Why Rely on Manual Processes and Expanding Teams When the Right Technology Can Cut Costs and Drive Growth?

As the CEO of Yojee, I’ve had the privilege of leading in an industry I’m deeply passionate about. The logistics sector is the backbone of global trade, yet it’s also one of the most labour-intensive industries. This year alone, global logistics costs are expected to exceed $10 trillion, with labour expenses accounting for nearly 40% of that figure. In an era where margins are razor-thin, it surprises me that more businesses aren't focusing on scaling through smart technology rather than simply adding more headcount.

One of the most significant challenges logistics companies face is the rising cost of labour. According to a 2023 report by the World Bank, labour costs in Asia Pacific have been growing at an average annual rate of 6%, and in many regions, the shortage of skilled workers is pushing wages even higher. Yet, despite these pressures, I still encounter countless executives who hesitate to invest in technology, often citing the initial cost or the disruption it might cause. But the reality is, the cost of not adopting technology is far greater.

In logistics, where efficiency is king, technology isn’t just a nice-to-have; it’s a game-changer. The right technology, strategically implemented, can reduce headcount by automating repetitive tasks, streamline operations, and most importantly, enhance service delivery. For instance, a McKinsey report found that automation powered by technology, could reduce operational costs by up to 30% in logistics. This isn’t just about cutting costs — it's about creating a more agile, scalable business model.

Customers today demand more than just timely deliveries; they expect real-time visibility and proactive communication. A study by Capgemini revealed that 89% of customers are willing to pay a premium for better service, which includes receiving timely and accurate information. So, why maintain large teams for customer service and planning when technology can centralise these functions, optimise workflows, and provide the same — if not better level of service?

Imagine having six people chasing freight statuses and calling customers with updates, only to hire more as volumes grow. Now, imagine a system that does all of this automatically, allowing those six people to focus on more strategic tasks, such as building customer relationships or improving service offerings. That’s the power of technology.

But let me be clear — the goal isn’t to replace your workforce. It’s about scaling your business and empowering your people to do more with the tools they have. If your current headcount can’t support doubling your volumes, it’s time to re-evaluate the technology driving your business.

In today’s fast-paced logistics landscape, staying competitive requires more than just keeping up — it demands innovation. By embracing smart technology, you can reduce costs, enhance service, and ultimately, grow your business without the need for excessive labour. The future of logistics is here, and it’s time to do more with less.

• Research Markets
• Expert Market Research
• CapGemini "The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers"