Digitalisation

Digital inequality in logistics: Causes, impact and solutions

Summary: Explore digital inequality in logistics—why outdated systems, skills gaps, and costs are leaving some industries behind in the digital era.

Sanaa Jabeen Mughal
Customer communications contributor

07 Aug 2025

In today's fast-moving world, customers expect clarity and speed when they order products. Yet many businesses still rely on manual processes, outdated systems, and isolated data. That gap is known as digital inequality, which commonly leads to delays, errors, and frustrated customers.

Logistics hasn’t always been a tech-savvy field but that’s quickly changing. The World Economic Forum 2023 report predicted that by 2027, 60% of the global workforce will need reskilling to keep up with evolving technologies, including logistics software, robotics, and predictive analytics.

Why some industries are being left behind

Logistics-heavy industries like retail, fashion, and consumer goods often lag behind tech-centric peers for a variety of reasons including: outdated systems, high implementation costs, complex physical supply chains, and reliance on less tech-savvy partners. In contrast, tech companies are built for agility, with digital-first operations, faster iteration cycles, and innovation-driven cultures.

But the divide isn’t just between industries, it’s also regional. Rural logistics hubs in America for example face limited broadband access, high infrastructure costs, and workforce shortages. This is a global lesson. Whether in rural Iowa or inland Kenya, connectivity determines capability. Without broadband or mobile internet, even the best software tools can’t function, leaving businesses cut off from the efficiencies of digital logistics.

Disadvantages of not going digital

Manual processes create mistakes: Misfiled paperwork or delayed customs clearances ripple through your supply chain, affecting customers and margins. Manual processes like filling out shipping forms by hand or emailing spreadsheets often lead to errors. A wrong document can hold up a shipment for days, creating stock outs or unmet launch dates. Maxim Exports in India faced this challenge as they juggled multiple freight forwarders and inconsistent booking rates, which created confusion and made it hard to forecast expenses. Digitialising their processes meant they could consolidate booking, tracking, and rate locking in one place. This shift reduced paperwork errors and miscommunications, allowing Maxim to lock in freight rates up to a month in advance, plan more efficiently, and focus on expanding their export product lines and entering new markets in 2025.

How digital tools can increase efficiency

Real-time tracking is essential: According to The Logistics Trend Map 2025, tools like real-time tracking and automated fleet management have become must-haves. Without real-time tracking, businesses don’t know where their goods are or when they’ll arrive. This creates stress for teams and uncertainty for customers. The company Standard Manufacturing Ltd in Uganda struggled with unpredictable port access times and limited shipment updates, which made it difficult to plan and coordinate exports of recycled plastics. Implementing real-time tracking and centralised shipment information in one platform, helped them boost their export volume by 50% and set ambitious goals to triple shipments.

Real-time tracking empowers businesses to respond quickly to disruptions, streamline communication, and build customer trust. Logistics Service Providers are investing in creating more visibility in signals from containers and trucks fitted with IoTs, robotics in warehouses and more. If companies do not digitise and modernise, they will not be able to utilise these signals, which could leave them behind from their competitors.

Predictive tools instil trust: When the market shifts, whether it’s a flash sale, a holiday rush, or a border delay, companies need to respond quickly. Digitally connected supply chains help make that happen.

Barriers to investment in digital skills

Legacy technology: Many logistics and warehousing operations still run on outdated enterprise resource planning (ERP) systems, siloed inventory tools, and homegrown software. According to a 2023 report by Gartner, nearly 60% of supply chain leaders say legacy systems are the top barrier to digital transformation. These older systems usually lack API compatibility, they can't support real-time data, and struggle to integrate with newer tools like AI-driven analytics or blockchain platforms. In sectors like retail and consumer goods, many warehouses still rely on spreadsheets or legacy platforms built decades ago. This creates data fragmentation, making real-time decision making and system-wide visibility impossible.

Upfront costs: Digital transformation relies heavily on infrastructure, training, and cultural change. Initial costs can be a barrier, especially for mid-sized logistics firms or regional warehouses. Deloitte’s 2024 Digital Supply Chain Survey reports that 43% of companies cite cost as the primary reason for delaying investment in digital technologies like IoT sensors, cloud platforms, and automated material handling.

Skill gaps: A 2023 McKinsey report noted that 74% of logistics and supply chain professionals believe their workforce is not ready for digital tools. This includes basic digital literacy, data analysis, and comfort with cloud-based platforms. When teams aren’t confident using tools, adoption fails, even when the technology is available.

Complex ecosystems: Supply chains are complex, with multiple stakeholders like manufacturers, distributors, customs agencies, retailers, and end consumers. Coordinating data flow, visibility, and accountability across all these layers is a big task. Research from Capgemini shows that only 28% of organisations say they have end-to-end visibility across their supply chains. This is largely due to data silos and inconsistent digital maturity among partners. A single customs delay or port congestion can ripple across continents. Without real-time information sharing among partners, companies operate reactively rather than proactively.