In response, companies are using technology to create nimbler workforces, enhance customer service, and personalize services. All the while, they're making hard choices about which projects get funded and which don't. Last month, FedEx introduced software that lets customers print jobs directly from Microsoft Office on their PCs to any of the 1,200 Kinko's stores -- then FedEx delivers the jobs to clients. FedEx bought the copy-shop chain for $2.4 billion earlier this year. Meanwhile, FedEx is changing its distribution systems to support the smaller loads that customers are shipping and to keep up with international growth that's adding the most to the company's profits. At UPS, making drivers' schedules more precise could save $600 million a year in fuel costs and drivers' time by 2007, VP of engineering Mark Hopkins predicts. The company is rolling out a computer system called "package flow technologies" that aims to make UPS's delivery business more efficient. With 13.6 million packages and documents delivered daily, there are lots of steps to tighten up. Using history, forecasts, and information about missed deliveries to pick the best routes, the system plots all of a driver's stops for the day onto...

Drivers get an electronic list of all their packages and stops in order, and workers who load the trucks also get a more precise plan. If it works, the system could save UPS 100 million driving miles a year, which translates into 14 million gallons of pricey gas.
Conclusion

The increased airline security for air cargo will costs money and, since the cargo suppliers will have much of the responsibility of assuring airline security, this increased airline security will drive up of the costs of shipping and another time-consuming step to the shipping process. In response to the challenge, the shipping and logistics companies are looking at their business process and seeing where they can save costs.

References

Ghobrial, a. And W.A Irvin. Combating Air Terrorism: Some Implications to the Aviation Industry. Journal of Air Transportation. Omaha: 2004.Vol.9, Iss. 3; pg. 67-87.

IT Keeps Logistics Vendors Rolling Sept. 20, http://informationweek.com/story/showArticle.jhtml?articleID=47212210

Karp. Aaron Bracing for Cargo's Crackdown (2004). Retrieved December 4, 2004 from http://www.aircargoworld.com/features/0404_2.htm