Technology & Logistics
Partnering for Success
In order to meet market demands, firms are moving towards a focus on their core competency and coupling this strategy with business partnerships to provide services or products which supplement their own.
As more companies focus on their core competencies there has been an explosion in third party logistics (3PL) organizations.
Many of the logistics companies offering services to customers are simply renamed asset-based organizations - XYZ Transport becomes XYZ Logistics Services. These asset-based firms have a specific goal in mind – to increase the use of their asset base, whether that is trucks or warehouse space. Their focus is asset-based, not knowledge-based.
The core competency of 3PL organizations is information management which is knowledge-based. These 3PLs become true business partners; they manage a company’s supply chain and acquire only the assets necessary to meet this specific business objective.
Because 3PLs are knowledge-based and focus on information management, they must partner with a technology company to meet their customers’ expectations.
One such 3PL organization is Transfreight – a TNT Logistics, Mitsui & Co. joint venture. Transfreight manages auto parts pick up and delivery to a major auto-maker with assembly plants in the United States and Canada. The auto-maker has demanded a high level of visibility of resources, the status of both trucks/trailers and parts at all times.
Transfreight had a number of objectives. They must have constant communications with drivers, regardless of location; real-time event notification to verify pick up and delivery information; the ability to automatically transfer data directly to the truck on any order adjustment, even after the unit has departed on its run; electronic signature capture for payment on delivery; GPS recognition for visually tracking trucks and parts on a graphical representation of Canada and the United States; automatic advanced arrival notification; are all vital. Also, they required information for Department of Transportation logs, fuel tax and vehicle performance for the fleet.
After an exhaustive 18-month search for an organization that could meet these requirements Transfreight selected Symbol Technologies Inc. as its technology partner.
The core philosophy of Symbols’ Logistics Services Group is: Information is not power, the flow of information is power. Symbols’ Logistics Management Solution - LOMAS - provides the catalyst for this logistics model by extending the reach of established information systems across the entire logistics operation, combining innovative mobile/portable computing, wireless communications and data collection technologies with applications and services from a number of strategic partners to offer real-time mobile data solutions. The partnership program is a key aspect of LOMAS, bringing together “best of bred” applications from companies like Synergistic Systems, Quantum, Xata, Robert YardSmart, Manhattan & Assoc., IBM Mobile, Telcordia, SAE, WhereNet and Descartes Systems, to name a few.
Symbol, acting as the prime integrator and project manager for this undertaking, met with Transfreight to develop the system specifications and then prioritize the project into a number of manageable components. The completion of this task lead to the identification of a number of application, communication and hardware requirements.
Next, a detailed proof of concept with a defined specification and time line was undertaken. The goal was to develop and evaluate the system that could meet the high priority requirements before a complete system-wide roll-out was undertaken.
Together, Transfreight and Symbol selected the components and team that would provide the necessary resources for the logistics management solution.
Symbol would provide: Project management, Mobile computing with integrated scanning and signature capture, In-vehicle computing with built in GPS and wide-area communication and Wireless Local Area Network.
The other team members were: Norcomm, selected to provide satellite communications; Nettech, communication middle-ware; Synergistic Systems, driver communication; AVL, pick up and delivery management application; Quantum, cross-dock application; YardSmart, yard management.
The Proof of Concept is currently underway using Norcom, Nettech and Synergistic Systems applications in a number of vehicles and evaluating a number of system requirements including: downloading of stops into the mobile computer at the start of the day; automatically (no driver action) Arrive and Depart at each stop using Global Positioning Satellite (GPS) data; filter the stop list by route ID so the driver only sees the stops for one route at a time; two-way communication with the driver; GPS for vehicle location; uploading delivery information from the mobile computer to the host system at end of day.
Transfreight has developed a logistics information system that is truly delivering the logistics information chain.