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Early in the rise of Federal Express, founder Fred Smith pointed out that the customer cares as much about receiving information as about the package itself. Because he recognized the importance of IT, FedEx became a leader in providing information visibility as well as overnight service.
We have seen just a few warehousing organizations that emphasize superior information technology as their prime competitive advantage. One reason for this is that the many logistics service providers do not have anything unique in their information technology. Some are using off-the-shelf solutions with very little customization. It is not easy to sell technology as "special magic" unless you can identify something that really is special.
The ability to fill this gap may be one of the greatest opportunities in the logistics service industry.
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