Armonk, NY, 20 September 2005 — IBM and Maersk Logistics,
of the A.P. Moller-Maersk Group, announced today an initiative to
bring real-time, enhanced visibility to global supply chain operations
by improving the quality of container tracking, thus providing greater
security for transported goods. The solution includes highly intelligent
wireless tracking devices and an advanced technology network for
use by manufacturers, retailers, logistics providers, carriers,
and governments to share real-time cargo information.
Joint development IBM and Maersk Logistics brought together research,
business consulting and engineering teams, along with technology
experts and internal specialists in the field of customs, ports
and border management, supply chain management and transportation.
The solution incorporates IBM's industry-leading hardware and software
technologies alongside Maersk Logistics' global supply chain expertise.
These organizations have integrated two key emerging technologies
for the first time:
- Intelligent real-time tracking devices called TREC (Tamper-Resistant
Embedded Controllers), which are fitted to cargo containers and
designed to withstand the environment they operate in. Unlike
typical passive tags that merely collect data, the wireless TREC
devices incorporate significant processing power, enabling them
to receive and send data instantly. The devices, which are currently
being developed at IBM's Zurich Research Laboratory, automatically
collect information on each container, including its physical
GPS location, as well as parameters such as temperature, humidity
and sensory readings to detect intrusion.
- A fully integrated network that combines data from the TREC
devices with a non-proprietary sensor network and business integration
system. This network eliminates manual processes, and grants accredited
supply chain participants access to relevant data. The information
gathered can be connected to decentralized databases where each
participant owns its own content. A service-oriented infrastructure
allows users to share information instantly.
This leading-edge solution will provide global supply chain stakeholders
with on-demand access to real-time, transport-related data. The
solution supports the implementation of the novel World Customs
Organization's (WCO) Framework of Standards to Secure and Facilitate
Global Trade.
"IBM's objective is to enable globally integrated business
by capitalizing on the information generated during the tracking
process and at the same time improving the security of cargo,"
says Mogens Roedbro, Partner and Vice President, IBM Business Consulting
Services. "This initiative, which IBM refers to as Intelligent
Trade Lane, is part of our broader Global Movement Management effort
designed to address the critical business functions involved in
efficiently and securely moving people, goods and conveyances within
and between countries."
"Security and supply chain optimization are key focus areas
for our clients today," explains Henrik Ramskov, Managing Director,
Maersk Logistics. "The capabilities of the TREC device and
network eliminate the time lag of the physical container status
to provide real-time visibility. This provides new opportunities
for truly adaptive planning while also maintaining data quality.
This enables effective decision making and supports supply chain
agility. Combined with Spective, our business intelligence solution,
we will further enhance our clients' customer service levels while
reducing the costs of achieving these."
"Some of today's shipping logistics involves enormous levels
of complexity, dated processes including lengthy paper trails, and
limited levels of security," says James Rice, Director, Integrated
Supply Chain Management Program, Massachusetts Institute of Technology.
"The ability to create an environment where all supply chain
participants have real-time visibility while also leveraging industry
standards will eliminate some of this complexity. The IBM and Maersk
initiative offers a promising approach for a more truly resilient
and secure transborder supply chain."
To ensure that the solution is ready for commercial application
next year, IBM and Maersk Logistics are currently involving key
supply chain stakeholders in a formal pilot. Phase one field testing
will begin in early November 2005, followed by a large commercial
pilot in March 2006.
About IBM
IBM's Intelligent Trade Lane improves the quality of maritime shipping
services and increases the security of transported goods. This is
the first offering to result from IBM's Global Movement Management
initiative, which is designed to address the critical business functions
involved in moving people, goods and conveyances efficiently and
securely within and between countries. Through the use of integrated
business processes and innovative technologies, IBM is engaging
a wide range of businesses and government organizations around the
world to develop solutions that improve the flow of information,
commerce, and travel.
Intelligent Trade Lane is an example of how IBM is enabling businesses
to become on demand. It is also an example of IBM's global effort
to leverage the $500 billion business performance transformation
market opportunity - where companies look to external vendors, such
as IBM, to transform business processes and improve business performance.
IBM is a leader in helping businesses and organizations innovate.
As the world's largest information technology and consulting services
company, IBM and IBM business Partners offer a wide range of services,
solutions and technologies that enable customers-large and small-to
take full advantage of on demand business. For more information
about IBM, visit www.ibm.com/ondemand.
About Maersk Logistics
Maersk Logistics is a recognized leader in the international logistics
market. It provides customized solutions for integrated supply chain
management, warehousing and distribution, customs house brokerage,
air freight, as well as NVOCC services through their subsidiary
DSL Star Express.
Maersk Logistics is continuously developing a range of state-of-the
art information solutions customized to each customer's needs. The
solutions allow customers to track and trace merchandise and to
analyze in detail how to optimize every part of the supply chain.
Spective is Maersk Logistics' supply chain visibility, event management
and business intelligence solution. Spective provides a single,
online access point to end-to-end supply chain information from
the manufacturing process to the distribution order, allowing clients
to run the most connected, efficient and responsive supply chains
possible. Spective combines world-class technology with Maersk Logistics'
global supply chain experience and operational capability to deliver
business solutions that raise the level of confidence in and control
of clients' supply chains.
Part of the A.P. Moller-Maersk Group, Maersk Logistics has more
than 100,000 employees in more than 125 countries around the world.
In addition to shipping and logistics, the A.P. Moller-Maersk Group
is engaged in the exploration and production of oil and gas, shipbuilding,
industry, supermarkets, and IT services. For further information,
please refer to the Maersk Logistics Web site at www.maersklogistics.com.
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