Legacy Modernization in Logistics & Transport: The Way to Digital Supply Chain

The logistics and transport industry is the backbone of the global economy. But while the requirements of speed, transparency and sustainability are constantly increasing, many companies are struggling with an invisible but powerful opponent: ** outdated legacy systems**. These IT infrastructures, often grown over decades, are not only inefficient, but are a significant risk to the future. The Legacy Modernization in Logistics & Transport is therefore not an optional upgrade, but a strategic necessity to remain competitive in the digital age [1].

This comprehensive blog post highlights why the redemption or renewal of these old systems is essential, what concrete advantages it offers for transport companies and logistics service providers and what applications promise the greatest added value.

Why legacy systems in logistics become cost trap

Many logistics companies find it difficult to separate themselves from their well-proven but stagnated systems. The fear of high investment and operational interruptions is great. However, reality shows that the preservation of old systems causes far higher costs and risks in the long term. The question is not whether one should modernize its Legacy systems logistics, but when and how [2].

High maintenance costs and technical debt

Legacy systems are often based on outdated programming languages and architectures for which there are hardly qualified developers. Maintenance of these systems is extremely expensive and expensive. According to estimates, companies with outdated solutions often spend over 80% of their IT budget on pure maintenance rather than investing in innovation [3].

| Cost factor | Legacy systems | Modern systems (cloud-based) | | :--- | :-- | :-- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ** Maintenance | High cost for specialized staff and spare parts | Lower, planable costs by managed services | | Scalability | Very limited, requires expensive hardware upgrades | Elastic, demand-oriented scaling (Pay-as-you-go) | ** About times | Frequent and longer as errors are difficult to fix | Minimised by redundancy and automatic failover | ** Innovation | Almost impossible as any change represents a risk | Quick implementation of new functions (DevOps) |

These ** technical debts eat the margins and prevent the necessary agility to respond to market changes.

Security risks and compliance problems

The transport and logistics industry is an attractive target for cyber attacks, especially as it manages critical infrastructures. Due to missing security updates and modern encryption technologies, outdated systems represent a critical security risk [4].

> "With a 43 % increase in logistics-related cyberattacks in 2024, outdated systems represent a critical vulnerability." [4]

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