World Trade - January 2009 - (Page 24)

SUPPLY CHAIN INTEGRATION An Evolving Tech Backbone Makes 4PL Service More Effective There are lots of options available, but still no master solution out there that can do it all. BY AMY ZUCKERMAN O 24 WORLD TRADE n any given day up to 800 orders ranging over thousands of items can ﬂow into Alcatel’s European logistics site at Longueil Sainte Marie, just north of Paris. Since 2000, UPS Supply Chain Solutions has provided the technology backbone to manage inbound and outbound transportation for the telecomm giant’s eBusiness Networking Division. UPS is acting as a 4PL or “lead logistics provider,” providing guidance and technology while relying on other logistics providers to manage the physical job of moving freight. In this role, say UPS ofﬁcials, their technology services “go far beyond the management of Alcatel’s IP server delivery.” Over the years, UPS has utilized its proprietary transaction tracking and supply chain monitoring tool to integrate with Alcatel’s IT system, allowing users to organize and plan all delivery ﬂows. The results, they say, are increased speed of order turnaround and delivery, improved access to the European market, and streamlined business processes—all of which have improved the telecom’s competitive position. With the global economy contracting and the need to reduce inventory ever more of tantamount concern, 4PLs like UPS, Transplace, Descartes Systems, Accenture, Penske, LeanLogistics, and Management Dynamics are pulling out every technology tool available to meet customer demand. According to Charlie Covert, UPS Vice President of JANUARY 2009 Global Solutions—part of UPS Distribution and Logistics in Alpharetta, Georgia—many customers are “downgrading services” and only want to pay for must-need services. “They want the ability to have a system to make decisions in real-time, along with ﬂexible, dynamic and tactical decision-making capabilities…so they can make decisions by customer and day of the week.” In general, customers all want visibility to their shipments, adds Chris Jones, executive vice president for Solutions and Services, for the Descartes Systems Group, based in Atlanta, Georgia. “They may want to know the status of their shipments to drive replenishment orders, or need to understand where their inventory is while in ocean transit, or be tracking inventory for a holiday item that needs replenishment.” Nathan Pieri, SVP Marketing & Product Management at Management Dynamics agrees. “We are seeing increased interest from corporate supply chain teams to evolve into a 4PL. In this way, the enterprise can better manage global risk through enhanced visibility and control over supply, trade compliance, and logistics operations, he says. By owning this strategic information infrastructure, a corporate 4PL is not tied to one provider’s system, has ultimate ﬂexibility over the management of trading partners, and best exploit the potential from 4PL process innovation.” For any of these functions, customers “want solutions to manage the planning process and to provide visibility for inbound shipments to the manufacturer and outbound

Table of Contents Feed for the Digital Edition of World Trade - January 2009

World Trade - January 2009 Contents Supply Chain Finance Conference: The Right Stuff at the Right Time! Is the Dollar's 'Exorbitant Privelege' as the Global Standard at Risk? Supply Chain Watch Tradewinds The Rise of the 4PL An Evolving Tech Backbone Makes 4PL Service More Effective The Changing Landscape of U.S. Railroads Intermodal Grows Up Port of Hamburg Grows as Distribution Point to Eastern Europe Outsourcing Without Fear Measuring the Carbon Footprint

World Trade - January 2009

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