Trucking Technology Report - Oct. 4
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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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AT&T Proposes Long-Distance Spinoff
During AT&T's (TICKER) annual board retreat last month in Basking Ridge, N.J., company management suggested that its consumer long-distance operations be spun off to shareholders, sources knowledgeable about the matter said. The proposal was brought before the company's board, which seems to be in support of such a spin-off, the sources revealed.
The company is continuing to consider how to arrange agreements with the spun off company to enable AT&T to continue providing packaged services to its subscribers. A spin-off would represent one of the largest business reorganizations in history. Once a spin-off is complete, AT&T is likely to resemble a broadband company, with its cable assets and possibly its wireless operations.
AT&T Wireless is involved in ongoing merger negotiations with Nextel Communications and is also in talks about a merger of its Business Services division with British Telecommunications' (BTY) business operations. Wall Street Journal (10/04/00) P. A3; Solomon, Deborah; Deogun, Nikhil
Handspring Gains Market Share on Expanadbility
Handspring (HAND) is trying to gain share in the handheld market by designing its Visor to provide features lacking in Palm's market-leading devices. Handspring's founders, Donna Dubinsky and Jeff Hawkins, left Palm several years ago after helping make the PalmPilot a success, and focused on correcting Palm's flaws as they built their new company. For example, Visor includes an external expansion slot to let users add applications - a feature lacking in older Palms. Third-party developers are now creating applications such as MP3 players and wireless modems for Visor's expansion slot.
In addition, the Visor is priced between $149 and $249 as part of Visor's effort to appeal to more consumers, while the Palm's $400 price tag turns many consumers away. Handspring hopes to get as many users, especially teenage consumers, as possible.
Handspring's efforts appear to be paying off, as the company now claims between 25% and 30% of the U.S. handheld market, while Palm's share has dropped from as much as 80% last year to less than 66% currently. Competition is likely to increase as Microsoft, Symbol Technologies, and Sony target the handheld market. However, experts say handheld makers are hardly able to keep up with demand for their devices, allowing a range of companies to succeed in the market at this time. Investor's Business Daily (10/04/00) P. A12; Keri, Jonah
Executives Tout E-fulfillment at Logistics Conference
Executives from NewRoads and EXE Technologies (EXEE), as well as a former Amazon.com (AMZN) senior logistics officer, spoke on the future of fulfillment at the Credit Suisse First Boston Transportation and Logistics Conference.NewRoads Executive Chairman Anthony Lee said his company provides integrated services like customer relationship management, order fulfillment, and supply-chain management for direct-to-customer sales operations at such notable clients as Avon, Disney, and AOL. He foresees big growth in outsourced e-fulfillment as electronic sales channels and
nternet-based direct-to-consumer sales grows; direct-to-consumer sales will become the standard model of business, he predicts.
EXE Technologies President Ray Hood believes that warehouses in the future will become "something akin to a factory," oriented toward storing capacity rather than goods - and the capacity will be marketed in aggregate through the Internet. He said facilities should concentrate on particular vertical markets to avoid overextending themselves.
Former Amazon.com senior logistics officer Jimmy Wright said e-fulfillment needs to be seen as a whole different business than traditional fulfillment, since e-fulfillment can serve much greater numbers of customers while dealing with units that are much smaller. He said companies should note that e-fulfillment is asset-intensive, must have effective leadership, must be able to provide value-added services, and must have great knowledge of and commitment to the business. Traffic World (10/02/00) Vol. 264, No. 1, P. 19; Cotrill, Ken
SCM Hardware, Software Key to Distributors' Success
Franchised distributors are boosting their supply chain management (SCM) processes for suppliers and manufacturers. SCM frees suppliers from purchase, storage, and shipment headaches while providing supply chain visibility.SCM software, hardware, Web-based systems, and infrastructure can give companies a competitive edge by enabling faster time-to-market, notes Paul Katz, Arrow Electronics' (ARW) vice president of value-added services. While the distribution industry continues to leverage its brick-and-mortar presence, internally developed technology or partnerships with Web-based solution providers are constantly supplementing the distribution chain.
Leading distributors and other industry insiders are even pushing for standardized systems that would give customers a comprehensive SCM solution to view their inventory status with all of their suppliers, distributors, and others. Peter Wietfeldt, director of management consulting for Pittiglio Rabin Todd & McGrath, says that in the long-term, customers may want to eliminate third-party involvement and interact with their suppliers directly. Electronic News--Distribution (09/00) P. 42; Jorgensen, Barbara
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