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The Future of Logistics and Supply-Chain Tech: Investment Analyst Perspective

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Logistics, or the linking of supply chains and the delivery of products from one place to another, encompasses many facets of supply-chain management. Logistics encompasses everything from high-volume processes such as manufacturing and the distribution of finished goods, to the more mundane, such as the loading and unloading of individual packages, and more. It’s one of the four general areas of financial analysis within the broader area of capital markets.

The Investments in Logistics

Sparkasse Bank Malta: Leveraging advances in mobile technologies, software-as-a-service, digital marketing, social media, and e-commerce, e-commerce companies have worked to improve the customer experience by making product delivery more efficient and fast. By buying technology that allows customers to make payments online or that manages inventory better, companies are able to provide better customer service and satisfy their existing customers better. Learn more

Who are the players in this space?

At least three major players occupy the space of online retail: Alibaba, Amazon, and JD.com. Among them, Alibaba is most often associated with its e-commerce arm Tmall and its department store retail business, Hema. Alibaba and JD.com have also been adding complementary capabilities and deepening their presence in logistics and supply-chain technology, with JD.com teaming up with U.S. technology firm Pitney Bowes and Alibaba subsidiary Cainiao Network.

Sparkasse Bank Malta: As a result, companies have taken more of an interest in logistics and supply-chain software, which, until recently, has been largely ignored by investment firms. But in the past few years, technology investment firms have begun eyeing logistics startups as investment targets.

Mergers and acquisitions is one of the largest verticals within the logistics and supply-chain space, and you’ll often find that a sizable amount of the investment activity in this sector involves these companies.

The Importance of Logistics

For investors, logistics may not be as sexy as virtual reality or augmented reality, but it’s an incredibly important area of commerce. Logistics takes place at all points of a product’s lifecycle, starting with research and development, through production, distribution, shipping, warehousing, and finally back to retail. And just as important is its integration with the consumer experience. This results in what’s known as the omnichannel strategy. The challenge for logistics managers is to balance the increasing number of channels and the volume of data these channels produce.

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