrastructure at reduced costs and streamlined day-to-day operations. The company is now equipped to overcome economic headwinds and is investing its time in product development and innovation.
2. Addressing Labor Shortages while Ensuring Customer Satisfaction
The persistent challenge of labor shortages within supply chain management necessitates innovative solutions. While larger firms have outsourced specific tasks, others are adding duties to existing personnel. AR and VR technologies enhance digital experiences and play a prominent role in employee training with real-time guidance, thereby reducing the learning curve.
Many modern organizations are entrusting day-to-day business tasks to experts since they focus on delivering organizational outcomes to enable resilience and ensure optimal performance. Through efficient workflows, they monitor service performance and ensure that they are able to do more using the same resources while attaining a high level of customer satisfaction.
Timely and precise delivery is the perfect ingredient to ensure loyalty and customer satisfaction in these uncertain times. A multichannel system is often required to connect with customers across all touchpoints. Communication has to be enabled in real-time, and data sharing should be achieved while maintaining transparency. Technology experts have been ensuring the same using advanced technologies like blockchain that help keep track of the entire product life cycle from the beginning and across all stages of the journey until it reaches the customer.
A mid-sized FreightTech firm, despite a slow start, saw a significant boost in customer base when it sought the services of experts to handle the complex infrastructure requirements stemming from disintegrated systems. Today, they are all set to address customers’ unique needs and changing expectations irrespective of the recession through 24×7 support, cloud infrastructure management solutions, and innovative product development.
3. Tracking Assets through Internet of Things (IoT) Devices
The ability of IoT devices and sensors to communicate and interact has become a game-changer for logistics companies striving to build resilient supply chains. Managed infrastructure services use them for asset tracking, real-time monitoring of cargo and vehicles, and decision-making to ensure the fleet operates at peak efficiency. IoT helps in warehouse and inventory management and ensures reduced waste, work safety, and optimal storage conditions.
Furthermore, AI-enabled routing logic and planning optimization solutions further give logistics companies the edge to ensure timely deliveries even in challenging traffic conditions. With global talent companies by your side, you can leverage predictive tools to forecast not only future demand but also the lifespan of machines and anticipate their maintenance needs.
4. Ensuring Regulatory Compliance and Risk Management
The implications of adhering to industry standards can be dire and far-fetched. Many logistics companies that lack a document tracking system or a centralized document management repository often get into trouble. Logistics companies and FreightTechs, big and small, need day-to-day tracking of compliances to ensure standardization, transparency, and consistency in the audit approach.
Managed infrastructure services have the right people who can help assess critical gaps in statutory requirements and examine licenses, registrations, permissions, approvals, and consents to operate orders to ensure accurate compliance across all business activities. A mid-sized FreightTech company facing compliance challenges related to the Federal Motor Carrier Safety Administration (FMCSA) successfully navigated regulatory hurdles and focused on core competencies with the aid of these services.
However, the scope of managed infrastructure services extends beyond mere compliance. They play a pivotal role in mitigating risks and cyber threats, safeguarding companies from fraud, and preventing costly data breaches that could result in data loss and legal consequences.
Make your Business Recession-proof with Trigent
In this rapidly evolving landscape, a well-optimized supply chain is not just a necessity; it’s a competitive advantage. It helps mitigate risks, navigate disruptions, and meet consumer demand effectively. Customer satisfaction remains a top priority of logistics firms, even as they optimize operations amid economic pressures.
The global talent and managed infra services by Trigent can help pave the path to profitability and a stellar customer experience with innovations and digital solutions aimed at empowering you.