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Product category: Supply chain planning and execution software
News Release from: i2 Technologies | Subject: Supply chain management software
Edited by the Manufacturingtalk Editorial Team on 08 October 2004

Supply chain management for
transportation

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Government regulations, unpredictable fuel prices and an increasingly globalised business environment can be touch challenges for businesses.

Government regulations, unpredictable fuel prices and an increasingly globalized business environment can challenge companies that are working to stay ahead of the game and their competition I2 Technologies, a provider of closed-loop supply chain management solutions, designs transportation and distribution management (TDM) solutions that can enable companies to procure, plan, execute and monitor freight movements across multiple modes, borders and enterprises

"It is our goal to address the toughest challenges in the industry.

Working closely with companies such as Best Buy, Concentrek and England Logistics we have been able to refine our solution roadmap to deal with the changing needs of transportation and distribution operations," said I2 chairman and chief executive officer Sanjiv Sidhu.

"I2 transportation solutions can enable I2 customers to better deal with changes in their business and in the marketplace such as potential hours of service mandates, scarce driver capacity, fuel price volatility, and increasing global freight movements." I2 transportation solutions are designed with robust dock door scheduling, fuel surcharge management, embedded event management and visibility capabilities to help customers react to the changing needs of the business environment.

Dock scheduling capabilities include the ability to consider dock constraints during the shipment optimisation process, as well as web-based interactive abilities to create and change dock appointments taking into account variable loading and unloading times, equipment restrictions, and operating hours by each dock based on the characteristics of the load.

Additionally, I2 transportation solutions can enable users to model periodic changes in fuel prices and the related surcharges, reflecting the updated tariffs that render and provide an accurate cost.

Embedded within the I2 solutions are leading-edge tools for event management that provide consolidated visibility and integrated workflows across transportation, inventory and order lifecycle functions.

"Companies are increasingly recognizing the role of transportation in achieving supply chain excellence and moving to lean, demand-driven operating models," said former industry analyst and current editor of SupplyChainDigest, Dan Gilmore.

"The kind of transportation tools I2 is providing, including the ability to increase the effectiveness and predictability of dock door operations, can enable companies to take cost and time out of the supply chain." As globalisation efforts continue, companies are adopting business models that can allow them to source anywhere and sell anywhere.

This business trend can create unique challenges from a transportation and logistics perspective in terms of efficiently managing global freight movements.

I2 transportation solutions can enable companies to efficiently plan, execute and monitor multi-modal, multi-leg shipments across national boundaries.

Companies can gain consolidated visibility across their global transportation network.

Some of the underlying capabilities to support global logistics include support for multiple currencies, capabilities for multiple languages within the same instance based on user preferences, and rate and tariff structures to support International Chamber of Commerce terms.

With the current state of the world economy, fuel prices are in a constant state of flux.

The slightest fluctuation of prices requires additional manual labour for shippers and third party logistics providers that must manage accessorial charges when the cost of freight increases or decreases.

Manual updates can be a time consuming and costly process.

The enhanced fuel surcharge capability recently added to I2 transportation solutions can make the task easier, as it can allow for changes to be reflected quickly and accurately.

"We anticipate that the enhancements to I2 Transportation Manager will benefit our internal productivity and allow us to more efficiently manage transportation costs for our customers, even with increasing fuel price variability," said Mike McClelland, vice president of Operations for Concentrek.

The U.S.

Department of Transportation is working to impose changes to driver hours-of-service regulations that could impact how long interstate truck drivers can drive and be on duty at a time.

These changes could translate into disruptions and increased costs for moving goods.

Any delays when loading and unloading goods can limit truckers' actual time on the road and ultimately impact when shipments arrive at their destination.

I2's dock scheduling capabilities can enable businesses to reduce downtime experienced by truckers and eliminate penalties for delays at the dock.

Using the interactive capabilities of this tool, it is easier to create and change dock appointments on the fly, while taking into account the changing variables that can impact the business.

According to the META Group report "Hours (or Horrors) of Service Regulations: Round Two" written by META vice president Dwight Klappich, "Leading-edge organizations are more tightly integrating warehouse and transportation processes and systems to better coordinate inbound, internal and outbound work processes to more effectively maximize flow through velocity." From the same research, META, a leading provider of IT research, advisory services and strategic consulting also reported, "Through 2007 we anticipate increased demand for more robust dock scheduling, yard management, and inbound transportation visibility, which will be critical to supporting the objective of integrated logistics that will drive further system updates and purchases.".

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