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• W273258779 abstract "J[ddot{u}]rgen Ringbeck In modern logistics, information technology systems are as common as forklifts. But the best companies have gone beyond puffing bar codes on their containers and tracking shipments by computer. According to a survey of more than 100 logistics services providers (LSPs)--companies that primarily offer shipping and warehousing services--and of manufacturers and retailers using their services, the best performers are investing in highly integrated systems across internal and external supply chains. [1] This global survey, conducted in 1998-99 by McKinsey and the Department of Planning and Logistics at the University of Cologne (Professor Werner Delfmann), confirmed that IT expenditures alone can't create or maintain a top-performing logistics service: once the fundamentals are in place, IT investment must create greater transparency and integration in both internal and external applications. The survey also suggested that shippers might outsource more logistics work to LSPs if their information systems provided higher-quality data. Basic operational IT applications are no longer a competitive advantage for LSPs or their customers. About 75 percent of all shippers surveyed use planning and scheduling software known as enterprise resource-planning (ERP) systems, [2] and most have warehouse-management systems as well. LSPs that operate warehouses almost all use bar codes and warehouse administration systems. Even among the low-performing logistics providers, 80 percent use tracking and tracing systems for their transportation networks. One factor that separates the high- from the low-performing LSPs in warehouse operations is a greater IT emphasis on vehicle management. Some 80 percent of the top LSP performers (as opposed to only 30 percent of the laggards) use prescheduled and dynamic dock scheduling--the real-time routing of trucks and forklifts to different gates of a warehouse (Exhibit 1, on the previous page). Automatic picking (the programmed retrieval of goods from a warehouse) is also more common among the top performers (80 percent) than the low ones (20 percent). Another factor that sets the top performers apart is their use of order-management IT. The survey showed that far more of the efficient shippers (79 percent) used links called electronic data interchanges (EDIs) to handle orders and to send customers or LSPs relevant information; among the less efficient shippers, only 47 percent used EDIs. Likewise, more than half of the efficient shippers have IT links with both their customers and LSPs, compared with 12 percent of the less efficient shippers. LSPs benefit from strong links with their clients: the survey shows that 83 percent of the best (and only 8 percent of the worst) performers offer on-line booking. Furthermore, efficient shippers rate IT connections with their LSPs far more highly than do their less efficient counterparts. …" @default.
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• W273258779 date "2000-06-22" @default.
• W273258779 modified "2023-09-26" @default.
• W273258779 title "Best Practice in Logistics" @default.
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