BluJay: soaring ever upwards 24


At the start of February, BluJay – the Manchester, UK- headquartered provider of the Global Trade Network, a cloud- based portfolio of application services – held its latest regional customer conference, this one in the UK. The SOAR Summit UK 2018


regional customer conference took place in London over a couple of days, bringing together BluJay customers from the UK and nearby countries. Chief executive, Doug Braun (pictured), explains that the company began hosting user summits a couple of years ago, in the form of both global and regional events. Last year, for example, a global SOAR conference was held in Chicago, where the attendance was about 85% US in nature; hence the need for regional conferences to complement the global event. There was the recent regional


event in the UK, a European conference in Düsseldorf late last year, the Asia-Pacific (APAC) SOAR Summit in Singapore and the next global event will be in Orlando, Florida, in May. Each of the events consists


essentially of two parts, Braun explains. The first day or so involves BluJay’s Customer Advisory Board (CAB) offering feedback on the company’s product development and improvement. All BluJay’s customers belong to the CAB (actively or not) with a Strategic Advisory Board formed from the CAB to offer their thoughts on what they would like to see from BluJay by way of product development (BluJay typically releases new product three times a year, in March, July and November). Such discussions with the


Strategic Advisory Board not only help BluJay to discover


where to prioritise its R&D budget and where it needs to improve its product, but also means customers can enjoy a high degree of transparency with regard to the company’s focus and its performance, says Braun. It also means that customers


can have a little


“pride of ownership” in the product that they get to use. The second aspect of


the


SOAR Summits consists of regionally focused presentations and discussions given by subject specialists; thus, for example, at the Düsseldorf European conference, experts spoke on Blockchain technology and on Brexit. Customer-based presentations and breakout sessions allow BluJay customers to learn from each other, Braun notes, as well as gain an insight into technologies and topics with which they might not be


efficiencies. For example, an AI engine could not only help to deal with unforeseen events that


affect a shipping


movement, but it might also learn from the remedial action taken and be better able to handle a similar event in the future. With regard to optimising


completely familiar. Finally, at these Summits


the BluJay executive team also offers an overview on the company’s news and plans for the future. One of the areas on which it is currently focusing its efforts, as explained at the UK Summit in February, is artificial intelligence (AI), and how BluJay is working on how AI engines can optimise shipping


Technology and the 4PL


Tim Fawkes, managing director of 3T Logistics – which as a 4PL (fourth- party logistics provider) combines systems solutions and transport expertise in order to reduce its customers’ transport costs – explains to FBJ how 4PLs can help carriers and their customers maximise the


potential offered by today’s latest technologies, and those of the future. “We have a great opportunity in the transport and freight industry to revolutionise the way that we manage transport, thanks to the introduction of some amazing new technology developed over the past decade. However, for transport companies to adopt and adapt to this technology, there will need to be a shiſt in thinking for some of the more traditional sectors of the industry,” he explains, adding: “One of


innovations offer, companies will have to move away from the traditional 3PL model that has dominated the industry for so long. The key for 4PLs is to use this technology to work with carriers, contractors and customers


to


optimise transport and business processes. This is a view held by many in


these shiſts is the


realisation and appreciation that 4PLs are better equipped to offer the solutions that hauliers and their customers need to operate efficiently in an era of autonomous vehicles and Artificial Intelligence (AI).”


In fact, technological


developments in the 4PL sector – from fleet management apps to drone deliveries – are creating unprecedented levels of visibility and control within the supply chain. To fully take advantage of the opportunities that these


the industry, not just Fawkes, as he points out. For example, global procurement intelligence firm SpendEdge recently supported this assertion with the publication of its 4PL Procurement Research Report, which identified cost-savings from using 4PL services. The report also predicted a compound annual growth rate of 13.5% in the 4PL market over the next few years.


Changes for the new century “Having operated as a 4PL since setting up in 2000, we have noticed significant changes in the way that technology is used and its impact on the transport industry,” Fawkes


recalls. At the turn of the century, the management of transport was a very manual process supported by SQL databases that captured data throughout the end-to-end fulfilment process. However, this has evolved quite rapidly over the last 17 years, he notes. The vast majority of transport


services are now automated and fully integrated. One of the keys to improving service and reducing cost is central and localised transport planning with continuous improvement services. “As a 4PL, we offer services that include consultancy, system transport modules and fully integrated transport management systems, as well as carrier procurement and management to ensure an end-to-end approach. “These systems enable


clients to fully integrate their transport networks, improving visibility and reducing errors. They automate large parts of the transport administration process


and optimise transport on a day- to day-basis. This 4PL approach saves money and significantly improves services within a client’s transport operation. Although we mainly operate in the construction, automotive, retail, packaging and aſtermarket sectors, these practices can be successfully implemented within most industries.”


Technology revolution There’s plenty more change to come. Fawkes continues: “We are seeing a revolution of technology that will transform the way that logistics is handled in the future. More and more companies have access


to cheaper technology;


therefore, small, local hauliers can now easily afford to access pay- as-you-go technology to support tracking solutions, loading bay management or ePOD [electronic proof of delivery]. This means that customers no longer need to rely on expensive 3PL companies to provide an overriding technology


the shipping process, that is, working out how to best deliver a given shipment to the end customer: “Our concept is to drive more and more into AI and ‘fuzzy logic’ engines,” Braun confirms. “We want to see automated processes that handle the whole shipping process, so that the system can handle problems – or exceptions to the normal rule – and learn from such events in order to improve future processes.” BluJay is having useful


discussions on this subject with a number of its customers,


solution.” Companies can take control


of their own solutions, he notes. They can implement their own systems to manage transport and then either administer those transport systems themselves or buy in expertise and support on a pay-as-you-go basis. Doing this can help shippers unlock millions of pounds’ worth of savings – and improve their visibility so that they have a true understanding of the actual service level.


The role of AI Transport is now moving into the realms of AI, Fawkes says. Such systems are taking and processing data and learning from history to support forecasting of future requirements – which also improves service levels for


FIATA has signed a memorandum of understanding with electronic documents firm essDOCS to provide a framework to digitise bills of lading. EssDOCS’ CargoDocs


electronic exchange will help prevent fraudulent copying and errors that might be associated with paper documents Five FIATA members from


diverse regions will participate in a pilot project to test the new CargoDocs system, across specified trade lanes.


Issue 3 2018 - Freight Business Journal


///IT


Braun notes. The subject is complex: market


and


depending the


on the business


environment in which any given customer operates, as well as a wide range of other variables relevant to any specific client, AI engines will be required to handle many different sorts of exceptions to the everyday shipping process as operated by a logistics service supplier and as expected by the shipper. Another subject of interest, as


mentioned above, is the logistics industry’s development of Blockchain technologies. While BluJay is certainly considering its potential, the company is not currently investing heavily in Blockchain because it remains unclear how to ‘monetarise’ the technology, Braun affirms – in other words, how to ensure that it really offers financial value for customers. And, as Braun concludes his


of company’s corporate


philosophy: “We measure our success by our customers’ success.”


the end-customer. Introducing the Internet of Things (IoT) to take information from traffic and weather feeds, for example, enables the measurement of true estimated delivery times based on the information available at the time. But: “These systems will not be


implemented by 3PLs as it is not in their interest


to expose their


margins, their true service levels and lack of investment in systems,” Fawkes remarks. “Of course, over time they will adapt in order to survive, but they will not be the pioneers of new technology. Early adopters will be companies striving for a technological step change; those embracing new technology roadmaps and those visionary companies looking ahead rather than behind.”


Roadmap for electronic BoL Initially, FIATA members will


simply replace their current printing of FBLs with an online, collaborative tool housed within essDOCS’ secure hosted servers. Phase 2 of the project will


add various security features to help identify fraudulent FBLs and will be extended to include members’ own house BoLs. In phase 3, FIATA members will be able to adopt


fully


electronic FIATA Bills of Lading (eFBL) or House Bills of Lading.


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