Cost Still Drives Logistics Decisions

In a survey of industrial clients, logistics and supply chain management company Exel, asked which were the top three logistics pressures imposed by their markets and customers. Top ranked was cost reduction (24%) followed by shorter delivery times (18%) and service performance levels (12%). Flexibility also received a 12% response. Finishing just below that was on-time delivery at 10%.

Other measures of damage and information accuracy appeared on the list of issues facing logistics professionals.

Asked what significant changes were likely to affect their business over the next 18 months, those responding to the Exel survey said dealing with company growth, driving down costs, and adjusting logistics networks to customers who are becoming more pan-European.

On the fleet management side, a survey conducted by Televigation concluded the high price of current GPS fleet management technology puts the technology out of the reach of small- to medium-sized fleets. Of fleet managers surveyed with 500 or fewer trucks, 68% identified high cost as the primary reason they had not implemented GPS fleet management into their operations. Another 13% said the training required and the complex installation of current GPS platforms was not worth the investment.

The report identified five benefits of GPS technology:

• Tracking driver location for efficient job allocation.

• Real-time updates of driver's work status.

• Higher levels of customer service.

• Route, stop location, and other data automatically reported.

• Assisting drivers with driving directions.



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