When (and When Not) to Invest in New Logistics Technology

From increasing efficiency along the supply chain to driving cost savings, modern logistics technology can help shippers take their operations to the next level. But investing in any new technology is a big decision: beyond the upfront cost, it takes time and effort to implement and master a tool, and there are often teething pains along the way. How can you tell if the time is right to make the leap?

The truth is, there’s unlikely to ever be an ideal time to implement a new piece of logistics technology—but that doesn’t mean you shouldn’t do it. A few minor bumps in the road as your team gets up to speed are a small price to pay for the sweeping long-term benefits a leading-edge tool can bring.

Here are a few signs that it’s the right time to invest, as well as some signs that you may want to consider an alternate option instead.

When to invest in logistics technology

While every organization’s circumstances and needs are different, there are a few common situations where logistics technology can make a world of difference. These include times when:

  • Manual processes are bogging the supply chain down
  • Freight costs are consistently out of control
  • Visibility between different locations is patchy at best
  • Operations are scaling and the team is scrambling to keep up

Of course, sometimes teams know they could benefit from new logistics technology—they’re just not sure whether a specific tool is right for their needs. Generally, the best way to judge this is to evaluate the impact it could have on your operations in both the short and long term, then compare it to the way things are now.

Think of it like a before-and-after picture. If the difference is marginal or the savings won’t be significant in the long run, then the tool may not be worth the upfront cost and hassle of adopting. But if your team’s lives could be made immeasurably better, your processes infinitely smoother, or your costs significantly lower, then there’s no sense treading water: the time to invest is now.

When to consider a different approach

For teams that are hesitant to invest in new logistics technology for one reason or another, outsourced logistics management services may be a better option in some cases. These services allow shippers to benefit from cutting-edge technology without having to ever touch the tools themselves.

For example, if you struggle to find the manpower to handle the day-to-day management of your supply chain, then adopting a robust new transportation management system (TMS) might not make sense for you. This solution could transform your supply chain, sure, but only if you have someone to operate it. In this instance, managed TMS services can be a more cost-effective option: the provider will handle everything from dispatching to scheduling to tracking shipments, so you don’t have to worry about hiring more staff.

Making the investments that matter

At CTSI-Global, we know that logistics technology can have a transformational impact on companies’ freight operations, which is why we’ve made it our mission to help more shippers benefit from it. From building a powerful TMS from the ground up to provide expert logistics management services, we’re proud to help shippers find the right option for their operations because we understand that one size does not fit all.

We’re invested in your success. Discover what we can do for you by contacting us today.

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