Softlink Logistic Systems, India’s leading logistics software provider, today revealed the survey results on – ‘Adoption of Technology in Indian Logistics Sector-2009’, conducted among 700 Indian logistics players operating as Customs Clearing, Freight Forwarding, NVOCCs and 3PL players. The survey revealed that larger logistic players are opening up for technology investments in the year 2010. It highlights that the number of larger players, making technology investments up to Rs. 10 mn have been doubled to 14 per cent in 2010 compared to last year.
The survey commissioned by Softlink, further revealed that 89 per cent 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 per cent) and Improving Data Quality (69 per cent).
The survey 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 per cent of the respondents feel commercial documentations and regulatory compliances are important aspects in their businesses, at the same time 14 per cent and 19 per cent respectively said that their existing IT system is not meeting the expected requirements.
The report also highlighted that though 96 per cent of the respondents feel that Customer Service is an important aspect in their businesses. 34 per cent respondents still feel that their existing IT system is not meeting the appropriate requirement of customer service.
Commenting on the report, Amit Maheshwari, Founder & CEO, said, “Indian logistics industry is often accused of being averse to adopting technology but the survey has conclusively dispelled the misconception. According to the survey, the logistic player is increasingly aware of benefits of technology adoption and its impact on their business. These emerging trend will help drive down the cost of transactions which ultimately will help the industry become more competitive.”
SMB findings of the report are:
91% of SMB logistic players feel that improving Customer Service will be the key motivating factor to invest in technology, followed by Direct Customer Request (84 per cent) and Improving Operational Efficiency (73 per cent)
Around 30% of the SMB players are yet to decide on technology investments in 2010
· 98% of SMB Logistic players feel that Commercial Documentation is an important aspect in their businesses. While 28% respondents highlighted that their existing IT system is not matching up the requirement of Commercial Documentation
· 97% of SMB Logistic players highlighted that Regulatory Compliance is an important aspect in their businesses. While 35% respondents highlighted that their existing IT system is not matching up the requirement of Regulatory Compliance
· 98% of SMB Logistic players highlighted that Financial Accounting as an important work in their businesses, out of which 92 per cent are using technology. Out of these 92 per cent, 21 per cent of the respondents still feel that their IT system is not matching up the requirements of Financial Accounting
· Around 97% of SMB logistic players highlighted that Customer Service is important in their businesses. Also, 39% respondents accepted that their existing IT system is not meeting the requirement for Customer Service
Background of the survey
Softlink Logistic Systems conducted a survey – ‘Adoption of Technology in Indian Logistic Sector-2009’ to gauge the penetration of technology at various levels in logistics business. The survey was conducted among players operating in Customs Clearing, Freight Forwarding, NVOCCs and 3PLs. The sample size of the survey consisted of nearly 700 respondents. The survey report has been fragmented in SMBs (Less than Rs. 50 crore turnover), accounting to 86.08 per cent of overall sample size, and large players’ (More than Rs. 50 crore turnover), accounting to 13.92 per cent and overall industry (consolidated) findings.
The survey highlights the penetration of technology in key areas of logistics industry that include Commercial Documentation, Regulatory Compliance, Financial Accounting and Customer Service. It also discusses the motivating factors for Indian Logistics players to invest in technology and the investment trend analysis between the year 2009 and 2010.
About Softlink
Softlink was established in the year 2005, with the sole aim of simplifying operations of organizations across the globe through highly specialized software products. Softlink is a global software product company which has carved its niche in providing software solutions across the logistics sector to Freight Forwarders, Custom Brokers, 3PL companies and also to 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 50,000 users in over 2,500 organisations. Softlink’s clientele include organisations 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, Schenker, etc. Key PSUs and Government Departments like Air India, Indian Oil Corporation, Dredging Corporation of India, and Embarkation HQ benefit from Softlink’s products.
Softlink is among few Indian players that have been successful developing ERP products. Through a strong domain expertise in the logistics industry, Softlink has developed Logi-Sys - an ERP suite that caters to the specific requirements of logistics industry. The company has also developed X-ponent – a revolutionary Sales and Service management solutions which provides a holistic approach towards Sales, Marketing and customer service to the organizations across different verticals.
