Trucking Technology Report - July 10
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Mass Delivery of 'Goblet' Makes 'E-Commerce History'
Amazon.com says it made "e-commerce history" on Saturday by delivering 250,000 copies of the latest Harry Potter book. The feat marks the largest distribution of one item in a single day, Amazon says.Amazon gave its first 250,000 orders a free upgrade to Saturday delivery, while the customers paid for standard shipping, which usually takes from three days to a week. The offer saved customers $10 on shipping, and Amazon also took 40% off the book's list price. FedEx helped with the deliveries, using the opportunity to test a new home delivery unit geared toward e-commerce. USA Today (07/10/00) P. 1B; Kong, Deborah
How To Overcome The Same-Day Service Challenges Of E-Commerce
While same-day transportation companies would like to take advantage of the e-commerce trend by handling transportation for online consumer purchases, the added cost of same-day service is a disincentive for online shoppers. However, the same-day providers Velocity Express and NextJet, both of which make use of couriers and cargo space on commercial airlines, believe they will be able to serve e-commerce – albeit in different ways.
Despite the problem of convincing customers to pay for fast shipping, the investment firm THLi is supporting Velocity Express with a $25.2 million investment.
NextJet, on the other hand, is targeting business-to-business transactions with a transportation system that links with the online business' Web portal, creating a route and airplane schedule and determining the price of the transaction within seconds. The system will also continuously track shipments while in transit.
While the price is costly for the customer, NextJet is convinced that it has found a great market opportunity. Traffic World (07/03/00) Vol. 263, No. 1, P. 31; Krause, Kristin S.
A Wireless Unit Makes Sprint A Likely Takeover Target
Despite the seemingly failed merger with WorldCom, Sprint's wireless network remains strong. During the last couple years, the company has been the leader in establishing a nationwide network with efficiency and speed.The company is highly sought after for a merger by some of the largest companies in telecommunications – Deutsche Telekom, BellSouth, and Nippon Telegraph and Telephone. Sprint had received a merger offer from BellSouth last year before opting for WorldCom's higher bid. A bid from Deutsche Telekom could receive substantial resistance from Senate leaders, who expressed concerns that a merger with the German operator could violate existing FCC regulations.
The manager of Invesco Telecommunications funds, Brian Hayward, said Sprint's extensive digital wireless coverage throughout the United States is its most attractive attribute for companies desiring to expand operations.
Sprint PCS, the firm's wireless unit, runs the biggest all-digital wireless network in the nation. The network's coverage represents 70% of the population, and the company's monthly revenue of $54 per subscriber is 30% more than the industry average. But in terms of total mobile subscribership, the company ranks fourth in the country. Sprint PCS is currently searching for a new CEO due to the recent departure of former CEO Andrew Sukawaty. New York Times (07/10/00) P. C6; Romero, Simon
Online Transport Exchanges in Motion
Several online marketplaces to connect shippers and carriers have appeared recently, making a shipping company's selection of a transportation provider even more difficult than before. Further complicating the choice, industry analysts say, is that, although there are many new services to choose from, there is very little difference between them.Analysts say that the successful online marketplaces will be those that have already established a business relationship with shippers and carriers. Transplace.com, for example, is the brainchild of six U.S. trucking companies, each of which could attract old customers to the new marketplace.
Meanwhile, Logistics.com is popular not only for its size – it covers all forms of shipping around the world – but also because it respects previous agreements between shippers and their transportation providers.
Cost is an important factor. Many of the marketplaces charge a fee simply for putting shippers and carriers in touch with each other, whether or not the companies make a deal. But with competition fierce, analysts expect the marketplaces to set minimal fees that will attract the most business possible from their target markets. Computerworld (07/03/00) Vol. 34, No. 27, P. 16; Rosencrance, Linda
SBC to Give PCs to Internet Customers
SBC Communications intends to provide personal computers to subscribers who agree to a two-year contract for its DSL service. SBC, which is providing DSL across its service area, said it intends to provide the full package to subscribers for roughly $60 per month.The package includes a new Compaq desktop computer with a DSL modem already installed and SBC's Internet access service. The Compaq computer, a 566-megahertz Presario, will include an Intel Celeron processor, a CD-ROM drive, a 10-gigabyte hard drive and unlimited Internet service. However, users must pay $198 to cover the computer's shipping and handling.
The deal, which is expected to be unveiled today, will be available until next month to SBC subscriber in California, Texas, Oklahoma, and three other states. The deal is expected to be offered to other states later. Wall Street Journal (07/10/00) P. B8; Solomon, Deborah; Thurm, Scott
The Yankee Group Analyzes $3 Trillion B2B Online Market
Boston-based research firm The Yankee Group predicts that the online business-to-business market will grow to $3 trillion by 2004. At that time, the analysts estimate, the average company will buy close to 30% of products and services online. Also by 2004, the online exchange of product maintenance, repair,and operation will rise to about 40%, up from its current 2%. CC News (07/00) Vol. 2, No. 7, P. 4Assembling An Effective Wireless System
Companies that desire to offer wireless Web connections are confronted with a variety of technical challenges that are not as prevalent when employing wired access. The fundamental challenge is to implement a wireless system that has adaptability for linking to various kinds of networks and wireless products. There are also relevant concerns for security, integration, and ongoing maintenance when deploying a wireless system.Whichever wireless system a company chooses, it should excel in the following categories: device independence, network independence, user management, and extensibility. In addition, it should allow for integration and customization.
Since a wireless system, unlike a Web system, must accommodate a great number of networks and devices, many telecom experts believe the most efficient method for building a wireless system is via a hook up into a company's back-end legacy system.
For companies not interested in building their own network, outsourcing is a legitimate option. Currently, there is a group of outsourcing vendors offering diverse technologies and services for wireless connectivity. Many vendors specialize in the following categories: wireless information-distribution, Web-filtering-distribution, wireless software integrators, and wireless application vendors. Unlike the other offerings, wireless application vendors can offer an advanced and adaptable wireless system in a short span of time. Wireless System Design (06/00) Vol. 5, No. 6, P. 29; Fradkov, Sergey
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