Trucking Technology Report - Nov. 17
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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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Technology Upgrade Delivers Customer Satisfaction for FedEx Ground
FedEx Ground, which delivers 1.4 million packages daily, has decided to upgrade its technology to include the collection of new data and a new wireless infrastructure.
FedEx Ground is trying to eliminate paperwork from the delivery process by scanning bar codes when packages are placed in the van, before they leave the van, and after they are delivered in order to ensure that packages reach their destinations on time. In addition, the new handheld technology will correct zipcode errors, provide real-time tracking for customers, and soon be able to scan signatures.
FedEx has spent a great deal of time and money to train employees and hopes to increase its on time delivery average from 97.3%. Frontline Solutions (11/00) Vol. 1, No. 12, P. 14; Albright, Brian
High-Speed Internet Lines Face Slow Going
Demand for digital subscriber line (DSL) Internet connections is still growing, but analysts say poor installation service and other problems may cause it to fall further behind cable modems as customers' choice for high-speed Internet access.The Yankee Group reports that DSL users will total 1.5 million by the end of 2000, while cable-modem users will total 2.4 million. However, a recent study by Consumer Reports magazine revealed that more than half of those who have subscribed to DSL had problems with the installation, compared to over a quarter of cable-modem subscribers. The average wait to be connected to DSL is 14 days, compared to five days for a cable-modem line.
Analysts say the problems plaguing DSL providers are numerous. Although customers often contact a single provider, that provider must work with data exchange carriers and local phone companies to establish the proper network, and these companies are loath to work with one another. Companies often lack equipment and properly trained installers.
Moreover, customers dissatisfied with a local provider may not have a second option, as 28% of U.S. zip codes have only one provider, and 40% have none. DSL providers must also be located no more than three miles from a switching station, meaning that many customers who want a DSL line may not be able to receive one.
Although horror stories such as Tom Wolzien's, who waited 111 days for his Verizon (VZ) DSL line, may be extreme, analysts say phone companies and other providers risk damaging their reputations, especially once the initial demand for DSL dies down and customers have more time to research their options. USA Today (11/16/00) P. B1; Lieberman, David
Location, Logistics, Location
Lear, a supplier of seats for Ford (F) trucks, located its new plant only 10 and 20 minutes away from the two Ford plants it services. Lear officials say logistics were the key to the new plant's site.Once Ford orders a new seat for installation, Lear has five hours to prepare it. Lear ships the finished seats to the Ford plants at 15-minute intervals, and trucks make the run for 20 hours a day.
For similar reasons, Johnson Controls (JCI) located its new plant for overhead systems for automobiles 20 miles from a DaimlerChrysler (DCX) plant. Johnson Controls has a 74-minute window once DaimlerChrysler orders a unit.
The rise of just-in-time manufacturing has changed how suppliers consider and choose the sites of new manufacturing plants, as the above examples demonstrate. Manufacturers wish to reduce inventory, thus saving money, while also meeting customer demand for faster delivery. This requires suppliers to produce parts on demand as opposed to basing their production on market forecasts or fixed quotas.
Analysts say advances in information technology have provided manufacturers better resources to study and manage their supply-chain and distribution operations. For example, Ryder (R) will soon open its new Transportation Management Center to oversee its air, rail, truck, and ocean shipping operations. The company chose a site outside Fort Worth, Texas, because of the site's proximity to a cargo airport, a rail yard, and a highway system that provides easy access to nation's major interstates.
The site's Midwest location will also allow Ryder to manage east- and west-coast operations with equal dedication. Plants Sites & Parks (11/00) Vol. 27, No. 6, P. 127
Iridium Satellites Get Orbital Boost
An investment group headed by Daniel A. Colussy has agreed to purchase Iridium's satellite telephony assets for $25 million. The deal was approved by a federal bankruptcy court judge yesterday.Colussy is the director of Constellation Energy, a Baltimore-based energy company. Iridium's constellation of 66 satellites, which is estimated to be worth $5 billion, and its operations center are included in the deal. In addition, the investment group will be given six back-up satellites.
The investors, which remain unnamed except for Colussy, have not revealed their plans for the satellites. But Iridium Satellites released a statement last night indicating the company will again offer satellite services. The statement said the services will be targeted at industries needing satellite communications, such as aviation and maritime. The deal is expected to close before the end of the month. Washington Times (11/16/00) P. B9; Glanz, William
Following the Supply-Chain Leaders
As retailers become more demanding of their suppliers and distributors to provide the right merchandise at the right volume, the retailer-supplier relationship has become more collaborative and cohesive.Suppliers like VF are beginning to categorically manage the supply offered to retailers through the RHYTHM Supply Chain Planner, which examines demand, inventory levels, material availability, and the manufacturing process. Through this system, VF looks at a retailer's sales data to determine what merchandise needs to be increased and what sizes and styles are more popular and readily available. As a result, a new VF account can see a point-of-sales increase between 20% and 40%.
Generally, a company that is willing to share its information with a supplier, have a cohesive distribution network, and maintain a customer-oriented focus will be able to maintain a successful retailer-centric supply chain driven by customer demographics and desires. Supply Chain Technology News (11/00) Vol. 2, No. 11, P. 29; Kuhel, Jennifer S.
Is SMS the Next Wireless Phenom?
Both AT&T Wireless (AWE) and Sprint (FON) will offer new two-way short messaging services (SMS). The two carriers anticipate the service will become very popular with wireless device users. AT&T Wireless has already begun offering the service to mobile phone customers. While some competitors such as VoiceStream Wireless have already begun offering similar services, AT&T Wireless and Sprint will be the first carriers to offer the services throughout the nation.The carriers can only hope their services become as popular as in Europe, where roughly 9 billion SMS messages were transmitted in August. The service has also become very popular in Asia.
But Vincent Bray, a graduate management associate for Toyota Motor Sales U.S.A. who lived in Tokyo for half a year, noted some crucial differences that have likely led to the service's popularity in Japan. He says that wireless e-mail is already popular in the country and cultural differences make the service more likely to be used in crowded areas, such as while traveling on trains.
To encourage a positive response from U.S. wireless users, AT&T will not charge an additional fee for SMS through February to current users of AT&T Wireless. But customers who continue receiving the service will be charged $4.99 per month to send up to 500 messages. However, AT&T will continue providing the service for free to users who send no more than 250 messages per month.
Meanwhile, Sprint's two-way SMS service requires both users to have their phones turned on. And the company's Short Mail service, which is similar to AT&T's offering, charges users by the minute. Eweek (11/23/00) Vol. 17, No. 43, P. 11; Nobel, Carmen
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