Incidentally the logistics sector has not witnessed much technology penetration, as compared to other sectors in the country. Since there are relatively very less information sharing capabilities or flow of information between the various players, it has greatly affected their functioning. Currently, consumers demand faster delivery, better service at lower prices and more value-added services. All these put tremendous pressure on logistics service providers (LSPs) to come up with lasting solutions. Benefits of IT for LSPs IT helps to share information among all parties involved through Electronic Data Interchange (EDI), thereby helping in distribution of information to top management. Some of the major benefits of IT are: · All-round visibility: IT services help logistics firms to get access to technology through which the latter can offer their clients instant information through Web browser applications and even via smartphones. This provides a clear advantage to LSPs as their clients can access information from any part of the globe at any point in time. In this manner, LSPs can save on costs, enhance customer service and increase profit margins. · Dissemination of information: IT helps faster dissemination of information across all the segments involved in logistics business, which helps clients to give a rapid response to changes. The same allows LSPs to be more proactive and receptive to client requirements, thereby leading to continued client retention. Stiff competition in the sector has spurred many LSPs to aggressively consider a diverse range of ways to meet business requirements more efficiently. Primarily many of the innovative business solutions are based on the adoption and utilisation of IT. The level of advancement in IT today has a greater impact on business strategies and organisational structure than ever before. Apart from the aforementioned benefits, IT will also help logistics firm to manage their skills, resources and opportunities and overcome threats from the external environment, thereby helping the sector to scale greater heights by attaining its goals and objectives.
To meet future demands and for greater organisational flexibility, logistics firms need to develop more transparent processes. An advanced information sharing capability is the key ingredient that is critical to support this strategic need. In the quest to gain competitive advantages, firms are expected to make a significant shift in organisational structure and business practices for better utilisation of IT. Amit Maheshwari, CEO and managing director of Softlink Logistic Systems Private Limited, a big-sized software product company headquartered in Mumbai |
