2016 to be year of “transformation” in logistics

Operational excellence, particularly in the areas of technological adoption and cost realignment, will be central to the goal of executing through disruption

By ·

Logistics managers seeking yet one more forecast as the year gets underway, may wish to check in with Rodger Howell, PwC’s Strategy & Principal, specializing in strategy and operations.

He sees a few key areas that should be central to corporate efforts during 2016.

  • Cash-rich companies, particularly in the tech sector, will continue to invest aggressively in R&D. Success will be driven by finding ways to use R&D to provide genuine customer value as well as to innovate.

  • Digital technology will become increasingly integral to companies. Organizations in every facet of the economy will need to realign their operations to compete in a digital world.

  • Companies need to maximize the efficiency and reliability of corporate operations, both supply chain and otherwise, to meet today’s multifaceted challenges.

Overall, there is a broad based push within organizations to more deeply align operations with business strategy and more closely integrate various functional divisions of the organization in pursuit of common goals. 2016 is sure to be a year of transformation, and Howell sees significant opportunity for managers to position themselves for success through proactive renovation of the operational processes.

Operational excellence, particularly in the areas of technological adoption and cost realignment, will be central to the goal of executing through disruption, in his view.

In an interview with LM, Howell said that logistics managers will be expected to learn new tech skills to adapt to digitized economy.

“There is a need for everyone to adapt to the ‘new normal,’” he said. “Many logistics managers deal with global distribution, which causes complex logistics flows, tax and duty compliance obligations. It is important that those in logistics consider a model that ensures efficient paths to market, while complying with the appropriate regulations and tax regimes.”

Embracing digitization is the best way to handle complexity and speed in operations, Howell noted.

“In addition, they need to be able to connect digitally to partners and customers in order to align cost with business strategy and cycle time out of those transactions.”


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Global · Logistics · Technology · All Topics
Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....