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Oct 4, 2006

Stagnation or growth? - USA - IT investment by logistics providers

* Two recent US reports provide a snapshot view on the state of investment in logistics and supply chain information technology systems

USA -Information Week/Transport Intelligence (UK) -29 Sep 2006: -- A survey for industry magazine, has revealed that transportation companies in the US tend to spend less money on IT than other sectors. The research also states transport companies intend to spend just 2% of revenues on IT in the coming year, compared with 3% four years ago. However investment is at the same level as in 2005... The survey, Information Week 500, also includes rankings based on levels of innovation. The highest ranked transportation provider was Penske, followed by FedEx...


* USA - Another US-based research project
IT consultancy ARC, suggests that IT spending by Logistics Providers is becoming more sophisticated. In seeming contrast to the Information Week survey, they estimate that Transport Management Systems (TMS) spend by providers grew by 11% over the past year, the fifth year in succession that it has grown... At present the market is worth $989million, but in 2010, ARC believes, it will be worth $1.3billion... The report asserts that logistics providers are now driving the market for this type of software which enables managers to not only purchase and plan transport operations, but also to cost them... TMS systems can now reveal overall supply chain costs to give varied and more agile cost picture for different requirements...

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