The Connected Carrier

Transcription

1 The Connected Carrier Jo Godsmark Trade Extensions Multimodal 2 nd May 2012 Jo Godsmark FCILT Director, Labyrinth Logistics Consulting & Founder, Supply Chain Design

2 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?

3 Labyrinth Logistics Consulting Business Structure Labyrinth Logistics Consulting Ltd S e r v i c e s Labyrinth Operational Support Health & Safety Training Vendor Assurance Operational reviews Quality Management Dangerous Goods O Licence assistance Environmental reviews Haulier interface hub (SCD) Labyrinth Supply Chain Logistics strategy Logistics procurement Network design Performance reviews Data exchange projects Clients 3PLs Manufacturers & retailers Manufacturers, retailers, distributors Buyers of logistics services

4 The Connected Carrier Integrating and exchanging data is fundamental to transport collaboration and outsourcing.

5 Data in logistics Business what has Structure changed? Previously paper based data is now being captured electronically....and in real time and demanded by customers in real time, Previously without paper manual based intervention. requiring data integrated is now being solutions captured electronically..

6 Data sharing versus Business EDI & integration Structure Non-integrated Paper documents and web portals share data across the supply chain Semi-integrated solutions give one party a handsfree solution to data entry or extraction but the other party still has human input Integrated solutions allow rapid, high volume data exchange including real time feeds of data Rising cost & time of implementation Increasing opportunities for supply chain benefits

7 Benefits of integration & EDI

8 Challenges of EDI & integration in logistics markets Business Structure 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 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

9 Standards and acronyms of EDI. Tradacoms XML CSV AS2 Odette UN/EDIFACT FTP VAN ANSI (ASC) X12 GS1 EDI

10 Benefits a distant dream?

11 The Connected Carrier What should a modern carrier be providing to its customers in this area? What should buyers be looking for or demanding to obtain the benefits for their organisation?

12 Tender journey Business Structure Review market Specification Review performance Assess Bids Award

13 Specification Business questions for Structure 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? 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?

14 Foundations Business for deriving benefits Structure Stable relationships Customer systems maturity Carrier systems maturity

15 Assessing Business bids for integration Structure 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) 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?

16 Solution options Business for integration Structure Internal solution one to one 3 rd party solution many to many

17 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

18 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 3 rd party integrator Use integration to lock-in your customers better data, integrated without issues will increasingly be core to winning & retaining customers

19 The future is already here it's just not evenly distributed. William Gibson, December 4, 2003

20 Any questions?