Cost Pressures and Driver Shortage Continue to Weigh on Logistics Sector as Rising Congestion Adds to Road Transport Challenges
Paragon Software Systems, Inc., a leader in vehicle routing and scheduling software, reveals the top priorities of logistics leaders for their 2017 transportation operations, according to the firm’s recent survey of customers. Respondents confirmed that their first priority will be focusing on savings in their transportation departments in 2017, followed by improving route planning accuracy (30%) and then improving managing information/reporting (17%). However, businesses face a number of barriers, including lack of data about their business, not enough planning time available and a shortage of drivers.
“The findings of our customer survey highlight the ongoing pressures facing the logistics sector in terms of growing transport costs, business profitability and operational resourcing. These organizations increasingly recognize the importance of transport optimization and are using our routing and scheduling software to re-assess their strategies, achieve operational savings, improve service levels and make the best use of their assets,” said William Salter, CEO and President of Paragon Software Systems.
Top findings from the survey include:
- Top 3 transportation/logistics objectives for US logistics operators in 2017
- Reduce overall transportation costs: 74% of US respondents chose this option as their top priority.
- Improve route planning accuracy: Over one-third of US respondents chose this as their next most important objective for 2017.
- Improve management information/reporting: 22% of US respondents chose this as their 3rd objective.
- Insufficient data about transport operations, lack of planning time available and the driver shortage will hold back US companies from achieving these goals.
- The driver shortage is the biggest challenge facing US businesses in 2017, according to the survey, followed by rising transport costs (23%) and increasing customer demands (23%).
- 68% of US participants think that road congestion has worsened over the past year, resulting in longer journey times and making it harder to plan accurate transport schedules.
- Almost 70 percent of US respondents believe that the US Presidential Election results will have a positive impact on the logistics industry.
“The results of our recent annual customer surveys reveal an ongoing focus on reducing costs,” adds Salter. “By continuously investing in the development of our routing and scheduling software, Paragon enables customers to reduce planning time and improve route accuracy with modules such as Route Control while our Live Management tools help automate the sharing of data. We’re proud 57 say g and scheduling software to an industry peer. "Paragon'. ing across the organisation easierme windows and more accurate that over 90% of our US customers are likely to recommend Paragon’s routing and scheduling software to an industry peer."
About Paragon Software Systems
Paragon Software Systems, Inc., based in Dallas, Texas, is a leading provider of truck routing and scheduling software solutions. Paragon’s advanced planning systems have been proven to cut transportation costs and improve efficiency across a wide range of distribution operation types and industry sectors. Paragon’s North American truck routing software clients include George’s Inc., AgReliant Genetics, Linde, McLane, National Food Corporation, and many others. The software is used for the daily route optimization of transportation schedules; rationalizing fixed routes; managing transportation resources; strategic logistics planning; and managing home delivery orders with dynamic routing. Paragon Software Systems, Inc. is a wholly owned subsidiary of Paragon Software Systems plc, the UK’s number one provider of transportation routing and scheduling software. Paragon has over 3,400 systems installed at more than 1,100 client sites in 50 countries worldwide. For more information, visit paragontruckrouting.com.