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Issue 2 2017 - Freight Business Journal


///IT Is the future of logistics up in the clouds?


The new year is the opportunity to look forward and offer some thoughts as to what this 12 months and beyond might bring to the logistics industry, and how the rapid speed of IT development is going to affect the sector, writes FBJ IT correspondent, Mike Bryant. All businesses will have their plans for the future, of course, but the very speed at which IT transforms not only logistics but the world around us in just about every way makes it difficult to make any predictions.


Keeping control of drone delivery


Sian Hopwood, senior vice president B2B operations at Kewill, the logistics soſtware developer, is one person brave enough to share her forecast for the trends that will dominate coming months/years. In particular: “The rise of drones


and connected data is redefining what’s possible in terms of speed, flexibility and visibility,” she points out, noting that Amazon recently launched its Prime Air drone delivery concept, which introduces the prospect of 30-minute fulfilment times from order placement to delivery. It is certainly achievable, she considers, given the pace of technological advancement. Moreover, Hopwood observes:


“Connected data is doing the same thing for visibility – item tracking and shipment consolidation can now be performed in near-real time, meaning customers and shippers can receive information on their items around the clock.” “Drone technology has


the potential to bring with it a great deal of positive change,” Hopwood advises. “Despite the hype, though, the introduction of drone technology could cause a supply chain nightmare if logistics companies are not careful. Many organisations still rely on outdated legacy processes that would make


the incorporation of drone delivery a very steep learning curve. “To simplify the process,


organisations need to ensure they have transport management systems in place that can automate logistical pain points (setting package weight limits, for example, or ensuring drones deliver safely to challenging destinations) rather than manually inputting details into the system, which is both time consuming and error prone,” she argues. “Tighter integration between systems will also enable businesses to manage all the new data being delivered. “Drone delivery also throws


up questions about redefining traditional supply chain routes. For example, how will goods reach the supplier from the manufacturing line? Logistics companies will need to consider their position in a more flexible supply chain landscape and take the role of enabler. By using control tower platforms, supply chain managers can monitor, consolidate and redirect each robot in the field as required. This enables them to quickly reroute terrestrial drones around traffic, for example, or re- map complex delivery routes to minimise the time it takes to reach each customer. Not only that, but drones will inundate organisations


with a huge amount of real-time data not previously available, increasing the need for powerful Cloud-based applications to ingest and process that information.” Flexibility and scalability in


companies’ supply chains will be key if they are to make the most of the innovative delivery methods of the future,” Hopwood believes.


Connected data Optimising a supply chain requires efficient use of data and being able to track, store and analyse massive amounts of data at very little cost is vital, Hopwood says. The nature of internet connectivity and of mobile devices has created what she calls an “always on, always available, and very inexpensive” platform for logistics companies. But uptake of the full capability has been relatively slow, she notes. “There are several challenges to


successful implementation of data in the supply chain. These are most prominent in business processes, boundaries and social concerns. The first is change management, the cultural mindset and capability of companies to embark on a large- scale adaptation of their processes with support of appropriate leadership. The move to a data- centric approach is a large project, and requires leadership buy-in, funding and process support. Businesses need to approach the use of data not as just another tool, but as a core aspect of their entire business model.


White paper calls for effective IT integration


AEB, a provider of supply chain logistics soſtware, consultancy and services, recently produced a ‘white paper’ that looked at the need for better integration of supply chains – both national and international – but noted that many businesses are struggling to integrate transport partners into their IT environment. For many IT and logistics


managers, synchronising internal and external logistics processes remains “a dream”, says AEB. For any number of companies, it suggests: “The challenges seem


too daunting and the costs too prohibitive.” However the white paper offers an overview of the advantages and disadvantages of various methods of IT-based collaboration with cargo carriers, while also highlighting the associated challenges. Entitled: ‘Five tips for IT-based


collaboration with carriers and parcel services’, it also provides a checklist to help businesses to ascertain whether IT integration offers a potential benefit for them. Claire Umney, a general manager at AEB, remarks: “The


opportunities and competitive advantages of a well-functioning, IT-based collaboration with transport service providers – cost savings, greater data transparency, and higher customer satisfaction – should not be dismissed lightly. Even small steps, such as linking individual parcel services to in- house IT or automating manual processes, can pay off.” The white paper can be


downloaded at: https://www. aeb.com/uk/media/white-paper- carrier-integration.php.


End of the road for TIR paperwork?


The International Road Transport (Transports Internationaux Routiers, or TIR) Convention has been used since 1959 as a method of providing a harmonized international system of Customs control. But the paper TIR carnets on which it has relied for so long look like they will soon become a thing of the past. The International Road


Forward thinking, Forward moving


I am often asked about the important decisions made by our organization. Without hesitation, choosing


Forward Computers as our software provider is proving to be a pivotal one to the on-going success and the progression of Graylaw’s future.


Nick Green, General Manager, Graylaw Freight Group


Transport Union (IRU) and the United Nations Economic Commission for Europe (UNECE) have worked together on the computerisation of an electronic TIR (eTIR) system and launched a pilot eTIR project aimed to demonstrate the viability of such a digitised system. It achieved a major milestone recently when the first use of eTIR was effectively demonstrated on the Turkey/ Iran border. This, notes IRU, has led to the benefits of eTIR being recognised at recent high-level United Nations (UN) meetings. Strong support came from both pilot countries, prompting further


interest in the innovation from Moldova and Kazakhstan, while Ukraine’s decision to work on a new intermodal pilot with Turkey has been confirmed, a statement from the IRU confirms. The Ukrainian Government


has given the green light to its nation’s participation in the eTIR programme, although there are as yet no definite timelines. Didem Dirlik, who headed the


pilot project for Turkish Customs, commented: “By using electronic guarantees, eradicating all paper work and with successful monitoring we saw that the systems really work. The future of TIR is with eTIR.” And Iranian Customs’ Mostafa


Ayati added: “We look forward to expanding the project to neighbouring and other TIR contracting parties, so all could benefit from this facilitation tool.” The initial eTIR pilot project


involved the Turkish and Iranian Customs authorities, two pioneer volunteer transport operators


New trade study group forwardcomputers.co.uk


French Customs, the HAROPA ports group, port community system SOGET and ISEL University of Le Havre Normandy, have joined forces to create TRAFIS LAB, an applied research laboratory on trade


facilitation, digital customs and logistics. They have initiated a Scientific Interest Group to host a public-private partnership which will welcome researchers and private stakeholders from around the world.


and the two countries’ respective TIR Guaranteeing Associations, ICCIMA and TOBB, working together with IRU and UNECE. eTIR was tested along one


transport corridor between the two countries, in which 31 eTIR pilot transports were conducted. These demonstrated that eTIR is “100% reliable, inexpensive to implement and requires only minor


adjustments to existing


customs’ IT infrastructure,” the IRU statement promises. Phase two will see the extension


of the programme to more transport operators, enabling associations and customs authorities to benefit from less data entry work, easier implementation and advanced risk assessment. IRU is to provide the Ukrainian


authorities with technical information to launch eTIR in the coming weeks. Moreover, Turkey has pledged to share the benefits of its experience and to collaborate with Ukraine on its eTIR preparations.


Rate info


The Freightos internet marketplace has launched the beta version of its international index which, it says will bring transparency to an opaque market. The Freightos International Freight Index aggregates live rates from hundreds of carriers and forwarders.


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