Transport & Logistics: Event Processing in Transport and Logistics

WHITE PAPER
EVENT PROCESSING IN
TRANSPORT AND LOGISTICS

Business Transformation through Real-time Response

David E. Olson Copyright © 2009 Progress Software Corporation. All rights reserved. 1 July, 2009
SUMMARY
There are significant challenges ahead for the transport and logistics market. With rough times predicted, there is increased pressure to find new efficiencies in operations. The ships must sail, the trucks must arrive on time, and the ultimate consumer still expects the right product at the right time and in the right condition.
There's no slowing down the supply chain - the speed of business needs to be maintained now more than ever. Logistics service providers need to find ways to deliver new levels of service while ensuring an efficient operation.
The transformation of the industry from "deliver and bill" to one that is more service-oriented will require new levels of awareness and response to real-time operations. By monitoring, analyzing and acting on business events as they happen, the industry can face the demands of a market that's expecting much more, and where competitive advantage will come from "in the moment response."
THE STATE OF THE MARKET
Road, rail and sea are the lifeline of any economy. The connection between buyers and sellers is complex with many critical points in the supply chain. Borders, rules and regulations, and technology all contribute to the complexity, which makes it difficult for logistics service providers (LSPs) to get the right level of intelligence. Success will be heavily influenced on the ability to visualize, monitor and act on events happening within operation as well as external events effecting operation.
There are four trends that deserve attention because they are where managing business events can have an impact: Consolidation, Cost savings, Greening, and Performance-based logistics.
Consolidation While there's probably more consolidation due to the economic conditions, it was happening before the current issues started. There are actually two trends that fall under consolidation: LSPs joining forces and LSPs acquiring software vendors.
LSPs are either buying themselves into larger, more global markets or adding to their portfolio to provide a broader spectrum of solutions. The goal of the LSPs is to have more control and visibility over the supply chain and to provide full lifecycle solutions. In this case, the move is to become more of a lead logistics provider that can deliver a greater level of service since inbound, outbound and reverse logistics processes can be fully managed. This strategy gives customers "one stop shopping" for services.
Software acquisitions, allow more domain control. Certainly, there are major vendors that will continue to provide value-added services - and they'll surely thrive. The general feeling widely documented by industry analysts is that some of the major LSPs may take the leap into the software space, venture beyond
Copyright © 2009 Progress Software Corporation. All rights reserved. 2 managing logistics, and offer complimentary software services such as supply chain visibility and warehouse management.
For either case, as in any acquisition or consolidation, there will be complexity. The supply chain is a living, breathing virtual entity and managing it is complicated due to boundaries, application silos, data formats and varying rules and regulations. The challenge for transport and logistics companies is to be able to effectively (and efficiently) act on opportunities or threats in and out of the supply chain - whether they own, manage or simply contribute to it. They need to take corrective action before it's too late, and to ensure they're living up to performance expectations.
Cost Savings Cost savings is certainly not a new trend, but by today's standards it is critical. There's more focus on better managing inefficiencies in the supply chain. Responsiveness is becoming a competitive advantage for companies that can manage logistics flow in a cost- and time-critical manner. Time is probably the most significant factor in logistics costs savings and it can be managed on two fronts: visibility and action.
First, you need to efficiently manage the time it takes to move inventory. You've got to ens... [download for more]