Subscribe to our free, weekly email newsletter!


11th Annual Supply Chain Management Software Users Survey: Caution remains

Logistics professionals appear to be enthused by the gradual economic recovery and see the need for improved visibility to better meet new supply chain demands, but they’re still not ready to make the big investments necessary to fully realize those goals.
By Bridget McCrea, Contributing Editor
June 01, 2013

Reasons for adoption
Shippers are embracing supply chain software for a wide range of reasons. According to the LM study, for example, the key reasons for purchasing a WMS include label printing, freight/package rating, and slotting features.

Key TMS purchase drivers include routing and scheduling, carrier selection and load tendering, as well as routing and rating. The largest percentage of shippers (50 percent) say they plan to spend less that $99,999 on all supply chain software over the next 12 months. Twenty-eight percent say they plan to spend $100,000 to $499,999, while 8.7 percent will spend between $1 million and $1.9 million.

Klappich says that Gartner’s research also shows that 50 percent of companies have kept their investments about the same. “This is largely due to the economic climate and the fact that many companies have remained in a very cautionary investment mindset,” he says. “However, the fact that over 40 percent state it has increased is a positive sign.”

Regrettably, says Klappich, the fact that only 33 percent of respondents say they plan to buy software in the near future is proof that cautious attitudes prevail among logistics professionals. “This highlights that over four years into the recession companies are still extremely cautious and are not making wholesale changes in the IT landscape.”

About the Author

image
Bridget McCrea
Contributing Editor

Bridget McCrea is a Contributing Editor for Logistics Management based in Clearwater, Fla. She has covered the transportation and supply chain space since 1996, and has covered all aspects of the industry for Logistics Management and Supply Chain Management Review. She can be reached at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA