France’s Geodis is upgrading its IT systems to create a global exchange platform.

Geodis will use the Manugistics system to provide industrial firms and major distributors with improved supply chain services, whilst reducing logistics costs. The company ultimately plans to integrate it into a global exchange platform, providing access solutions through the Internet and through wireless applications.

Manugistics is a good partner for Geodis partly because the system will help meet clients’ demand for flexibility and improved visibility across the supply chain, but also because it is strong in Geodis’ key sectors – electronics, hi-tech, automotive and parts, retail and healthcare.

The role of logistics providers in Europe is changing from being a warehouse manager to a supply chain manager. Supply chain complexity is increasing, as retailers expand globally, manufacturers migrate, new communication technologies are developed and eBusiness takes off. IT systems have become more sophisticated, and more and more activities are being outsourced, such as re-conditioning, assembly and quality control.

The development of eBusiness is triggering upheaval in the supply chain. Increasingly, there is complete integration of IT from manufacturer to retailer and electronic supply chain management is emerging. Geodis is moving onto the next competitive level, and other companies should take notice.