Logistics 'half-life' plays big role in technology investment

July 26 2013

For any technology investment, one question all business decision-makers should ask themselves is how long can this new system be effective? While investing in any business solution, from computers to logistics software, it is important to know how long it can be an asset before an upgrade will be needed. In some instances, however, that doesn't always happen.

In a recent guest column from Logistics Viewpoints, Chris Jones examined the half-life of logistics technology investments and why many executives are not taking this into account.

Jones' argument is that logistics IT solutions are not well understood because a lot of the focus is on procurement of the technology and not the life span. The example he used is that many executives understand this issue when talking about forklifts or trucks—if you are using old vehicles, it can hurt your productivity. However, when they have that same conversation about ERP or other logistics software,that life span aspect does not come up and the thought process is that upgrading can be complicated.

"Logistics IT seems to be the land of the walking dead, because companies do not have technical or financial exit strategies for their existing solutions," Jones wrote. "Or worse, they are holding on to those solutions because they haven't gotten the anticipated payback!"

This is why many companies are partnering with an experienced business courier service to handle their logistics solutions. This takes the burden of upgrades off the table and allows an organization to rest easy knowing all of these issues are taken care off.