Feature Logistics Ending the information bottleneck
Consolidation, supply chain integration and margin erosion have placed huge pressure on transport and logistics companies to cut costs. In recent years innovation has transformed the efficiency of both transport processes and storage practices; yet many organisations still have highly inefficient back office processes. Steve Carter, E-Solutions strategist, Bottomline Technologies, explains how scanning, document personalisation, web processing and an online document repository can overcome the information bottleneck at the heart of the supply chain
management and distribution systems and it is no wonder that organisations are struggling to streamline processes and eradicate paper. They have to manage invoices, delivery notes and purchase orders, all delivered in a multitude of formats – from paper and fax to electronic. Furthermore, they are wasting time having to re-key data between systems, whilst information is not easily accessible to customers.
Commercial pressure O
ver the past decade, the trans- port and logistics market has changed radically. Consolidation has created organisations that are able to offer highly diverse services, supporting complex requirements from ambient food to hazardous chemicals; whilst companies are also adding freight for- warding services to the business, expanding the portfolio to achieve dif- ferentiation and gain a stronger foothold on international market opportunities. However, whilst these strategies have offered some economies of scale and cost reduction, too many organisa- tions are still struggling with highly inefficient back office processes. Indeed, adding new market areas and customers has, more often than not, simply increased the number of dis- parate information systems required. Companies now have a myriad of regulations to comply with for each dis- tinct operating area; and they have the explicit information demands of each customer to meet, demands which often require the use of specific systems as these organisations look to exploit haulage and distribution efficiency to further drive down their own costs. The result is that many organisa- tions are using multiple ERP systems to meet their own needs, as well as customer needs. Add in the diverse warehouse management, transport
Opting for an enterprise-wide solution that
exploits scanning, online document repository and document creation tools, enables businesses to overcome an information bottleneck at the heart of the supply chain
The lack of seamless information exchange along the supply chain is severely hindering business perfor- mance. Yet issues such as supply chain visibility and integrated infor- mation resources are typically only considered by organisations on a con- tract-by-contract basis.
Rather than embracing an enter- prise-wide solution to streamline information and minimise manual processes, companies will invest in specific solutions to meet the demands of individual customers. The result is that many organisations may appear to be delivering highly integrated supply chain information but, in fact, are working hard behind the scenes, using manual processes to re-key informa- tion between systems 24x7.
There is no reason why the supply chain needs to be such an administra- tive bottleneck in this way. The avail- ability of scanning, document personalisation, web processing and online document repository can fun- damentally change the way informa- tion is managed to deliver quantifiable value in order entry, product fulfil- ment, service and support, whilst criti- cally driving down costs.
Effective model
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Many organisations are already exploiting scanning technology to automate the invoice payment process, reducing costs and improving cash flow. By extending this model to
embrace all inbound information from customers, organisations can create a single online document repository and automate entire swatches of back office processes, from document pro- cessing to customer service. Indeed, even the process of using scanning to automate the storage of incoming doc- umentation eliminates data errors; whilst storing the documents electron- ically to provide web-based access to purchase orders and associated billing documents enables more efficient han- dling of customer inquiries.
One key area of rapid return on investment is the automated creation of bespoke documentation. Using defined business rules that reflect customer contracts as well as industry specific regulations, the system can automati- cally generate shipping documents, picking lists, dispatch notes and deliv- ery notes when an order is placed. Using intelligent routing and barcodes on documents, organisations can improve efficiency whilst significantly cutting the costs associated with the creation of bespoke documentation. Companies can also leverage this information to provide service differ- entiation – such as outsourced billing; whilst also offering customers infor- mation in any number of formats, from XML to email, as required. With real- time access to this information, cus- tomers make fewer routine inquiries, finance can automate the faxing and/or emailing of invoices, credit notes and statements, and employees can focus on core functions instead of information delivery. Critically, this information can be made available easily and cost effec- tively to either small or large cus- tomers, enabling the business to create a consistency of service and operation that drives further efficiencies. Faster access to information and the ability to address issues of payment or credit terms, utilising self-service technolo- gies, is proven to reduce payment times, improving critical cash flow.
Expanding innovation
Opting for an enterprise-wide solution that exploits scanning, online docu- ment repository and document cre- ation tools enables businesses to not only meet the specific needs of the larger more demanding customers but also deliver cost savings across every customer contract. By removing this information bottleneck, the industry can radically reduce costs whilst also creating an agile business model that delivers critical market differentiation.
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