Recent research commissioned by Here Technologies in collaboration with Amazon Web Services (AWS) has uncovered significant disparities in adopting basic data analytics and artificial intelligence (AI) within the UK’s transport sector. The study, part of the global ‘On the Move’ survey, highlights a lack of sustainability goals and progress towards achieving real-time supply chain visibility among transportation and logistics companies in the UK.
AI adoption and data analytics
According to the survey conducted by YouGov, only 50% of logistics firms in the UK are utilizing basic data analytics, significantly trailing behind counterparts in Germany (41%) and the US (63%). Moreover, a mere 19% of UK organizations are deploying AI in critical areas such as demand forecasting, indicating vast untapped potential for leveraging AI to modernize logistics operations and inform strategic decision-making processes.
Cost emerges as the primary obstacle hindering widespread data technology adoption in the UK, cited by 26% of logistics professionals. Additionally, 13% of respondents express concerns about a lack of internal expertise and resources. Interestingly, the primary concerns in the US and Germany revolve around potential disruptions to existing processes and services.
Preference for external providers
The study reveals that 76% of UK companies prefer approaching external providers for technological solutions rather than developing in-house capabilities. This preference underscores a reliance on external expertise and readily available solutions to overcome internal resource constraints and accelerate technological adoption.
Despite the global emphasis on sustainable practices, the study unveils a significant gap in the prioritization of sustainability among UK logistics companies. Over 60% of logistics professionals admit their operations lack defined sustainability goals tailored to their transport and logistics operations, with 33% having no plans to define such goals in the foreseeable future. Notably, sustainability ranks lowest among seven end-to-end supply chain and logistics management considerations in the UK.
Supply chain visibility
While most transport and logistics professionals in the UK and the US believe their companies are progressing toward achieving real-time supply chain visibility, less than a quarter of respondents perceive their operations to have made significant progress.
This suggests a pressing need for enhanced tools and capabilities to optimize fleet deployments, routing, and mode switching, mitigating disruptions and improving overall operational efficiency.
Despite the emphasis on improving driver routing, the survey indicates that UK logistics businesses are not fully leveraging location data. Only 41% of UK organizations currently utilize location technology for driver routing, while 30% employ it to enhance on-time deliveries.
However, less than a third of logistics firms (28%) utilize location data to optimize route planning and transport logistics, highlighting a missed opportunity for optimizing operational efficiency and reducing emissions.
