An Investment banker helps his/her clients in raising capital, managing equity/debt. The market of logistics and supply chain management is witnessing a hike due to new technological advancements. Companies are providing solutions for supply chain management through software. The age of digitisation of processes is creating a huge capital in the logistics and supply chain management (SCM). An Investment banker advises his/her clients for decision making.
Logistics defines the movement of services, information, goods, etc. in and out of a company/firm. SCM is said to be the new logistics in the current era. Now, logistics is widely considered as a subprocess of SCM. SCM is a way to manage the transportation of services from the producer to the consumer. It helps in creating strong business models. Let us see how logistics and Supply chain technology market is important for investment bankers.
Opportunities for an Investment Banker in the market for Logistics and Supply-Chain Technology
Digitization of logistics and supply chain with the help of technology has helped companies/firms to create a good distribution model and enhanced customer service. It helps in driving business processes with ease. Technology has helped in generating shopping patterns of customers and managing the supply chain with increased accuracy and speed. The traditional methods of supply chain management are being replaced with supply chain technology.
With the introduction of Artificial Intelligence in this field, the capital in this market is going to increase rapidly in the coming years. The Investment banker must have an eye on the logistics and supply chain tech market. Companies like Oracle, SAP, etc. are providing a complete resource management system linked with cloud capabilities. More new solutions/start-ups for SCM and logistics are expected to come soon. This is the perfect time to invest in a booming field like logistics and supply chain technology.
With the emergence of e-commerce, supply chain technology is helping companies to produce products strategically and finding loss-generating products. The supply chain tech is providing solutions to distribution models and is helping companies in cost optimization. The software/application can handle huge chunks of data and can even automate the SCM process. It is a great area where a lot of capital is being generated.
The global logistics market is supposed to grow up to USD 12,256 Billion by 2022 with a CAGR (Compound Annual Growth Rate) of 3.48%.
Why companies will prefer Logistics and Supply-Chain tech?
The investment in this market is supposed to increase. Companies will invest in the logistics and supply chain tech because of many benefits. The few are listed below.
- It will help companies in planning and managing the demand from the consumers.
- Supply chain tech is helping companies in procurement i.e. the process of purchasing/obtaining goods/services.
- Smart software can keep track of all the business data/information and can manage the business inventory. This helps companies in reducing human labour for inventory management.
- A reliable business model created via SCM will help in managing the distribution service effectively and predicting the upcoming demand of the consumers. It will also help in predicting the trends in demand and for business forecasting.
- Risk analysis and management can be done with the help of supply chain tech.
The e-commerce sector had arrived years ago and is expected to have a long-term impact on businesses/companies. The traditional methods are not being preferred because of reliable and automated technology solutions. If you are an investment banker, then you must focus on the logistics and supply chain tech market. One can learn more about ideas for investing and generating capital in any market through various Investment banking courses available on the internet. This article was all about the perspective of an Investment banker towards the logistics and supply chain tech market.