More firms to prefer supply chain outsourcing: Freightgate Report

February 9, 2012: More companies operating in the logistics sector will go for outsourcing their supply chain and logistics requirements to logistics companies with Information Technology capabilities in 2012. The main driver behind outsourcing is speedy execution and delivery and to develop collaborative solutions. This observation was made by Freightgate, which offers internet solutions in the area of freight and logistics.  

According to Freightgate, more logistics firms will look for outsourcing options to meet supply chain and logistics requirements. This is as a result of the increase in the demand for improved collaborative business processes, rate management and logistics procurement with enhanced execution capabilities which the firms will not be attain with the help of in house Information Technology departments. 

Freightgate says that the year 2012 will be a year of tough competition among the logistic firms which has lead to a trend where the logistic firms are entering into agreements with the logistics software companies that offers services that not only includes basic services, but also event management and collaborative what if solutions. In addition to these, logistics software firms also offer information visibility and data security.

Freightgate has predicted that in 2012 IT, cloud computing and mobile will merge into a single set of forces that will mold Information Technology decisions and marketplace competitiveness. It is said that there will be an increase in the number of logistics and supply chain companies that will go for cloud services and mobile applications in their processes. The cloud services and mobile applications enable faster sharing of information between departments and different levels which enable synergy between teams that will result in the improvement of processes, financial performance and fast response to customer issues.

It notes that transportation procurement is not only about freight rates and service parameters, but also about environment, cost reduction and various other issues. It has started to consider carbon footprint, cutting down of non core costs, and global environmental awareness. Freightage has pointed out that logistics and supply chain companies now focus on faster response to changing environment which includes unplanned events. This is necessary for quick decision making, faster planning and even scenario responses to unexpected events that may take place. The logistics area is one place where changes occur rapidly and the impact on the revenue will surface within hours and not days. To avoid this requires fast response to changes.

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