The virtual warehousing concept

The virtual warehouse (VW) is a state of real-time global visibility for logistics assets such as inventory and vehicles. The efficiency of the VW is comparable to that achieved in a local warehouse facility. We assess the enabling technologies, develop a conceptual framework, and identify the essential decision-support modules of a virtual warehouse. A case study for field repair service illustrates potential benefits of perfect information, in terms of reduced transportation, labor costs and service times. The case study pertains to field logistics support for business telephone systems. The productivity and utilization of highly skilled field technicians are improved substantially. A field scrap policy supported by VW reduces the volume of returns to the repair depot by over 20%.