The digitalization of logistics will transform the function — redefining execution, decision making and efficiency.
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Unlock Strategic Value in Supply Chain Logistics Management Through Digital
By Nathan Lease | July 10, 2025
A solid digitization strategy is key to global supply chain logistics success
As supply chain logistics management moves toward automation, high-quality data and advanced decision making are increasingly essential. Digitalizing logistics strategies is now critical for leaders to enable and leverage new technologies.
The 2025 Gartner Future of Logistics Survey found that 86% of supply chain leaders use at least one mainstream logistics technology with interspersed custom systems, while only 14% still rely on technology-assisted manual processes. To drive successful supply chain logistics transformation toward automation, supply chain leaders must refocus on long-term strategy over short-term goals and address internal roadblocks like ineffective change management.
Supply chain logistics management success rests increasingly on technology
Supply chain leaders recognize that technology is a great enabler of successful operations. Over the next five years, their top priorities are enhancing customer experience with more service options, increasing automation and further digitalizing processes and offerings. Successful organizations stay on track by focusing on the following actions.
Prioritize long-term digital strategy over short-term goals
As logistics continues to transform technologies, processes and people, the need for high-quality data and decision-making capabilities is growing.
Having a solid digitalization strategy in place helps ensure that the function can embrace and enable supply chain and logistics technology and succeed in its transformation efforts.
Over 90% of supply chain logistics functions have started or completed a digital transformation within the past three years, and high-performing functions set the logistics digital technology strategy 48% of the time. As supply chain logistics leaders assume more responsibility for digital strategy, organizations will be able to increase process automation and simplify the data and information exchanges that create greater value in decision making.
Identify new technologies for supply chain logistics management operating models
The digitalization of supply chain logistics management is evolving quickly. In the next couple of years, many organizations will undergo transformations that will affect the way they engage with, and draw value from, technology. For example:
94% of supply chain logistics leaders either currently have a supply chain management transportation system or plan to deploy one in the next one or two years.
Half of organizations currently use a warehouse management system or plan to within the next one or two years.
Start the process by evaluating which new technologies (or improvements to existing technologies) are needed to support the target operating model. The answers will depend on your logistics function’s maturity and the state of its existing foundational technologies.
Maximize value from existing technology investments
Organizations cite upgrading data quality, improving decision making and creating an interconnected, digital-first logistics function as the top 3 drivers of increased investment in logistics digitalization moving forward.
This is challenging, because, with the exception of high-performing organizations, 40% of logistics leaders cite the struggle to realize value from existing technology investments as one of their top 3 challenges when trying to achieve an effective digital logistics operation.
Limited value is a top barrier to securing future technology investments. To unlock future investments, supply chain logistics must be able to demonstrate the value of current investments.
Supply chain logistics management FAQs
What is supply chain logistics management?
Supply chain logistics management is the alignment of processes related to the physical flow of materials and products from source to final destination. The objectives of logistics management are:
Global supply chain logistics (import/export)
Logistics transportation
Inbound logistics and outbound logistics
Shipping and receiving
Warehousing
Inventory management
Product purchasing
Production planning
Customer service
What are some best practices for supply chain logistics management?
Use these best practices for supply chain logistics management to optimize operations, reduce costs and enhance service levels:
Optimize warehouse space by improving inventory management, standardizing processes and maximizing storage efficiency.
Leverage technology through advanced systems, automation and data analytics to boost logistics performance.
Enhance collaboration by aligning cross-functional teams and strategically managing carrier relationships.
Drive continuous improvement with regular process reviews and KPI tracking to meet business objectives.
Focus on customer needs by tailoring logistics strategies and maintaining clear, proactive communication.
Strengthen risk management and resilience by preparing for disruptions and increasing supply chain visibility and flexibility.
What is the importance of transportation in supply chain logistics?
Transportation is a critical component of supply chain logistics, enabling the movement of goods from raw materials to end consumers, managing costs through efficient routing and directly impacting customer satisfaction with timely deliveries. The integration of advanced technologies further enhances transportation efficiency, making it a strategic driver of overall supply chain performance and competitive advantage.
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