Press Release
86% of logistics companies spend less than 1% on IT.

Kale Consultants' "Technology Adoption Index for Logistics" companies, reveals that 76% of companies need to significantly improve their technology adoption levels. .

Mumbai, October 26, 2009: Kale Consultants Ltd., the leading technology solution provider to the airline, logistics and travel industry, today announced the completion of a landmark study on "Technology Adoption in the Indian Logistics Industry". As the first study of its kind unmatched in scope or depth, it offers a snapshot view of the state of IT adoption in the industry by arriving at a single composite index for IT adoption- the TAIL (Technology Adoption of IT in Logistics). TAIL 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 progress. .

Some of the key highlights from the study include

· 215 logistics companies, covering the gamut of 3PL service providers, freight forwarders, Customs broking agents, were interviewed for this study. The study also covers large multinationals and local players.

· The average Technology Adoption Index score is close to 43

· Only 24% of companies were found to be above the average in terms of technology adoption

· 48% of companies consider IT to be critical for their operations

· 86% of companies spend less than 1% of their revenues on Technology

Releasing the top line results of the study, Mr. Sumeet Nadkar, Head - Logistics SBU at Kale said- "This seminal study has thrown up several interesting insights that would indicate that technology adoption could well be a leading indicator of business performance. With the average IT adoption score around 43, a major portion of the industry needs to improve technology adoption and usage. This is even more striking since close to 50% of companies have identified technology as a critical component for their growth and sustenance. While the study shows that penetration of IT seems widespread, most firms suffer from inadequate sophistication of use and relative lack of maturity in technology management. The relevance of the study lies in the productivity improvements that can result from appropriate use of technology." .

This study covers the entire gamut of Logistics service providers and comes at a time when this industry is at a crucial inflection point. The study reveals that adoption of best practices enabled by technology can contribute to significant gains both for the logistics industry and for the Indian industry at large. This will see reductions in transaction costs benefiting trade and the economy at large. This exhaustive study has combined extensive field depth interviews, industry expert opinions and online survey results with rigorous statistical validation to arrive at a robust index of IT adoption- TAIL . Kale Consultants would shortly publish the detailed report on this study that would be available to the logistics industry at large. All participants in the study would have access to their own index ratings and Kale is willing to carry out studies at any other logistics organization on request.

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