Trucking Technology Report - Oct. 16
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Today's Technology Headlines:
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President Orders FCC to Clear Airwaves for Next Generation of Wireless Services
President Clinton instructed various government agencies on Friday to aid the efforts of the FCC and the commercial industry in finding spectrum suitable for transmitting 3G mobile services. Clinton also indicated that spectrum presently used for other purposes should be evaluated to see if it could be used for future wireless services. According to the president's order, the 3G spectrum auction should occur no later than Sept. 30, 2002.
The FCC plans to evaluate which portions of spectrum can be taken from current users and be offered in the future 3G auction. But the government will compensate those companies that lose their spectrum rights with other available spectrum, according to Gregory L. Rhode, director of the National Telecommunications and Information Administration. WorldCom (WCOM) and Sprint (FON) are reported to be two of the companies that may have their spectrum rights reallocated. Wall Street Journal (10/16/00) P. B8; Carroll, Jill
British Retailer Marks & Spencer Fine-Tunes Supply Chain
British retailer Marks & Spencer is transforming its supply chain into an e-commerce-driven enterprise, a change the company says could be worth nearly $600 million. These savings are essential for the food and clothing retailer, which has seen its profits fall in the increasingly competitive European market. The project began in April 1999 and should end next April at a cost of $44 million.Marks & Spencer is implementing a system called New Data Transfer (NDT), which provides real-time data on inventory and sales. Company officials say the system will improve direct marketing and allow for up-to-the-minute promotions. NDT will also give the company a better view of how fraud and theft are affecting its revenue. The initial benefit of the system should be $17.7 million, company officials forecast.
The company awaits even greater benefits once it institutes Web-based communication with its suppliers. With the real-time data from NDT, the company will be able to order raw materials based on what is actually selling rather than what it expects to sell. The Web will also make distribution more efficient, the company predicts. Electronic Commerce World (10/00) Vol. 10, No. 10, P. 50; Dudman, Jane
Neutral Exchanges Cause an E-Chemicals Reaction
E-commerce within the chemical industry has taken a step forward with the development of e-Chemicals, an independent business-to-business e-marketplace. The site aims to bring together chemical manufacturers and purchasers, channel intermediaries, and providers of raw materials, and provides services such as transport, procurement, sales, and health and safety information.Companies using the site are expected to increase their efficiency and reduce costs, says CEO Peter McCullagh. A main advantage of an e-marketplace, he says, is that it allows companies to retain a small, efficient group of supply chain vendors while enjoying the cost benefits of drawing from a large pool of vendors. The site's auctions and reverse auctions allow companies to make smart bids when commodity prices are unstable, McCullagh adds.
McCullagh believes e-Chemicals is at the forefront of a movement that will change the way chemical companies view cost. He says e-commerce will be successful only if companies can integrate it into their supply chains. Chemical companies must also determine how e-commerce will fit into their overall costs, including the cost of purchasing, transportation, warehousing, waste disposal, and back-office duties. Inbound Logistics (09/00) Vol. 20, No. 9, P. 18; Malone, Robert
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