In Europe, transport and logistics is a €200Bn market that is growing consistently at about 3% YoY. It consists of several large players and a whole range of smaller companies or SMBs. Something nearly all of them are facing is a heavy cost structure with an average EBITDA of 11.22%. To safeguard the future, the market must commit and invest in digitalization and innovation to maximize efficiency.
State of the market
Unlike many other sectors, the biggest fish don’t have more than 10% market share in any of the submarkets. That means that this sector is dominated by a long tail of large to small businesses that each have their position and merits.
On average, companies have 8,6% of their costs that can be allocated to IT, infrastructure, marketing, etc. As the graph shows, most costs are absorbed in staff, subcontractors and vehicles/fuel. That means budgets for IT are typically limited, and that most of it is being spent to keep the lights on (the so-called ‘IT run’ budget), rather than to change the business (IT change budget). With IT as a strategic asset for the industry, we can observe a small increase in the average IT investment behavior. In short: optimize the cost to run the business, while unlocking value for more productivity is crucial.
As the number of e-commerce transactions rise every year, just-in-time logistics and transport on demand are increasingly important – and that requires this sector to rethink its current way of working. In addition, the market is growing strongly through mergers and acquisitions. For some, this is a way to grow or enlarge their share in a niche of the market; for others, it’s a method of survival.
A consequence of the many acquisitions is that IT departments are swamped with integration work. Furthermore, acquired businesses often operate with different business processes and operating mechanisms. This results in very, very diverse & decentralized application and IT landscapes. Sometimes with multiple datacenters and local EUC models. There is little to no uniformity between the various business units in such cases.
A study performed by Cap Gemini shows that transport and logistics companies view cutting transportation costs on the one hand and optimizing business processes and customer service on the other as their key challenges. As those relate to the core activities of the industry, it is fair to say that they are given the lion’s share of attention. Technology strategy and implementation, on the other hand, are least often mentioned as being an obstacle. As they are not at the center of the company’s business, they are sometimes forgotten – but as business processes evolve and mature, so should your IT.
Awingu for transport and logistics
Within a context of limited budgets and an existing complex legacy IT environment, businesses must transition to a more digital and real-time work environment without increasing complexity. Awingu can help, by offering a secure, cost-efficient and easy-to-use workspace that unifies all your IT assets. All your applications (legacy, SaaS and intranet) and files are now accessible via one workspace in the browser, on any device, anywhere.
Awingu allows real-time access to files and apps for mobile workers, at office, at home or on the road:
- light on the requirements: only an internet connection and a browser are needed; build on top of your existing infrastructure and software
- access apps & files securely from any device (e.g. home PC, tablet, Chromebook…)
Awingu unifies your different business units and locations under one pane of glass:
- The Unified Workspace leverages on your existing IT environment and is deployable on any cloud (public, private or hybrid), allowing you to bridge multiple clouds and ADs
- No need to rewrite your code or change applications: Awingu aggregates all legacy, SaaS and intranet applications – you can leave everything as it is and just put Awingu ‘on top’
Awingu optimizes for security & compliancy (e.g. GDPR):
- No local data is left on the end-user device, everything stays on your servers
- Built-in MFA solution, and integrate with your existing MFA
- SSL encryption built-in
- Generate extensive audit logs of everything that happened in your environment
Awingu facilitates and improves cooperation with subcontractors:
- Easily give access to your apps & files to external parties, without the data ever leaving your environment. Contractors login with their credentials in their browser. No need for them to install VPN clients or other, which are often blocked by their company policies.
- With granular controls you can define what each contractor is allowed to do or not (print, copy/paste, download, share,…).
- Automatically record user or application sessions in case sensitive data is handled.