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Technology Investments by Logistics on the Rise

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Increased pressure from customers, startups, economic forces, and suppliers is causing senior executives from many top logistics companies to more closely evaluate what role technology will play in reducing their costs (Riedl and Chan 2019). From sales to finance, white‐collar positions in logistics are increasingly seeing that everyday technology available on their phones has not been represented at their work. Using investments in technology by logistics companies as a barometer, the industry is at a tipping point. The investment community has taken notice, and much‐needed capital injections to digitize this traditional B2B industry are happening regularly.

From 2012 to 2017, there were over 3 billion dollars invested in logistics and shipping startups (Riedl and Chan 2019). In response to this, industry‐leading logistics companies are responding in turn by earmarking huge investments in technology. C.H. Robinson, a leading global logistics company, just committed to investing one billion dollars over the next five years, citing technology as having a “profound impact on the supply chain marketplace” (Prairie 2019). Those that do not make the jump will be left behind as there is more and more consolidation in the logistics community through mergers and acquisitions as there is still no “hub economy” logistics player, yet. One of the leading contenders in terms of size and financial resources, Deutsche Post DHL Group's CEO Frank Appel, stated that “Digitalization will change our industry, it will change our company…We want to invest 2 billion [euros] in the next couple of years” (Frangoul 2019). Industry leaders are finally responding and opening up their checkbooks, but have they been too complacent and opened up the doors to new players?

The Digital Transformation of Logistics

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