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ISSUE 1 2010

NEWS

OPINION

c o m p a n i e s p r o d u c e d documentation u s i n g t y p ewr i t e r s , with all of the re-keying that went with it. By the mid-1980s, c o m m e r c i a l s o f t w a r e packages were b e c o m i n g a v a i l a b l e that allowed cons ignment data to be input

once

There are uncanny similarities between the arms race and technological developments in the freight industry – but remember the human factor. Ken Stewart, director of Forward Computers explains.

My son recently wrote an essay on technological developments in warfare as part of his studies. He explained the warfare- technology cycle; a new weapon or technology is developed, another one follows to counter it, and so on. Consider, for example, how flight revolutionised warfare and in turn gave rise to a host of new technologies. This got me to thinking about the freight-technology cycle. I wouldn’t want to compare this with warfare (tempting though it is at times) as the cycle is subtly different. Some new technology is delivered, leading to greater efficiency, productivity or visibility - and thus cost-savings or some sort of competitive edge. However, it’s not long before this becomes the new baseline – everybody’s doing it – but it has by now paved the way for further innovation. Looking back, I can think of many examples - some of which now seem almost comical. Take the humble fax (which hadn’t even been invented when I began my apprenticeship) and how that revolutionised the freight business. Then in the late 1980s, the fax modem appeared and companies like mine were able to write software that allowed documents such as manifests to be auto-generated and despatched directly from the computer system at the push of a button. Thirty years ago, most freight

and a variety of documents churned out on impact printers - so long as you had the correct s t a t i o n e r y loaded,

or

several printers each loaded with the right stock, and you didn’t mind the

racket. But then, to

everyone’s relief, along came the laser printer. Towards the end of the 1980s, HMC&E introduced electronic links into its mainframe system via Direct Trader Input. Freight software

providers

quickly seized on the opportunity to integrate with their own systems, helping their customers to minimise data entry, expedite

customs

clearance and manage VAT/Duty accounting more effectively. The data exchange era had arrived. By the 1990s, all of these advances had become the new baseline and it was fast becoming inconceivable for a freight company to not be computerised and, once a critical mass had been reached, new opportunities emerged for data exchange between supply-chain players. During the latter half of the 1990s my company fashioned the tools required to enter this arena. Once seen as a dark art, systems that cannot now handle data exchange natively must be considered totally

inadequate.

Although uptake has been far slower than I ever imagined, data

exchange is now the norm. Indeed, it is the cornerstone of many of our own customers’ activities. In the meantime, throughout this period we have witnessed general advances in IT that have re-written the entire landscape. An infrastructure previously dominated by mainframes and ‘dumb’ terminals has been taken over by the PC and Microsoft Windows, Unix/Linux, LANs/ WANs, client-server technology and commodity hardware. Programming languages and database technology have matured. The digital age of the Internet, e-mail, word-wide web and hand-held devices has replaced communication by snail- mail and analogue telephone. The telex and our old friend the fax have long since been put out to pasture; PDF documents are now auto-generated and e- mailed, or posted up to secure websites, to be viewed around the world by the consumer using their PC and e-mail client or web browser. Keeping pace with all of these technological changes is enormously challenging. No less onerous are the regulatory burdens on the trade; just take a look at the EU’s plans for electronic customs through its Multi Annual Strategic Plan, or

It’s a war out there

HMRC’s plans for the replacement of its CHIEF system. It is also becoming equally important for companies such as mine to cater for international regulatory requirements, for example the US AMS (automated manifest system) and, more recently, ISF/10+2. Freight software providers have enough to do keeping up-to-date with all this, let alone moving their products forward in innovative ways that will benefit their customers and maintain their competitive advantage. Yet move forward we must. Returning now to the warfare theme, it’s probably safe to say that the core technology reached a plateau some time ago. Yet governments around the world continue to invest billions each year refining their weaponry. In much the same way, I believe that the overall IT platform has matured to a point where it will remain largely unchanged for some years to come. But the self-fuelling freight-technology cycle will continue to deliver innovations that will further enhance supply- chain efficiencies. My prediction for the key growth area over the coming decade will be the drive towards full paperless trading, through the refinement of data exchange.

While much of this will continue to be delivered through traditional EDI mechanisms, it will become far more dependent upon XML-based standards. Take for example the initiatives from IATA/FIATA and SITPRO, organisations

championing

global standards for electronic documents such as the e- AWB and e-Invoice. The integration of disparate systems will be further enhanced through the use of business process modelling, ‘mashups’ (an application that uses or combines data from two or more external sources to create a new service) and web services. But let us not forget that the freight and IT industries are operated by human beings, for human beings, and many activities remain that can only be served through direct inter-personal contact and

relationships.

Similarly, I believe that we humans cannot be expected to go completely “paperless” and digest all our news and information through electronic

bulletins and web feeds. Call me old-fashioned, but I believe that there is no substitute for a printed publication landing in the office and being handed around for all to read. I therefore welcome the launch of the FBJ and wish it every success with future editions.

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