By Poul Breil-Hansen
PoD is, in all its simplicity, a technology that can provide real-time verification of delivery of an item. The driver who delivers the item obtains a receipt for delivery from the recipient on the screen of his PDA. At the same time, the system records the scanned barcode on the item, the exact GPS coordinate and the actual time of delivery. The receipt is transmitted wirelessly to the company’s IT system immediately. However, PoD is not just about documenting delivery to the recipient. Physical verification of the goods has to occur throughout the entire transportation process – both when they are loaded onto the delivery vehicle and when they are to be delivered to the customer. This is done by the delivery driver scanning the goods into the vehicle whereby the system verifies the unique parcel/pallets against the relevant order. The same thing happens when the goods are delivered. If the unique parcel numbers don’t match those on the order, an alarm is triggered on the PDA and a potential misdelivery is thereby detected and eliminated.
The idea is a very simple one but it makes a huge difference for all businesses with a certain distribution requirement – regardless of whether the company is using its own haulage contractors or those of a third party.
PoD creates value...
"We are seeing massive demand for PoD from all types of companies that have a distribution requirement. All the major logistics companies have been using the technology for a long time, but there are countless companies that are about to have their eyes opened to the fact that PoD can add value to them too. Many companies devote a great deal of energy to optimising their warehouse systems. That’s great, but it isn’t much use if there is a glitch in the chain when it comes to distribution and, at the end of the day, the customer has a bad experience because the despatching company does not have control of the last mile in the supply chain", Esben Schnurre, Business Consultant Mobile Solutions from Consafe Logistics tells us.
Benefits include, for example:
- You know the whereabouts of the goods – because you can track them without the need of chasing them up on the telephone, which is time-consuming
- PoD reduces wastage – because all goods are registered upon departure and again at the time of delivery, nothing gets lost
- PoD improves customer service – because you are able to tell the customer who has taken delivery of the goods at their address immediately
- The delivery driver obtains full documentation for the job he has carried out, this provides a clear line and security for the driver
- PoD can be fitted with an alarm module so that the delivery driver is able to raise an alarm quickly in the event of difficulties
... all the way round the supply chain
In actual fact, PoD creates value for all parties involved in a distribution chain. Let’s take a little tour round the entire chain:
- Finance/bookkeeping achieves increased liquidity because invoicing occurs as soon as the goods are delivered
- Sales receives up-to-date information on compliance with KPIs for delivery
- Purchasing is able to keep track of any deliveries and returned goods
- Management has better control over logistics and an idea of the company’s ability to supply
- Everyone gets online transparency in real-time
- The company gets an extra competitive parameter that can give it the edge over its competitors.
Involve users in the implementation
Esben Schnurre recommends the use of standard mobile solutions with PoD functionality adapted to the needs and processes of the company in question. He points out three recommendations for companies that are to implement PoD:
- Involve users – this provides both the best solution and the best buy-in
- Carry out a limited pilot project and learn from the experiences thereof
- Draw up the final requirement specification on the basis of the pilot project so that the solution is neither too narrow nor too wide.
"In our experience, the reaction of the delivery drivers can be a barrier to implementation of PoD. Understandably enough, drivers are afraid that the technology will be used to check up on their work and will limit their freedom. Therefore, it is important to consult with the delivery drivers from the outset, so that they can become partners rather than opponents in the implementation," Esben Schnurre tells us, adding:
"Exhaustive preparatory work, including a clarification of needs and requirement specifications, can save the company a lot of wasted energy later in the process. It is also a golden opportunity to analyse existing processes and, if necessary, introduce improvements."
Berendsen Norway: both cheaper and better
Berendsen Tekstil Service AS in Norway has implemented the mobile IT solution, ControlTransport, which includes PoD. The chief project manager says: "The system reduces our costs for fuel, wages and administration and, at the same time, covers all our needs with regard to traceability, the correct registration of deliveries, efficiency and environmental considerations. The system is integrated directly with our transport and administrative support systems, which means considerable benefits in terms of efficiency, both for the individual employee and the fleet of vehicles as a whole. The upshot is both tangible savings and improved delivery quality," Project Manager Morten Bodding explains.
The company has been so satisfied with the solution in Norway that Morten Bodding expects that the mobile IT solution will be implemented in a number of the company’s branches in other countries.
Carlsberg: Greater control over returned goods
The global brewery group is currently engaged in deploying second-generation mobile IT solutions which, naturally, include PoD as one of the many functionalities. The mobile solutions connect every nook and cranny of the supply chain, from sales to supply chain to finance. The benefit is greater chain transparency, a faster invoicing flow, fewer wasted kilometres by train and lorry and greater control of the substantial return flow. In turn, this results in fewer costs, greater liquidity, lower CO2 emissions, greater management support and faster reaction times.
Return goods are a major part of Carlsberg’s system and a great deal of money can be saved if the group has a precise real time overview of the scale and location of its return goods inventory. According to Claus Jensen this provides several advantages:
- Reduced returned goods inventory
- Smaller warehouse requirements
- Substantially less time spent on manual counting of returned goods at the warehouse
- Better utilisation of space on lorries fewer empty kilometres -> reduced CO2 emission.
"The biggest advantage of the new mobility generation is probably that our data gathering and updating will be vastly improved. We are better able to control master data and data disciplines because data gathering is carried out at source - namely by the driver or the warehouse employee," says Claus Jensen.