Posts Tagged ‘supply-chain’
e-commerce challenges logistic providers
E-commerce logistics provider is faced with new challenges
From trucking companies to supply chain master
Explore the logistics service provider e-commerce. They attract potential customers with services that go far beyond traditional transport services, and up to taking over entire business processes ranging. Lack of data exchange formats that make it difficult not only to connect to virtual marketplaces put, but enormous demands on IT resources of the logistics company.
Despite the recent dot-com failures to market researchers and analysts largely agree that the electronic trading of goods and services listed in the coming years of high growth. IDC projects such as an increase in sales to 1.6 trillion dollars in 2003, where it accounts for 1.4 trillion dollars in transactions between companies. The resulting turmoil in global markets can also search the logistics provider for new concepts, to participate in the Internet boom.
On the one hand, the industry has had the good fortune to transport tangible goods that are not split into bits and bytes and send it over the Web. On the other hand, logistics companies use the Internet even more, they want to be their increasing importance within the supply chain, new German supply chain called justice. Reason enough to hold Germany to € Forum GmbH, based in Dusseldorf, a two-day conference on “Challenges of e-business and e-commerce for logistics”. Sees opportunities Susanne Frank, project manager at Euro-tech industry forum, abound: “It is no longer just about the physical transport from A to B, but rather to additional services such as the complete order fulfillment.”
Speakers on side prevailed over the odds for the transport industry wide agreement. For example, predicts KPMG Consulting in the years to a “dramatic” increase in package volume, particularly triggered by the business-to-consumer (B-to-C) range. But the business-to-business (B-to-B) want to take logistics sector companies with a range of value added services tasks currently covers mainly the classical (interim) trade. Ranging from warehousing to the billing, the transfer of accounts to the complete order processing. Interest for such a comprehensive service packages were loud Axel Meier of Inet-Logistics not only start-up companies that have such structures do not, but brick-and-mortar companies, the new products marketed on the Internet do without their existing distribution channels to scare.
Even Michael Schueller, Consultant, Lufthansa Systems AS GmbH, represents the position, which could through direct sales resulting gap to be closed by the manufacturers and logistics service providers. While the producers would have to take the customers with advice, the carriers could handle tasks in order processing, warehousing and distribution, billing and collection.
Among the additional skills to complement the transport companies have their core logistics skills, IT know-how is particularly important. The front-runner have reached the courier, parcel and express services. While traditional carriers for smaller orders or the consignor of the goods, shippers in the industry jargon, manually created and sent by fax bills and loading lists to enter into their software systems, it runs from contemporary package of innovative services. Here, the physical transport related information electronically and shared largely without media breaks. The associated IT costs is very difficult. United Parcel Service (UPS), for example, with 27 billion sales in 1999 an industry leader, claims to be infected per year, about one billion dollars in IT investments and maintains the second largest after the United Nations here.
Tracking relieved Call Center
UPS uses the DV technology, not only for optimization of internal processes, but also provide better information for shippers and their customers. The term “tracking and tracing, the company – as is now the most package services – the ability to determine via the Internet, where there are the posted packages. This online shipment tracking is the latest advance in the next year a standard feature of the industry. This would be attending a conference, according superfluous if the receiver could rely on the adherence to agreed delivery times. De facto relieved tracking the call center of the consignor. Turn this way 30 percent of all customer inquiries at Cisco Systems for information on whereabouts of ordered goods, Steffen Müller, e-commerce manager at UPS reported.
For companies that send large amounts of packets over different parcels, but it is too costly to gather up the data on the various websites of the suppliers. To avoid this, the carrier to be able to display the tracking information in the Enterprise Resource Planning (ERP) system of the customer. The “Express Package Carrier Interface” UPS has an interface that allows direct access from SAP systems to such status data.
Even for the traditional logistics industry is the variety of data formats and the absence of comprehensive standards is a high hurdle is the case of medium-sized and large cargo forwarding agents and transporters of hazardous goods and goods beyond the 30-pound limit to EDIFACT as the standard for the Electronic Data Interchange (EDI ) widely adopted. Smaller carriers but is already the programming of an EDI interface with problems. Here, logistics portals to help.
One of these marketplaces are operated by Axit AG, headquartered in Frankenthal. “MyLogistics” since September of this year online and offers an industry information service with “Weborder” an order entry form on the internet. Shippers can enter their data via Web browser here. For agents who want to participate in Weborder programmed Axit the interface so that data can be transferred directly into their shipping program. Frauke Heistermann, Managing Director at Axit but hopes to be able to inspire even more Transporters for the portal: “They are now woke up, there’s a lot of catching up.”
Shippers, where it is too expensive to send each shipping order by fax or individually entered in the entry screen of the carrier or portal need also an interface to their ERP system. For the industry heavyweights include the programming interfaces to the appropriate service for large customers. Smaller freight forwarders have however not have the appropriate IT resources, especially since such adaptation projects take up to one year.
Much more complex, the demands on IT, if the electronic integration of logistics service providers in multi-company supply chains or virtual marketplaces in the industry is to be realized. Here defined compounds and standards must emerge from the capital goods to the logistics marketplace. As in many other industries, here are great hopes on the Extensible Markup Language (XML): “When interfacing is currently all in search of the penny! We believe that XML can play this role.” Said Andreas Topp, UPS senior Engineer-Electronic-commerce for the region Europe. Several logistics companies and the transportation of specialized software companies are working on appropriate specifications. UPS has submitted claims to be the first carrier a document type definition in the standards bodies, the BizTalk Initiative (Microsoft) and Rosetta Net. Rosetta Net is an industry organization that has been written on the flags, uniform standards for online information exchange between suppliers, manufacturers and buyers to develop. UPS is sitting here as well as competitor Federal Express (FedEx) in addition to many IT heavyweights (including Cisco, IBM, HP, Compaq, Intel, Toshiba, Microsoft, Netscape, Oracle and SAP) in the Managing Board. Topp is confident: “I am confident that we will be there to see something within the next year.”
For logistics providers who do not share this optimism, the E-Commerce nevertheless provided interesting perpective, they have the appropriate IT know-how, or appropriate partnerships. A carrier can anvancieren with comparatively little effort to supply chain master, if he can cover except marketing and sales activities over the handling of business process. An example is presented Hellmann Worldwide Logistics: In partnership with the Bundesliga club Werder Bremen in the Swiss Schindellegi Headquartered provider is currently next to the storage and the operation of the call center, dispatch, billing and accounting. The “Fan Service GmbH” must in future only the more than 100 Fanartikel for producers to commission. This, combined Hellmann its IT infrastructure with the football club set up business software “Navision Financials”.
Availability of goods online queries
The Swiss put it in a programmed Pearl module with the cryptic name “V1.2″ one that provides the necessary links between the ERP system and its storage management software, and databases. This enables customers to check the proposed Werder Internet shops in the future availability of goods ordered online. This check represents for each supply chain management project, a critical factor: Only by the availability of audit work across the entire supply chain, can be determined accurate delivery dates for the final product.
Remains to be seen whether the price for such a complete package is far below the profit margins that in the old economy, once enough of the classic commercial. The question is whether and how quickly it is possible the carriers to develop the necessary concepts and services available to take over the role of traditional wholesalers and distributors in whole or in part. At least at concepts prevailed at the Euro Forum event is no shortage. Their digital implementation, the industry, however, remain significant tasks. In addition to flexibility, cooperation and integration is therefore of the IT literacy is an essential part in e-commerce success of the transport industry. The bulk of the market participant has the “E” in the new fashion term “e-Logistics” has yet to earn any rate.
E-Logistics e-collection needs
The problem is almost as old as trade itself: the customer is afraid, not to get their goods – the seller fears for his payment. Since it is close to logistical services to collect as the bearer of the goods for cash due amounts. The German Post AG is taking its portal “Evita” (www.evita.de) back on the services of the Postal Bank. Most logistics companies have not connected via a financial services and are therefore dependent on cooperation. Kuehne and Nagel, for example, that as a global logistics company, also want financial services as an integral part of their service and share offer, here on a strategic partnership with Chase Manhattan Corp.. In the e-payment, pay via internet cooperate further with the Swiss Tele Cash, a company specializing in electronic payment system providers.