Integrating the Warehousing and Transportation Functions of the Supply Chain

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 and transportation management systems. These systems are key factors in integrating the physical flow of goods along the extended supply chain. We explore the potential for this “virtual warehouse” paradigm to improve customer service through improved efficiencies, reduced costs, and reduced lead-time variability.