Digital transformation in logistics: how the most productive companies do it

In an industry where margins are shrinking, costs are soaring, and customer demands are becoming increasingly complex, distribution companies face a clear challenge - to realise the technical value they have invested in. However, a new global industry survey from Infor shows that there is a clear recipe for success. And it starts with productivity.

The value gap in logistics – why technology doesn’t always deliver as expected

Many distribution companies have begun digital initiatives but still experience a gap between expected and actual results. This is where Infor's report, Filling the "Value Void", becomes interesting. It is based on responses from over 3,600 individuals – of which 900 are from the distribution sector – and identifies what the most productive players are doing differently.

How the most productive distributors use their technology

Infor's analysis shows that the most successful companies in distribution not only manage these challenges – they use them as drivers for innovation and value creation. Four common factors stand out:

1. Optimised processes as a competitive advantage

   High performers have automated away manual tasks, defined clear KPIs, and use systems support to identify improvement potential in real time.

2. A culture where data drives decisions and innovation

   Data is integrated into everything – from inventory management to product development. With machine learning and predictive models, decisions are made based on future needs, not history.

3. Agility and technical future readiness

   By using technologies such as generative AI and process intelligence, they can quickly respond to changes, scale up – and down – and make smarter decisions under pressure.

4. Customer outcomes in focus – not just internal efficiency

   They measure success by how well their customers succeed. Feedback and user data are integrated into processes and business models to quickly adapt the offering.

Why distribution requires a unique approach

That these four areas are so crucial for productivity is no coincidence. The distribution industry faces particularly complex challenges that require more than general solutions. Infor identifies four factors that make a difference:

1. Supply chain disruptions are the new normal
   Distributors need real-time visibility and predictive tools to not only manage but also anticipate and minimise the impact of geopolitics, climate crises, and transport bottlenecks.
2. Automation is required – but is difficult to implement
   Despite technical solutions, many still struggle with manual processes. Barriers such as costs and resistance to change hinder investments that could free up capacity.
3. Disintermediation is changing the game
   Direct selling and digital players are stepping in and cutting out intermediaries. Distributors now must deliver the same value – with fewer resources.
4. Customer demands are increasing – but willingness to pay is not
   Personalisation, speed, and transparency are required. But price sensitivity remains. Technology and streamlining are the way forward.

How to close the value gap – step by step

Understanding the industry's specific challenges is the first step. The next is to translate that insight into action. Infors report clearly shows that the value gap is not about a lack of technology – but about the ability to implement, integrate, and use the technology where it delivers the most benefit.

It's not about switching everything at once. The most productive companies often start with:

• Clear KPIs to measure productivity
• Automation of repetitive tasks
• Consolidated data foundation that leads to better decisions
• Scalable, adaptable, and improvable technology support over time

With the right partner and the right system support, these steps can be taken more quickly than many believe – especially in an industry where every percentage point increase in productivity makes a direct difference to the bottom line.