IT\\\


DHL has begun using smartphone technology in the warehouse to bring down the cost of logistics. “There are so many sensors in a smartphone, we think we can use that in logistics,” says Markus Kuechelhaus, head of DHL trend research. “As smartphones become more popular, the economy of scale of use has brought down the price. “DHL piloted Kinect, seen in


Microsoſt’s X Box, for volume scanning at Koblenz, Germany: in addition to reading the barcode, the sensor takes a 3D picture of a pallet going through the gate. This enables us to obtain an accurate


measurement of size and weight, which is used both to determine the capacity the pallet will take and to provide an accurate invoice, as pricing is based on volume. “We also use the Kinect sensor


on a forkliſt, which eliminates the need for a gate altogether. However, there are still problems with ensuring the sensor is robust enough for forkliſt use.” In addition to volume sensors,


DHL has used sensors to determine whether a container has been opened or the cargo subject to shock. An alert can be sent to the relevant person should


anything abnormal happen


to the freight. Cargo requiring special handling, including some automotive components, are being monitored in this way. “RFID tags are used to identify if a temperature controlled container or


trailer has been


opened, or the temperature dropped below the desired point, but no one has shock sensors in passive RFID tags,” says Kuechelhaus. “The right technology for many of these applications had been available in the past - but at too high a cost to be viable in the logistics environment.”


JARGON-BUSTER


In the first in an occasional series that seeks to untangle some of the more baffling IT terms, Sally Northway, managing director EMEA of specialist firm MercuryGate unravels the mysteries of TMS, or transport management systems.


What is a TMS? In a nutshell TMS (transport management system) is soſtware that helps business manage the execution of its logistics supply chain, in particular coordinating and optimizing the movement of production materials and finished goods – and is potentially valuable to manufacturing companies, exporters, importers, freight forwarders and customs brokers. To perform its most basic operation TMS soſtware usually sits between an ERP or legacy order processing and warehouse/distribution module. A typical scenario would include both inbound and outbound loads to be evaluated by the planning module which in turn offers the user various suggested routing options. The use of a TMS should facilitate a consistent process regardless of the mode of transport - air, ocean, express, parcel, rail and road and at minimum level should offer the following functionality. Shipment load planning and shipment routing optimisation - This helps in areas such as determining the most cost effective mode to ship an order (FCL, LCL, FTL, LTL, air freight, intermodal), or the optimal way to combine multiple orders together into larger shipments. Carrier rate agreements and contracts are oſten housed within this area as well. Routing guide – Helping to ensure vendor compliance to inbound routing guides is crucial to cost management. Centralizing the routing instructions for a company with multiple shipping locations can improve compliance. Execution management and carrier communication - This includes tools for assisting with carrier selection, calculating shipments costs (including line-haul, fuel surcharges, and accessorial charges), tendering loads and facilitating carrier communication (bills of lading AWBs and proof of delivery). Visibility/shipment tracking - Providing delivery status updates and alerts, this tool allows proactive program management and notice of potential delivery problems in advance. Freight bill audit and payment - Automating the freight audit and payment process, saving time and improving accuracy, or ending reliance on an outside third party. It is estimated performing such freight invoice audits can save between 7-10 % in transportation costs per annum. Management information – Analytics, performance management, scorecards and management dashboards. TMS providers continue to develop the functionality of their soſtware suits and have, over the past several years, expanded their portfolios to a point where clients can source their requirements from a single provider. However, with more and more companies in Europe using transportation management soſtware the demand and competition for such tools have increased considerably. The number of companies offering transport management systems has mushroomed so, as you may imagine, not all of the soſtware on offer has measured up to customer expectation, so buyer beware and do your due diligence. The more sophisticated are moving towards operating transportation as a global shared service which demands the ability to support multiple geographies, lines of business, and functional organizations which requires exceptional precision in the supply chain and most probably the flexibility afforded by cloud based management tools. TMS will play an ever increasing role in the way we plan and execute our supply chains. Competition in Europe has and will continue to improve the quality and value for consumers and with TMS providers now offering soſtware solutions to suit most needs and budgets the future continues to look bright. (Would you like a acronym or expression explained? If so, contact FBJ at: chris.lewis@fj-online.com and we’ll do our best to find the answer.)


Issue 4 2014 - Freight Business Journal


Smartphones cut DHL costs Uniting a fragmented Europe


It will be a long, long time if ever before Europe realises the dream of a common customs system – but there is no reason why clever sortware cannot simulate such a situation, says Descartes executive vice


president, Ed


Gardner. Customs clearance, and the logistics world in general, is still very fragmented, he says. “A single customs area for Europe is further off than ever, but we can make it seem as if there is one,” he told FBJ in an interview. Impatex has been buying


companies with specific expertise, including Impatex in the UK and Norwegian-based customs solutions specialist KSD. Meanhwhile, the complexities


of data collection, not just for customs clearance but


for


security purposes, is increasing. “For us, it’s an opportunity with our global logistics network,” Gardner explains. “We have 170,000 connected parties – by no means all of them our own customers – and we have a very open platform.” In fact, Descartes is looking into ways of opening its platform up still further, perhaps authorising its customers to introduce their partners to the network under controlled conditions rather than necessarily going through Descartes itself. The network is currently


handling 4.5 billion transactions a year, but the sky is the limit, says Gardner. While freight people will


probably know Descartes for its customs soſtware, it is in fact


Turning pain into gain


Responding to requests for quotation is a job every freight forwarder dreads but it’s essential to winning new business. It can routinely take a forwarder 24 hours or more to get back to the customer, probably because there is a queue of a dozen similar jobs already in the pipeline. And then, aſter all that trouble, nine times out of ten the RFQ doesn’t actually lead to any business. Attempting to take some of the


pain out of the process is Freightos, a new Hong Kong-based company that is marketing an automated freight quotation network. “We’re


helping freight companies get a handle on the flow of data and optimising it,” explains chief operating officer, Victor Ofstein. Freightos takes all the rate


information from carriers in its various formats and provides a tool to allow the user – typically a freight forwarder – to upload all the relevant information. Importantly, it can also analyse the data and everything is stored in a single ‘Cloud’


location, says Ofstein.


Everything is multi-lingual and multicurrency. Users can get door


to door freight quotes by putting in


addresses and post codes, dimensions and nature of the cargo and the system takes care of the rest, offering comparative quotes – and alternatives if available – for air, ocean and surface


transport, sweeping


through the myriad carrier contracts and other information until it finds the best rates. Forwarders’ customers can also


be given direct online access to Freightos and another advantage is that they can see their actual invoice – there will be no nasty surprises when the actual invoice arrives.


AMCO chooses ForwardOffice


Worcester-based logistics company AMCO Services (International) has chosen ForwardOffice as its freight software provider. Although its encumbent freight software is capable of handling its current requirements, AMCO said


it needed a more advanced system to further improve efficiency and support its growth plans.


Following a


comprehensive review of current marketing offerings, AMCO has chosen the ForwardOffice freight software


package. A fast-track implementation


is now in progress and, with assistance from Forward Computers’


dedicated


consultancy team, AMCO plans to go live with the ForwardOffice during June.


29


involved in all aspects of the supply chain including transport optimisation – it has one of the most advanced home delivery systems in the world – as well as a range of other transport management tools. It also acquired the GFX network for forwarders some time ago.


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