Transport Logistics

ii) Need to take account of rapid development of ICT in future logistics planning

ICT is characterised by a high rate of technological change, with the designed or implemented

systems being increasingly viewed as a single network, but being flexible enough to be applied more

easily in diverse contexts. This high pace of change within ICT poses a challenge for policy makers

and users of these technologies.

E-commerce is developing rapidly. It is necessary for the continuing development of e-commerce

that consignments are delivered globally within a very tight timeframe and at low cost. Therefore,

patterns of distribution are likely to change both globally and locally.

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The change in the characteristics of freight transport resulting from introducing advanced or

innovative ICT to logistics will have important implications for future planning. Usually, innovative

information technologies are introduced for advancing logistics networks only after the transport

hardware infrastructure and related facilities are well developed. However, innovative ICTs are so

sophisticated that they can be utilised as powerful tools to strategically redirect the pattern of logistics

operations. Accordingly, the implementation of future hardware infrastructure cannot be independent

of the architecture of the information infrastructure and the characteristics of information systems

designed and developed for advancing strategic logistics networks.

One of the major barriers confronting companies in the uptake of advanced ICT technologies is

the increasing investment risk. On the one hand, these risks result from the large investments in ICT

required, and on the other hand from the long period of time required for implementation of software

and systems in relation to the increasing rate of change characterising these technologies. This is an

important development that imposes great uncertainties on the willingness of the private sector to

invest in ICT, particularly if there is uncertainty surrounding governments’ communications policy and

spectrum allocation.

Hence, policy makers need to keep up with the rapid development of ICT and develop a stable

communications framework that is conducive to logistics planning by the private sector.