The recent fires of Eaton and Palisades in Los Angeles have underlined a significant vulnerability in the logistics sector: a major dependence on outdated, non-digital systems. Although large cargo and highways were not directly affected, the disruption of logistics workers – many of whom have been displaced – had a ripple effect in the entire supply chain. Schools were closed, 180,000 people were evacuated (200,000 among warnings), operational delays piled up, and the backlog of the work grew, all of which contributed to the already tense system.
The reality is that about 50% of small and middle-sized logistics companies still depend on paper-based or non-digital systems. This makes it incredibly difficult for these businesses to adapt quickly during crises. Without access to real -time data or cloud -based systems, they struggle with remote coordination, slow decision -making and a lack of operational continuity. In fact, McKinsey & Company found that the average supply chain has a digitalization level of only 43%, the lowest among the five business areas they have analyzed. This digital delay impedes efficiency during disruptive events, which further exacerbates the delays.
On the other hand, companies that have embraced digital transformation, such as freight law, with minimal disruption. Our cloud-based infrastructure quickly enabled relocation and almost-immediate resumption of services, showing the practical benefits of digital systems in times of crisis. McKinsey’s research emphasizes that companies that aggressively digitize their supply chains, annual EBIT growth (earnings before interest and tax) of 3.2% and turnover growth of 2.3%. This indicates that digital infrastructure not only helps to reduce disruptions, but also yields tangible financial benefits.
The increasing frequency of disasters such as the fires in Los Angeles is a clear reminder of the importance of digital readiness. Over the past decade, an average of 7 million hectares have burned in the US annually, a sharp increase compared to previous decades. The increase in natural disasters is not a temporary trend – it is a growing challenge that businesses can no longer afford to ignore. McKinsey notes that digital logistics capabilities can add a significant value by improving operating performance, improving sustainability, increasing customer satisfaction and even increasing revenue.
The Los Angeles fires, although devastating, have also served as a reminder of how essential it is for logistical businesses to modernize their systems. Those who have invested in digital infrastructure are better equipped to deal with unexpected disruptions and maintain continuity. As climate-related events continue to increase, digital transformation is no longer a choice-it is a necessity for logistical businesses aimed at remaining resilient, competitive and profitable in an unpredictable world.
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