Harnessing the power of Dynamic Unified Communications in the transportation and logistics sector

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1 OPINION PIECE Johannesburg, South Africa, March xx, 2015 Harnessing the power of Dynamic Unified Communications in the transportation and logistics sector By Michael Frans, Head of Business Development: Business Operations Automotive at T-Systems in South Africa Transport and logistics under pressure to reduce costs Many fixed costs make this challenging. Addressing communication with Dynamic UC offers numerous benefits. In an effort to improve margins and profitability, organisations within the transport and logistics sector are constantly faced with pressure to improve efficiencies and move cargo faster. Telematics, coupled with seamless integration between various third party systems, are the ideal solution to assist achieving this goal. Reducing cost is another common pressure, however it is often far more difficult to achieve, as many of the costs involved with transport and logistics are a function of the business operations or are out of the control of operators. In order to achieve the necessary cost reductions, operators need to look outside of these fixed costs, and communication is one area where significant savings can be realised. Harnessing the power of hosted Unified Communications (UC) can help transport and logistics operators to significantly reduce costs, which then goes straight toward improving the bottom line. When it comes to reducing costs, improving efficiency is one of the top solutions for transport and logistics. However, this is by no means the only answer to on-going pressure to streamline operations. While variable costs such as fuel, tolls, and the fixed number of vehicles owned or leased cannot be changed, the cost of communication is one area that is often overlooked.

2 Communication is an essential component of any transport or logistics enterprise, from customer interaction to communication between drivers, from keeping up to date on the whereabouts of cargo to informing the necessary parties of any issues such as unforeseen delays. In the commercial sector, hosted or cloud-based UC is seeing significant uptake as a result of its ability to improve operations and reduce cost of communication, and these benefits can just as easily be leveraged in transport and logistics. In conjunction with a Dynamic Workplace solution, cloud-based UC can also be used to support mobility, enabling staff to work from any location and access the required corporate information to enable improved productivity. This can significantly reduce costs whilst improving service, enhancing the overall customer experience. UC integrates traditional and IP-based voice solutions with various real-time enterprise communication services, including chat and instant messaging, mobility, audio and video conferencing, data sharing and collaboration, as well as presence information. It also incorporates non real-time solutions like , SMS, voic and fax. UC is not a single product, but a suite of products that can be tailored according to the needs of the customer and delivered through a unified interface across multiple devices. Utilising the benefits of dynamic cloudbased delivery, hosted UC can deliver multiple advantages, including cost savings and reduced operating costs. As with any cloud service, there is a lower total cost of ownership with hosted UC, as organisations do not have to pay for infrastructure, licensing, maintenance and so on. The potential saving around infrastructure alone is approximately 25%. Dynamic cloud services are also delivered on a subscription basis, so organisations only pay for what they use, and can scale according to requirements without being locked into long-term contracts. In addition, moving UC into the cloud reduces the requirement for skilled resources in-house, further reducing costs around staffing.

3 In addition, utilising the advanced economies of scale and relationships of an expert service provider can deliver further cost savings, as it is often possible to leverage bulk discounts around voice interconnect rates. Harnessing hosted UC through a service provider, transport and logistics companies can take advantage of up to 30% savings around the cost of voice calls, which can be significant as this is often a large expense. For example, a call to a driver s cell phone can be made from head office without incurring the traditional costs of fixed-line to mobile. Conversely, the driver can easily call their logistics controller from their cell without incurring the traditional costs too. If they are not able to get hold of the required person, a voice mail message can be sent as a voice clip via -to- if the person s cell is off, all recognised through presence management capabilities. This is available for as little as R120,00 per user. Hosted UC also helps to support the distributed workforce, which is particularly beneficial in the transport and logistics sector as drivers are typically spread over wide geographical regions. Providing mobility and UC solutions can enable the entire workforce to keep in constant communication, allowing drivers to be rerouted if necessary, immediate relaying of pertinent information such as delays to shipments being unloaded and more. In addition, UC can be used for many other applications. For example, should a vehicle break down, the driver can access a subject matter expert such as a mechanic via video to help them resolve the situation, without the mechanic having to physically travel to the site to fix the problem. If the mechanic does need to travel to site, they have been given a far clearer picture of the problem and can thus improve efficiency by ensuring they have the right tools and parts to fix the issue without delay. Further to these benefits, UC can also become a competitive differentiator, as it enables transport and logistics organisations to improve the customer experience. Maintaining tighter control and constant communication over the entire logistics supply chain means that customers can be kept informed, notified of any delays and the reason for delays. This information can also be

4 used to optimise the logistics process, ensuring trucks are only sent when deliveries are ready to be unloaded from ships, for example, and enabling drivers to change their route to avoid accidents, road closures and more. Leveraging the benefits of UC can help transport and logistics companies to reduce costs and improve efficiencies, which both translate into an improved bottom line. Ultimately, such solutions are not about technology, but how organisations can benefit by becoming more competitive with a solution that enables business processes to be more efficient. T-Systems in South Africa: Head of Marketing & Communications Lebohang Thokoane +27(11) (Phone) +27(78) (Mobile) About Deutsche Telekom Deutsche Telekom is one of the world s leading integrated telecommunications companies with over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2013). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide. The Group generated revenues of EUR 60,1 billion in the 2013 financial year more than half of it outside Germany. About T-Systems Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides

5 integrated solutions for the networked future of business and society. Some 50,000 employees at T-Systems combine industry expertise and ICT innovations to add significant value to the digitization strategies and core business of customers all over the world. T-Systems generated revenue of around EUR 9,5 billion in the 2013 financial year. Since the inception of T-Systems in South Africa in 1997, the company has cemented its position as one of the most successful T-Systems companies outside of Europe. A leading ICT outsourcing service provider locally, T- Systems offers end-to-end ICT solutions in both the ICT Operations and Systems Integration markets. Their extensive portfolio of services covers the vertical, horizontal, IT and TC space. T-Systems South Africa s head office is located in Midrand with another major office in Cape Town, and 20 further representative offices in locations throughout southern Africa.

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