Transportation Logistics Management

Over the past several years the Department of Transportation has been fortunate to work with the Japanese Ministry of Transport in a number of ways, but particularly to encourage innovation and technological advancement in the field of transportation.
Last February, Mr. Doi and a number of DOT representatives attended the 6th Plenary Meeting of U.S.-Japan Transportation Experts in Los Angeles. Following that meeting, we invited participants to join us in a three-day workshop on transportation accessibility, bus rapid transit and Intelligent Transportation Systems (ITS) in Honolulu, Hawaii, which I was privileged to attend.
While the beautiful weather was difficult to ignore, we learned a great deal from each other during those sessions and increased the scope of future U.S.-Japan cooperation. In addition to transit and rail technologies, we will be exchanging information in the areas of emergency response, earthquake disaster prevention and fuel cell applications.
We look forward to continuing our cooperation in transportation science and technology with Japan, which we believe will benefit the citizens of both nations.
Today’s session will focus on how information technologies can be used to improve logistics and to "transform" the transportation industry.
Just a half century ago, the few large-scale computers in businesses performed back-office tasks like payrolls and accounting. Today computers of all sizes are the mainstay of almost all production and service industries. Most workers use a computer at work and are increasingly using them at home for on-line shopping and other transactions. Many industries are ordering machinery, raw materials and other goods on-line, using increasingly complex computer-based exchanges to manage the process.
The "Dotconomy" – based on real-time transactions and door-to-door overnight delivery – is now a driving force behind the prosperity -- both in the U.S. and globally. While the Internet has primarily been a positive -- particularly for the consumer -- it has also brought with it new coordination and logistics challenges for industry.
Companies – from toy marketers to automakers -- are expected to deliver the goods at "Web speed." Carriers specializing in the delivery of goods ordered via the Internet should expect heavy volumes again this fall as e-commerce continues to surge. Analysts reporting in the new quarterly e-Commerce Scorecard expect consumers' total e-commerce expenditures to reach $40 billion for the year.
Being able to deliver what the customer orders on time and intact is key, and carriers and shippers who understand this will be competitive in today’s global marketplace. Companies can’t simply put a product on the truck and not worry about it. As we’ve seen with some dot.com companies, you can’t survive if you can’t deliver. And you need to think through how the customer returns the shirt that doesn’t fit or the book that wasn’t what he or she expected.
As we move further into the digital age, there will likely be pressures for infrastructure investment to build more and larger runways or expand the highway network. But, a less expensive and time-consuming answer to the e-commerce boom is technology -- information technology integrated into Intelligent Transportation Technologies.
Technology-savvy transportation companies are using the Web to provide their customers with real-time rate quotes, order management, and shipment tracking information. We’re seeing transportation and manufacturing companies forming joint ventures with information technology companies across the globe to help them deliver the goods to customers faster and more efficiently.
For example, Ryder System, Inc., a global leader in logistics and transportation management, two weeks ago announced a joint venture with Toyota Tsusho America and its parent corporation in Japan. The venture will focus on Toyota and other Japanese auto companies at first, with plans to offer services in global transportation management, distribution management and supply chain logistics and design.
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

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