Trucking Technology Report - Feb. 6
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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:
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Popular Wireless Networks Vulnerable to Attack
A team of three researchers have been able to compromise Wired Equivalent Privacy, a security system designed to protect wireless networks from hackers.The researchers said they found techniques to either pick up data transmissions or even interrupt the operations of Wi-Fi or 802.11 networks. Two of the researchers are from the University of California at Berkeley and one is employed by Zero-Knowledge Systems, a security firm. The group found that hackers could employ special Wi-Fi equipment to pick up transmissions and decrypt messages.
In addition, they say that hackers may be able to place destructive data onto wireless networks by interfering with Wi-Fi gear used by a network. The danger presented by hackers is enormous, since Wi-Fi is the most popular standard among corporations. Over 10 million Wi-Fi products are expected to be installed this year.
Reuters (02/05/01); Sorid, Daniel ]
ADC to Acquire CommTech for $185.5 Million
ADC Telecommunications, which provides fiber optics, network gear, software, and integration services for high-speed networks, has inked a $18.5.5 million deal to purchase CommTech, which develops, deploys, and maintains software for telecom operators.ADC announced it would issue roughly 13.25 million common shares for the total outstanding equity interest in CommTech. The agreement's value was determined according to ADC's closing price of $14 per share on Feb. 2.
ADC expects to incur a one-time charge for costs associated with the acquisition. Upon shareholder clearance, the companies expect to complete the merger by Feb. 28.
Wall Street Journal (02/06/01) P. B15]
The E-Grocer Shakeout: Who Will Survive?
Most Web sites fail or are forced to consolidate because they lack sufficient long-range financial backing. Peapod, a pure-play site established in 1989, is one of few sites that survived while others have fallen by the wayside during the past few years.Peapod owes its survival primarily to Dutch brick-and-mortar retailer Royal Ahold, who committed $73 million in backing, in exchange for majority ownership. Mike Brennan, Peapod's senior vice president of marketing and product design, says the business model for online services differs from outlet stores, in that it requires logistics for residential delivery, a picking warehouse, transactional Web site and customer service center and skills sets needed to operate a Web site successfully.
In addition, the infrastructure costs related to keeping an online store operational are generally significantly higher than the operating costs of an ordinary grocery store, yet the revenue margins are just as narrow.
Another survivor of the e-grocer shakeout is New York-based Netgrocer, a privately held company. Netgrocer ships all of its goods from one central warehouse using Federal Express.
Industry observers feel that click-and-mortar operators may be in the most critical position to change consumer attitudes and behaviors in the effort to bolster the survival of the online grocery business.
Grocery Headquarters (01/01) Vol. 67, No. 1, P. 18; Paddock, Alison ]
Supply Chain Solutions Focus on Customers' Needs
Today's technological advances are changing the way we do business. New integrated software packages combining applications like Enterprise Resource Planning (ERP), customer relationship management (CRM), and advanced planning and scheduling (APS), as well as the growth of Internet communications, are all creating a culture change for businesses.Companies that are striving to achieve greater status in the marketplace cannot afford to cut back or cut out integration of software like CRM, APS and ERP, or they stand to lose out on improving customer loyalty and enjoying greater returns on those relationships. Jim Shepherd of AMR Research says that if a company can achieve "bi-directional integration" with information flowing from ERP to APS and CRM, it can use it as a real-time decision making tool.
Manufacturing firms, the long-time leader in innovation, were hesitant about switching over to the ERP-class systems, but now the benefits of ERP are leading big manufacturers to spearhead the switch to ERP from the 1980s-era manufacturing resource planning systems.
Mid-market companies can look for vendors that provide all-in-one ERP, CRM, and APS packages that are already integrated, or they can make sure their CRM and APS systems can be integrated with ERP systems from major vendors like PeopleSoft, Oracle, and SAP. Moving from proprietary systems to open architecture will also help mid-size companies increase supply-chain visibility.
What drives current application development and design is a combination of understanding what direction the market is taking and appreciating the value of the knowledgeable insight of key users. Companies are cautioned to examine how they deal with customers before implementing new software, or it can turn into a failure.
idSystems (02/01/01) Vol. 21, No. 2, P. 30; Lattman, Petra ]
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