Shippers are now able to provide better and more detailed information, including real-time availability of standard transit times, actual delivery time, and the name of the person accepting a shipment. These enhanced information capabilities allow shippers to better manage their accounts receivable. They can efficiently search out delivery commitments and choose the least expensive alternatives, perhaps ground over air, to meet the required date. Shippers can provide notify their customers not only about the ship date but also about the expected guaranteed delivery date and time, the contents of the shipment, and the type of service used. At the same time, consignees can better manage their inbound shipments to minimize the inventory cost.
Carriers also can reduce their cost of providing shipment information.
On one day during December 2000, UPS customers made 6.5 million tracking requests online. That is why the early-stage failures of Internet companies may not be so important in the long run. There are, in fact, real benefits flowing from the Internet to shippers, consignees, and carriers. Whatever the answer, there is a growing belief that the technology behind those businesses will make supply chains more transparent, forcing air forwarders and other agents to prove their real value to shippers. In addition, these companies are usually so new that they lack a track record of profitability.