A recent ‘On the Move’ survey conducted by HERE Technologies and Amazon Web Services (AWS) has revealed critical gaps in the adoption of Artificial Intelligence (AI) and sustainability goals within the UK’s transport and logistics (T&L) sector.
The survey, executed by YouGov, disclosed that only 50% of logistics firms in the UK are currently using basic data analytics. This lags behind Germany, where 41% of respondents utilize such analytics, and the U.S., where the figure stands at 63%. Moreover, a mere 19% of UK organisations are incorporating AI in areas like demand forecasting, highlighting the untapped potential of AI in enhancing logistics operations and strategic decision-making.
Barriers to Tech Adoption in Transport and Logistics
Cost is identified as the primary barrier hindering widespread tech adoption, according to 26% of UK logistics professionals. Additionally, 13% cite a lack of internal expertise and resources. Unlike the UK, logistics professionals in the U.S. and Germany express concerns about potential disruptions to existing processes and services when adopting new technologies. Interestingly, 76% of UK companies prefer external providers with readily available solutions over developing in-house capabilities.
Despite global emphasis on sustainability, the study exposes a significant gap in prioritising sustainability among UK logistics companies. Over 60% of professionals state their operations lack defined sustainability goals tailored to T&L, with 33% having no plans to define such goals. Sustainability ranks as the least important consideration in the UK, indicating a need for increased focus on environmental practices.
Progress Toward Supply Chain Visibility
While over two-thirds of T&L professionals in the UK believe their companies are making some progress (72%) toward achieving real-time supply chain visibility, less than a quarter see this progress as ‘significant.’ The study highlights challenges in achieving full, end-to-end supply chain visibility, with ocean freight being the mode providing the least real-time visibility.
Although improving driver routing is a top priority, the survey reveals that UK transport and logistics businesses underutilise location data. While 41% use location technology for driver routing, and 30% use it to enhance on-time deliveries, only 28% leverage location data to optimise route planning and transport logistics.
Remco Timmer, Vice President of Product Management at HERE Technologies, remarked, “The industry currently lacks the contextual data, AI capabilities, and tools needed to optimize fleet deployments, routing, and appropriate mode switching.” The study serves as a guide to help professionals navigate challenges and opportunities in supply chain, fleet, and logistics management.
To access the full ‘On the Move’ survey report for the UK, visit HERE Technologies.