@Risk

Supply chain are becoming increasingly global and complex –and now more than ever before, companies are beginning to focus on their suppler networks to gain a competitive edge, leverage innovative ideas, and cut costs.  But, how are supply chain executives juggling all these challenges? Are they taking full advantage of the supply chain management IT /technology that’s now available?

New research from eyefortransport offers some insights. The latest “Logistics Technology Report” summarizes survey results from more than 300 executives from the supply chain and logistics industry. The poll was conducted in October and November 2009 and focused on the use of IT and technology in supply chains.

Here are a few key findings I found interesting:

• 40 percent of shippers and 36 percent of transport logistics providers (TLPs) said the recession had not been as bad as expected. 33 percent of shippers and 17 percent of TLPs said that the impact had been worse than expected. 27 percent of shippers and almost half of TLPs (47 percent) said the impact was as expected.

• Good news: A whopping 100 percent of shippers and 81 percent of transport logistics providers polled said that they expect their companies to see growth in the next year.

• 47 percent of shippers and 42 percent of TLPs said they expect an increase in investment in their supply chain IT/technology during the next year. 33 percent of shippers and 44 percent of TLPs said they expected no change. Some said they expect IT investments to decrease (20 percent shippers; 14 percent TLPs) .

• One-third of shippers and about the same amount of TLPs (36 percent) surveyed said they would have more budget to spend on supply chain IT and technology this year, compared to last. 27 percent of shippers and 42 percent of TLPs expect to have the same budget. 40 percent of shippers and 22 percent of TLPs said they had less.

• Not surprisingly, improving operational efficiency emerged as the most important motivating factor for upgrading or purchasing supply chain IT/technology. When deciding to upgrade or purchase supply chain IT, the key factors identified by shippers were: improving efficiency (93 percent), reducing costs (60 percent), improving customer service (47 percent), improving visibility (40 percent), and improving security (20 percent). The top three key factors among TPLs were: improving operational efficiency (92 percent), improving data quality (61 percent), reducing cost (53 percent), clear ROI (36 percent), direct customer requests (36 percent), increased cargo security (8 percent).

• For shippers, the supply chain IT areas that most need improvement are: forecasting (60 percent), supply chain visibility (47 percent), and business intelligence/reporting (47 percent). TLPs would most like to see improvement in: transport management (39 percent), forecasting (36 percent), labor optimization (33 percent), and supply chain planning (33 percent).

For more details, see the full report available here.