The virtual warehousing concept

The virtual warehouse (VW) is a state of real-time global visibility for lo gistics assets such as inventory and vehicles. The efficiency of the VW is comparable to that achieved in a local warehouse facility. We assess the en abling technologies, develop a conceptual framework. and identify the essen tial decision-support modules of a virtual warehouse. A case study for fiel d repair service illustrates potential benefits of perfect information, in terms of reduced transportation, labor costs and service times. The case st udy pertains to field logistics support for business telephone systems. The productivity and utilization of highly skilled field technicians are impro ved substantially. A field scrap policy supported by VW reduces the volume of returns to the repair depot by over 20%. (C) 2000 Elsevier Science Ltd. All rights reserved.