Recession hits hi-tech spending

Logistics companies are avoiding making investments in new technology during the recession, amid fears over lengthy start-up times and potential integration problems.

IT provider Kewill said the time it takes for firms to get a return was also preventing them from looking at buying new technology, despite many acknowledging its potential to improve operational efficiency.

In conjunction with research group Transport Intelligence, it surveyed 562 logisticians and found that while nearly all recognised the cost saving potential of implementing new technology in their businesses, as many as 79% felt long startup times could negatively impact the firm.

Jacquie Boast, COO Europe at Kewill, said: "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."

Joel Ray, head of consulting at TI, added: "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."