Trucking Technology Report - Aug. 23

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Today's Technology Headlines:

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  • Many Companies Not on 'Value Chain' Bandwagon
  • Sprint, IBM's Lotus to Jointly Develop Wireless Services
  • Verizon Strike Grinds on for Mid-Atlantic Customers
  • Firm Looks to Gain a Foothold on the Wireless Web with Private-Label Phones

    Many Companies Not on 'Value Chain' Bandwagon

    While the idea of a logistics 'value chain' – or the close integration of systems and processes at all the companies along a supply chain – has become a buzzword, an Industry Week/Ernst & Young survey finds that close to half of companies have not adopted a formal value-chain management strategy.



    According to the survey, which tallied responses from 2,107 mostly U.S. executives, a dearth of leadership at the executive level of the company is the main reason companies do not have a formal strategy, and smaller to medium-sized companies are less likely than large companies to have a formal strategy.

    Chief executives are beginning to take a greater part in building up the value chain, with vice presidents also likely to be responsible for value-chain improvement.

    Meanwhile, the survey found that where there is a formal value-chain strategy, there will more likely be a successful value chain. Not only that, but the survey found that three-quarters of companies with highly effective value chains saw sales rise within a three-year span. Traffic World (08/21/00) Vol. 263, No. 8, P. 18; Schulz, John D.


    Sprint, IBM's Lotus to Jointly Develop Wireless Services

    Sprint and Lotus Development, a unit of International Business Machines, will reveal a partnership today for developing services that will allow business users to access Lotus products via mobile connections, say sources close to the situation. According to the deal, Lotus will provide Sprint software that will enable customers to access such services as e-mail. Sprint will make the service available via its wireless data network.

    The announcement today is anticipated to coincide with other announcements relating to business customers, but Sprint would not comment. Lotus had been searching for a partnership to expand its business reach beyond desktop products. Wall Street Journal (08/23/00) P. A8


    Verizon Strike Grinds on for Mid-Atlantic Customers

    Roughly 35,000 Verizon Communications workers remain on strike as negotiations continue between company officials and the Communications Workers of America. However, the CWA and the International Brotherhood of Electrical Workers established an agreement Sunday on other contracts representing 52,000 employeesin New York and New England.

    But roughly 44,000 subscribers in the region have yet to get telephone repairs or installations, according to Eric Rabe, a Verizon spokesman. He said customers will be served in the order they requested service. Company officials said it would take at least a month after an agreement is formed before complete service can be reestablished in the Mid-Atlantic region. Striking workers are expected to come back to work as soon as a settlement is made.

    A key issue to a settlement seems to be required overtime for technicians and service-center workers throughout the region. Washington Post (08/23/00) P. E1; Swoboda, Frank


    Firm Looks to Gain a Foothold on the Wireless Web with Private-Label Phones

    InPhonic hopes to increase its profits by expanding its e-commerce strategy, which employs its private-label mobile phones. The company's founder and CEO, David Steinberg, said that while its current strategy has been successful generating profits, the company has even higher hopes for increased revenue from commissions on Internet transactions conducted via their cell phones.

    Steinberg confirmed that the company is in discussions with Web retailers, including Barnesandnoble.com, that are interested in using InPhonic phones. InPhonic has teamed with partner Internet sites, such as TalkCity.com and Sandbox.com, to distribute the phones. The Web sites or organizations that sign up users are permitted to put their names on the phones, and then InPhonic handles the m-commerce deals and is responsible for collecting fees from the mobile phone carriers.

    InPhonic also is testing a new e-commerce system for enabling its partners to transmit text messages, such as commercial offers and advertising, to the customers' phones.

    The company plans to launch its e-commerce system during the next month and already has signed over 30 Internet sites to distribute its phones. The company also plans to add 25 more phone distribution contracts. Washington Post (08/23/00) P. E2; Garretson, Rob

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