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

Abstract

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.