Trucking Technology Report - June 14

Over 120 companies, such as exporting and importing firms, participated in the tests, which traced 20,000 shipments delivered to or sent from North America, Asia, Europe, Australia, New Zealand, and South America. The network allowed test participants access to a number of applications, including booking, document exchange, and shipment tracking.

GT Nexus claimed the network is the world's first to provide standardized transportation processes for a large segment of the shipping industry. The company will allow all trial participants to continue to use the network and plans to expand coverage to firms operating throughout the world. (www.joc.com)

urope, with researchers estimating that more than 20 billion SMS messages are exchanged each month. Its growing popularity in the two continents can be largely attributed to the service's low cost, which is cheaper than placing a cell phone call.

Other factors that make the service attractive to European and Asian customers include the adoption of more widely accepted telecom standards in both contents, the ability to send SMS messages to any user throughout the world subscribing to GSM services, and carriers not charging per-minute messaging fees.

Meanwhile, SMS has struggled to takeoff in America, where the GSM standard is less prevalent and wireless standards are not as uniform. However, Jupiter Media Metrix analyst Seamus McAteer predicts SMS will become popular with U.S. users by 2003, if carriers adopt a single telecom standard and replace current per-minute charges with fees based on the number of calls made or content downloaded. (www.wired.com)

High technology integration will bring a higher degree of visibility; optimize shipping and planning techniques for firms that need to match their concepts and goals with the skill sets of a well-conceived system.

Still, the idea of mingling cargo with other shippers' remains unpopular with some who insist on keeping costly dedicated carrier space. Ivex Packaging firm, a current partner in the Nistevo collaboration along with General Mills, Fort James, Land O'Lakes, and Pillsbury, plans to shave 15% from their annual logistics bill of $40 million. Jeff Stubbs, Ivex's logistics director, shipping partners cannot be found individually and the plan cannot be viable without a core system that every partner draws from. (www.supplychaintech.com)

Transportation companies for the most part had already anticipated an increase of 10% to 12% in budgeted fuel costs, but like Laurel Grocery Co., finally had to figure in an increase of 30% and make significant operational adjustments. In addition to delivery reductions, increased load sizes, and driver incentives, Laurel is also looking at applying distance surcharges as a way to meet rising costs.

Joe Andraski, senior vice president of OMI, an Illinois-based supply chain provider, commented that although the economizing and practical steps that the transportation operators are taking are substantial, an overview of the underutilization of equipment should be noted. He feels an evaluation of the entire array of transportation assets, including equipment and fuel is in order, and that operators may need to focus their efforts on moving merchandise through collaborative management. (www.supermarketnews.com)