The importance of architecture in collaborative logistics networks
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The document discusses the importance of architecture in collaborative logistics networks. Traditional client/server applications are not well-suited for collaboration between companies. Web-native applications that can easily integrate trading partners, scale to handle high transaction volumes, and centralize data are better architectures for collaborative networks. The document also highlights Elogex as a provider that has developed an architecture incorporating these attributes.
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Therefore, a collaborative logistics solution must be device and protocol independent. It
must enable different modes of integration, such as EDI, XML, Web forms, voice, and
Fax-to-EDI/XML. It must also support multiple devices, including cell phones, PDAs,
and pagers.
By offering both high-tech and low-tech solutions, the CLN allows companies to com-
municate with both large and small trading partners. Also, since the CLN is responsible
for mapping between different formats, each trading partner can communicate via a sin-
gle, preferred mode instead of having to support multiple formats.
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By its very nature, a collaborative logistics network must be able to handle tens of thou-
sands of users, from thousands of companies, initiating millions of simultaneous
transactions, via countless interfaces. Such a scenario would overwhelm traditional cli-
ent/server architectures, where each company must typically have its own instance of
the software.
In order to effectively meet these scalability demands, a CLN must have a distributed
framework, whereby processing power (i.e. hardware) can be added in a linear fashion,
on demand and without degrading system availability or performance. Processing
power should also be segmented at both the application and database server layers,
thereby allowing the network to utilize a single instance of the application and providing
users with the ability to specify hardware performance requirements based on transac-
tion volumes and other factors.
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One of the primary benefits of a CLN is the ability to identify and exploit cross-
enterprise opportunities. For example, two companies can work together to create con-
tinuous moves or backhauls, thereby resulting in lower transportation costs and better
asset utilization for the carrier. In order to effectively utilize cross-enterprise algorithms,
the data needs to be centralized.
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Elogex (www.elogex.com) is a provider of collaborative logistics solutions, which in-
cludes transportation execution, contract management, supplier logistics management,
supply chain visibility, and cross-enterprise asset optimization applications. When the
company was launched in late 1999, the founders realized that they could differentiate
themselves from the competition by designing a best-of-breed technology architecture.
Over the past two years, Elogex has developed an architecture framework that incorpo-
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The importance of architecture in collaborative logistics networks
- 1. 7KH ,PSRUWDQFH RI $UFKLWHFWXUH LQ &ROODERUDWLYH /RJLVWLFV 1HWZRUNV %< $'5,$1 *21=$/(= $8*867 $5 ,16,*+76 ( .(:25'6 Collaborative Logistics, Web-based, Web-enabled 6800$5 Historically, logistics applications such as transportation management systems, were designed to function within a single facility or enterprise. Today, as companies seek to establish collaborative relationships with their trading partners, these traditional cli- ent/server applications are not adequate. Over the past few years, a number of software vendors have either Web-enabled their applications or they have developed solutions that are completely Internet/Web native. While Web-enabling is an improvement, it still imposes limitations on the ability to col- laborate efficiently. Since the Internet has become the de facto medium 8VLQJ D FOLHQWVHUYHU DSSOLFDWLRQ for inter-enterprise communication, it follows that software applica- WR SRZHU D FROODERUDWLYH QHWZRUN tions based on this technology are the best choice for collaborative LV D ´5XEH *ROGEHUJµ VROXWLRQ networks. Other important attributes include the ability to easily add LH SRVVLEOH EXW XQQHFHVVDULO and configure trading partners onto the network, the ability to quickly FRPSOLFDWHG
- 2. and reliably scale the system, and the ability to interface with any de- vice via any protocol. $1$/6,6 Simply stated, traditional client/server applications were not designed for collaboration. For example, most of these solutions require users to install large proprietary applica- tions in order to utilize the software. Obviously, such a requirement is not practical in today’s business environment because the workforce is becoming increasingly mobile, and personal digital assistants (PDAs) and cell phones are replacing traditional com- puters. Therefore, many software suppliers have Web-enabled their products, thereby allowing users to access the applications via a standard Web browser. While Web-enabling is an improvement, it only addresses the client side of the solution. The server side (where the application resides) remains non-Web native. What does this imply? It cannot operate as efficiently nor scale as effectively as an application that was written specifically to run on the Internet for the deliberate purpose of enabling inter-enterprise collaboration. @IU@SQSDT@Ã6I9ÃH6IVA68UVSDIBÃTUS6U@BD@TÃAPSÃDI9VTUS`Ã@Y@8VUDW@TÃ
- 3. 6S8ÃD†vtu‡†ÃQhtrÃ!à In other words, using a client/server application to power a collaborative network is a “Rube Goldberg” solution. It’s possible, but unnecessarily complicated. It requires workarounds and additional layers of technology that implies a higher probability for things to go wrong, especially during software upgrades. It also typically drives up the TCO for the application. Therefore, the following attributes must be considered when evaluating collaborative logistics networks (CLNs) and their underlying architectures: 8VHU RQILJXUDEOH It is not uncommon for large companies to have tens of thousands of trading partners. While the ideal scenario is to have system-to-system links with each one, the reality is that a significant number of these partners do not have sophisticated business applica- tions. Therefore, the goal is to provide these trading partners with an alternative to phones and faxes as a means to collaborate. Establishing a Web interface, whereby trad- ing partners visit a specific URL to retrieve and input information, is a good example. While creating “soft integrations” are not as complicated as linking KDQQHO PDVWHUV PXVW EH DEOH WR two systems together, there are several important factors that need TXLFNO DQG HIILFLHQWO DGG RU GHOHWH WUDGLQJ SDUWQHUV FKDQJH SULYLOHJHV to be considered, such as assigning viewing and publishing privi- DQG FRQILJXUH ZRUNIORZV ZLWKRXW leges and generating security clearance codes (e.g. user names, KDYLQJ WR KLUH D WHDP RI RXWVLGH passwords). FRQVXOWDQWV A collaborative logistics solution must facilitate this “soft integra- tion” process. In other words, large companies or channel masters must be able to quickly and efficiently add or delete trading partners, change privileges, and configure workflows without having to hire a team of outside consultants. These trading partners can also be empowered to bring their partners onboard, thereby creating a “viral growth” effect that enhances the overall value proposition of the network. In short, traditional implementation practices are not appropriate when trying to estab- lish a collaborative network. An automated, user-managed process must exist in order to minimize implementation costs and accelerate time-to-benefit. 'HYLFH3URWRFRO ,QGHSHQGHQFH There is no standard communication protocol that is universally adopted by trading partners, and there will probably never be one. Likewise, the workforce is becoming in- creasingly mobile, implying that information must be accessible anywhere and at anytime, enabling users to initiate transactions and respond to problems in real-time. ‹Ã! ÇÃ6S8Ã6q‰v†‚…’ÃB…‚ˆƒÃ‡ÃÃ6yyvrqÃ9…v‰rÇÃ9rquh€ÃH6Ã!!%ÃVT6ÇÃ' # ÇÃ6S8rip‚€Ã VT6ÇÃVFÇÃBr…€h’ÇÃEhƒhÇÃDqvhÃ
- 4. 6S8ÃD†vtu‡†ÃQhtrÃà Therefore, a collaborative logistics solution must be device and protocol independent. It must enable different modes of integration, such as EDI, XML, Web forms, voice, and Fax-to-EDI/XML. It must also support multiple devices, including cell phones, PDAs, and pagers. By offering both high-tech and low-tech solutions, the CLN allows companies to com- municate with both large and small trading partners. Also, since the CLN is responsible for mapping between different formats, each trading partner can communicate via a sin- gle, preferred mode instead of having to support multiple formats. +LJKO 6FDODEOH By its very nature, a collaborative logistics network must be able to handle tens of thou- sands of users, from thousands of companies, initiating millions of simultaneous transactions, via countless interfaces. Such a scenario would overwhelm traditional cli- ent/server architectures, where each company must typically have its own instance of the software. In order to effectively meet these scalability demands, a CLN must have a distributed framework, whereby processing power (i.e. hardware) can be added in a linear fashion, on demand and without degrading system availability or performance. Processing power should also be segmented at both the application and database server layers, thereby allowing the network to utilize a single instance of the application and providing users with the ability to specify hardware performance requirements based on transac- tion volumes and other factors. HQWUDOL]HG 'DWD One of the primary benefits of a CLN is the ability to identify and exploit cross- enterprise opportunities. For example, two companies can work together to create con- tinuous moves or backhauls, thereby resulting in lower transportation costs and better asset utilization for the carrier. In order to effectively utilize cross-enterprise algorithms, the data needs to be centralized. 9HQGRU 6SRWOLJKW (ORJH[ Elogex (www.elogex.com) is a provider of collaborative logistics solutions, which in- cludes transportation execution, contract management, supplier logistics management, supply chain visibility, and cross-enterprise asset optimization applications. When the company was launched in late 1999, the founders realized that they could differentiate themselves from the competition by designing a best-of-breed technology architecture. Over the past two years, Elogex has developed an architecture framework that incorpo- ‹Ã! ÇÃ6S8Ã6q‰v†‚…’ÃB…‚ˆƒÃ‡ÃÃ6yyvrqÃ9…v‰rÇÃ9rquh€ÃH6Ã!!%ÃVT6ÇÃ' # ÇÃ6S8rip‚€Ã VT6ÇÃVFÇÃBr…€h’ÇÃEhƒhÇÃDqvhÃ
- 5. 6S8ÃD†vtu‡†ÃQhtrÃ#à rates the key attributes highlighted in this report, along with expanding the capabilities of its application suite. In particular, Elogex has recognized the importance of empowering users to configure their own networks. Since the company is targeting large companies in various vertical industries that have thousands of trading partners, it placed a high priority on develop- ing an automated and easy-to-use system of bringing “low tech” partners onto the network. Elogex is currently live with this system at a leading chemical manufacturer and is in the process of rolling it out to other Tier 1 customers. The company has also engaged KPMG LLP to obtain SysTrust certification. SysTrust was developed by the American Institute of Certified Public Accountants (AICPA) to attest to the reliability of systems that support a business. It focuses on four important principles: availability, security, integrity, and maintainability. While achieving certifica- tion will require significant investments of time and resources, it will ultimately provide Elogex with a framework for continuous improvement. 5(200(1'$7,216 • When evaluating collaborative logistics solutions, consider the key attributes high- lighted in this report. • Make sure the CLN uses best-of-breed routers, servers, storage systems, and other architecture components. • Negotiate and carefully review service level agreements. Key questions to ask: How are backups performed and how often? Has the vendor ever successfully restored data from a backup source? What is the uptime guarantee? What procedures are in place to ensure system reliability (e.g. fault tolerance, system redundancy, etc)? What disaster contingency plans are in place in case of fire, power loss, or other is- sues? Who is responsible for auditing control processes? • Make sure proper security controls are in place to prevent unauthorized access to the network and maintain data privacy. For further information, contact your account manager or the author at agonzalez@arcweb.com. Recommended circulation: All EAS clients. ‹Ã! ÇÃ6S8Ã6q‰v†‚…’ÃB…‚ˆƒÃ‡ÃÃ6yyvrqÃ9…v‰rÇÃ9rquh€ÃH6Ã!!%ÃVT6ÇÃ' # ÇÃ6S8rip‚€Ã VT6ÇÃVFÇÃBr…€h’ÇÃEhƒhÇÃDqvhÃ