A recent survey conducted by Intermec (NYSE:IN) revealed that transport and logistics companies could save approximately $459,000 1 per annum as a result of process re-engineering and the implementation of mobile technology across workflows, but a significant proportion of companies may be missing out on these potential savings.
The survey reveals that more than one in three (39%) companies have not initiated re-engineering efforts in the past year, and of these companies, nearly three quarters (72%) have not evaluated their existing processes for at least two years.
With customers demanding same-day delivery services 2, transport and logistics managers have identified operational efficiency as their number one area needing improvement this year 3, and 44% of companies believe reviewing current workflows and technologies (process re-engineering) is the most effective means of achieving that.
Key to improving operations is the deployment of mobile, location-based technology, an area where managers believe savings of more than $282,000 can be achieved in the next 12 months. However, almost a quarter (23%) of the companies surveyed have yet to deploy location-based technology, citing a number of barriers including lack of need and cost, which is preventing them from capitalizing on these benefits.“Deploying mobile technology for pick-ups and deliveries has long been seen as a way to improve efficiency and reduce costs, and these findings prove that point emphatically. Ignoring process change simply isn’t a long term option,” said Jeff Sibio, Intermec Industry Director for Transport and Logistics. Automating Processes
- Managers see broadband mobile communications such as 4G and LTE as the single biggest future driver of ROI (60%) followed by integrated vehicle telematics (44%) and RFID (38%).
- But those who have not deployed new technologies through process re-engineering remain significant. Of those who have not automated processes, nearly 40% cite a lack of business need and 33% attribute cost as the key reasons for not doing so.
- Consequently, the survey finds that 60% of organizations still use paper-based systems to complete tasks associated with pick-up and delivery, and 9% have plans to deploy paper in some form in 2013.
- When asked to rank the demands received from their customers, 77% of managers claim that accuracy of service is the biggest pressure point.
- Nearly a quarter (24%) of companies add that improved accessibility of data in back office systems is the area most in need of improvement, followed by an increased amount of detail (23%) and greater accuracy (22%).