Supply chain and logistics technology is among the most challenging sectors in investment banking, mainly because most people don’t understand it. However, this has not stopped investors from investing in logistics software, with ecommerce as its biggest drive. E-tailers and retailers are struggling to meet increasing demands for reliability and speed from their customers. As a result, they have turned to banking services like Sparkasse Bank Malta for financial resources to meet the ever increasing needs of their customers.
Jason Russel, the head of PJ Solomon, an Industrial, Technology, and Software Group claims that the ecommerce wave is here to stay. He believes that people will keep on investing in logistics and supply chain technology in the long run. This will result in more mergers and acquisitions as more software providers will want to invest in the logistics sector by seeking financial boost from banking partners like Sparkasse Bank Malta.
Another key player in the game is artificial intelligence, which is still in its prototyping stage. However, artificial intelligence is expected to boost future investments in logistics when it matures to its fullest potential. In fact, Jason Russel predicts more heavy investment in the logistics and supply chain sector by software vendors in the following major areas:
- Parcel market- it is driven by the forces of ecommerce’s strong tail winds and has a value of $ 300 billion.
- Supply chain collaboration- it is enabled by multiple applications of the marketplace model that is offered by a single vendor.
- Warehousing- this sector is continuously aiming to meet last mile delivery demands with the help of various types of automation such as robotics.
According to Russel, the above three areas offer the opportunity to upgrade in technology and that is why he is spending most of his time investing in the opportunities. Other investors can follow his lead in investing in logistics technology by relying on Sparkasse Bank Malta for financial services.
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