the connected carrier multimodal 2012.ppt - squarespace · pdf fileto transport collaboration...
TRANSCRIPT
The Connected Carrier
Jo Godsmark
Trade Extensions
Multimodal
Jo Godsmark FCILT Director, Labyrinth Logistics Consulting & Founder, Supply Chain Design
2nd May 2012
The Connected Carrier
Integrating and exchanging data is fundamental to transport collaboration and outsourcing.
What should a modern carrier be providing to its customers in this area and what benefits should their customers expect to receive?
Business Structure
Labyrinth Supply Chain
Logistics strategy
Logistics procurement
Labyrinth Operational
Support
Health & Safety
Training
S
e
r
v
Labyrinth Logistics Consulting Ltd
Labyrinth Logistics Consulting
3PLs
Manufacturers & retailers
Logistics procurement
Network design
Performance reviews
Data exchange projects
Training
Vendor Assurance
Operational reviews
Quality Management
Dangerous Goods
“O” Licence assistance
Environmental reviews
Haulier interface hub (SCD)
Manufacturers, retailers,
distributors
Buyers of logistics services
v
i
c
e
s
Clients
The Connected Carrier
Integrating and exchanging data is fundamental
to transport collaboration and outsourcing.
Business StructureData in logistics – what has changed?
Previously paper based data
is now being captured electronically ..
..and in real time
Previously paper based data
is now being captured electronically ..
and demanded by customers in real
time, without manual intervention. requiring
integrated solutions
Business StructureData sharing versus EDI & integration
Non-integrated
Paper documents
and web portals
share data across
the supply chain
Semi-integrated solutions
give one party a hands-
free solution to data entry
or extraction – but the
other party still has
Integrated solutions
allow rapid, high
volume data exchange
including real time
feeds of dataother party still has
human inputfeeds of data
Rising cost & time of implementation
Increasing opportunities for supply chain benefits
Benefits of integration & EDI
Business StructureChallenges of EDI & integration in logistics markets
• Medium to short term contracts – challenging for investment in data capture and integration
– Buffer, seasonal and shared warehousing
– Transport – particularly palletised, full vehicle
• Sub-contracting can lead to gaps in data provision• Sub-contracting can lead to gaps in data provision
• Data a customer or supplier requires may be held across multiple systems or vary by site
• Many logistics suppliers have limited IT resources; few focussed in this area
• Different EDI & integration standards for different markets and different customers
Standards and acronyms of EDI….
Tradacoms
OdetteUN/EDIFACT
XML
FTP
AS2
CSV
ANSI (ASC) X12
UN/EDIFACT
VAN
FTP
EDI
GS1
Benefits – a distant dream?
The Connected Carrier
What should a modern carrier be providing to its customers in this area? What should to its customers in this area? What should buyers be looking for or demanding to obtain the benefits for their organisation?
Business StructureTender journey
SpecificationReview
market
Assess BidsReview
performance
Award
Business StructureSpecification – questions for buyers
• What benefits could my business get from increased data exchange with my suppliers?
• Are my suppliers’ systems sophisticated enough to meet these requirements? Are they offering this to other clients?
• What contract lengths am I offering – is the investment in integration realistic?• What contract lengths am I offering – is the investment in integration realistic?
• Is sub-contracting compatible with my requirements?
• How many suppliers will I be using? Is the solution realistic for this number?
• What are my standards for file format and communications protocol?
• Will I offer any support to my suppliers in complying with my requirements?
Business StructureFoundations for deriving benefits
Stable relationships
Customer
systems
maturity
Carrier
systems
maturity
Business StructureAssessing bids for integration capability
• What experience does the supplier have of semi-integrated & integrated solutions? Are they familiar with my standards?
• Who will be providing the integration/EDI?
– Internal IT resource (sufficient capacity/skills level)
– Specialist integration company (cost/solution)
– Supplier’s main software provider (cost/capacity/skill)– Supplier’s main software provider (cost/capacity/skill)
• What comms monitoring is there? What alerts are given if there are problems? If document sending fails once is there an automatic re-send? Is there a support desk for issues?
• What data integrity checks or business processes can be applied to the data automatically?
• Is there a fixed time and cost for the implementation? Is there an ongoing cost of exchanging data?
Business StructureSolution options for integration
Internal solution – one to one
3rd party solution – many to many
Recommendations for shippers & buyers
• Put data exchange at the heart of your specification of services – tell bidders what you expect from them and specify this in detail including timescales
• Ensure that your integration requirements match your tendering and outsourcing strategy: provide portals and upload solutions for new and less sophisticated suppliers
• When evaluating capability look for evidence of integration solutions & capability; ask for references in this area
• Be clear whether integration costs should be quoted separately or embedded in price
• If considering 4PL ‘control tower’ services look for evidence of their integration capability with subcontractors or their alternative solution in this area
Recommendations for carriers
• Sharing real time data with your customer is a competitive edge – have a strategy for data collection and transmission
• Don’t rely exclusively on web portals for customer access for data – integrating the data with their systems will increasingly be a condition of service
• Check the capability and resource of your software supplier(s) in the area of EDI and integration – can they handle multiple implementations quickly?
• Decide whether EDI & integration is an in-house service, provided by your main software supplier or you wish to use the services of a 3rd party integrator
• Use integration to lock-in your customers – better data, integrated without issues will increasingly be core to winning & retaining customers
‘The future is already here‘The future is already here
– it's just not evenly distributed.’
William Gibson, December 4, 2003
Any questions?