The Internet Becomes a Globalized Logistics Medium

A trend toward using the Internet to conduct supply chain transactions and establish trading marketplaces was spearheaded on a large scale by the automotive industry in 1999.

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Demand for a globalized network of vendors resulted in a greater emphasis on well-organized and better-connected supply chain networks. Several vehicle manufacturers — and to a lesser extent truck companies — established electronic links with their parts makers, parts wholesalers, dealerships and service providers.

Within hours of each other in November, two of the Big Three automakers announced that they would set up massive supply chain networks to go online early in 2000. The companies were the largest example of a new trend toward establishing vibrant Web sites intended to enable vendors, manufacturers and consumers to order everything from ball bearings to transmissions from anywhere in the world by logging onto a private network.

Ford Motor Co. and Oracle Corp. are cooperating to establish a $300 billion system consisting of 30,000 suppliers.

For the full story, see the Jan. 10 print edition of Transport Topics. Subscribe today.