Costs reduction is the main priority for majority of the logistics industry

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30th January 2017 11:30 - Transport and Distribution

Costs reduction is the main priority for majority of the logistics industry: According to the latest annual logistics survey by Paragon Software System, more than half (57.3 per cent) of respondents said that saving money is the main priority for their logistics company, followed by improving planning accuracy (14.5 per cent) and increasing profitability (9.7 per cent).Costs reduction is the main priority for majority of the logistics industry

Although the respondents had a clear idea of their priorities for change, they also expected there to be barriers to achieving their goals, such as a skills shortage, not enough investment and economic instability, all of which will be worsened by Britain’s departure from the European Union and the increasing pressure on the road network.

The respondents were also questioned about what the biggest challenge to their business was expected to be in 2017. Of the respondents, 33.9 per cent said that a skills shortage and a growing driver was expected to be their biggest hurdle to overcome, closely followed by increasing transport costs (26.3 per cent) and a decrease in economic growth (18.6 per cent). As well as this, the survey respondents also suggested that from a transport planning point of view, a lack of investment, system integration, operational data and management buy-in was also hindering their ability to hit their objectives.

Despite just 5.9 per cent of logistics operators citing Brexit as their main challenge over the next 12 months, 59.3 per cent said that they think it will have a less than positive effect on their company and a further 15 per cent said that they believe the effect will be significantly negative. Just 6.2 per cent of the respondents said that they believed that Brexit will have a positive effect on their business and a further 34.5 per cent said that they did not expect there to be an effect either way.

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