Bob Biesterfeld, Chief Operating Officer and President of C.H. Robinson, one of the largest logistics service providers, has just announced the company’s largest investment in advanced technology and talent. Market research is behind it.
The investment, supported by recent in-depth customer research, will shape the future of the logistics ecosystem. C.H. Robinson has committed to investing $1 billion in innovation and specialist personnel, doubling its previous $1 billion investment in technology over the last 10 years.
“We are a platform-driven solutions company with technology built by and for supply chain experts, powered by our information advantage,” Biesterfeld said in an official announcement.
Speaking at the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference in Anaheim, California, Biesterfeld explained how big data and digital technologies, including artificial intelligence, machine learning and predictive analytics, are having a profound impact on the transport and logistics marketplace. In his opinion, only those who provide leverage for both technology and talent will compete and win in the industry in the future.
According to the research conducted by C.H. Robinson, among over 3,000 shippers who decided to use the company’s services, technology was very important for as much as 88% of them. Visibility and predictive tools are external logistics providers’ most important assets, with 65 percent of customers saying they either have or are planning on implementing real-time visibility and insight tools in the next two years. Moreover, local expertise is key, with 83% of shippers saying that having a logistics partner with local expertise is essential.
Trends that will shape the future of transport and logistics
In Biesterfeld’s opinion, on the basis of the research conducted by the company, it is possible to outline the trends that will shape the logistics market in the coming years. According to him:
People will drive technology. Despite new tools and technologies, people will become more important to the supply chains of the future.
– To go global, we must first go local. As the world becomes more connected, businesses are accessing the global market like never before. To this end, they need the global expertise and experience.
– Investments in infrastructure are key. One recent study found that nearly 80% of companies with high-performing supply chains achieve revenue growth greater than the average within their industries. That can’t happen without great infrastructure.
Arkadiusz Glinka, C.H. Robinson’s Director of Transport for Central Europe, will talk more about technologies and trends in logistics during the Hyperlog conference.