Alsendo Insights: Top 5 challenges slowing digital transformation in logistics – see if they apply to your business

Despite recognizing the potential benefits, many organizations hesitate to act, held back by cost barriers, structural limitations, or a lack of operational readiness. In this article, we examine the core challenges faced by companies introducing innovation in logistics. We outline the most common obstacles, their impact on supply chain efficiency, and offer a practical approach to building innovation capacity in businesses operating within the fast-paced e-commerce environment.

1. Cost is a strategic decision, not just a financial one

Investments in logistics innovation are rarely made impulsively. They’re usually the result of multifaceted evaluation, where cost is only one, albeit prominent, factor. While innovation may seem too expensive “for now,” the real cost lies in not innovating at all, except that invoice is issued by the market, not the vendor.

As many as 47% of e-commerce companies cite cost as the primary reason for delaying the adoption of new solutions. In reality, this includes not only expenses for licenses, integrations, and training, but also internal process reorganization, time commitments, and implementation risks, harder to quantify, but just as real.

Which begs the question: Can you afford not to invest?

Return on investment in logistics innovation is rarely immediate. But postponing the decision almost always delays the return even further. Companies seeking scalable growth must treat technology not as a cost, but as a gateway to efficiency, customer loyalty, and operational agility. Failing to make that decision is like building a new warehouse without planning the electrical installation, operations might start, but the lights won’t stay on for long.

The right question isn’t whether innovation pays off, but whether you can afford to keep doing things the old way.

2. Scale isn’t a barrier, it’s a starting point

Not every company has an in-house IT department, a team of analysts, or a dedicated digital transformation manager and that’s perfectly fine. The real challenge isn’t lacking a sophisticated structure, but believing one is required to start.

41% of companies admit their limited scale holds them back from adopting modern logistics tools. This typically means no dedicated project team, limited operational capacity, or difficulty justifying the cost when the immediate benefits appear small.

But this is a false assumption. In reality, smaller organizations often have the greatest potential for agile change. They’re less bureaucratic, quicker to adapt, and able to test innovations incrementally. Thanks to increasingly modular and flexible IT systems, scalability is no longer an obstacle, it’s an advantage.

Avoiding innovation often leads to a vicious cycle: companies don’t invest because they’re small, and they stay small because they don’t invest. Yet innovation doesn’t have to be revolutionary, it can be evolutionary. It’s about shifting the question from “Are we big enough?” to “What can we do today to grow tomorrow?”

3. Integration – the silent test of digital maturity

Innovation doesn’t end with purchasing new technology, it actually starts there. The greatest challenge is seamlessly integrating it with existing systems. Integration is not just a technical task, it’s a test of operational maturity and readiness for change.

Many legacy IT systems were never designed to work with modern tools. They’re outdated, fragmented, or run in closed environments. When a new solution, such as a returns management system or shipment tracking module is introduced into such an ecosystem, the issue becomes not whether the tool works, but whether it works with everything else.

That’s why integration often becomes a delayed barrier. It may seem simple during the planning phase, but in practice it can trigger a cascade of unforeseen dependencies, especially in companies that have not previously undergone digital transformation. Systems may not communicate with the ERP, require middleware, additional modules, or data restructuring, all of which require time, resources, and skills often underestimated in project planning.

Why does this matter?

Because poor integration doesn’t just delay implementation, it disrupts operations. It affects order processing, customer service, and overall workflow continuity. It’s like trying to replace an engine while the car is moving, you need a plan and solid preparation.

Organizations must start not by asking what they want to buy, but what they need to connect it to, and who will handle it. Only then can innovation become reality, not just a promise.

4. Technology doesn’t work alone – it needs people to power it

There is no shortage of tools, what’s lacking are people who know how to use them. The biggest gap today isn’t access to innovation, but the skills required to implement and operate it. In the digital era, it’s not technology that creates an advantage, but an organization’s ability to understand, adopt, and utilize it effectively.

33% of companies cite lack of internal resources as a key barrier to implementing logistics technology. This includes not only IT specialists and project managers, but also gaps in essential skills among frontline employees. Logistics staff, warehouse workers, and order fulfillment teams are the ones who ultimately determine whether the new technology works in practice, or just exists in theory.

Without understanding the why and how behind a new tool, even the best-designed WMS or returns platform may be perceived as an obstacle. Technology without competence is like an engine without a driver it may be powerful, but it won’t get you anywhere.

That’s why building a learning culture and internal knowledge transfer must be integral to every transformation initiative. Training programs, vendor partnerships, and the development of internal “innovation ambassadors” are investments as vital as the technology itself.

Because real implementation starts after the system is launched and people are its true driving force.

5. Not innovating is also a decision

In the fast-paced world of e-commerce, not investing in technology isn’t a neutral decision. It’s a choice with real costs, they just don’t appear on an invoice, but in performance metrics, customer satisfaction, and growth potential.

Companies that forgo innovation in logistics operate with limited process visibility, reduced flexibility, and increased operational risk. Only 52% of organizations regularly monitor inventory levels, and 50% track delivery performance. This means half the market is flying blind on basic operational metrics.

Lack of automation results in error accumulation, unpredictable delays, and poor communication across the supply chain. Without analytics tools or decision-support systems, businesses operate like captains without radar, everything seems fine when the sea is calm, but when the weather shifts, disaster is imminent.

What’s more, failure to innovate directly impacts the customer experience. Without modern tracking tools, convenient pick-up options, or context-aware communication, customers simply take their business elsewhere and stay there.

Today, technology is no longer a competitive edge. It’s the price of entry. Ignoring it doesn’t slow down change, it only excludes you from its benefits.

The challenges of implementing logistics innovation are complex, but not insurmountable. What seems like a barrier today can become a competitive edge tomorrow, if the company makes the conscious decision to begin the transformation journey.

The Alsendo report clearly shows that technologies supporting logistics, marketing, and customer service are widely available, and feasible to implement even in smaller organizations. The key questions now are not just “if” or “when”, but “with whom” and “how”.

Alsendo’s ready-made solutions, particularly within the Business Pro packages are tailored to the real needs of growing companies: enabling flexible implementation, lowering technical barriers, and simplifying integration without the need to overhaul entire systems. These are tools designed not just with technology in mind, but with the real rhythm of business.