Hugh's ramblings: e-Logistics

January 05, 2004

e-Logistics

Siemens' new E-Logistics Virtual Information System, based on technology from Groove Networks, gives all parties involved in a sale online access to information. Siemens expects that the system, which cost less than $1 million, will pay for itself within six to nine months, says Doug LaVigne, VP of logistics.

Here's the Siemens application in a nutshell. Delivering large-scale medical systems is a process involving many people, all the way from sales and the factory through on-site construction, installation and training. The existing CRM and ERP systems track lots of detail about a project, but they don't actually help people get the work done: that requires collaboration; and collaboration requires not just "shared bounded goals" (as E E Kim put it recently) and "data", but also a framework for consistent, continuous, in-context communication between everyone involved.

And, tragically, most people working on large projects don't have the luxury of logging in to the ERP system to see what's going on. They're on the road, or off-network, or even third-parties with a contractual obligation on the project.

On the other hand, Groove can (very cost-effectively!) provide that shared workspace, and have the workspace delivered to the appropriate people when they need to be involved. More, the workspace can include real, structured data drawn from Siebel, ERP, and other "enterprise" systems, putting that information right into the workspace, where it can be updated in the field and automatically pushed back to the central tracking systems.

In the past, communication breakdowns often resulted in delays and extra costs for the company and its customers. For example, technicians attempting to deliver equipment sometimes found it too big to fit through a hospital room's doors. Now, when a salesperson submits a proposal into Siemens' Siebel CRM system, it triggers the creation of a job folder and alerts all involved parties. That folder collects and holds even the most basic information such as door measurements. "We have a total understanding of the project," LaVigne says.