Integration of Supply Chain Warehousing and Transportation Functions – UA03-GLBL

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Integration of Supply Chain Warehousing and Transportation Functions – UA03-GLBL

The objective of this project is to optimize both warehouse management and transportation management systems in supply chain (SC) execution.

Sponsor:

Global Concepts Inc.

Research Team:

Scott J. Mason, Ghazi M. Magableh

Universities Involved:

University of Arkansas

Start Date:

01/01/03

End Date:

12/31/03

Summary:

This project proposes to explore the potential advantages that could be gained by integrating and simultaneously optimizing the performance of both the warehousing and transportation segments of the logistics supply chain.
Recent advances in the development and capabilities of the Internet have led to the re-emerging view that “the customer is king.” Electronic commerce and associated business-to-business transaction capabilities have changed the way in which the supply chain operates. The Internet has enabled information exchange on an unprecedented scale, often at a pace too fast for normal consumption. Companies are not equipped to make effective use of data from warehouse management systems, which contain information on supplier/customer warehouse inventory levels and key customer ordering patterns, and transportation management systems, within which information pertaining to the location of important supply chain assets such as products or vehicles is typically stored. Warehouse management systems and transportation management systems are key factors in integrating the physical flow of goods along the extended supply chain. We will continue our investigation into the potential benefits of warehousing and transportation integration, identifying areas where cost savings can be obtained under the concept of a virtual warehouse.