As the logistics industry rapidly evolves, it faces many challenges. Often these complexities are caused by fast-changing circumstances, human factors, and insufficient digitalization. Today, we explore what custom software solutions will lead the way to digitalization in 2023.

Critical Challenges for Companies in the Logistics Industry
The Logistics industry is one of the oldest globally. Over the years, it’s built a comprehensive approach to its establishment and growth. Innovating when necessary to remain relevant and meet the demands of our modern societies. However, the digital revolution has surprised this industry, and most companies are adopting digital workflows and processes at a very slow pace. According to the data, the industry is not adopting digitalization fast enough. Most companies continue to operate in manual mode. Why is this?

The answer is relatively simple. There’s a lack of digital culture and understanding of how technology can improve processes. Ultimately resulting in slow adoption.

In addition, stakeholders and investors are wary of anything that puts them at risk of data leakage and the consequences that come along with it. Making them reluctant to digitize.

2023 Trends in the Logistics Industry
The industry can be divided into three different core pillars or segments. Those are:

  1. Logistics service providers;
  2. Providers of delivery services;
  3. Postal Operators.

Note that each segment operates with data: shipment, tracking, input-output, etc. Companies must accept, collect, and analyze a massive amount of data. This is happening whether a digital process is being used or not. Yet, most companies are still on their way to logistics software development.

The major technology trends in 2023 for the Logistics industry will be:

  • The Internet of Things: Organize warehouse operations without human involvement.
  • Automation and robotization: Reduce costs and reduce risk connected to human error.
  • Big data: Process large amounts of data in real time to make faster, more accurate business decisions.
  • Cloud technology: Do business from anywhere and connect multiple warehouses together within a single system.
  • Customer Relation Management: Build communication channels, attract new customers, and enhance brand loyalty. 
  • Blockchain: Create secure data flows backed by the newest technology in data ownership. 

The companies that adopt technology are quickly becoming market leaders.

How Custom Software Solutions Solve the Industry’s Problems in Practice
Enough with theory. Now it’s time to understand how to apply custom software solutions in practice to solve existing problems in the logistics industry. We can conventionally divide these pains by company activity.


Warehousing companies face storage management challenges. Insufficient automation within warehouses gives rise to repeat mistakes due to human error. In practice, developers can solve this problem by streamlining the warehouse’s workflow of tracking receipts and shipments using automation. 

Supply chain companies face the loss of money due to supply failures. In addition, untimely or irrelevant delivery threatens to lose reputation. To tackle this problem in 2023, developers suggest using a supply chain management system for automating routine tasks. Automated workflows, data collection, and route planning can save companies from delays and errors.

Many companies that don’t move to digital solutions encounter the problem of poor decisions taken based on insufficient or slowly processed data. Big Data solutions can collect and process information in real time.

Delivery companies can also experience reduced efficiency due to poor information about a route or terrain. Again, software developers could suggest a system with real-time GPS tracking on relevant locale to solve this problem.


Car rental companies face challenges related to insufficient profits or investment loss due to a lack of communication channels with customers due to manual vehicle clearance and incompetent fleet management. However, this can be solved by automating process management, installing trackers, and creating a distribution and monitoring system.

Many companies in the logistics industry that have not yet decided to implement digital solutions and automated processes in their operations experience a decrease in customer loyalty, often losing these customers to competitors, especially those that have digitized. Often this is due to outdated payment methods (e.g., only cash), poor quality lead generation to the company’s resources, and other factors. As a solution, there are a few things that can be done. Optimize the website and increase the high-quality traffic that can be converted into customers, connect popular payment systems, and generally keep track of customer requirements in the industry and monitor trends.

These solutions can be custom made or simply picked from an assortment of ready-made solutions already on the market.

Logistics Industry Outlook for 2023
By analyzing the requirements of the industry, it’s possible to make a tentative forecast for the development in the coming years:


Common standards
Many companies have to cooperate closely with one another, especially intercontinental logistics. When companies follow common standards of operation, and yes, digitalization, efficiency can truly be achieved for everyone; from small mom-and-pop shops to large enterprise companies.

Learning customer behavior
Big industry players focus on the rapidly growing customer demands to differentiate themselves from the competition. Often this comes at the expense of taking over smaller companies.

Internal and external scaling
Businesses don’t just scale by growing and taking over weaker companies. Prominent vendors seek to expand their skilled workforce. They do so through training, coaching, and seminars. Additionally, many companies are looking to hire already trained candidates with the knowledge and understanding of working with digital solutions.

Reduced delivery time
Demand for delivery started skyrocketing during the pandemic, and to date, it hasn’t declined. More importantly, however, customers are choosing the delivery that comes the fastest. It, in turn, is feasible through the combined efforts of supply chain and software solutions. In addition, a related goal is also to reduce the cost of delivery.


Sustainable goals
Logistics company owners are willing to invest in Sustainable Shipping to reduce CO2 emissions. Consumers are willing to pay extra for greener delivery methods and participate in future green infrastructure creation.

From all of the above, we can conclude that the forecasts for the logistics industry for 2023 are made based on an analysis of the needs of the companies themselves and their customers. In addition, there are unresolved pains that digital engineers can fix by implementing customized software solutions.

Author: Viktoriia Ruban, Business Analyst at Computools