For many years, we’ve heard about the potential benefits of “integrated logistics,” and it’s hard to argue with the theory. To illustrate, a couple of years ago I met with the head of supply chain for a division of GE. It was organized into three logistics groups: sourcing/inventory, distribution, and transportation. His complaint – while each individual area was functioning acceptably, they were operating largely in silos, with little horizontal process integration.

Today, most logistics software vendors have developed suites of solutions that promise some level of integration between various modules (WMS, transportation management, supplier enablement, visibility, analytics, etc.). A few years ago, analyst firm AMR named this software area “Supply Chain Execution” or SCE, to contrast these logistics-focused vendors (Manhattan Associates, HighJump, GLOG, RedPrairie, etc.) from supply chain planning vendors like i2, Logility, Manugistics, and webPlan. ERP vendors, or course, are increasingly playing in both arenas.

Unfortunately, few (if any) end user companies ever adopted the term “supply chain execution.” Rarely (if ever) do manufacturers or retailers describe their needs in terms of “SCE” – most still start out looking for individual point solutions (WMS, TMS, etc.) and while an increasing number of companies have visions for a more comprehensive solution suite, they don’t describe these more integrated needs as “SCE.” Supply Chain Execution remains a term largely used only by vendors, analysts and the trade press.

Consultants have taken their turns. One prominent firm was recently floating the concept of “integrated order fulfillment” as the umbrella term. But so far, no term has taken root in the marketplace.

Regardless of the term, key questions remain: 1.) Are there a series of logistics-related applications that companies need to think about implementing in an integrated fashion from a single vendor, whether at the outset or over time? 2.) Do we need out-of-the-box solutions that provide a level of technical and process integration across the key functional areas that comprise most logistics organizations, more like the way we think about advanced planning suites and even CRM?

It seems to me that we are still early in this game, and that there is work to be done by both customers and vendors. Companies need to break down their silos and look at how integrated processes can drive more value. When that happens, the software requirements and vendors will follow. And vendors must move beyond the current levels of integration to develop true cross functional process models these integrated suites will support.

And then we still need to determine what to call the thing.

Are we moving towards more integrated logistics processes? Do we need a new umbrella term to describe logistics software suites? Can technology help us move out of functional silos – or do we really need to?