Softlink Logistic Systems in its recent ‘Adoption of Technology in Indian Logistics Sector-2009’ study has observed that the logistics industry in the country is expected to see greater technology adoption in the year 2010.

The study conducted amongst 700 Indian logistics players operating as Customs Clearing, Freight Forwarding, NVOCCs and 3PL players has estimated that the number of larger players, making technology investments up to Rs 10 million have doubled to 14 percent in 2010 compared to last year

Findings of the study estimate that 89 percent of the larger logistics players highlighted that direct customer requests will remain the key driving factor to invest in technology this year. The other two key driving factors would be improving customer service (88 percent) and improving data quality (69 percent).

The survey also gauged the penetration of technology in key areas of logistics industry namely commercial documentations and regulatory compliance. It observes that with most of the larger players, existing technologies are not matching the desired requirement for these areas. While 98 percent of the surveyed respondents feel commercial documentations and regulatory compliance are important aspects in their businesses, 14 percent and 19 percent respectively said that their existing IT system is not meeting the expected requirements.

The report also highlights that though 96 percent of the respondents feel that customer service is an important aspect in their businesses, 34 percent respondents still feel that their existing IT system is not meeting the appropriate requirement of customer service.

The survey also included the SMB segment of the logistics sector wherein, 91 percent of the surveyed SMB logistics players feel that improving customer service will be the key motivating factor to invest in technology, followed by direct customer requests (84 percent) and improving operational efficiency (73 percent). Around 30 percent of the SMB players were yet to decide on technology investments in 2010.

Findings also indicate that 98 percent of the SMB Logistics players feel that Commercial Documentation is an important aspect in their businesses. 28 percent respondents highlighted that their existing IT system is not matching up the requirement of Commercial Documentation. 92 percent of the 98 percent SMB Logistic players who felt that Financial Accounting was an important part of their businesses were using some kind of IT. Out of these 92 percent, 21 percent of the respondents still feel that their IT systems are not matching up to the requirements of Financial Accounting.

97 percent of SMB Logistics players highlighted that regulatory compliance is an important aspect in their businesses. However a good 35 percent felt that their existing IT system is not matching up to the requirement of regulatory compliance. Around 97 percent of the respondents highlighted that customer service is important in their businesses. However 39 percent respondents accepted that their existing IT system is not meeting the requirement for customer service.