So, we are looking to tailor not just the type of merchandise delivered but the frequency of replenishments to each store. Of course, when it comes to logistics excellence, carriers like CIO-100 winners Federal Express and United Parcel Service are way out in front. Using imaging technologies, EDI, bar coding, optical character recognition and wireless technology, the entire small-package delivery chain has been revolutionized. The carriers nowadays have become critical cogs in the move to streamline and rationalize the supply chain. Standard operating procedure is to put inventory in a single distribution point, put it in standard boxes and move it to a metropolitan area, break it down, then move it to stores.
Information allows the taking of inventory out of the system.
Indeed, some companies are now simply outsourcing their logistics functions to Federal Express. For example, chip maker National Semiconductor Corp. is saving itself millions in costs annually by doing so. High-tech companies have been among the most active. Yet HP made this year's roster not because of its logistics operations but because of its world-class global materials procurement processes. Its international procurement operations, heavily dependent on IT, allow company buyers to get any part, anytime, anywhere in the world.