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WAL-MART MULLS COLLABORATION FOR TRANSPORTATION TRACKING

BENTONVILLE, Ark. -- Wal-Mart Stores here is considering a plan to use the Internet to monitor deliveries from a third-party logistics provider, improving the retailer's transportation-tracking abilities.If successful, Wal-Mart's staff would be able to observe the progress of each delivery through a dedicated area within the transportation provider's Web site. The system would provide information

BENTONVILLE, Ark. -- Wal-Mart Stores here is considering a plan to use the Internet to monitor deliveries from a third-party logistics provider, improving the retailer's transportation-tracking abilities.

If successful, Wal-Mart's staff would be able to observe the progress of each delivery through a dedicated area within the transportation provider's Web site. The system would provide information on the origin of the delivery, the location of the shipment during transit, as well as information on when the shipment arrived at its destination.

"I think that this [type of information] sharing is not new," said Ted Wade, vice president of corporate traffic for Wal-Mart. "Most major players are taking technology to the next level," he added.

The program, which could offer real-time visibility for deliveries, would enable the retailer to reconfigure loads quickly in response to changes in the supply chain.

Currently, the retailer and Yellow Freight, Overland Park, Kan., a third-party less-than-truckload transportation provider, use electronic data interchange for transportation tracking.

Sharing information via the Internet would provider the retailer with faster and easier access to the information, according to a source familiar with the situation.

The real-time visibility of the Internet would also provide an early warning system in the event of delivery delays. Armed with this knowledge, the retailer could make adjustments in staff and scheduling to accommodate the late shipment.

The forecasting element of the transportation program is similar to that used for collaborative planning, forecasting and replenishment projects, according to the retailer.

"The project is very interactive," the source added.

The information-sharing project proposal came on the heels of a new agreement that calls for Yellow Freight to provide transportation services to 30 Wal-Mart and 20 Sam's Club distribution centers throughout the United States and Canada.

TAGS: Walmart