(This is the second part of a report on results of a recent SoftLink-PortCalls survey on IT adoption among logistics companies.

For the first part (“Few PH cargo service firms have reached full automation—SoftLink-PortCalls survey”), click here.)

shortfall_coloredA little over a third of respondents to a recent SoftLink-PortCalls IT survey among logistics companies in the Philippines found duplication of work and non-availability of track and trace and automatic customer reporting systems as major shortfalls in IT systems.

Results also revealed 27.8% of survey respondents found using multiple systems for operations as a shortfall. Other shortfalls are: lack of proper customer support (21.6%), lack of localization (20.6%), lack of financial controls (19.6), and inaccurate documentation (15.5%).

A total of 250 respondents participated in the recent survey, 34% of whom were company CEOs/directors and 45% were senior managers. The rest were mid-level staff.

More than half of respondents, or 53.6%, said the biggest barrier to automating is the lack of expertise in IT. The second barrier with 45.2% of the votes is untrained manpower, followed by insufficient financial support and unavailability of suitable software with 33.3% votes each.

Other challenges in adopting IT include employees’ fear of change (31%), employees’ lack of commitment and involvement (28.6%), lack of commitment from top management (13.1%), rigidity of organizational culture (11.9%), exhaustive paperwork-difficult to computerize (11.9%), and perception that IT is not an advantage at all (9.5%).

barriers-in-adopting-it_coloredAsked about the perceived benefits of adopting IT in operations, 87% cited quick response and access to information as the top benefit.

A total of 76.2% said improved customer services is another top benefit, followed by improved competitiveness and reduced paperwork with 69%, reduced errors and data re-entry efforts and track and trace facility with 63%, and improved data control with 62%.

Other perceived gains are standardized programs and procedures (60.7%), quick, effective and informed decision making (50%), streamlined logistics processes (46.4%), reduced manpower (44), and control over various logistics functions (41.7%).

On what the main motivating factors are for investing in IT, a significant 86.9% of respondents said increasing operational efficiency is a main factor, while 63.1% mentioned improving customer service. The third top factor is accurate documentation (54.8%) while other factors are enhancing profitability (33.3%), introducing effective financial control (28.6%), enforcing data security (21.4%), and reducing labor cost (20.2%).

Some 15.5% considered return on investment among their top reasons for IT adoption while 9.5% considered direct customer request as a major reason.

In terms of IT systems used, 53% of the companies indicated they are still using older versions of technology systems, while 46% still use desktop-based systems. The remaining 7% are still working with redundant legacy or disk-operating system. – Roumina Pablo

 

You May Also Like

Camahort retiring from LBC Express by Oct.1

Miguel Angel Camahort is retiring as chairman of the Board, president and…

PCCI seeks stronger govt, private sector integration

The Philippine Chamber of Commerce and Industry is pushing for stronger integration…

International air freight forwarders in PH process 3% more shipments in first sem

International airfreight forwarders flew 3% more air cargo in the first semester…

TESDA partners with industry groups for tech-voc logistics, last-mile training

The Technical Education and Skills Development Authority formalized its partnership with two…