Logistics Digital Transformation in Latin America and The Caribbean
Currently, 45% of Brazil’s road fleet runs empty. This represents a recurring problem to the logistics industry, threatening productivity. Other challenges are the cargo thefts and accidents on the roads, making it harder to control the operation (Bnamericas).
Happily, there are solutions being developed to enhance the sector’s productivity. A merger between the logistics technology solutions hub NSTech and the cargo and passenger transport platform Praxio got a US$98.2mn funding round in 2021 (Lab News).
The union of the two players promise to revolutionize the Latin American logistics sector with technological solutions especially designed for mobility. According to the CEO of Niche Partners and co-founder of SK Tarpon, we can call the union of logistics and technology hubs a logtech.
Digitalization Applied to Logistics Industry
The next five years will see an enormous increase in digitization within the logistics industry. The logistics sector has, until recently, been slow on the uptake of latest digital technologies, claims Digital Doughnut.
Logistics organizations invest heavily on solutions that can improve speed and enhance productivity and assertiveness.
There is a growing trend of computerized solutions being implanted in logistics. The more digitized the operation, the bigger is the control over the fleet and transport system, ensuring greater efficiency and money saving.
The Logistics’ companies CEOs adhere to digitalized solutions more and more. Technologies such as IoT, Vehicle-to-Vehicle innovations and IA, there is plenty of space for innovation in the field.
The logistics market in Latin America was evaluated at around US$540 billion in 2019. This sector was forecast to grow at a 6.2 percent compound annual growth rate (CAGR) between 2020 to 2027, to reach nearly US$785 billion in the latter year (Statista).
If you are looking for opportunities in the Digital Transformation of LatAm’s Logistics sector, check out our vacancies and don’t miss the chance to be part of the revolution!
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