Implications of European transport telematics on advanced logistics and distribution

The emerging changes in the Organization and structure of industrial and commercial operations in Europe and the increasing application of advanced Telematics, is having a profound impact on Logistics. This paper examines the role that Telematics are playing in advanced Logistics and the factors that will influence the final outcome as regards new logistics concepts and services in Europe in the near future. First, a concise description of the basic Telematics applications is given with a reference to their content and potential benefits. Then the area of advanced Logistics is explored with reference to functions and hierarchies so that basic notions are defined. The impacts of Telematics on advanced Logistics are then examined and analyzed. These impacts are seen as filling in three main categories: a) Impacts towards greater logistics integration, i.e. systems of logistics support, that encompass many or even all levels of activities from manufacturing to transportation, and distribution. b) Impacts towards enabling the re-engineering of logistics processes and, most importantly, within the overall business process re-engineering. c) Impacts towards greater inter-company optimization and liaison with users, i.e. between suppliers and users or between transporters and shippers, etc. In the final section, the paper discusses the constraints that exist in the materialization of the above impacts, and the policy implications for European governments and the EU.