Trucking Technology Report - April 2
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Both the online report and e-mail are sponsored by @Track Communications, a supplier of wireless communications and dispatch services.
Today's Technology Headlines:
- Agencies Warn of Radio Spectrum Shortage
- Satellite Venture Seeks Land-Based Service
- Device to Transmit Inventory Update
- Ocean Carriers Create Online Communities
- Supply-Change Automation Requires Strategy
Agencies Warn of Radio Spectrum Shortage
Three federal agencies voiced concerns about the wireless industry push for additional space on the United States' airwaves.In accordance with a review mandated last year by the Clinton administration, the Commerce Department, Pentagon, and FCC, revealed in reports last week that sufficient space does not exist on the radio spectrum to handle companies attempting to introduce new wireless Web services.
In addition, it would cost $1.2 billion for the spectrum to be adjusted for commercial use, according to officials. Law requires that such costs be paid by the industry. However, Commerce Secretary Donald Evans said he would try to find middle ground between private and public interests.
i>Wall Street Journal (04/02/01); Wigfield, Mark
Satellite Venture Seeks Land-Based Service
New ICO Global Communications wants the FCC to allow satellite companies, such as itself, to use spectrum intended for satellite transmissions to provide new ground-based wireless services.The request was written in a letter, which was hand delivered to FCC Chairman Michael K. Powell. According to New ICO, the rule change is needed to ensure that satellite companies can offer broadband services, including high-speed Web access, in regions of the United States and other areas without cable or land-based wireless service.
The letter also stated that allowing satellite companies to use spectrum for ground-based services would enable them to offer cheaper phones and make better use of their spectrum.
Additionally, New ICO wants the FCC to require firms interested in using satellite spectrum for ground-based networks to operate satellite networks. If passed, the proposal could allow seven other companies, such as Celsat, to use satellite spectrum for ground-based systems. New York Times (04/02/01); Feder, Barnaby J.
Device to Transmit Inventory Update
Procter & Gamble is running a trial of its "smart package" program, which sends wireless inventory updates to the company's database.The program uses small chips placed on the packaging of P&G products, which transmits to a computer when the product is removed from a store's shelf. The data could make P&G's manufacturing and distribution efforts more efficient.
Currently, P&G is the midst of restructuring its supply-chain management structure and plans to reduce its factories from 131 to 100 within five years. The company hopes closer relationships with retailers and new technologies will reduce the amount of time it takes to calculate its inventory, which could save $1.5 billion in working capital. Industry Standard (04/02/01), Dalton, Greg
Ocean Carriers Create Online Communities
Several ocean carriers have developed online communities or portals to offer better shipment visibility to shippers and more accurate and standardized processes and information to transportation service providers.These ventures enable carrier-to-customer and carrier-to-carrier collaboration, and some analysts estimate that they could save both shippers and carriers between 5% and 10% in transaction expenses.
The first initiative on the scene was CargoSmart, launched by the OOCL container line based in Hong Kong. CargoSmart offers shipment tracking services, accessibility to sailing schedules, tariffs, terms, and customization applications that allow users to control data sharing between trading partners and information flow.
The INTTRA portal, the brainchild of a container carrier consortium, acts as a standard platform for electronic "front-end" transactions and offers many of the same features as CargoSmart. However, INTTRA now includes customer-relationship management capability that facilitates multiple format communications between the carriers' customer-service agencies, other ocean carriers, shippers, online exchanges, and forwarders.
The Global Transportation Network (GTN), unlike the others, uses a third-party e-commerce provider, Tradiant, to supply the technology and support the flow of information between participants. Tradiant owns a majority stake of GTN, while the nine ocean carriers that comprise the community hold minority stakes. These Internet platforms also allow shippers to conduct secure transactions with multiple carriers as well as with preferred carriers on an individual basis. Logistics (03/01)
Supply-Change Automation Requires Strategy
As Internet-based supply-chain automation takes over the world of business, it is incumbent upon companies to manage the supply-chain evolution through the proper strategy, writes Adalio Sanchez of IBM's Personal Computing Division.The supply chain must be focused on the choices and needs of customers, who can best be served with a supply chain based on the Web, tightly integrated and connected to the Internet along its entire length.
Several factors play into the proper supply-chain evolution: The supply-chain should be based around customer value rather than simple transactions, be based around information management with total supply-chain visibility, use a rules-based model for systematic decision-making, and be designed to keep supply at a stable, manageable level.
Other capabilities that will help businesses in the new era include direct fulfillment capability, better parts-replenishment processes, and a cell-based model for manufacturing, where the traditional assembly line is replaced by small, task-focused teams of workers. Electronic News (03/19/01); Sanchez, Adalio
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