Wednesday, August 24, 2005

Container Industry Evolution - Its gonna happen!

A new report by IBM Business Consulting Services says container shipping lines must offer more time-definite services to respond to customer demand and potential and potential competition from package supply companies.

The report said that as customers demand more cargo visibility and reliability similar to levels provided by package-delivery companies such as UPS, DHL and TNT, container lines will have to respond.

"Package delivery providers...have deep pockets and are quickly acquiring capabilities to become integrated supply chain providers," the report said. "They can offer existing land-based transport networks and end-to-end shipment visibility. Most are deepening their logistics capabilities, with more extensive integration with customers."

The report said the package-delivery companies success "could leave door-to-door shipping lines adrift -- stuck between the integrated supply chain providers, which deliver overall value, and the focused port-to-port service providers that offer low costs. These latter players are natural allies or acquisition targets for package delivery providers."

Container lines that change to meet this challenge must adopt a culture that embraces a business model which more evenly balances traditional asset optimization with product reliability and visibility. This will require support from the different business processes, organizational design, and base-line business software applications.

The industry continues to evolve, with companies like IBM, Accenture, Cap Gemini, etc leading the way...


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