Nowadays, it is generally acknowledged that, in reality, competition is not between individual companies but between supply chains. It is also generally acknowledged that transparency and the exchange of information in the supply chain is a crucial pre-requisite for the chain winning in the competition with other chains.
During a webinar in December 2009, the well-known American Professor Hau Lee from Stanford Univesity said: "Agility is a crucial attribute of the modern supply chains because we are operating in a world of increasing uncertainty, both with regard to volume and market geography. High levels of information exchange and integration and information across companies in the chain are absolutely necessary ingredients of Agility. I believe that more outsourcing and development of highly integrated B2B information systems are the right way to go to create more Agility" Hau Lee tells us.
Agility is one of the factors in Hau Lee’s renowned Triple A or AAA concept, in which the other two factors are Adaptability and Alignment. The common denominator in all three factors is that quick and easy access to information such as sales figures, forecasts, delivery times, plans etc. is absolutely crucial.
Quick and easy access to information
"Quick and easy access to information such as sales figures, forecasts, delivery times, plans etc. is one of the critical advantages of mobile solutions. Mobile solutions can obtain data and distribute it to all corners of the supply chain. Regardless of whether we are talking about the truck driver, the warehouse employee, the shop worker, the sales consultant or the service technician out in the field etc. with a hand-held terminal and a mobile IT solution, the employee can obtain data from and distribute it to the central IT system," Esben Schnurre, Business Consultant in Consafe Logistics’ business sector Mobile Solutions, tells us.
A mobile solution links a haulage company's supply chain together
What does it mean in specific terms?
Let’s take a closer look at what it means in more specific terms for the employee, the company and the supply chain. A transport company has implemented a mobile transport solution that is to underpin and strengthen the flow of goods and information between a consignor and a recipient of a transport service. There are many factors involved in the process from dispatch to receipt of the transport service.
Transparency for the driver
It is first and foremost the driver who ensures that the physical consignment is transported as safely, quickly and effectively as possible from the consignor to the recipient. With a mobile solution, he or she experiences the following benefits, the majority of which relate directly to enhanced transparency:
- Automatic registration of orders and straightforward confirmation on the mobile unit
- Instantaneous reporting on and highlighting of changes in orders out in the field
- Quicker and more precise (electronic) transfer of orders (both directions)
- Integrated GPS provides the driver with route maps to all destinations – and in the event of heavy traffic, automatically provides the driver with suggestions for alternative routes
- POI (Point of Interest) gives the driver important information
- Shorter and quicker routes for collection and delivery points
- Integrated telephone facility with hands-free operation
- Shorter waiting times for information and less time wasted on making telephone calls
- Easier sending and receiving of messages (real-time)
- Better opportunities for providing service to the customer
- Safer journeys, since the driver is able to concentrate more on the driving
- Fewer empty kilometres --> less environmental impact
- Less administrative paperwork and more time for core tasks
- Increased professional satisfaction for the employee because better conditions for performing the transportation task are in place
Transparency for the consignor
A transportation chain always includes a consignor of a physical consignment. The mobile solution will provide the consignor with the following benefits which are all related to enhanced transparency:
- The option of providing digital signatures for dispatch and receipt on a mobile terminal on-the-spot
- Mobile solutions can provide the driver with extra information relating to the consignment quickly and easily
- Option of issuing and printing invoices out in the field
- Online tracking of the consignment all the way to its final destination
- Quicker collection and delivery of consignments
- Improved opportunities for quicker and secure interaction between the consignor, haulage company and recipient on a professional platform
Transparency for the haulage company management
The haulage company manager derives the following benefits from a mobile solution:
- Up-to-date, real-time access to information on orders, fleets and other important areas of the business at all times
- Easy and quick status reporting on collection, loading, delivery, unloading etc.
- Direct integration between the transport and back-office system
- Full integration with ERP and CRM systems
- Less hassle and time squandered looking for and collating data
- Extra time for more value-creating business and management-oriented tasks
- A better basis for analysis, planning, implementation and follow-up on all aspects of the business
- A better basis for decision-making
Transparency for planners
It is of great value to be able to plan capacity requirements, the order of performance of tasks, use of trucks, working hours, driving/rest-time regulations etc. in a qualified manner. This pre-supposes the availability of reliable data on the right things. Here, a mobile solution can play a massive role. Benefits include, for instance:
- Real-time updating of the data flow between server and client
- All vehicles are visible to the haulage management at all times
- The haulage manager’s administration and management of vehicles on the move is easy and clear-cut, meaning that changes of plan at short notice can be made easily
- Central collation of vehicle information relating to speed, fuel consumption, driving/rest time regulations etc.
- Efficient communication with drivers – either collectively or individually, creating a single flow of communication whereby everyone is kept informed at all times
- Easier and improved haulage planning
Transparency for the recipient
The objective of any haulage task is to deliver a physical consignment to a recipient. A mobile solution also provides benefits for the recipient. These include:
- The option of providing a digital signature on a mobile unit
- Easy tracking of the consignment before it is delivered
- Easy receipt of extra information pertaining to the consignment from the driver
- The option of issuing and printing invoices out in the field
- Quicker delivery of consignments
- Enhanced opportunities for interaction between the haulage company and the consignor
Transparency for the haulage company account clerk
The haulage company’s Finance function is dependent on access to large parts of the flow of information relating to a physical flow of goods. A mobile solution can provide the following benefits for Finance:
- Uninterrupted access to relevant bookkeeping information in real-time
- Data from the mobile solution is fully integrated with all other IT systems in the haulage company
- More digital data and less paper-based data input work --> quicker execution and fewer mistakes
- A better basis for budget-setting and control processes
- Extra time for more value-creating finance tasks
The recipient's and consignor's bookkeeping functions also benefit from enhanced transparency
In the same way, the recipient's and consignor's Finance departments also benefit from the mobile solution. In more specific terms, these can include:
- The option of receiving invoices electronically --> less paperwork and fewer mistakes
- Quicker access to invoices and other relevant documents/information
- Higher precision in documents and reports by virtue of the fact they are based on digital data from the source
Transparency for the consignor’s and recipient’s warehouses
Both the consignor’s and recipient’s warehouses can derive considerable benefits from a mobile solution. The main benefits include:
- Better, quicker and earlier access to consignment and transportation information
- A better basis for tracking of the consignment
- Enhanced opportunities for optimising work procedures and stock levels
Mobility links the chain together
In other words, a mobile solution can link the entire supply chain together and obtain information from those parts of the operation that do not take place in the warehouse, the factory floor or company headquarters. A significant number of business activities also take place out on the road, on the shop floor and on the customer’s premises etc. A mobile solution can link these parts of the value chain with the rest of the value chain to the great benefit of all parties and players.
"A mobile solution is a massive advantage all round. It is advantageous to the individual employee because it makes it easier and quicker for him or her to perform their work tasks. It is also an enormous business advantage for management because it increases the company's and its business partner's opportunities for planning, making decisions on the correct basis and last, but not least, reacting quickly and safely to movements in the market," adds Sales Manager Henrik Nielsen from Consafe Logisitics’ Mobile Solutions.