Companies are focused on cost reduction and efficiency improvements, says Tim Pigden of Optrak

March 22, 2011 - PRLog -- Optrak Distribution Software Ltd today announced that the results of a survey carried out at a recent logistics trade show showed that cost reduction and efficiency improvements were the top priorities for supply chain and logistics professionals.  In contrast, improving overall performance and increasing customer service levels were seen as of lower strategic importance, reflecting the difficult economic conditions that are still prevailing.

Tim Pigden, Managing Director of Optrak said, “It is clear that in order to remain competitive and indeed in some cases merely survive, companies are continuing to look for new ways of taking costs out of the supply chain (http://www.optrak.com/applications/operationalplanning).  As budgets for new investments are increasingly harder to justify, there is a bigger focus on improving efficiency and essentially getting more out of existing resources and assets.”

A key trend that has been observed over the last 12 months is that companies are becoming more cautious about the investments that they are choosing to make.  It is not enough for projects to show projected return on investment, other factors such as perceived project risk play a role in determining which projects get the go-ahead from decision makers.  Additionally, with more limited capital available, there are often multiple projects competing for the same slice of budget.  This reinforces the value of systems that can be implemented quickly and make a rapid impact on the underlying business issue.

Pigden also notes another trend around the use of Key Performance Indicators (KPIs).  KPIs (http://optrak.com/blog/choosing-effective-distribution-kp...) are still yet to receive the attention that it should in many companies.  This is something that Pigden is keen that those in the logistics industry address, as he commented:

“Relatively few companies that we speak to have a really good understanding of the KPIs that affect their business and even fewer have systems in place to measure them properly and in a timely manner.  However the discipline of building a framework and putting in place the right processes to monitor and act on the information given to you by examining the right KPIs is vital.  For example If you see a fall in the number of drops per kilometre that your vehicles travel then it could indicate that you are not coping well with business expansion or your drivers are not following efficient routes. But it could alternatively reflect the success of a drive to increase customer minimum order quantity. In a changing business environment, focussing on one or two measures without considering the bigger picture can be dangerous and lead to bad decisions. So a balanced approach and a thorough understanding are necessary.”

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About Optrak: Optrak Distribution Software Limited (http://www.optrak.com) has been supplying award winning vehicle routing solutions for over 22 years. Optrak has a wealth of experience in creating flexible solutions to real business problems faced by companies operating transport and distribution fleets.

Deployment of Optrak typically leads to a reduction of between 5% and 15% of transport costs. Administration is streamlined. Mileage and fuel consumption are minimised. Transport utilisation is increased. Management information and control is increased.

Optrak has been chosen by many of the leading companies in Europe. Clients include Fuchs Lubricants, Menzies Distribution, DeliveryCo, Total, 3663 and Matthew Clark Wholesale.