Lucent Outsources Global Logistics - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Lucent Outsources Global Logistics

Global logistics outsourcing could become a trend as companies look to cut costs and stay focused on core business.

In an effort to cut costs, Lucent Technologies Inc. is outsourcing its global-trade-management operations to Vastera Inc. in a five-year deal. Lucent will pay $25 million for the first three years of service. Neither company would divulge details about the last two years of the deal.

Vastera will handle export and import management for Lucent's U.S. operations, which includes classifying goods to determine duties, fees, taxes, and insurance. Vastera also will:

- screen orders for compliance with export and import regulations,

- calculate the total cost to ship goods,

- and track and trace shipments throughout the global supply chain.

As part of the agreement, Lucent will distribute Vastera's track-and-trace software, TradeSphere, to all of its divisions.

As the economic slump continues, global companies are starting to look at their core competencies and figure out ways to cut or outsource tangential activities, says Mike Bittner, a director with AMR Research. "All major multinational enterprises have horror stories about handling global logistics," he says. "They were forced to tackle it internally because they didn't have an alternative." Now, with firms like Vastera appearing, Bittner says more companies will outsource. He adds, "If Lucent does this, others in the high-tech industry will say 'why aren't we doing this?'"

This is Vastera's second largest deal to date, the first being a 10-year, global-trade-outsourcing contract with Ford Motor Co. That agreement, which was signed last year, is worth $47 million for the first four years. Vastera also acquired Ford's 120-person global-trade-management team and its proprietary technology, which is designed to help with duty management and preferential programs like NAFTA, according to Greg Stock, Vastera's VP of marketing.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Slideshows
Top 10 Programming Languages in Demand Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  4/28/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll