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Home » Use of mobile technologies could save firms thousands of dollars in savings, study says
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Use of mobile technologies could save firms thousands of dollars in savings, study says

July 18, 2013
James A. Cooke
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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, Wash.-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.

"Deploying mobile technology for pickups and deliveries has long been seen as a way to improve efficiency and reduce costs," said Jeff Sibio, Intermec's industry director for transportation and logistics.

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 placed significant challenges on their business.

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KEYWORDS Intermec
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Jamescooke
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.

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