Transportation Logistics Company

We’re seeing more airline company alliances forming around e-commerce and cargo delivery. Ocean carriers are increasingly using web-based systems to streamline business transactions, including shipment tracing and self-service options.
Recent alliances, such as the proposal for linking FedEx and the USPS, take advantage of special abilities of each partner to serve elements of the total transportation network.
In the U.S. and Japan, we can build on the ITS systems we have to create more efficient logistics, including our respective enhanced Global Positioning Systems. In fact, the pervasiveness of the Web and of supply chain management systems has begun to draw upon the capabilities of ITS and Commercial Vehicle Operations technologies in new ways. Supply chain logistics and the Web have been integrated throughout our business sector. Market-driven progress toward integration of the wireless, PC, speech, voice and video into logistics operations has led to enhanced ITS and CVO capabilities. 
Information technologies and the increasing use of GPS have dramatically improved U.S. transportation and logistics efficiency. Annual U.S. logistics costs are about $800 billion. As a percentage of GDP, our logistics expenditures have been cut in half as a result of incorporating these technologies and business methods -- declining to 10.5% of GDP in 1996 from 20% of GDP in 1960. (Source: Volpe White Paper, September 2000)
Three decades ago, corporations began re-engineering the supply-chain process to achieve just-in-time (JIT) inventory-control that cut costs, increased speed and boosted overall productivity.
Japan has been a leader in the inventory control and logistics arena, and American companies adopted many of the inventory and logistics technologies and methods from Japan after studying their success in the auto industry.
With the continuing growth of e-commerce, the business community is taking positive steps to ensure that the logistics of moving goods is increasingly efficient and productive. The four-year-old Supply Chain Council -- with more than 700 member companies and headquartered in Pittsburgh, Pennsylvania -- wants to create a standard to improve supply chain processes among manufacturers, suppliers, distributors, and retailers. Its members include manufacturers, software vendors, logistics service providers, consultants, researchers, and universities. (Information on the council and its activities can be found at its Web site,
How will this new electronic economy change the way we move goods, and what are the potential environmental impacts? What is government’s underlying role with regard to the Internet and the digital economy? These are fundamental questions that deserve some exploration because the issues are so important to current and future generations.
Transportation is a key link in the E-commerce chain, and I believe that one of government’s important roles is to gather data about potential impacts so that we can better prepare for future investment in and planning for public infrastructure.
The Future of Transportation Logistics
Many in the transportation community can envision a future in which information and other technology makes it possible for the customer to track products or goods from the point of origin, on the ship, to the dock, to the train or truck, and to the final destination. The research community has played and should continue to play an important role in achieving this vision.
The Department of Transportation is strongly encouraging the transportation industry to continue to find ways to make transportation intermodal and truly seamless as well as safer. We believe that together -- with technological and human innovation -- we can create a transportation system that will meet the demands of this new century.
Businesses are increasingly using the Internet to improve efficiency, and this has, I believe, made our transportation sector more competitive and dynamic. Firms are moving their supply networks and sales channels on-line and participating in the on-line marketplaces. Freight companies are teaming up with software developers.
As more and more countries get connected, we’ll see even more growth. Global electronic commerce could be worth $7 trillion to the global economy by 2004. (Source: White House Website document, source quoted: Industry Standard, Feb. 21, 2000)
Transportation is no longer the industry we have known in the past. Andy Grove of Intel said last year that: In five years, all companies will be Internet companies or they won’t be companies at all. We see this in the news as carriers like FedEx and UPS team up with software companies like Oracle and Sun Microsystems to create more efficient shipping and logistics networks.

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