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Supply Chain Management

Advancement of Information Technology (IT) is the key to Logistics Operation success, and that apply exactly to Schenker. Schenker’s is proud of their advance technology in logistic, or example: their tracking devices enable them and their customer to locate the products’ shipment anywhere, anytime, until it reaches the destination. Schenker believe that they are able to meet every customer’s needs, with Schenker set up a system for customer to track this information in the convenience of one’s office.

All applications are integrated into Schenker’s Worldwide Online Real Time Data (SWORD) Exchange. This system bridges incompatible data-exchange standards and formats, accelerating the transmission of information. Based on standard worldwide operating system, SWORD is easily integrated with national and international logistics applications as well as customer’s internal IT applications. Integrated Logistics Services Logistics is the process of strategically managing the procurement, movement and storage of materials, parts, finished inventory and the related information flow.

All this through an organization and it’s marketing channels in such way that current, future and profitability are maximized through the cost effective fulfillment of orders. The importance of IT in today’s business is obvious, and Schenker is alert about it. Schenker implement various IT systems that helps them and

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their customer being inform and alert about the transportation and shipment, all just for them to make faster and better decision. As a logistic service provider, Schenker’s main job is to provide their customer information, from the sender to the recipient. And Schenker is able to so with the help of their IT.

The lists of IT that Schenker provides are: SWORD (Schenker Worldwide Online Realtime Data Network) This system bridges incompatible data-exchange standards and formats, accelerating the transmission of information. Based on standard worldwide operating system, SWORD is easily integrated with national and international logistics applications as well as customer’s internal IT applications. EDI (Electronic Data Interchange) Exchanging Order Data with our Customers The future of data interchange and customer proximity by way of interfaces is being increasingly shaped by international communications standards.

To further increase the benefits drawn by the customer, data transfers are fully processed based on the UN EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) standard. Using this platform gives Schenker the ability to meet its customers’ individual needs as well as the market’s future demands. Freight Data Processing Systems Schenker’s operation processes are all being run through SWORD global data infrastructure, an efficient combination of powerful software packages serves for gathering, processing and passing on all relevant information in accordance with the type of transport order and the service required.

Schenker’s standard Air and Sea Freight system provides this capability by combining an event based architecture enabling event recording at the shipment and order line with the ability to capture our customers’ reference numbers. Events serve as milestones and enable us to measure performance. ILS (Integrated Logistics System) The advantages of a reliable, realtime, status check go far beyond delivery. The interaction between Tracking and Schenker’s own ILS “Integrated Logistics System” allows the execution of extremely challenging projects, such as major construction sites.

Pick-ups, quantities and deadlines are constantly correlated with the purchase orders, ensuring that the necessary freight shipments always reach their consignee as desired and on time. Through proper administration of purchase orders, Schenker is in contact with vendors and suppliers at a very early stage. With this overall concept, which Schenker monitors as part of its logistics task, production phases are started, just-in-time shipments coordinated and delivered reliably. This service has made Schenker the leading transport company in the project business and your reliable partner for all logistics needs.

E-Business Services With the vast development of Internet usage, Schenker is fully committed in developing the advantage of Internet to support the company and their customer as they venture the Internet. By building up a centralized e-business Unit in Essen, Germany, plus Schenker’s long years of logistics services with their world wide network, they are able to become one of the leading international integrated logistic services providers. With E-business, plus the alliances with IBM and Schenker, the customers are now able to enjoy full range logistic service under the click of the finger tip.

Problems Although the operation system seems to be very complete and advance, but to customers it might just be too difficult to understand the whole operation and lose confidence on it. Customer will only seek help on something that they understand, not only depends on goodwill of the company. Despite of the advance technology, most of customer may only know a few of its function, such as tracking devices, internet… etc. When the above problem arises, the company might lose a bunch of potential customers and the goodwill of the company.

It won’t affect the company a lot, but its definitely a lost to the company. What should the company do? In order to make things better, Schenker should set a few targets. First is their range of customers. Schenker could promote their services to larger firms that can afford their services and provide them with it. This way they are able run the economic of scale and lower their customers’ cost as well as getting more business. With a good value chain, Schenker can achieve balance in both prime activities and support activities.

Large company will be interested in Schenker as they have world wide network that enables them to go globalization. And Schenker’s product cycle had proven promising in the past records. Secondly, Schenker can receive smaller request from their middle class customer and consolidate them for shipment, with a fare price are give package. This way they will have higher competitive advantage than other company, as they have better technology than other company. With the advancement of Internet, transaction can be done on line hence cutting transaction cost and reduce the price to preferable by their customers, world wide.

Conclusion IT is an important issue in today’s logistics service provider. Without proper technology, important information such as tracking devices will be delay or totally undetectable until things are too late. IT is also the key for logistic services to go globalization. Information needs to be keep flowing in not only to the logistic firm, but also the customer as well. Without IT, there will be no understanding about the foreign investment and policies, and resulting in abandon by today’s market.

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