Transport sits at the heart of every supply chain, but rising costs, increasing operational complexity and growing sustainability expectations are placing unprecedented pressure on logistics providers.
GXO’s latest Future of Transport: Reducing Cost Inefficiency report suggests that while organisations recognise the importance of reducing emissions, many are still struggling to improve transport performance in a way that delivers measurable commercial and environmental benefits.
Based on research involving 1,000 senior UK supply chain and logistics decision makers, the report highlights a growing consensus that reducing inefficiency has become one of the most effective ways of improving resilience, lowering operating costs and supporting net zero ambitions simultaneously.
Transport Inefficiency Is Becoming a Business Risk
The research paints a clear picture of the challenges facing transport operators.
41% of organisations report that operational inefficiencies are increasing costs across their transport networks, while 89% expect logistics operating costs to rise further over the next 12 months. In addition, one third of businesses say inefficiencies have already resulted in lost customers or market share.
These findings demonstrate that transport performance is no longer simply an operational concern. It is becoming a strategic business issue that directly affects profitability, customer satisfaction and long term competitiveness.
For organisations operating increasingly complex supply chains, identifying and eliminating inefficiencies has become essential.
Smarter Operations Deliver Both Commercial and Environmental Benefits
One of the strongest themes throughout the report is that efficiency and sustainability are becoming increasingly interconnected.
Improving vehicle utilisation, reducing empty miles, optimising routes and increasing operational visibility all help lower transport costs while reducing fuel consumption and associated emissions. Rather than viewing sustainability as a separate initiative, businesses are increasingly recognising that environmental improvements can be achieved through better operational performance.
This represents an important shift in thinking. Net zero is no longer solely about adopting new vehicle technologies. It is also about making existing transport operations more efficient through better planning, improved data and smarter decision making.
Technology Is Driving the Next Stage of Transport Optimisation
Digital transformation features prominently throughout GXO’s research.
The report identifies technology integration as one of the biggest barriers to improving transport performance, with 44% of organisations citing integration challenges as a key obstacle. At the same time, 85% have increased investment in fleet operations as businesses look to improve efficiency and gain greater visibility across increasingly complex logistics networks.
Real time transport management systems, predictive analytics and optimisation software are enabling organisations to identify inefficiencies, improve route planning and make faster operational decisions.
As logistics becomes increasingly data driven, technology is evolving from a supporting function into a strategic capability.
Investment Alone Will Not Deliver Transformation
While businesses continue investing in fleet renewal and transport technologies, the report suggests that investment must be accompanied by clear operational strategies.
The challenge is no longer whether organisations should invest, but how they can ensure investment delivers measurable improvements in performance. Successful transformation depends on connecting technology, people and operational processes rather than implementing isolated solutions.
Businesses that adopt a coordinated approach are likely to be better positioned to reduce costs, improve customer service and meet growing sustainability expectations.
Building More Resilient Transport Networks
The report reinforces a wider trend across the logistics sector.
As supply chains become more interconnected, resilience, efficiency and sustainability are becoming increasingly dependent on collaboration, digital visibility and continuous optimisation.
For businesses across the supply chain, improving transport performance is no longer simply about moving goods more efficiently. It is about creating smarter, more agile logistics networks that can respond to changing customer expectations while supporting long term commercial growth and environmental objectives.
The future of transport will be shaped not only by new technologies, but by organisations that successfully combine innovation with operational excellence.
GXO Logistics (2026) Future of Transport: Reducing Cost Inefficiency.
GXO Logistics (2026) GXO launches new transport insights report.