CSCMP's Supply Chain Quarterly
December 16, 2018
Forward Thinking

Mobile technologies could save companies thousands of dollars, study says

Many companies still don't see value in mobile use, according to results of a study conducted by Intermec.

Transportation and logistics firms could save an average of $459,000 a year by using mobile technologies and implementing process re-engineering initiatives, according to a new study.

The research, conducted by Everett, Washington-based Intermec Inc., canvassed 375 transportation and logistics managers in six countries. The estimate represented the average savings of companies in the study that had carried out process re-engineering initiatives during the past year.

Another key finding was that 44 percent of respondents believe that reviewing current workflows and technologies affords the most effective means for improving operational efficiencies. About 60 percent of managers surveyed said that mobile communications protocols such as 4G and LTE offer significant returns on investment. Forty-four percent said that integrated vehicle telematics would provide a return on investment, while 38 percent cited radio frequency identification (RFID) as a solid ROI contributor.

However, the study found that many companies don't perceive benefits from re-engineering their operations with mobile technology. Thirty-nine percent of respondents have not initiated re-engineering in the past year. Moreover, 40 percent of respondents who have not automated work processes saw no business need to do so. Another 33 percent of respondents with no automation said the cost of the systems was the main reason for not pursuing this kind of initiative.

According to the study, 77 percent of respondents said their customers are now demanding same-day delivery services. About 92 percent of respondents said that responding to those demands has created significant challenges for their business.

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