The global supply chain has never been more complex or prone to disruption, including geopolitical conflicts, climate-related natural disasters, economic volatility, and labor shortages. Undoubtedly, a lot has happened over the last few years. Businesses are constantly navigating a landscape of unforeseen risks. Statistics highlight the severity of these supply chain issues.
Supply chain disruptions have a significant financial toll. For instance, the average shipping costs of a disruption are approximately $1.5 million per day, with some sectors, such as high-tech and oil & gas, facing even higher daily losses. Furthermore, supply chain snarls are estimated to be responsible for about 60% of recent inflation and have reduced corporate revenues by 6-10%.
The key to overcoming these challenges lies in a multi-faceted approach that combines strategic planning, technological investment, and a shift towards more agile and supply chain resilience models. How do you think? Does that give us a common sense?
We know that tools like supply chain management software and control towers provide real-time visibility into operations, not just from today, but from the start. They can help companies identify and address bottlenecks. However, there is much more to share, which you'll learn about in this article.
These figures underscore the stark reality that traditional just-in-time models might be insufficient. The modern supply chain demands a new approach. Our next article, undercover for you, is the unseen battle. It delves into the heart of these supply chain challenges and, more importantly, provides a roadmap for building resilience.
What are the challenges in logistics and supply chain management?
Frankly speaking, we have seen numerous examples that provide excellent references for addressing supply chain challenges. For instance, consider a pharmaceutical company that was a leader in its field for years. They took immense pride in their manufacturing floor. But the company's success story often ended at the factory gates.
Beyond them lay a different world, the sprawling, complex landscape of its logistics and supply chain. Here, in the cavernous warehouses and on the long, winding roads, a different reality existed. Inefficiencies crept in. There were multiple error-prone actions, and costs soared, consuming a staggering 95% of the entire supply chain budget. The same relentless focus on perfection that defined their manufacturing operations simply didn't exist here.
Then came a pivotal moment. The company's leadership, inspired by their own success, asked a simple questions. What if we applied the same lean mindset to our warehouses and transportation network? What if we treated our logistics not as a cost center to be managed by supply chain managers, but as a system to be perfected? What about a whole bunch of supply chain issues?
The results were transformative. By scrutinizing every last-mile delivery, every piece of documentation. What's more? For every warehouse process, they discovered a path to extraordinary savings. They learned that they could cut warehousing costs by 20% to 50% and reduce transportation expenses by up to 40%. The company found that the most significant opportunity for improvement wasn't a new frontier at all, it was the very part of their business they had overlooked for too long.
By observing this situation in the supply chain and logistics, we could refer to a four-tier problem level. Here is our founding:
1. Eliminating waste and reducing costs
Last-mile delivery. Streamlining routes and processes to reduce costs associated with the final leg of delivery. Actually, last-mile delivery, like other supply chain operations, requires a bit of depth, as it is a subject of considerable interest and genuine relevance.
Emissions-related costs. Optimizing transport to minimize carbon footprint and fuel consumption, thereby lowering costs and meeting environmental goals. This can help with a more resilient supply chain quite smoothly and improve operational efficiency.
Returns processes. Creating an efficient reverse logistics system to speed up returns and minimize associated handling of goods and inventory, bigger warehouse space, and administrative waste.
While we focus on improving stock management and the returns process, it all boils down to the delivery experience. The best insights have been provided lately by DHL. They stated that the delivery experience has a direct, positive impact on inventory levels and stock management. Offering customers more control over their deliveries, such as the ability to choose a time slot or a more precise delivery time, a feature desired by 37% of online shoppers is a crucial step.
By empowering customers satisfied with real-time tracking and delivery flexibility, businesses can significantly reduce the costs and complications associated with failed deliveries, which directly impacts inventory. Fewer failed delivery attempts mean fewer parcels are returned to the warehouse, reducing the need for costly reverse logistics processes and ensuring your stock remains where it needs to be, so in the hands of the customer. Ultimately, a better delivery experience leads to fewer returns and a more streamlined inventory flow, supporting overall stock improvement.
2. Improving efficiency and reducing variability
Warehousing errors and stock imbalances. Implementing lean techniques like 5S and poka-yoke error-proofing to prevent mistakes, ensure accurate inventory, and maintain optimal stock levels. However, we're not going to discuss safety alone, although it is deeply intertwined with the processes in the warehouse. What's more? We need to keep transparent communication to better overseas operations in this competitive market, so managing inventory isn't the only case. Looking for shifting market conditions along with market demands, controlling costs is very difficult. So, keep in mind that diversifying suppliers can help, but it makes it more complex when it comes to warehouse management. So, tracking supplies with systems is crucial to tackle future challenges and prepare better contingency plans, while consumer demand is growing.
Upon a thorough examination of the details, we may conclude that warehouse problems, errors, and issues are very diverse. For example, some of our consultants have worked in logistics and supply chain in the Netherlands over the years. Considering their work experience, we have observed that human errors are the most common and significant area. To put it simply, we need to focus on the training, specifically a high-quality one.
Therefore, if we narrow down this subject, we can refer to the data from the survey handled by the provided hardware. They conducted a study in warehouses using a questionnaire that garnered more than 800 responses from warehouse staff and their management. This approach provided them with a comprehensive view across various roles and regions. The participants included a balanced mix of personnel, with 51.8% being entry or intermediate-level staff, while 25.9% were managers and 22.3% were team leaders. The survey's scope encompassed the manufacturing, distribution, transportation, and logistics sectors, with respondents from the United States, the United Kingdom, Germany, Austria, and Switzerland.
Upon starting this subject, we have observed that maintaining and improving warehouse productivity is a primary concern for staff, with nearly two-thirds (65%) of all warehouse workers expressing concern about it. The data shows that warehouses have three key areas to focus on to boost efficiency and reduce errors: the workforce, processes and layout, and data.
As I mentioned already, to a great extent, productivity hinges on the people on the floor. According to warehouse workers, having the right people is a top requirement for productivity, with 76% citing this as a critical factor. It highlights the importance of effective hiring, training, and retention to ensure a skilled and capable workforce.
Going further down the road with this subject, a well-designed physical environment and clear workflows are also seen as essential. The data indicate that a significant majority of workers believe that improving processes and workflows in the supply chain, over 72% and optimizing space and layout 66% are crucial for boosting productivity. It suggests that warehouses should focus on continuous improvement and innovative design to minimize wasted time and movement.
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Explore moreSupply chain monitoring. Utilizing real-time data and monitoring tools to eliminate information gaps and improve visibility, enabling proactive problem-solving. There is no doubt that the role of data and technology is incredibly high. While a substantial majority of warehouse workers (77%) trust the data they have, a significant disconnect exists in how that data is collected and analyzed. A surprising 36% of companies still rely on outdated methods, such as third-party audits with clipboards and paper.
This reliance on manual, paper-based processes is a significant source of potential human errors, underscoring a critical need for digital transformation by replacing these outdated methods with modern technology. Therefore, it's clear that supply chain monitoring supports warehouses and enables them to achieve greater accuracy, leveraging their data to identify and address inefficiencies. There is no doubt that, ultimately, reducing errors and enhancing productivity.
Supply chain coordination. Enhancing communication and collaboration among all stakeholders to ensure a smooth, synchronized flow of goods and information.
Rolling stock management. Applying predictive analytics for rolling stock to better manage and utilize transportation assets, reducing variability, and ensuring availability.
The global rolling stock market is entering a period of significant growth, with a Compound Annual Growth Rate (CAGR) projected to be between 4% and 6% from 2023 to 2030. This expansion is driven by several key external factors, including increasing urbanization, the push for more sustainable transportation, and the expansion of rail networks.
While smaller, emerging markets in Latin America and the Middle East, and Africa are expected to see the highest growth rates, mature markets in Europe, the Asia Pacific, and North America will still contribute the most significant overall share of growth, albeit at a more modest rate of 2% to 3% per year. This dynamic market environment, characterized by fluctuating demand, technological advancements, and a focus on decarbonization, makes proactive rolling stock management more critical than ever.
To navigate this complexity, companies must apply predictive analytics and other data-driven tools to better utilize their transportation assets, reduce operational variability, and ensure fleet availability, thereby capitalizing on the growing demand.
3. Optimizing and standardizing operations
Logistics documentation. Replacing paper-based processes with digital systems to eliminate administrative waste, reduce errors, and accelerate customs and border clearance. According to estimates from the International Road Transport Union (IRU), switching to electronic documentation can offer significant cost savings, reducing handling costs by as much as 25-30%. An essential step towards this digital future was taken in 2019, when an additional protocol was added to the CMR Convention, introducing the E-CMR, an electronic consignment note for international road transport.
While many countries, including Poland, have ratified this protocol, implementation has been slow. For instance, Poland or the Netherlands, to the same extent, ratified the change in September 2019, but have not yet adopted the E-CMR. So, for example, there are pending broader EU-wide efforts to standardize paperless logistics. To accelerate this transition, the European Commission issued Regulation (EU) 2020/1056 on electronic freight transport information (eFTI), encouraging the widespread adoption of digital documentation across the logistics and freight industry and logistics providers, multiple suppliers.
Driver management. Standardizing processes and providing clear guidelines to improve driver efficiency and satisfaction, which can reduce delays and errors. So, customer satisfaction is a must. In mid-2020, the logistics industry faced a significant shift in its workforce. The total number of people employed remained steady at 2.58 million, but a closer examination of the numbers reveals a growing challenge in driver management. The UK experienced a sharp decline in EU nationals, with 79,000 fewer EU workers in Q2 2020 compared to the previous year, representing a 23.6% decrease. This decline was particularly severe in critical roles, as the data shows the decrease was most pronounced for HGV, van, and forklift drivers.
This shift created a pressing issue for logistics operations. In the same quarter, there were 25,000 fewer HGV drivers overall, a 6.7% year-on-year reduction. The vast majority of this was due to a 36.3% drop in EU drivers. While an increase in UK workers offset the overall employment numbers, these new workers largely filled different, often lower-skilled, roles. This non-like-for-like substitution left a void in the transport sector, highlighting a critical talent gap. In an industry where over half of occupations pay less than £25,600 and nearly 70% are low- to middle-skilled, attracting and retaining qualified drivers is a significant management challenge.
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Explore more4. Mitigating risks
Delays at borders and customs. Standardizing documentation and processes to ensure compliance and avoid costly and time-consuming delays. Based on data from the C-BRTA, cross-border trucking operations on the North-South Corridor in the South African region are plagued by severe and costly delays. Of course, we skip a bit from region to region, but it's only to give you that broad perspective of global operations. To speak, the supply chain problems in Europe and the US aren't significantly different from those in Africa, or in more advanced states and countries like South Africa.
Sticking to South Africa, a journey from Johannesburg to Lusaka takes a total of 176 hours, of which a staggering 81%, or nearly 142 hours, is lost to government regulatory stoppages. Customs processes alone account for the lion's share of this downtime, consuming 136 hours on the northbound trip. While the southbound journey from Lusaka is slightly more efficient, it still sees trucks spending 55% of their time, or over 96 hours, waiting at the border, with customs taking up the most significant portion. These lengthy and expensive border delays underscore the critical need for standardizing documentation and processes. By proactively managing documents to ensure compliance and digitalizing procedures, logistics companies can significantly reduce the time trucks spend idling, thereby improving efficiency and avoiding substantial financial losses.
Cargo theft. Implementing robust security measures and real-time tracking to protect high-value goods and prevent financial losses. Cargo theft remains a significant and growing risk for the logistics industry, with major incidents exceeding 13,500 in 2024. This trend is expected to worsen in 2025, with an anticipated increase in events from 2,217 to 2,705. As the data show, these thefts are not random, they are concentrated in major freight hubs and large cities, with hotspots in states such as California (32%) and Texas (19%). The risk extends across a wide range of goods, with electronics (24%), Home & Garden (10%), and Food & Drink (10%) being particularly vulnerable.
Given this ongoing threat, implementing robust security measures and real-time tracking is paramount. By investing in technology that provides live updates on a shipment's location and condition, businesses can quickly identify and respond to potential diversions or unauthorized stops. It not only protects high-value goods, such as electronics, but also helps to prevent the significant financial losses associated with theft, which can include the cost of the goods themselves, lost revenue, and damage to customer trust. Proactive cargo theft prevention, through a combination of enhanced security and continuous monitoring, is no longer a luxury but a fundamental component of effective logistics management. This can surely help you ensure business continuity.
Reinventing logistics and supply chains through technology
Digital transformation is reshaping logistics, making networks faster, smarter, and more resilient. From real-time visibility to predictive planning, technology now drives efficiency, agility, and sustainability across supply chains. Automation and analytics reduce human error, cut idle time, and shrink emissions while ensuring smoother delivery flows and stronger customer satisfaction.
Below are three approaches that show how digital tools elevate logistics performance, lower operating costs, and strengthen supply chain resilience.
Fully custom solutions
Custom-built logistics platforms align technology with your exact operations, integrating route optimization, predictive customer demand forecasting, IoT tracking, and warehouse automation. With AI-driven decision engines and unified data dashboards, custom systems minimize waste, streamline movement, and deliver the highest ROI over time.
Hybrid solutions
Hybrid models enhance your existing TMS, WMS, or ERP with targeted modules and automation features. These bridge data gaps, enable smart routing, and add sustainability tracking without overhauling core systems. They’re quicker to deploy and scalable, though careful integration planning is key to avoiding data fragmentation.
Ready-made solutions
Off-the-shelf logistics platforms and digital freight services provide a fast path to modernization. They include pre-built workflows, real-time shipment visibility, and automated dispatching. Ideal for quick efficiency wins, these solutions accelerate digital adoption and can evolve into hybrid or custom ecosystems as your network grows.
By choosing the right mix of technology, whether custom, hybrid, or ready-made, companies can streamline operations, cut costs, and improve sustainability. Digital tools not only enhance efficiency but also provide the insights needed to adapt quickly, turning logistics and supply chain networks into agile, resilient engines for growth.
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Explore moreAdexin’s key services and solutions that integrate seamlessly into business
At Adexin, we don’t just deliver software, we become your technology partner, helping logistics companies streamline operations and scale efficiently. With a deep understanding of logistics and supply chain management processes, we develop working, tailored digital solutions that integrate smoothly into your existing workflows rather than forcing you to adapt to new ones.
We understand how difficult it can be to implement IT within live logistics environments. That’s why we don’t push pre-built systems, we create them with you, ensuring every solution fits your real-world operations and delivers measurable value from day one.
Our expertise covers a wide range of solutions for logistics challenges:
Freight management systems. For optimizing route planning, managing transport documents, and providing accurate analytics.
Fleet management solutions. Data-driven solutions with unique algorithms for fleet control and business operations.
Supply chain control tower solutions. Focus on demand and supply planning, advanced analytics, and seamless integrations.
Warehouse management systems. Custom solutions for better control of warehouse operations, including order and inventory management.
Transport management systems. For route planning, shipping document management, and fleet management.
Document management systems. Customized solutions for improving document control and automating processes like invoice approvals.
Order management systems. To optimize the management of orders, returns, and analytics across multiple functions.
Software asset management tools. Special tools for logistics businesses that provide equipment tracking, real-time asset monitoring, and RFID asset tracking.
In addition, we develop custom ERP and procurement management systems (PMS), as well as provide full-cycle web and mobile app development tailored for the logistics industry.
See how our expertise translates into real-world success:
Digital Material Passport app
Our blockchain-based DMP app was developed for a client focused on sustainable logistics and material traceability. The application enables the creation and management of digital passports for raw materials, ensuring full lifecycle transparency and regulatory compliance. It supports data exchange across supply chain partners and helps businesses meet emerging sustainability standards while improving operational visibility and accountability.
Order management system
Our eProcurement solution for ITS Astra showcases our ability to build tailored procurement platforms that simplify complex purchasing workflows. Developed for an organization managing large-scale educational resource distribution centers, the system automated supplier performance coordination, streamlined approval processes, and introduced real-time analytics for better decision-making. The result was improved efficiency, transparency, and cost control across the procurement lifecycle.
Browse our case studies to discover how we’ve helped companies like yours build digital systems that work and keep working in the real world.
Today's actions to build the digital supply chain of tomorrow
The logistics and transportation (T&L) sector stands at a pivotal crossroads. While an overwhelming 90% of industry experts acknowledge the strategic importance of data and analytics more than in any other industry, progress toward digital transformation remains slow. Only 28% of T&L companies consider themselves advanced in digitization, placing them well behind customers in industries such as automotive and electronics. This digital lag represents both a critical risk and a massive opportunity.
Companies that embrace digital transformation in the next few years will fundamentally reshape how supply chains operate. Here’s what that future could look like:
Smarter decision-making through data. With vast amounts of operational data available, organizations can harness AI and machine learning to enable dynamic routing, predictive maintenance, and accurate customer demand forecasting, improving both supply chain performance and efficiency.
Agile and resilient operations. Cloud-based logistics platforms allow for rapid scalability and create new business models such as virtual freight forwarding, reducing costs while improving service responsiveness.
Process standardization and integration. For companies that have expanded through mergers or acquisitions, digital platforms can unify fragmented systems, improving transparency and cross-department collaboration.
Risk reduction. Digitized documentation, real-time tracking, and automated workflows help mitigate border delays, theft, and compliance supply chain issues, reducing financial loss and reputational risk.
In short, digitalization transforms supply chain management from reactive to proactive systems, positioning companies to thrive in the face of future supply chain disruptions.
Despite the clear advantages, the logistics sector continues to face serious implementation hurdles. Key inhibitors identified in recent surveys include:
Financial barriers and security concerns (38%). High upfront investment costs, combined with ongoing uncertainty around accurate data privacy and cybersecurity.
Lack of leadership and vision (33%). Many organizations lack a coherent digital operations strategy and strong executive support for innovation.
Talent shortages (26%). A persistent skills gap limits companies’ ability to manage advanced technologies effectively.
These supply chain issues highlight not just technological barriers, but also organizational and cultural inertia that slow progress.
Failing to act on digital transformation will have severe and lasting consequences:
Rising financial and operational inefficiency. Companies reliant on manual or paper-based systems will continue to face high operational costs, documentation delays, and limited supply chain visibility. Without predictive analytics, they’ll remain reactive, unable to prevent supply chain disruptions or manage supply chain risks proactively.
Erosion of competitive edge. Competitors already investing in digital capabilities will become more resilient, efficient, and customer-centric. Those who delay will find it increasingly difficult to meet evolving customer expectations, scale operations, or recover from future supply chain disruptions. In a rapidly digitizing global economy, this could mean permanent market displacement.
We offer custom software development services created specifically for the logistics industry, built to address the exact supply chain challenges outlined above. Our multi-tiered digital transformation approach focuses on:
Freight, fleet, warehouse, and document management systems tailored to your operations.
Integration and automation to eliminate inefficiencies and manual errors.
Data-driven optimization to improve agility, reduce costs, and support strategic decision-making.
Custom-built solutions empower businesses to move beyond generic commercial software, achieving sustainable growth through innovation, scalability, and smarter supply chain management.
The logistics and transportation sector cannot afford complacency. The gap between digital supply chain leaders and laggards is widening, and the next 18-24 months will be decisive. As customers, partners, and competitors accelerate their digital journeys, those who invest now will set the standard for the industry, while those who delay may never catch up.
Digitalization is no longer optional, it’s the foundation of future competitiveness in global supply chains.
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Contact usFinal takeaway
The logistics and supply chain management sector is entering a defining era where agility, visibility, and digital transformation determine success. Businesses that adapt today will not only survive supply chain disruptions but also lead in efficiency, sustainability, and customer satisfaction. The key lies in embracing technology that integrates seamlessly with real-world operations.
At Adexin, we build custom logistics software spanning freight, fleet, warehouse, and transport management systems engineered to address your specific supply chain challenges. Our solutions drive measurable ROI through automation, real-time data, and predictive insights. Don’t let inefficiency slow you down and start your transformation now.
Connect with Adexin to discover how a tailored digital ecosystem can future-proof your operations and keep you ahead of the curve.