eLogistics Services Holds its Ground in Economic Slowdown, IDC Says
FRAMINGHAM, MA – AUGUST 6, 2001 – According to IDC, there is an opportunity for elogistics service providers to make the most of this slowing economy. By positioning themselves correctly in this volatile market, elogistics service providers have a chance to work around the challenges that the slowdown presents and capitalize on many opportunities.
The economic slowdown will create both challenges and opportunities for the elogistics services segment for transportation management. However, IDC’s research on adoption patterns shows an increasing demand and adoption of elogistics services and IDC forecasts that demand for elogistics services for transportation management will reach $22.3 billion by 2005. "As companies come under pressure to look for cost cutting measures and new sources of competitive advantage, many are actively evaluating elogistics service options," said Romala Ravi, senior analyst for IDC’s eLogistics Services Research.
However, companies are also becoming more scrutinizing of the services offered, cost and length of time of implementation, and other factors. "From the services provider perspective, the impact will depend on the actions taken by the services providers. In order to thrive in this market, service providers will need to not only expand value-added services and minimize financial risk undertaken by their clients but also demonstrate an active client base and quantify the benefits for users," said Ravi.
IDC’s bulletin The Impact of the Economic Slowdown on eLogistics Services for Transportation Management (IDC #B25030) discusses the current IT market economic slowdown and the impact it will have on elogistics services providers. Since IT is a critical component in elogistics services, the document first analyzes the big picture on how IT spending as a whole is being impacted by the slowdown. It then zooms into the impact on elogistics, focusing specifically on elogistics services for transportation management. The document examines how the slowdown is impacting the adoption of elogistics services by three groups of users, namely, shippers, carriers and 3PLs. It also examines the impact (challenges and opportunities) on elogistics service providers, and then goes on to provide recommendations on how service providers can ride the wave of the slowdown and position to capture the opportunities.
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IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
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