We touched on the topic of "integrated logistics" a number of months ago on these pages, and asked such questions as:

	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?
	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?
	What should we call this new application category, as it emerges?

Of course, this isn't just about technology - just like "supply chain management," of which logistics is a part, "integrated logistics" is an operations concept that focuses on breaking down silos and crafting cross functional processes - hopefully working backwards from the needs of the customer.

I'll repeat a story I heard a couple of years ago, given that we've had many thousands of new readers at SCDigest since I first relayed it. The head of supply chain for a division of GE told me that his operations were organized into three logistics groups: sourcing/inventory, distribution, and transportation. While each individual area was functioning acceptably, they were operating largely in silos, with little horizontal process integration. His mission was to fix that.

But while integrated logistics isn't just about technology, I submit technology is nonetheless also a "leading indicator." If companies aren't seeking and buying integrated transportation management and warehouse management applications, isn't this at least some sign that companies are operating their transportation and distribution operations at least in a somewhat siloed fashion?

Well, there's a lot going on at the vendor level now. Most of the major execution/logistics/WMS vendors (Catalyst, Irista, HighJump, Manhattan Associates, RedPrairie, others) have released some form of integrated solution - calling it an "integrated logistics solution," logistics "platform" or "logistics operating system" or related designation. At the same time, we see a significant blurring of planning and execution tools and solutions - or at least visions. Traditional planning vendors such as i2, Logility and Manugistics are increasingly focused on "execution" too, usually related in some way to order fulfillment processes, with a new category of "distributed order management" further blurring the lines. ERP vendors are releasing capabilities that would claim to integrate it all.

The reality is that today, very few companies start out to buy "integrated logistics" solutions - they're looking for WMS, TMS, etc. Some are adopting broader solutions after having had their vision "re-engineered" by one of the software providers - often with good reason. On the other hand, a lot of companies will still hold up a stop sign and insist it's "out of scope" when a vendor tries to expand the solution say beyond the WMS solution the company intends to buy.

But unless the vendors all have it wrong, more integrated logistics operations and technology are coming. A leading industry analyst recently told me about a major company that was looking for improved tools to match inbound transportation planning with distribution center resource visibility to understand the opportunity for cross docks. This requires of course both enhanced business processes and new technology support. The role of real-time visibility and event management certainly plays a part as well - it's hard to think of these tools except in an integrated logistics framework.

It will be interesting to see at the CLM show this year, for example what end user stories we hear about integrated logistics. So far, the vendor suites are out ahead of the market, for the most part. That's OK - it's the usual condition. But two decades after the academics first started writing about it, we need to start managing logistics at a network level. Agree?

If you have some thoughts on "integrated logistics," I'd love to chat - on the record, or off. Just drop us a note.

Does your company have "integrated logistics" today? Can it be achieved without an integrated logistics application platform?  Let us know your thoughts.