Industry Research
Kale has engaged research as a proactive tool to understand industry challenges, concerns and outlook in its quest for robust industry solutions. Taking up the mantle of a responsible industry player, Kale has been able to reveal hitherto unknown facts and a collective thought for the industry.
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Technology Adoption in Logistics Industry (TAILTM)
As the first study of its kind in scope or depth, TAILTM is an attempt to arrive at a simple integrated measure of technology adoption in the Indian logistics industry. The index serves as an industry benchmark for logistics companies to derive their technology effectiveness and business competitiveness.
For the study, a total of 69 asset-based players and 166 non-asset based players were surveyed. Asset-based players consists of shipping lines, airlines, railways, terminals, warehouses, CFS/ICD whereas non-asset players consists of pure-play freight forwarders, pure-play CHAs, full service freight forwarders, 3PL companies, full service 3PL companies, 4PL companies and special category LSPs.
TAILTM captures information on how much technology do logistics firms use, how they use it and how they manage technology in a single comprehensive quantitative measure. It combines the dimensions of IT penetration, sophistication and maturity of adoption into a simple, easy-to-use index that can be used by firms to benchmark their technology progress. It goes a step beyond in relating the level of adoption to the business benefits that have been experienced by the Logistics industry.
Study of TAILTM measures in conjunction with various business parameters such as revenue, staff size, productivity, vintage of firm, scope of business, geographic coverage, IT spends and IT Criticality measures have established the close correlation of technology adoption with business performance.
TAILTM study throws some interesting insights and findings. TAILTM measure places 15% of all non-asset based firms above the group average of 45.05 while over a third of asset-based firms made it above the average for these firms at 52.06 indicating a higher rate of adoption amongst larger firms. TAILTM measure has a strong fit with other business variables although not so with age of firm or Capex spends. This vindicates the validity of the measure.
Determining TAILTM score for your organization can greatly assist the top management in strategic decision making. To facilitate this, Kale has structured the study and score along with its interpretation in the form of a report. Screen shot of the report is placed below:
Technology Adoption in Logistics Industry (TAILTM) report
To determine the TAILTM score for your organization, write to us at info@kalelogistics.in
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