Technology Tightens Link in Supply Chain
Earlier this month, the small-package titan booted up a server that acts as an “integration bridge,” connecting FedEx software with HP’s production system for the first time.
Closer, more efficient relationships among supply-chain partners have spawned the need for companies to get deeper into each others’ business processes. That is why parcel delivery companies such as FedEx, UPS, and DHL are developing, buying, and using software that helps them connect with their customers.
Their activities are not altruistic. Rather, they are designed to cement the associations between shippers and the carriers and to drive more business into their systems.
HP’s Wilmington, Mass.-based group uses the SAP R/3 enterprise resource planning system, a product of SAP AG, Walldorf, Germany. Fedex’s PowerShip software adds the capability of printing labels and tracking shipments.
“With this connection, any R/3 user can get hold of the FedEx tracking information within R/3,” Mr. Dickens says. “This represents an exponential improvement over what is available now as far as getting shipping information into the R/3 system.”
The integration of FedEx shipping software into an ERP system comes in part as an answer to complaints of many technology users that such systems are weak on the execution — and particularly the transportation — side of business operations.
“Fedex as a whole deals in an execution environment,” says Mr. Dickens. “This integration gives the shipper the opportunity to see what is actually happening in real time and to replan operations if need be. You pull the tracking information into the database and use it wherever it is needed. It provides complete visibility. You don’t even have to go to a Web site.”
Mr. Dickens says it is still too early to tell when the integrated product will be available in the marketplace.
“HP is already shipping hundreds of packages a day on this system,” he says. “Others have expressed interest in the product. We will expand the testing to include other customers once we find out where all the lumps are in the chowder.”
But FedEx and SAP are not content to let matters stand where they are. “We have a joint collaboration team with SAP that is looking at a number of potential joint efforts,” says Mr. Dickens.
The overriding principle is to make both companies easier to work with. The project is bigger than either FedEx or SAP alone. We have agreed that our joint efforts will take an open format and that both companies have the right to work with others. We see great opportunities working with the major ERP players.”
Mr. Dickens expects announcements of more projects from FedEx and SAP soon. FedEx recently introduced an on-line cataloging application called Virtual Order. “It allows our customers to connect with their customers by taking their orders via the Internet,” he says.
For the full story, see the Dec. 21 print edition of Transport Topics. Subscribe today.
