Trucking Technology Report - Oct. 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:
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SBC and BellSouth Get FCC's Clearance for Wireless Venture
The FCC approved a joint venture between SBC Communications (SBC) and BellSouth (BLS) to form the second-largest wireless telephone provider in the United States, behind Verizon Wireless.
The companies, which will have a subscriber base of about 19 million people, have agreed to divest operations in Louisiana, Indianapolis, and Los Angeles, in accordance with FCC ownership mandates and federal antitrust legislation. Despite the tremendous magnitude of the deal, FCC officials found very few objectionable points in the agreement. One FCC official said, "It's a benefit to consumers to have another company able to compete against
ational providers [Sprint (FON), Verizon (VZ), AT&T (T), and Nextel Communications (NXTL)]." Wall Street Journal (10/02/00) P. B6
PC Industry a Model for Supply Chain's Effects
One can look to the personal computer industry for evidence of evolution in supply chain strategies, business models, and the effects of e-commerce for manufacturers. Other industries are only now effecting the changes pioneered by PC manufacturers such as IBM and Dell starting in the 1980s.IBM's (IBM) decision in the early 1980s to outsource two key components of the PC - the operating system (to Microsoft) and the microprocessor (to Intel) - ushered in a fundamental change to how manufacturers and their suppliers viewed supply chain operations. PCs became modular in design and the PC industry became much more horizontal in nature.
Dell (DELL) introduced the direct sales model by building PCs to individual order, necessitating further streamlining the supply chain relationships. Dell manages a very small inventory and relies on its suppliers to make sure all is in place to build customers' computers. High margins for Dell and its suppliers and high availability of product for customers result from the direct sale method.
The Internet and e-commerce further refine the direct sale model by giving the customer better, more flexible access to the company and further lowering the costs of both servicing the customer and working with suppliers for the manufacturer. Financial Times--Mastering Management (10/02/00) P. 10
Lucent Spins Off Corporate Telephone Unit
Over the weekend, Lucent Technologies completed the spin-off of its unit that manufactures corporate telephone systems. As a result, independent, publicly traded Avaya Communications (AV) was created. Avaya has 30,000 workers and roughly $7.5 billion in yearly revenue. Because almost all of Lucent's 5.3 million shareholders will receive Avaya stock as a special dividend, Avaya will automatically become the second most widely held stock, with roughly 5 million stockholders.
While the company had a promising start, it has become the leader of a market that is experiencing little growth. Although Avaya CEO and President Don Peterson admits that his company is largely focused on slower growth areas, he does not believe the company's opportunities are limited. Peterson identified faster growing segments of Avaya, including the division that develops software for customer calling centers and for integrating office communications systems. Associated Press (10/02/00); Meyerson, Bruce
Project Cargo Comes of Age
Project cargo is expanding in both size and scope. Project cargo is any shipment of freight that is regarded as "out-of-gauge," or that cannot fit in a standard container. This can include cargo that is exceptionally wide, long, or heavy, or that is made up of complex components that have to be taken apart, shipped, and reassembled at the other end.Traditionally, most project cargo involved heavy equipment for the construction and mining industries, as well as for the gas and oil sector. Freight of this kind, however, requires specialized expertise in project-cargo forwarding. Sourcing and moving thousands of tons of material and equipment from numerous different locations is an enormous undertaking that requires worldwide connections, precise timing, and sophisticated logistics capabilities to coordinate cargo movements from origin to destination.
As the project-forwarding industry moves into new markets, logistics providers are creating new distribution channels and relationships around the world. In addition, as the nature of the cargo moves beyond heavy-lift resource equipment, they are gaining extra expertise in the management of turnkey projects.
Forwarders and carriers are also benefiting from new and advanced forms of heavy lift equipment developed specifically to meet the requirements of specialized cargo. Modified vessels, newer kinds of heavy-duty aircraft, and heavy-cargo lifters will also soon be available to accommodate the growing demands of today's project cargoes. World Trade (10/00) Vol. 13, No. 10, P. 72; Guzman, Frank; Norgaard, John
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