Competitive advantage from IT in logistics The integrated transport tracking system

Competitive advantage from IT in logistics: The integrated transport tracking system.

In the search for competitive advantage, organisations have recognized the potential significance of their logistics processes. They see improved customer orientation and the use of information technology (IT) as means of strengthening their market position. An example of this is a new logistics concept, “efficient consumer response” (ECR), which covers both physical and information logistics, and which is being employed internationally as an element in attempts to respond effectively and efficiently to changing market conditions. In the last five years, EURO-LOG has established itself as an inter-organizational logistics service provider focusing on information logistics. The company's success exemplifies a growing tendency towards specialised service providers covering small segments of newly evolving markets. This paper describes the core principles of ECR and the resulting requirements for, and potential of, information logistics in transportation processes. This case study analyses the operation and contribution of the company's main product, TRANSPO-TRACK, an integrated transport tracking system that aims at more transparency and efficiency in the logistics chain. The potential of this type of service is discussed and the benefits identified. As an example of an inter-organisational system, the impacts on organisations at different points in the value chain of TRANSPO-TRACK are identified and the need for appropriate planning processes highlighted. Lastly, the possibility of provision of information logistics services on the Internet is assessed.

Previous article in issue Next article in issue. Claudia Loebbecke received a Master in Business and a PhD from the University of Cologne, Wilh.-Backhaus- Str. 23, 50931 Koeln, Germany, and an M.B.A. from Indiana University. She worked as Consultant with McKinsey and Co. in Germany, as Research Assistant at INSEAD in Fontainebleau, France, as Research Consultant at the Hong Kong University of Science and Technology (HKUST), and as Visiting Professorial Fellow at the University of New South Wales, Sydney. She regularly presents at international IS conferences, teaches master students and executives in Cologne and abroad, and participates in several national and international research and consulting projects. She is associate editor of the Information Systems Journal. Philip Powell received his PhD from Southampton University. He is Director of the Information Systems Research Unit, Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK and an ICAEW Academic Fellow. He has authored books on information systems and financial modelling, and has published in Omega, JORS, Accounting and Business Research, Information Systems Journal, British Journal of Management, Organizational Computing, Journal of Strategic Information Systems, Journal of Management Systems, and Decision Support Systems amongst others. He is Managing Editor of the Information Systems Journal, and associate editor of the Journal of Strategic Information Systems and OR Insight.