SOTI Research Reveals Digital Dilemmas in the Transportation and Logistics Industry
Global T&L employees are losing an average of 13 hours per month due to mobile-device-related downtime, and nearly half of workers experience increased stress due to technology issues
Mississauga, CANADA – October 3, 2024 – Mobile technology is essential in transportation and logistics (T&L). From order to delivery, organizations must meet increasingly demanding timelines in the presence of rapid technological disruption. In addition to being on time, focusing on seamless communication, replacing bulky devices with streamlined wearables and handheld devices requiring bespoke applications is essential.
SOTI’s new research, The Road Ahead: Driving Digital Transformation in T&L, reveals that while 98% of respondents use mobile technology daily, they lose an average of 13 hours per worker per month due to mobile-device-related downtime.
This inefficiency and limited visibility into device-related performance directly impacts a company’s bottom line, employee morale and customer satisfaction. Compared to SOTI’s T&L report from 2021, which highlighted downtime as a top concern for 70% of T&L providers surveyed, SOTI’s latest research shows a decrease of one hour of downtime per month per employee. This indicates little progress has been made over the last three years, and the results continue to dwindle because tech is not integrated seamlessly.
Lost Time and Security Woes: The Real Cost of Tech Issues
Tech issues, including network and connectivity problems, contribute to significant downtime and delivery delays. The Netherlands and Japan report over four hours of downtime weekly, while most other countries surveyed lose closer to three hours per week. More than three-quarters (76%) say that despite feeling adequately trained on mobile data security, 61% fear for the safety of their customers’ data should their devices get lost or stolen. Additionally, 58% of employees are concerned about customer data falling into the wrong hands when mobile devices are shared. This concern is most prevalent among employees in Mexico (71%), Canada (69%) and the Netherlands (67%).
"This data underscores the urgent need for proactive tools that support devices and applications remotely. Device analytics – tracking battery status, app functionality and network connectivity – can proactively address device-related issues without on-site intervention, leading to higher productivity and customer satisfaction. Implementing unique user logins and managing device inactivity are crucial for ensuring a robust IT infrastructure," said Shash Anand, SVP of Product Strategy.
How to Get the T&L Employee Experience Back on Track
As a sector, T&L providers cut costs by allowing overtime to offset downtime and delays. While 35% of respondents globally work overtime due to delays, this figure is higher in Mexico (43%), the U.S. (41%) and Canada (40%). The cost of overtime is heightened by the time spent on returns/reverse logistics, with only 8% of providers outsourcing this process. In Japan, 57% of an employee’s day is dedicated to returns, and the number is 44% in Germany.
Device downtime causes stress for almost half (48%) of workers, with the highest levels of stress seen in Canada (57%), the UK (54%), Mexico (52%) and the U.S. (51%). Globally, technical issues contribute to missed targets for 32% of workers, loss of preferred routes for 21% and lost bonuses for 17%. Additionally, 29% of delivery drivers admit to speeding to compensate for delays, raising safety concerns.
The inability to troubleshoot issues combined with a lack of real-time IT support is intensifying employee stress. It is also highlighting the need for more advanced mobile technology solutions. While 93% of respondents have tracking technology on the devices they use for work, 66% desire more. Tracking technology is seen as a key opportunity for improvement, with 81% believing it ensures timely deliveries and keeps customers informed. Furthermore, 78% feel more secure knowing high-value goods are tracked, and 75% believe vehicle tracking increases driver safety, particularly in Mexico (92%), Canada (83%) and the UK (80%).
Balancing Green Ambitions With Operational Efficiency
The research found that 97% of global employees report their employers are taking steps toward sustainability, with Australia, Sweden and Japan leading at 100%. However, 70% of respondents believe their companies could do more to protect the planet; this is particularly evident in Mexico (84%), Canada (76%) and Sweden (76%). Globally, 50% say they would leave their jobs if their employer was not doing enough to protect the environment, indicating the potential impact on employee retention.
“Mobile technology is at the core of the T&L industry, as it strives to reach new milestones in delivery speed, reliability and customer satisfaction. Implementing solutions such as the SOTI ONE Platform is vital. By providing real-time visibility, strong security and tracking technology, SOTI can help the industry achieve the forward momentum needed to enhance operational efficiency, security and sustainability,” concluded Anand.
SOTI's latest report, The Road Ahead: Driving Digital Transformation in T&L, can be downloaded here.
Report Methodology
SOTI conducted its research in May and June 2024 across 10 countries. It is based on 1,700 online interviews with people aged 18+ who work as T&L drivers or in warehouses in organizations with 50 or more employees. The sample split is as follows: U.S. (300 respondents), Canada (200 respondents), Mexico (100 respondents), UK (300 respondents), Germany (100 respondents), France (200 respondents), the Netherlands (200 respondents), Sweden (100 respondents), Australia (100 respondents) and Japan (100 respondents).
About SOTI
SOTI is a proven innovator and industry leader for simplifying business mobility solutions by making them smarter, faster and more reliable. With SOTI’s innovative portfolio of solutions, organizations can trust SOTI to elevate and streamline their mobile operations, maximize their ROI and reduce device downtime. Globally, with over 17,000 customers, SOTI has proven itself to be the go-to mobile platform provider to manage, secure and support business-critical devices. With SOTI’s world-class support, enterprises can take mobility to endless possibilities. For more information, visit soti.net.
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