Under the leadership of Deutsche Post World Net, IBM, Intel, Philips and SAP have agreed on a strategic partnership called “DHL Innovation Initiative”. The companies, which all have global presence, plan to advance the development and introduction of new technologies for the logistics industry. The initiative is aimed at making supply chains more efficient by uniting the flow of information and physical goods through increased automation, visibility and improved collaboration among trading partners.

To achieve this, the partners have decided to pool their logistics, technology and IT expertise. In initial projects, industry-specific RFID applications will be tested in the supply chains of the partner companies and brought to market. Pilot projects have been started in the fashion, pharmaceutical and electronic industries in Europe, the United States and Asia First results are expected as early as mid-2006.

“Steadily rising merchandise flows are posing new challenges for the supply chain, and these challenges can be mastered only by using innovative business models, innovative business processes and innovative technology”, said Martin Jetter, Leader IBM Business Consulting Services Northeast Europe. “We want to make a joint effort to develop solutions that haven’t yet entered our customers’ minds,” added John Allan, Board member at Deutsche Post World Net in charge of Logistics.

“To ensure the success of this initiative, it is imperative that these new technologies are based on proven, integrated business solutions that support the industry’s needs, while at the same time driving down the total cost of ownership,” said Claus Heinrich, member of the Executive Board, SAP AG.

The global initiative covers all elements of the value chain for modern logistics technology: DHL offers customers tailor-made express and logistics solutions worldwide and contributes leading industry practices and know-how to the initiative. Intel has long experience in the development of innovative and leading computer, networking, and communications products. The combination of SAP’s and IBM’s software know-how and system integration expertise provides the foundation of current and future requirements for new business applications. And with Philips, the leading provider of RFID chip technology has joined the initiative.

“We can help make supply chains more efficient and transparent. As the leader in RFID technology, Philips is delighted to work together with Deutsche Post, IBM, Intel and SAP to realize RFID based logistics solutions. We are shaping new markets for RFID technology by providing value to a large end-user community,” stated Frans van Houten, CEO, Philips Semiconductors. “Together with our ecosystem we are committed to bring standards to RFID solutions. This is the next level of engagement increasing the adoption of RFID in the market” added Christian Morales vice president of the Sales and Marketing Group and cogeneral manager of Intel Europe.

Source: Deutsche Post World Net