Perspectives on the use of information technology at third party logistics service providers in Singapore

Abstract

The use of information technology (IT) in the logistics area is growing all over the world and so is the number of third party logistics providers. In this article a specific case of interrelation between the uses of IT at the third party logistics service providers (3PLs) in Singapore is highlighted. Information collected through a randomly selected sample of 3PLs indicates that more and more service providers are either planning to incorporate IT in their operations or are benefiting from their use. Towards this end, the providers are acquiring new knowledge, skills and technologies. The survey results showed that respondents are also concerned about their investments in IT as they feel that with rapidly changing technology, their equipment, skill and processes could become obsolete before any tangible benefits could be derived from them. The providers indicate that financial justification is another key barrier to full‐scale IT implementation. These constraints hinder the implementation of strategic IT projects, which require significant investments. Therefore, a package program for skill development and equipment incentive could be initiated for 3PLs in Singapore.