Carriers and 3PLs embrace ERP software

By Staff -- Logistics Management, 4/1/1999

A survey of major motor carriers and third-party logistics providers has found that many of those providers have installed enterprise resource planning (ERP) software. The consulting firm KPMG commissioned the survey of chief information officers and chief financial officers at 49 carriers and logistics providers.

Four ERP vendors--PeopleSoft, Oracle, SAP, and Baan--accounted for about one-third of the software that carriers had purchased recently for accounting, finance, and human-resources applications (see the accompanying chart). "But the majority of operational solutions still are being addressed by internal systems and packages without ERP's integrative capabilities," says Kathy Capellini, a partner in KPMG's transportation practice. "Still, the strong showing from leading-edge suppliers shows that companies are recognizing the software's strategic value."

The survey found that respondents were using ERP software primarily for accounting purposes, especially accounts payable and general-ledger applications. More than three-fourths of survey respondents said that they planned future investments in large systems or software that would also handle human resources and sales and marketing.

Nearly 61 percent of the respondents said they had recently invested in supply chain software, particularly transportation planning, execution, and order-management applications. KPMG, however, noted that very few of the packages in use were "true supply chain software." The report's authors noted that most companies actually employed a combination of internal systems and software to handle supply chain functions.

Fifty-eight percent of those surveyed indicated that they planned future investments in large systems or software in the areas of transportation planning, execution, order management, and other supply chain-related functions. As was the case with ERP packages, respondents remained undecided about which software brands they would consider. "From this survey and our work in the field, we're finding that transportation companies are very interested in becoming more integrated in the supply chain," says Capellini, "but often are uncertain about what technology to put in place to achieve this."

Which Types of SoftwareDo Carriers Use?

PeopleSoft topped the list of favorite software providers cited by carriers responding to a KPMG survey.

PeopleSoft 15%

Oracle 12%

SAP 7%

Baan 2%

Other 64%

Source: KPMG