Success now linked to technology

By Francis J. Quinn -- Logistics Management, 6/1/1999

Traffic managers became physical distribution managers, who then turned into logistics managers, and today are morphing into supply chain managers. During this evolution, more than just the titles changed. So did the scope and nature of the job. What was once a narrowly defined sector of responsibility--say, controlling outbound freight or supervising the company fleet--has broadened significantly. Today's logistics professionals routinely deal not only with other functional areas within their organization, but also with their peers in companies both upstream and downstream in the supply chain.

With that broadening of responsibility has come this management imperative: You must become proficient in technology. Now, that doesn't mean knowing how to program Java or write some esoteric code. Instead, it means being knowledgeable about the kinds of technology that can be brought to bear on your logistics and supply chain operations. And beyond that, it means knowing how to evaluate and select the technology that will deliver the highest payback.

Supply-chain-related technology abounds today. There is transportation management system (TMS) software for streamlining and integrating your transportation operations. Warehouse management systems (WMS) let you run your distribution centers and warehouses more efficiently and profitably. And advance planning and scheduling (APS) technology helps match procurement and production activities more closely with actual customer demand.

Then there are the numerous software packages for loading trucks, mapping routes, figuring out mileage, selecting the lowest-cost option for your package, and on and on. The latest software guide produced by Andersen Consulting for the Council of Logistics Management (CLM) lists more than 1,200 logistics and supply chain software packages--and that likely understates the case. Plus, we haven't even talked about the exciting new opportunities for leveraging the Internet to manage supply chain activities.

Despite the plethora of options available and the explosion of new capabilities, technology is nothing to get timid about. In fact, logistics managers who shy away from learning as much as they can about it as fast as they can are courting trouble on two fronts. For one thing, they deprive their organizations of the potential to profit from new software and systems that might offer a powerful competitive advantage. For another, they stunt their own professional growth. As we rapidly and inexorably move into the age of e-commerce, this can have some dire personal consequences.

In addition to cultivating a mindset of curiosity and showing a willingness to take a risk, logistics people can take certain practical measures to advance their technology IQ. The first and best step is to get involved in professional associations where members share ideas and information on logistics and supply chain technology. CLM, APICS, and WERC are among the broad-based groups that immediately come to mind. Also consider the various industry-specific associations that are making supply chain technology a prominent part of their educational agenda.

Shows and exhibitions like those sponsored by the Distribution/Computer Expo, APICS, and Supply Chain World can provide a valuable learning experience, too. They offer a quick and concentrated way for logistics managers to learn about new software and technology offerings. Notices of these events appear each month in this magazine in the Datebook section.

In the final analysis, the responsibility for becoming technologically astute falls squarely on the individual logistics professional's shoulders. The knowledge and effective use of technology has for some time been a competitive differentiator among companies. These qualities are fast becoming a differentiator among people working in our field, too.

Francis J. Quinn is editor of Supply Chain Management Review, published by Cahners Business Information. For subscription information, call (888) 343-5567.