3 January, 2013 – Guildford, UK : 70% of logistics service providers (LSPs) are planning to invest in new transport management, warehouse management and freight forwarding software according to a recent survey of logistics and supply chain professionals, with many looking to replace their existing software to take advantage of business opportunities. But expectations from software investments are high, with almost 80% of those surveyed expecting a return on any investment in supply chain IT systems within two years.
The independent study of 484 global businesses was conducted by Transport Intelligence (TI), a leading provider of research and analysis dedicated to the global logistics industry, and Kewill, a leading provider of innovative solutions for global trade and logistics. It examines the lasting impact the global economic downturn has had on logistics service providers, and the role of IT in ensuring their survival. Responses were drawn from 280 (58%) LSPs as well as logistics individuals from within, for example, manufacturers, distributors and retailers with responsibility for, or involvement with, supply chain operations.
Supply chain management software is used by 62% of LSPs surveyed, who cited freight forwarding, transport management and warehousing software as their most important operational management tools. Almost half of LSPs (46%) see the time required to implement new systems as an inhibitor to exploiting new business opportunities.
The main criteria for IT investment decisions was stated as being return on investment (ROI), with the payback period a significant secondary consideration, indicating that whilst LSPs are ready to invest in new software to support operational growth, they are setting increasingly stringent criteria to measure the success of IT projects.
Also moving up the agenda is supply chain visibility. Over 40% of LSPs responding to the survey had software links with their customers but less than 20% had links with other supply chain companies. 89% are looking to increase information sharing/collaboration in the future.
Andrew Dalziel, VP Product Management and Marketing at Kewill, said “The survey clearly demonstrates that LSPs are ready and willing to invest in IT to support their business strategies, but that now more than ever they expect software providers to deliver on their terms, and within their timescales. With length of time to implement a new system proving a key barrier, companies should look for tried and tested rapid deployment paths, such as the hosted and Quick Start implementation approach we offer for our Kewill Logistics suite. The Quick Start approach means, for example, that a TMS or WMS solution can be up and running in a matter of weeks, shortening the time in which both benefits and ROI are realised.”
Joel Ray, Head of Consultancy at Transport Intelligence, said, “Improving visibility is a top priority for the logistics industry as a whole, with 49% of LSPs stating that action is being taken already and an overwhelming majority planning further supply collaboration going forward. Sharing of operational information throughout the supply chain is key not only to improving efficiency, but to ongoing innovation.”
About Kewill Ltd.
Kewill is a leading provider of software solutions that enable enterprises and logistics providers to manage the movement of goods and information across the globe.
We deliver innovative software for business-critical global supply chain requirements through our three product suites: Logistics, to support freight forwarding, transport, warehousing and customs compliance; Transportation and Shipping, to enable parcel, LTL, TL and desktop shipping and export trade compliance, and; Business to Business Integration, to drive B2B eCommerce, order management and supply chain integration.
Our customers rely on our deep domain knowledge to improve their business processes, exchange information and provide visibility to simplify the management of their supply chains.
Established in 1972, Kewill has over 7,000 customers around the world including Bayer, Black & Decker, DHL, Hankyu Hanshin, Hitachi, Ingersoll Rand, Mothercare, UPS, Scott’s & Co and TNT.
About Transport Intelligence
Transport Intelligence is one of the world’s leading providers of expert research and analysis dedicated to the global logistics industry. Utilising the expertise of professionals with many years’ experience in the mail, express and logistics industry, Transport Intelligence has developed a range of market-leading web-based products, reports, profiles and services used by all the world’s leading logistics suppliers, consultancies and banks as well as many users of logistics services.
Transport Intelligence products and services include:
- Ti's news and analysis briefing service, Logistics Briefing
- Exclusive access to Ti’s extensive research output through the ground breaking Global Supply Chain Intelligence portal: www.gscintell.com
- Dedicated research through Ti Consulting
- Market and competitor monitoring
- Industry leading research reports including trend analysis, market sizing, market share, forecasting and ranking across global logistics markets
- In-depth intelligence on the world's leading logistics providers through Supply Chain Leaders Intelligence
- Ti Conferences and seminars: www.ticonferences.com