Logical logistics? ...

With technologies like radio frequency identification and supply chain automation starting to play a major role at many logistics and transportation companies, it is not a surprise that they say they are becoming more dependent on their IT departments, Indeed, in a recent survey, 53 per cent of US companies in the sector claim to have plans to install more efficient business processes.

However, their actions are not necessarily following their words. Logistics and transportation companies – in practice – are spending a smaller portion of their revenue on IT. Companies surveyed indicate they will spend an average of 2 per cent of their annual revenue on technology in the coming year,nearly a full percentage point decline from spending levels four years ago and two-thirds of that IT budget will go to ongoing maintenance, while only one-third is expected to be spent on new projects.