Large logistic firms to up IT investments in 2010

by CXOtoday Staff    Apr 07, 2010

A survey titled ‘Adoption of Technology in Indian Logistics
Sector-2009′, revealed that the number of larger logistic players,
making technology investments up to Rs. 10 mn have been doubled to 14
percent in 2010 compared to last year. The survey further revealed that
89 percent of the larger logistics players highlighted that direct
customer request will remain the key driving factor to invest in
technology this year. The other two key driving factors would be
improving customer service (88 percent) and improving data quality (69
percent).

The survey conducted by Softlink Logistic Systems included 700 Indian
logistics players operating as customs clearing, freight forwarding,
NVOCCs and 3PL players. The report also gauged the penetration of
technology in key areas of Logistic industry namely commercial
documentations and regulatory compliances. It has been observed that
most of the larger players existing technology system is not matching
the desired requirement for these areas. It highlighted that 98 percent
of the respondents feel commercial documentations and regulatory
compliances are important aspects in their businesses, at the same time
14 percent and 19 percent respectively said that their existing IT
system is not meeting the expected requirements.

The survey also highlighted that though 96 percent of the respondents
feel that customer service is an important aspect in their businesses.
34 percent respondents still feel that their existing IT system is not
meeting the appropriate requirement of customer service.

The SMB findings of the report stated that about 30 percent of the SMB
players are yet to decide on technology investments in 2010. However 91
percent of them feel that improving customer service will be the key
motivating factor to invest in technology, followed by direct customer
request (84 percent) and improving operational efficiency (73 percent).
Additionally 98 percent of SMB players feel that commercial
documentation is an important aspect in their businesses. While 28
percent respondents highlighted that their existing IT system is not
matching up the requirement of commercial documentation.