Exclusive Transport & Logistics Sector research proves reducing costs is still core for businesses

Published 6th November 2009

6th November, 2009 – Guildford, UK – Exclusive new research by Transport Intelligence (TI) and Kewill (LSE: KWL), a leading provider of solutions that simplify global trade and logistics, has confirmed that Transport and Logistics Service Providers have had to implement cost saving measures and make operational efficiencies in response to the economic climate. Yet implementation times and integration issues are often a cause for concern when deploying business software to support these changes.

The research, conducted among 873 supply chain professionals, revealed that
implementing cost savings in the operation (73.1%) and realising operational improvements (56.3%) are the most frequently taken measures by transport and logistics companies to remain competitive during the recession. Optimising planning procedures was named by around half (49.1%) whilst almost one in three (31%) businesses admitted to dropping prices in response to the changed market situation.

Business software was identified as an important tool for managing operational costs by over 95% of transport and logistics companies yet significantly was also proving a barrier to responding to new opportunities in a third of cases (32.9%). Of these, the length of implementation time was cited as the main issue for the majority of respondents (79.2%) and, interestingly, posed more of a problem than financial implications (52.8%).

Crucially, when considering a new software solution, the ability to link to existing internal systems was the most important criteria (78.1%), with the ability to deliver the solution on time also high on the list of priorities (70.1%).

Jacquie Boast, Chief Operating Officer Europe at Kewill added, “The results clearly indicate that businesses need software solutions that integrate easily with their existing systems, providing an all round picture of supply chain data and allowing them to respond quickly to changes in market conditions. The fact that implementation times are such a concern highlights the need for vendors to focus on phasing projects to ensure a rapid return on initial investment, securing wider business support for further phases which deliver wider business benefits and even greater returns. ”

Commenting on the findings, Joel Ray, Head of Consulting at TI, said: “LSPs have had to adapt to survive the recent global downturn and those that have undertaken operational efficiency programmes are likely to emerge better placed to exploit the recovery. This survey highlights the important role that software can take to assist companies in reducing inefficiencies during these turbulent times.”


For additional information, contact:
Tanya Pring
Fieldworks Marketing
Tel. (UK) +44 (0)1435 873080
tanya@fieldworksmarketing.co.uk



About Kewill plc:
Kewill delivers solutions that simplify global trade and logistics.
Global businesses face ever increasing complexity across their supply chains including decisions on sourcing, customs, compliance, transportation, storage, finance, visibility and connectivity. Inefficiency in any of these areas will lead to supply chain delays and result in increased costs. Kewill has a suite of software solutions that significantly simplify the management of the most complex global supply chains for enterprises and logistics service providers.

With over 35 years experience in global trade management and logistics, and over 600 employees worldwide, Kewill is a long-time innovator of solutions for manufacturers, distributors, retailers, freight forwarders, transport companies, customs brokers, 3PL’s and 4PL’s, as well as other related institutions involved in financing and underwriting global trade such as banks and insurance providers.

Kewill’s solutions are in daily use by more than 40,000 users worldwide and our global customer base which entrusts us with the management of their supply networks includes divisions of 3M, Bayer, Caterpillar, DHL, FedEx, Ford, General Electric, General Motors, H.J. Heinz, Kimberley-Clark, Kraft, Levi Strauss, Mazda, Nestlé, Nike, Palm, Procter & Gamble, Smith & Nephew, Sony, TNT, Unilever, UPS, Vodafone, Yamaha, Xerox.

www.kewill.com

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.

www.transportintelligence.com