Shippers Find Need to Improve Technology Use in Supply Chain

Port Calls Asia – Most shippers are not making the most of the growing number of technology tools at their disposal in optimizing operations, according to the results of a survey by American Global Logistics (AGL).

AGL, a customized logistics solutions provider, said that while technology is driving tremendous change for supply chains and making the appropriate corrections is a struggle.

Many shippers also said it is time to overhaul their processes as technology can’t improve processes that are broken. Nearly two-thirds (65%) of the businesses surveyed said some of their business units could use process engineering, said the report.

The survey also found that purchase order management is the top reason shippers are turning to technology so as to understand what happens between the time an order is placed and when it is shipped. More than half (56%) of shippers said they turned to technology for purchase order management, followed by booking management (30%) and contract management (16%). Another 27% said they are leveraging technology to improve end-to-end visibility, which starts with a clear view into production.

Furthermore, cost and time are the two biggest barriers to a connected supply chain, according to the surveyed shippers. Among the half of shippers who have integrated their supply chain systems, cost is the main challenge in building a holistic, technology-enabled operation. Nearly one in five (19%) cited expenses as a major barrier to integration, followed by the time required (14%) and software incompatibilities (11%).

Finally, reporting is at the top of many shippers’ wish lists. Reporting tools are highly desired by shippers, with 68% saying they would benefit from detailed business analytics and forward-looking recommendations.


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Feature Image Credit: Axisadman