Press Report

Information systems play a key role in logistics. In many cases, there is considerable scope for optimising the flow of information between companies, although this is difficult to achieve by the direct linking of ERP systems alone.

(Yellow World 02.2008) In order to achieve good cross-company solutions, attention must be focused equally on IT as well as on logistics processes. For example, planning and control between customer and supplier by means of VMI (Vendor Managed Inventory) have profound implications for processes and indeed for the organisation itself and cannot operate effectively without the appropriate IT.

Innovative solutions for Supply Chain Execution (SCE) such as 'yellowlog' from Yellowworld or the 'logistics-server' solution suite from inet-logistics offer the requisite functionality for networking procurement management with the transport tasks that this necessarily involves. These solutions provide a level of functionality in this area that ERP (Enterprise Resource Planning) systems have so far failed to cover.

Delivery schedules from the various ERP systems are communicated to the central SCE application and can be processed via an interface (possibly internet) before all relevant delivery dates and quantities are confirmed as required.

Processes between companies can now be automated by the system generating delivery notes and bundling these into transport orders as circumstances dictate and on the basis of an agreed transport planning or predefined rules.

Versatile potential

Companies that operate a supplier portal or their own ERP can communicate all the relevant data to the central SCE solution. This ensures a seamless transition from procurement to transport management. All the partners engaged in the transport then have access to all the data that is relevant to their needs. This means that time-consuming individual coordination across company boundaries can be largely dispensed with. It is particularly in transport-intensive sectors that logistics networks are becoming ever more complex.

There is thus a growing need for solutions that will optimise procurement management, and there is increased demand across Europe for SCE software. This is not really surprising when you consider just how much easier and less complicated this makes the coordination and automation of the procurement process. Costs can be reduced, waiting times shortened and stock keeping optimised.