Study: LSPs aim for two-year software payback

Most logistics service providers (LSPs) seek a two-year payback on their software investments, according to the results of a new study. The survey of 280 LSPs worldwide, conducted by the research firm Transport Intelligence and the software vendor Kewill, found that 80 percent of LSPs expect a two-year return on investment for the supply chain software they deploy.

The study also found that 70 percent of respondents plan to buy new transportation management, warehouse management, or freight forwarding software in 2013. Respondents see a downside to such purchases, however: Almost half said that the time required to implement new systems was an inhibitor to exploiting new business opportunities.

More than 40 percent of the LSPs responding to the survey have software links with their customers, but fewer than 20 percent also had electronic links with other supply chain service providers. Nevertheless, 89 percent of respondents said they plan to increase information sharing and collaboration in the future.