Logistics firms are often accused of being cautious about new technology. But in an industry where one small failure can disrupt an entire network, Stuart Simpson (pictured, below), Client Director, Logistics and Supply Chain at NashTech, asks whether apparent caution is really a sign of sharper commercial judgement.
Logistics has long carried a reputation for being slow to embrace new technology. Having worked in and around the industry for more than 40 years, I think that misses what is really happening. The sector is not short of ambition. Nor is it unfamiliar with innovation. Modern logistics networks depend on technology at almost every point, from warehouse operations and route planning to customer communications and final-mile delivery.
What distinguishes logistics is that technology cannot simply look impressive. It has to work. A minor error in one part of the supply chain can quickly become a much larger problem. Inaccurate data can affect warehouse availability, transport schedules, trading partners and customer deliveries. A failed connection between two systems can leave teams reverting to spreadsheets, emails and telephone calls just to keep goods moving.
In my experience, that operational reality shapes how logistics leaders assess new technology. The priority is not to be first, but to be confident that a solution will work across complex, interconnected systems. NashTech’s new report, Differentiating with Custom Software in Supply Chain and Logistics, reflects this mindset. Based on research among 150 senior logistics and supply chain technology decision-makers, it found that only 33% cited innovation or differentiation as a primary reason for developing custom software. By comparison, 43% pointed to the need for better integration with existing systems.
Where technology creates real value
That does not suggest a sector reluctant to change. It suggests one that judges technology by the operational problem it solves. Many logistics businesses are managing technology estates built up over years of growth, acquisitions and successive platform decisions. Warehouse management systems, transport platforms, enterprise software and customer applications may all work adequately in isolation, but the connections between them are often where friction begins.
Replacing an entire estate is rarely practical. The more valuable role for custom software is often less glamorous. It’s about connecting existing systems, improving the flow of information and removing the manual workarounds that build up between them. This is where the industry’s instinct for marginal gains becomes an advantage.
Improving an operational handover, reducing the number of exceptions requiring manual intervention or making data more consistent may not create the excitement of a major platform launch. But across a complex, high-volume network, small improvements can prevent delays, lower costs and strengthen resilience.
I have seen repeatedly that the most valuable technology projects are not always the most visible. They are often the ones that remove a persistent source of friction from the operation.
Will AI test the sector’s discipline?
The challenge is whether logistics businesses will retain that discipline as enthusiasm for AI grows.
Seventy-one per cent of logistics technology leaders believe increased AI adoption will have a major impact on custom software development. Yet 46% have struggled to integrate advanced AI with legacy systems, while 44% report a shortage of relevant internal expertise.
This creates a familiar danger, with businesses can become so focused on the visible technology that they overlook the less exciting foundations required to make it useful. AI cannot resolve conflicting records, disconnected systems or unclear ownership by itself. A sophisticated model sitting outside the day-to-day operation may make for a compelling demonstration, but it will not necessarily improve the movement of goods.
Start with the operational problem
The most effective starting point is therefore not “Where can we use AI?” It is “Where does the operation repeatedly lose time, accuracy or control?” That might be a manual warehouse handover, a recurring delivery exception or information that has to be reconciled across several platforms. Once the real constraint is understood, businesses can decide whether AI, integration work or a much simpler intervention offers the strongest return.
Logistics may not always be the loudest industry when a new technology emerges. But caution should not be confused with inertia. In a sector where the cost of failure travels quickly, knowing which innovations to pursue, and which to resist, may be the more valuable competitive advantage.
