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75% of Transport and Logistics Sector Report Recovery from Global Downturn According to Independent Research - The most significant driver for investing in supply chain technology is satisfying customer demands through reducing costs and demonstrating operational efficiency.

GUILDFORD, UK -- 29 September, 2010 -- IT investment is back on the agenda for transport and logistics service providers, with 54% planning long-term investments in transport and global trade management systems. The increase comes as the transport and logistics sector is beginning to feel positive about the economic climate, with 75% of companies confident they have recovered, or are recovering, from the global downturn according to a survey of 478 European transport and logistics service providers conducted by Transport Intelligence (TI) and Kewill (LSE: KWL), a leading provider of solutions that simplify global trade and logistics.

The most significant driver for investing in supply chain technology is satisfying customer demands through reducing costs and demonstrating operational efficiency. Yet one in three (32.4%) of survey respondents consider their current logistics software to be a barrier when reacting to new business opportunities, suggesting that some software providers are falling short of meeting the needs of their customers.

Best of breed solutions are preferred by the majority of respondents, with 70.3% of those surveyed stating that linking to existing systems is deemed the most important factor when selecting a new software provider. However, expectations are low, with almost half of the companies surveyed (47%) not anticipating a new logistics IT system being up and running within six months, and 73% citing implementation time as a significant barrier. Significantly, companies need to see a quick return on investment, with 81% of road transport companies expecting ROI within two years.

Jacquie Boast, Chief Operating Officer EMEA at Kewill, commented, "The survey results clearly show that transport and logistics companies are in need of effective transport and global trade management systems. There are real concerns about seamless integration with existing systems and visibility of supply chain information to enable effective planning and management, as a vast majority of businesses identify this as a key factor when choosing a logistics IT provider. Post recession these companies require a partner who can guarantee a quick implementation and seamless integration, so that they can ensure a rapid ROI, stay ahead of their competitors and support their growth as the economy recovers."

NB: The Executive Summary for the Research is available at the end of this press release.

About Kewill plc

Kewill delivers solutions that simplify global trade and logistics. Global businesses face ever increasing complexity across their supply chains including decisions on sourcing, customs, compliance, transportation, storage, finance, visibility and connectivity. Inefficiency in any of these areas will lead to supply chain delays and result in increased costs. Kewill has a suite of software solutions that significantly simplify the management of the most complex global supply chains for enterprises and logistics service providers. With over 35 years experience in global trade management and logistics, and over 600 employees worldwide, Kewill is a long-time innovator of solutions for manufacturers, distributors, retailers, freight forwarders, transport companies, customs brokers, 3PL's and 4PL's, as well as other related institutions involved in financing and underwriting global trade such as banks and insurance providers. Kewill's solutions are in daily use by more than 40,000 users worldwide and our global customer base which entrusts us with the management of their supply networks includes divisions of 3M, Bayer, Caterpillar, DHL, FedEx, Ford, General Electric, General Motors, H.J. Heinz, Kimberley-Clark, Kraft, Levi Strauss, Mazda, Nestlé, Nike, Palm, Procter & Gamble, Smith & Nephew, Sony, TNT, Unilever, UPS, Vodafone, Yamaha, Xerox.

1.1 Background

In August 2010, Transport Intelligence conducted a survey for Kewill with a focus on how the use of key logistics / transport related IT solutions have assisted companies to survive during the recent global economic downturn. The survey also attempts to ascertain the buying criteria for logistics companies and manufacturers as well as whether any differing requirements exist between these customers of software solutions.

A total of 478 individuals responded to the survey, of which some 407 (85% of the sample) were logistics service providers. The remainder comprised manufacturers, advisors and companies working in periphery services.

1.2 Key Figures from Findings

- 75% of the sample felt that they had recovered, or were recovering, from the impact of the global economic downturn and only 12.6% stated that the issues regarding the downturn still affected decisions regarding their supply chain.

- Customer demands were considered to be the most important driver of supply chain design, as stated by 61.8% of the respondents. Of these, the areas of cost savings (57.9%) and operational efficiency gains (51%) were considered the most important issues in satisfying those demands. In the previous study undertaken for Kewill (in August 2009), cost savings were considered important by 67.5% of the sample while operational efficiency gains were perceived as important by 53.3% of companies.

- The percentage of the sample that believed software systems were either important, very important or essential in managing the following functions were:
  -- Transport management systems 85.4%
  -- Customs and compliance software 81.4%
  -- Warehouse management systems 77.2%
  -- Freight forwarding software 76.5%

- One in three (32,4%) of the survey respondents consider their current logistics software to be a barrier when reacting to new business opportunities.

- 73.2% of the surveyed companies felt that implementation time was a barrier to implementing new software.

- 53.5% of the companies sampled stated that they have long-term IT investments on the agenda in 2010 for transport management systems.

- The ability of any new system to link with all existing internal systems is deemed as the most important factor when selecting a new software provider, according to 70.3% of the participants.

- 81% of the road transport companies expect to see ROI of IT investments within 2 years

For more information contact:

Tanya Pring
Fieldworks Marketing
Tel. (UK) +44 (0)1435 873080
tanya@fieldworksmarketing.co.uk

www.kewill.com

Submitted by: LogisticsWorld
news@logisticsworld.com, 10/3/2010 4:02:42 AM

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