European and US T&L software firms “keen on opportunities in underdeveloped local scene”
By Rob McKay | August 7, 2013
A spate of recent transport and logistics software-related developments in Australia indicates that US and European IT firms are keen to take advantage of opportunities here, one of them says.
They see a receptive market that needs to catch up with progress in the northern hemisphere, one that is in better shape than their home markets, according to PTV Group Business Development Director Logistics Software Joost Bekker.
Bekker’s German-headquartered firm brought in its Logistics Product Suite in March and last week become a member of local logistics think tank the Future Logistics Living Lab.
He notes that Australia has plenty of local and international suppliers with requisite products available that face a customer base yet to exploit them and comparable to where Europe was 10 years ago.
Though much has been said about the need for Australian logistics to innovate, “it’s not so much about finding innovative solutions but about implementing the innovative solutions that are available in the market”.
In Europe, few carriers or manufacturers with fleets of more than 10-15 vehicles are not using some sort of vehicle scheduling and optimisation software but in Australia “you’ll be pushed to find one that does”.
But the Australian market might be approaching a tipping point.
“I think we’re going to see some dramatic changes in the next 18 months, the margins in the industry are extremely low and the pressure is on to improve efficiency,” Bekker says.
“On top of that is the mounting pressure to seriously start looking at ways to reduce emissions, so the industry will have to make a move.
“At the same time we see there are now logistics software providers entering the market with solutions that are within reach of the medium sized operators.
“We can offer vehicle scheduling and optimisation solutions that are affordable for operators with 15+ or even 10+ vehicles, we even have solutions for solo operators.
“High capital investments can now be avoided with the introduction of SaaS solutions and pay per use models.
“But we’ll need to educate the market.”
He adds that many operators have little affinity with Information and communication technologies and while they are happy to spend $250,000 on a new vehicle, they “are extremely hesitant to spend $25,000 on a solution that could improve their distribution efficiency by 5-10 percent.
