The wonder of the Web

By Francis J. Quinn -- Logistics Management, 7/1/2000

We're living in an e-enabled, dot.com world. And if you had any doubts for an instant, just turn on the television, read the newspaper, or look through the articles and advertisements in Logistics Management & Distribution Report. Even the Council of Logistics Management has been caught up in the e-rapture. This year's annual meeting in New Orleans will revolve around the theme of "redefininglogistics.com."

For logistics professionals, the trick is to figure out which Internet-enabled options can really make a difference in their supply chain and which are just hype. Making the distinction is not easy. But the logistics professionals who can separate the wheat from the chaff position themselves-and their companies-for future success.

Determining what's available in the first place is the initial task. In fact, an abundance of Web-enabled logistics options currently exist-and the list grows longer by the week. There are advanced online marketplaces that let you not only buy transportation services, but also track your shipment from pickup to delivery. For shippers interested only in getting the lowest transportation rate, the online auctions are just the ticket. Companies moving product internationally now can monitor the movement of their sea containers or airfreight shipments online in a virtual real-time environment.

The electronic enablement does not end with transportation services either. Logistics managers today can use the Web to evaluate and select providers of warehousing and third-party logistics services. They can manage and move inventory online, considering and optimizing such variables as inventory-carrying costs, customer response times, and projected demand. They also can use the Web to manage a wide network of expedited shipments. This is a terrific solution for companies shipping medical supplies or parts for mission-critical applications.

The software used in logistics management has become Web enabled, too. From the grandest ERP system to a modest transportation routing package, the software solutions are increasingly becoming integrated with the Internet.

Now, logistics managers cannot be realistically expected to know everything about all of the Web-enabled options flooding the market today. But they need to pursue a structured course of action to identify which solutions will work for them-and which will not.

A good first step is to learn as much as you can about as many Web-enabled logistics options as possible. Advertisements, vendor brochures, and industry meetings and exhibitions can help in this regard. (And if you haven't already signed up for this year's CLM meeting on the theme of redefininglogisitics.com, there's still time. Visit www.clm1.org.)

Next, talk with your peers-both in your own industry and in industries considered leading edge, such as computers and chemicals. Find out what Web-enabled logistics solutions have worked for them. Ask about the ones that haven't turned out as expected. Then aggressively investigate the most promising options and test them in a real-life environment. This helps ensure that the solutions are appropriate to your organization and that your people are comfortable working with them.

Logistics professionals must become conversant and comfortable with the Web-enabled opportunities for managing their supply chains. It's not just good business; it's a career necessity.

Francis J. Quinn is editor of Supply Chain Management Review, published by Cahners Business Information. Visit the magazine's Web site at www.supplychainlink.com.