Logistics outsourcing has become an important supply chain strategy for many industries, including shoes and apparel, home goods, high technology and automotive. Over the past 15 years, logistics outsourcing has grown to an over US$155 billion industry. As more sourcing moves overseas, it becomes increasingly important that logistics supplies deliver a complete supply-chain solution to their customers, IES has that solution, and allows logistics suppliers to deliver the next level of flexibility and cost savings.

Using IES software allows logistics supplies to build upon this outsourcing trend by combining the top five most-outsourced functions:

• Warehouse & distribution-center management

• Web-enabled communication

• Transportation management

• Shipment tracking and event management

• Customs clearance

into a virtual distribution network run by the logistics suppliers. The IES software is an evolution of globally accepted outsourcing approaches into a unified supply-chain strategy for industries that predominately source internationally.

The IES software allows a logistics supplier to leverage its expertise and assets to eliminate days of inventory, reduce distribution cost by performing more work overseas, simplify vendor management, improve delivery reliability and increase sales by reducing stock outs and markdowns. Total supply-chain cycle time is dramatically reduces. BY reducing costs, increasing same-store sales and reducing assets intensity, our customers' customers realize significant gains in company and shareholder value.

The IES software extends the capabilities of the logistics company's customers' existing systems with XML and EDI integration, purchase-order management, warehouse management, inventory allocation and shipment, international freight forwarding, job-cost accounting and Web tracking. Web-based interfaces quickly deploy new capabilities to suppliers around the world. Using the IES software supply chain, sophisticated e-commerce integration collects purchase orders from the system of record and makes them available through a Web-based interface. These order can be managed by a sourcing agent, the lead logistics manager or directly by the supplier.

To start the process, the supplier reviews and accepts assigned orders by committing to a ready date. E-mail alerts are generated for any variance based on need date or quantity for immediate resolution by the corporate sourcing team. Using self-service tools, the supplier continually updates the production status, which improves control for the corporate sourcing team and also helps the lead logistics manager plan shipments in advance. Upon completion of the order, the supplier can pre-ship the inventory based on a first, preliminary store-level allocation. Optionally using scanners and high-speed printers certified air waybills are applied to individual cartons for final store delivery. The supplier is responsible for managing inventory underage and overage, as well as creating a booking for LLM warehouse receipt.

The IES software provides a seamless system for arrival through Customs and final delivery. Web-based tracking, event tracking and exception management are available throughout the transportation process. Status from purchase order to final delivery is communicated electronically back to the corporate logistics team for performance management. The net result is lower cost, lower asset-intensity and better delivery performance, all with improved visibility and control.