MUMBAI, INDIA: Larger logistics players, makingtechnology investments up to Rs.. 10 mn have been doubled to 14 percent in 2010 compared to last year., said a survey commissioned by Softlink Logistic Systems.

The survey titled, 'Adoption of Technology in Indian Logistics Sector-2009’ was conducted amongst 700 Indian logistics players operating as Customs Clearing, Freight Forwarding, NVOCCs and 3PL players.

89 per cent of the larger Logistics players highlighted that Direct Customer Request would remain the key driving factor to invest in technology this year. The other two key driving factors would be improving Customer Service (88 per cent) and Improving Data Quality (69 per cent).

Amongst the SMB logistic players, 91 per cent feel that improving Customer Service would be the key motivating factor to invest in technology, followed by Direct Customer Request (84 per cent) and Improving Operational Efficiency (73 per cent).

Around 30 per cent of the SMB players are yet to decide on technology investments in 2010

The survey also gauged the penetration of technology in key areas of Logistic industry namely commercial documentations and regulatory compliances. It has been observed that most of the larger players existing technology system is not matching the desired requirement for these areas.

It highlighted that 98 per cent of the respondents feel commercial documentations and regulatory compliances are important aspects in their businesses, at the same time 14 percent and 19 percent respectively said that their existing IT system is not meeting the expected requirements.

Commenting on the report,  Amit Maheshwari, founder and CEO, said, “Indian logistics industry is often accused of being averse to adopting technology but the survey has conclusively dispelled the misconception. According to the survey, the logistic player is increasingly aware of benefits of technology adoption and its impact on their business.”

He further said that these emerging trend will help drive down the cost of transactions which ultimately will help the industry become more competitive.