Logistics industry is an upcoming and rapidly growing sector
of the Indian economy.
The enormity and complexity of the logistics activities and
multitude of transactions in trade and commerce is inconceivable without the
use of Information technology (IT) and communications. Application of IT solutions
brings practical and dramatic improvement in resolving logistics related
problems.
IT plays a critical role in the following:
o
Cutting down paper work
o
Tracing where the paper and/or the work is held
o
Overall monitoring
The usage of IT definitely differs in its application and
complexity for different components of logistics. Efficient SCM solutions offer
cost effectiveness to both the buyers and the suppliers of logistics services.
Most logistics services provider (LSP) companies have
embarked on the path of IT enabling its operations in last few years.
They have also achieved reasonable success in achieving some
of the initial goals of many of the parameters:
o
All the branches are computerized with Email and
ERP access on broadband and/or dial up connectivity
o
Entire operations, billing, tracking are through
an integrated online solution (provided by companies like WebXpress)
o
Selected customers are provided with access to their
section on Self service portal for tracking/MIS/Billing etc.
o
All the dockets can be tracked from transporter’s
or LSP’s website
Above achievements are significant for transport and
logistics industry but they are pale in comparison with IT maturity of their
customers and global peers. With the advent of global players reaching Indian
shores and joining hands with local LSPs, it has been imperative for the local
LSPs to understand and appreciate the usage of IT solutions to keep pace with
the changing needs of the clients
Your point on IT maturtiy of logistics is valid. What according to you are main reasons for this apathy?
ReplyDeleteThe main reasons are:
Delete1) In Indian Scenario, people in transport and logistics industry still consider that the usage of Computers and data entry is enough for IT implementation whereas use of RFID, Bar codes, integration of all the hubs & branches through internet, integration of the system with their customer's and vendor's system to get real time data which will help to take effective decision and proper planning
2) Even if some companies implement IT, people at ground level are reluctant to learn and use the system for various reasons like to avoid bringing transparency of their work, to learn new methods of working etc
Thus, at times ERP system are implemented for name sake and not used in daily operations