Transportation and logistics (T&L) companies are losing customers and missing opportunities to expand their business due to outdated last-mile delivery technology, according to a new global research report by mobile and IoT management solutions provider, SOTI.

Despite the T&L industry dealing with unparalleled demand and strict social distancing measures, the report discovered that almost half (49%) of all T&L companies globally, and 50% of those in Australia agree their organisation has outdated technology, rising to 56% of all large organisations.

Half of all T&L executives globally, and 36% of Australian T&L executives, whose organisations are using outdated technology, believe they will lose customers, or have already lost customers, because of it. While almost a third (30%) of all senior management directly attributed using legacy technology to falling behind their competitors.

This outdated technology is also affecting the ability to expand and/or respond to challenges in the current climate. More than a third (37%) of all companies globally, and 36% of those in Australian with outdated technology, said that legacy technology has prevented them from sufficiently upscaling during the COVID-19 crisis, while 36% of all companies globally, and 46% of those in Australia agreed their organisation would benefit from having improved real-time support for mobile devices during times of crisis.

‘Mobile-first’ strategy seen as the solution

By adopting a mobile-first strategy, T&L companies can gain visibility into critical aspects of their supply chain and leverage real-time decision-making to improve workforce productivity and create better, more responsive experiences.

Twenty-nine percent of all senior executives said that introducing or growing a mobile-first strategy is their current priority to drive their business forward.

Meanwhile, two-thirds (65%) of all respondents, and 74% of those in Australia agreed their organisation would benefit or has already benefited from having an effective mobile-first strategy for the last-mile delivery. More than half (58%) of all, and 70% of those in Australia surveyed, who already have a mobile-first strategy for last-mile delivery, agree that it’s effective and has reduced their operational costs.

SOTI vice president of product strategy, Shash Anand said the COVID-19 pandemic has intensified the rapid shift from brick and mortar retail to e-commerce, and the stakes have never been higher.

“As consumers increasingly turn to online retailers to fulfil their purchasing needs, fast shipping is no longer a luxury – it’s an expectation. T&L companies are falling behind with outdated technology, especially around the last-mile delivery, and it is resulting in lost customers and missed opportunities.

“By implementing a robust mobile-first strategy, companies will not only be able to provide better customer experiences, but will increase speed, minimise costs, ensure transparency in the delivery channel for the customer and edge out the competition.”