Leading Logistics Experts Introduce New Perspective on Breaking Traditional Performance Barriers Between Shippers and Carriers
MINNEAPOLIS --Feb. 12, 2001--New white paper by Nistevo CEO Kevin Lynch and Dr. C. John Langley Jr.
unveils hidden logistics costs and addresses how the Internet is
driving the new business process of collaborative logistics
Two leading logistics experts released today a white paper that provides new insights into breaking the performance barriers that exist between shippers and carriers.
Entitled "Collaborative Logistics Networks - Breaking Traditional Performance Barriers for Shippers and Carriers," the white paper unveils hidden costs in the logistics process and examines the opportunity for both shippers and carriers to leverage the power of the Internet to drive the new business process of collaborative logistics.
The white paper is authored by Kevin Lynch, chief executive officer of Nistevo - a leading provider of a Web-based Collaborative Logistics Network(SM) - and includes a forward by Dr. C. John Langley Jr., who holds the Dove Distinguished Professorship of Logistics and Transportation at the University of Tennessee.
Common E-logistics Performance Barriers
The white paper notes that most new e-logistics services only address the transaction efficiency between a single shipper and its carrier base. These services replicate many of the same features currently available with conventional transportation management systems with the only added benefit being improved communication and visibility. The return on investment is elusive and no breakthrough business processes are created.
Lynch asserts that traditional approaches to cost cutting fail to identify and eliminate the hidden costs in the logistics process. An example of a hidden cost that all members of a logistics transaction pay, but none individually control, is asset repositioning. Carriers must decide how to optimally apply their assets to satisfy the needs of multiple shippers. The shippers have no insight into how their interactions affect each other's asset repositioning costs and, consequently, are limited in their ability to reduce these costs.
Collaborative Logistics Breaks Through Barriers
According to Lynch, collaboration allows shippers to identify hidden costs and then implement business processes specifically designed to reduce or eliminate them. Only through collaboration can companies share knowledge, costs and savings to improve performance. Internet technology makes collaborative logistics a reality, providing shippers and carriers with a common computing platform through which all members can participate.
"The evolution of logistics is being driven by the need for businesses to find unique solutions to lower costs and improve performance. Technology is an integral part of changes taking place," said Lynch. "Collaborative logistics networks transcend simple automation of existing processes. These relationship-based networks are the enabling technology that both shippers and carriers can leverage to break traditional performance barriers."
Dr. Langley offers his advice on collaborative logistics networks: "Start now. Test the collaborative concept and start to reap the benefits. By joining a collaborative logistics network, companies do not simply acquire a technology solution. They obtain the ability to identify beneficial collaborative relationships that enable members of a community to meaningfully and productively share valuable resources."
The Nistevo Collaborative Logistics Network
Nistevo, a leading provider of a Web-based Collaborative Logistics Network(SM), offers members the ability to share truck capacity through a secure, online network that enables members to choose their own collaborative partners and determine their own rules of engagement. Members can form and reform collaborative communities that best fit their business needs to reduce costs, improve customer service and measure efficiency gains.
Copies of "Collaborative Logistics Networks - Breaking Traditional Performance Barriers for Shippers and Carriers" are available at www.nistevo.com.
About Kevin Lynch
As chairman and CEO of Nistevo, Mr. Lynch is responsible for guiding the strategic vision of the company in its mission to lead the collaborative logistics market. Prior to founding Nistevo, Lynch was president and co-founder of Allaire Corporation, one of the industry's leading independent e-business platform providers. With Lynch's guidance and direction, the Allaire Cold Fusion product line has since become a recognized leader in the market for web application development tools.
Before joining Allaire Corp., Lynch worked as an options trader with the Chicago Board Options Exchange, which develops products and technology that help to meet the needs of investors worldwide. He holds a master's of business administration in finance and a Bachelor of Science degree in engineering from the University of Minnesota.
About Dr. C. John Langley, Jr.
Dr. C. John Langley, Jr. is the John H. "Red" Dove Distinguished Professor of Logistics and Transportation at the University of Tennessee. He received a Ph.D. degree from Penn State's Business Logistics Program.
His teaching and research interests are in the area of integrated supply chain management, third party logistics, total quality management and transportation marketing and strategy. He is a frequent contributor to the academic journals and is the co-author of several texts in the fields of logistics and supply chain management. Included are Creating Logistics Value, published by the Council of Logistics Management, The Management of Business Logistics, a 6th edition textbook published for use in university classes and by logistics executives, and Traffic Management: Planning, Operations, and Control. He has traveled recently to Asia, Europe, and the Middle East on logistics-related visits.
Dr. Langley served on the Executive Committee of the Council of Logistics Management from 1984 through 1992 and was president of the national organization from 1990-1991. He has been involved with a number of significant U.S. and global corporations as a consultant and advisor and currently serves on the Board of Directors of Averitt Express, Inc., and Landair Transportation, Inc. In 1993, he was the recipient of the Council of Logistics Management's Distinguished Service Award.
About Nistevo
Nistevo is the leading provider of a Web-based Collaborative Logistics Network(SM). The Nistevo.com network allows shippers and carriers to form collaborative communities to manage contracts online, match truck demand and capacity between trusted members and jointly execute each step of the shipment. Through this trusted community network, members can improve customer service, reduce costs, automate interaction with carriers and streamline their supply chain processes. Carriers can increase asset utilization and improve driver retention. For more information, visit www.nistevo.com.