LSPs plan increase in outlay on IT – Survey, Looking to improve operational efficiency to remain competitive

“Information Technology high on the Agenda of Logistics Service Providers” reveals the recent survey on “IT in LOGISTICS in INDIA” conducted by Softlink, the leading logistics software solutions provider. This is the second such survey carried out by Softlink among cross section of logistic service providers including international logistic players in the country. Respondents from over 500 logistic companies participated in the survey which provides an insight into the factors influencing the IT adoption of LSPs.

Not Come Across Suitable Software’, say a sizeable number of the respondents when asked about the barriers in adopting IT. This is a quite significant finding of the survey. Overwhelming number of the respondents believe that an ERP solution would be beneficial to their organization says the report. The survey also took into account the perceived barriers and benefits in adopting IT and threw some interesting facts.

Significant numbers of the logistics companies have planned an increase in investment on information technology for 2011. There is an increase of 12% in IT investment outlay for 2011 in the range of Rs.10 Lakh to Rs.25 Lakh (1 Million – 2.5 Million) as against 2010. It was also noted that respondents from large and SME’S are planning to increase their budgetary outlay for 2011 in certain category while reducing in others. In the above 1 Crore (10 Million) category there is a 75% hike in the planned investment among large companies compared to 2010 but however the percentage of SME’s investing in IT in this bracket has seen a decline.

Barriers in adopting IT – The LSP perspective

Lack of Expertise in IT has turned out to be the biggest barrier for the LSPs in IT adoption. Untrained Manpower and Employee Fear of Change were the other barriers, the survey reports. A Majority 46% of the respondents believed Lack of Expertise in IT as the hurdle in adopting IT as against a 44% perceiving Untrained Manpower as the barrier.  Employees Fear of Change according to 39% of the respondents is a barrier in adopting IT.

The LSPs take on Benefits of IT

LSPs are looking for Quick Response and Access to information by implementing information technology reports the survey. Improved Customer Service and Enhanced Competitiveness were cited as the other major benefits in adopting IT. According to 83% respondent’s Quick Response and Access to Information was the cited as the major benefit from IT, 73% cited Improved Customer Service and 45% said Enhanced Competitiveness.

What motivates LSPs to invest in IT

The survey covered various aspects like the motivational factors which impel LSP’S to invest in technology, their plans and perceptions on investing in technology. The survey highlights that Improved Operational Efficiency and better Customer Service are the key motivating factors for logistic providers to invest in Information technology. With 43% of respondents saying that Improving Operational Efficiency is the key motivating factor and Improving Customer Service being cited by 25% it is clear what the LSPs intend to achieve from IT.

Mr. Amit Maheshwari, CEO of Softlink says, “In our survey conducted last year we had very positive trends from the LSPs on investment in IT. This year too large number of LSPs are planning to increase their outlay for IT. It is not surprising considering the high rate of growth in the industry and the heightened competition. The LSPs are looking to improve their operational efficiency in order to provide enhanced customer service and this has been emphatically endorsed by the survey.” He further adds “Many ERP solutions are now available in the market including our own Logi-Sys. These state-of-art software made with cutting edge technology are designed to optimize the processes of logistics service providers enhancing their operational efficiency.”

The findings of the survey reveal that the logistic sector is evolving rapidly showing signs of growth. In a bid to tap the growing opportunities and power growth within the logistics sector many large, mid-sized and small scale logistics service providers are bringing about change in their traditional style of functioning and implementing modern systems and technologies. As compared 2010 there are notable changes in the outlook of logistic players towards IT says the survey. The detailed report of the survey will be made available soon.

About Softlink

Softlink was established in the year 1992, with the sole aim of simplifying operations of organizations in the logistics industry worldwide through highly specialized software products and solutions. Softlink is a leading product company which exclusively provides software solutions across the logistics sector to Freight Forwarders, Custom Brokers and 3PL companies along with Exporters and Importers. Softlink has a presence in every major city in India, including Bangalore, Chennai, Hyderabad, Kolkata, Delhi and Mumbai. Softlink’s products are used by more than 60,000 users in over 3,000 organizations. Softlink’s clientele include organizations like DHL Express, TNT India, FedEx, Videocon, Times of India, The Future Group, ABG Shipyard, Onida, Parle Products, Moser Baer India, AFL Dachser, Nippon Express, DB Schenker, Kuehne + Nagel, Agility etc. Key PSUs and Government Departments like Air India, Indian Oil Corporation, Dredging Corporation of India, and Embarkation HQ benefit from Softlink’s products.

For further details please contact

Abhishek Tripathi

Phone: (0) 9821585856,

Email: abhishek.tripathi@softlinkglobal.com

Please visit www.softlinkglobal.com for more information

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