| The Council of Supply Chain Management | | | | Logistics companies can achieve visibility by |
| Professionals (CSCMP) /Logistics Management defines | | | | implementing a highly flexible end-to-end IT platform |
| Supply Chain Management (SCM) as an integrating | | | | for collecting, synchronizing and analyzing data and for |
| function with primary responsibility for linking major | | | | securely communicating actionable intelligence to raise |
| business functions and business processes within and | | | | operational and security alerts. |
| across companies into a cohesive and high-performing | | | | "From an IT perspective, this capability can be |
| business model. It includes all of the Logistics | | | | achieved by building a system that can perform |
| Management activities, as well as manufacturing | | | | remote data capture, synchronize data for analysis |
| operations, and it drives coordination of processes | | | | through data warehousing and data mining |
| and activities with and across marketing, sales, | | | | technologies, and provide real-time data for |
| product design, finance and IT. | | | | immediate visibility on an operations dashboard to |
| For a logistics company, understanding all elements of | | | | generate alerts and responses for either operational |
| the supply chain is crucial to ensuring that business | | | | or emergency situations," adds Ptashkin. |
| runs smoothly. From the moment a quotation is | | | | CHAINS OF WISDOM |
| created, through to the process of understanding the | | | | What are the key elements of a high competitive |
| customer's needs and delivering on the expectations. | | | | logistics organization? |
| For many, the process ends when the transaction is | | | | Service providers and the IT vendors that support |
| completed. But for the astute businessman, the | | | | the industry share some common pointers: |
| process goes one step further - assessing the | | | | Customer facing contact |
| customer's level of satisfaction and identifying areas | | | | Customers are outsourcing elements of their |
| of improvement. In a business that is very | | | | processes because they want to focus on their core |
| dependent on repeat business, customer satisfaction | | | | business. When they turn to third party vendors to |
| is a high priority. | | | | deliver these services, they expect service quality |
| When supply chain management (SCM) systems | | | | comparable to what they can perform or offer |
| were first introduced, they heralded an era of vertical | | | | in-house. |
| integration resulting in business efficiencies within the | | | | "As we increase our portfolio of services to meet |
| logistics industry. But several trends, including | | | | the demands of our customers, it is no longer just |
| globalization, outsourcing, and just-in-time practices, | | | | about having the best service team in the market. It |
| necessitate a transformation of the way logistics | | | | is about being there when your customer needs you. |
| companies run their business. | | | | For TradeLink Technologies, this means being visible |
| In Asia's import and export industry, businesses are | | | | to the customer on a regular basis. We augment |
| squeezing more costs out of the supply chain while | | | | these face-to-face visits with cutting-edge |
| trying to maximize opportunities for order fulfillment. | | | | communication technology from WebEx to ensure |
| Daniel Entac, managing director at TradeLink | | | | that our customers know we are on top of their |
| Technologies, a North Carolina-based solutions vendor | | | | business," said Daniel Entac, managing director at |
| for the logistics industry, observes that "Logistics | | | | TradeLink technologies. |
| companies now realize that 'moving freight' is a | | | | Effective information technology |
| service that is treated as a commodity with a | | | | Customers select logistics service providers who |
| bottom to prices. Because of this they are asked to | | | | consistently deliver on the promise of great service |
| be more active in a customer's supply chain and | | | | and value for money. Behind the business mantra is |
| provide a full range of services from cross docking to | | | | an IT infrastructure that links the providers close to |
| financing the shipment". | | | | their customers. Both DHL and FedEx use technology |
| The result is a growing set of service offerings that | | | | to make sure customers have instant access to |
| is an amalgamation of services from various providers | | | | information pertaining to their package. It is this |
| and delivered under one roof. The challenge becomes | | | | connection that lets customers know they are ahead |
| one of managing this increasingly complex supply | | | | of the game. |
| network to ensure survival. | | | | "To stave off competition, companies look to IT to |
| "Companies are becoming more externally focused, | | | | achieve more effective ways to interact and |
| recognizing the necessary contributions made by | | | | collaborate with their suppliers, distributors, customers |
| other entities in the total supply network," says | | | | and business partners. Such multi-enterprise |
| Trevor Barrows, director of Logistics Solutions at | | | | collaboration requires enhanced automation of |
| SSA Global Technologies. "This has created an | | | | processes across multiple organizations simultaneously. |
| emphasis on companies developing a supply chain | | | | IT plays a crucial role in enabling sophisticated |
| management strategy for collaborative commerce | | | | Internet B2B data sharing and broad-scale business |
| processes to deliver on expectations whist | | | | visibility," said Buck Devashish, senior vice president |
| maintaining internal and external market relationships | | | | of strategic initiatives for Asia Pacific at Sterling |
| and total quality management." | | | | Commerce. |
| An SCM strategy enables the alignment of mutual | | | | Trevor Barrows, director of Logistics Solutions at |
| business goal within the network to achieve | | | | SSA Global concurs with this assessment: "The supply |
| competitive advantage against other supply chain | | | | chain of the future will be determined by the impact |
| networks as opposed to traditional discrete company | | | | of today's rapidly accelerating technology. This is |
| competition. At the heart of this strategy is | | | | creating the opportunity for a new breed of logistics |
| technology and processes that enables a network of | | | | supply chains capable of exploiting previously |
| businesses to work seamlessly together to serve | | | | unattainable access to information." |
| one customer. This provides the necessary assurance | | | | Building the Digital Supply Chain |
| to the customer that their interests are the number | | | | Any one who works in the logistics industry will tell |
| one priority of the provider (and its partners). | | | | you that it is evolving towards a business of |
| To create an effective and efficient partnership, | | | | collaboration - where the sum of the parts is greater |
| Barrows believes logistics companies face a number | | | | than the whole. In such an environment, a clear vision |
| of hurdles including (1) interaction of disparate IT; (2) | | | | of a connected supply chain is emerging that |
| communication across multiple company boundaries | | | | provides immediate and long-term solutions for |
| and cultures; (3) the ability to operate effectively | | | | achieving greater efficiencies at every stage of the |
| within rapidly changing circumstances often due to | | | | supply chain operations -- starting at the |
| competition); and (4) managing the dramatic increase | | | | manufacturing plant and extending to a retail |
| in the quantity of available information. | | | | organization's warehouses. |
| Best practices in developing a SCM strategy | | | | A white paper called 'Building the Digital Supply Chain' |
| "Logistics services providers strive for profitability, | | | | discusses the concepts underlying the digital supply |
| efficiency and effectiveness in operations and global | | | | chain and the infrastructure building blocks that |
| competitiveness," says Barry Ptashkin, vice president | | | | facilitate the acquisition, filtering, aggregation, and |
| for Transportation Sector at EDS' global government | | | | distribution of supply chain data. The paper suggests |
| industry group. "To achieve these goals, the strategy | | | | that through technology advances that enhance |
| should focus on enhancing visibility of products, | | | | global manufacturing, distribution and sales operations, |
| replacement parts, shipments, assets (vehicles and | | | | the benefits of a connected digital supply chain can |
| conveyances), people, data and security exposures. | | | | significantly increase the efficiency, productivity, and |
| It is therefore important for logistics companies to | | | | profitability of supply chain participants. Get your |
| commit to an operating strategy that provides | | | | copy of the "Building the Digital Supply Chain" white |
| end-to-end security." | | | | paper here. |