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Transcript of The Connected Carrier Multimodal 2012.ppt - Squarespace transport collaboration and outsourcing. ......

  • 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)

    Suppliers main software provider (cost/capacity/skill) Suppliers 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

    Dont 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 hereThe future is already here

    it's just not evenly distributed.

    William Gibson, December 4, 2003

  • Any questions?