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Bar-codes trail ERP in Logistics' lanes

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Preeti
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MUMBAI, MAHARASHTRA: End users of logistic services in India ranked time (94 per cent) and cost saving (90 per cent) as the top two reasons for using logistics technologies. They select their technology service provider (TSP) based on the three main criteria of - match with industry needs, reputation, and cost of technology.

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New analysis from Frost & Sullivan, Strategic Analysis of Logistics Technology Usage Trends in India, finds that about 72 per cent of companies in key end-user industries of logistics services use at least one logistics technology, ranging from a basic technology like bar coding to an advanced technology like radio frequency identification (RFID).

"Among all logistics the technologies, 89 perc ent of end-users industries perceive enterprise resource planning systems as the most effective technology and bar coding comes in a close second at 88 per cent," said Frost & Sullivan's Transportation & Logistics Program Manager, Srinath Manda. "Hence, these two are the most used logistics technologies in India."

Only a quarter of the current non-users of logistics technologies intend to use them in the near future. Among these prospective users, transportation management system (TMS) emerged the most popular choice with 27 per cent of responders declaring that they are likely to purchase this technology. However, several end users claim that TSPs fail to meet the desired levels in the areas of customization, integration of the entire end-user supply chain with the solution, ease of upgrades, and post-implementation support.

To resolve these issues, TSPs should rework on their product development and customer satisfaction approach to provide well-defined yet customized solutions, which are easily upgradable. "TSPs also need to offer/implement solutions that integrate multiple functions/departments involved in the supply chain of a client organization, thereby creating a seamless flow of information and communication management for clients," noted Manda. "Apart from these, the solution providers need to improve their commitment levels to existing customers through regular follow-up and support services."

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