B2B Integration : A Practical Guide to Collaborative E-commerce

Supply Chain Management (SCM) 427
14.5.4. E-logistics: Integrating warehouses, distribution
centers and customer interaction processes
Most companies still use manual methods, spreadsheets, or proprietary
software to manage their logistics processes (i.e., transportation and
distribution activities).
Assets stored in a warehouse are fairly easy to track. However, these
same assets become almost invisible and very difficult to track when
they are in transit. In today's competitive business environment, where
business competitors can outbeat a company with effective implementation
of just-in-time (JIT) delivery, a company cannot afford to lose track
of its assets. Companies need to implement a fast-moving, adaptable
logistics system for everything from purchasing through manufacturing
to sales and distribution of goods and services.
E-logistics essentially consists of Internet-based management and
integration of warehousing, delivery and transportation, return management,
order management and customer interaction processes across
all vendors and customers. Customer interaction usually involves order
status, various delivery calls (urgent delivery, pick-up delivery, overnight
delivery).
The e-logistics solution should standardize transaction management
and logistics processes of a company and integrate them into the
company's internal transaction infrastructure. It should provide realtime
visibility and performance monitoring of movements of goods and
events and enable Internet-based collaborative capacity planning, load
tendering, carrier availability notifications, inventory status reporting
and proof-of-delivery validation. The e-logistics solution should also
enable real-time communication between the dispatching company and
carriers, giving carriers the ability to dynamically perform tasks, such
as sales automation, delivery verification and route sales. Furthermore,
it should enable the dynamic optimization of routes and vehicle dispatch
by giving companies the ability to monitor and update real-time delivery
status.
Software providers such as Descartes Systems, i2, SAP, PeopleSoft,
Baan offer a Web-based collaborative logistics management system.