Sept/Oct 2004

It's all very well knowing where your vehicles are and what they're doing, but how easy is it to integrate the information with the rest of your systems? Sharon Clancy goes back to basics in this latest in her occasional series.

Once, no one apart from the transport office took much interest in what happened to consignments after they left the warehouse, or to vehicles after they left the depot. Real-time information about load and order status was a luxury only the third-party logistics services providers could supply - thanks in large part to their heavy investment in specifically transport-related IT systems. For the rest, it remained a question of phoning, checking and phoning back.

Developments in mobile and Internet technology have changed all that, making the benefits of real-time information both affordable and achievable. It is underpinning developments in integrated logistics that are a crucial part of the collaborative supply chains that are now so fashionable. Knowing where the goods are and when they will arrive has such an impact on meeting other performance targets in just-in-time delivery scenarios that transport has had to be integrated into mainstream supply-chain activities.

The type of solution that suits your company depends to a certain extent on where you are coming from. If your company is already running an ERP system, it may be simply a question of integrating or upgrading the transport management package into other databases, such as invoicing and customer service. You may need a partner experienced in supplying bespoke systems (Microlise or FWL, for instance) who understands the complexities; or a mobile computing specialist such as Psion Teklogix, which has teamed up with SAP to offer ERP-wide solutions.

One the other hand, if you are a small or medium-sized distribution company, the priority is to adopt a system that offers many of the capabilities of your bigger rivals. Road Tech Computer Systems, for example, a well-known specialist in transport management tools for small fleets, has added the SDI (Smart Driver Interface) to its Roadrunner package. Drivers are fully integrated into the back-office system via a PDA or other mobile device with data capabilities. Customers can view the progress of booking via the Web, and use a Web-based EDI to book work on to the haulier's system.

Mixing both those types of solutions is making collaborative supply chains a reality by allowing companies with different levels of IT sophistication to talk to each other.

A classic example is offered by FWL Technologies' product suite, Fulfillment SCE, the Internet-enabled version of the company's integrated supply chain management application suite. It runs on either a licensed or hosted applications systems provider basis and customers include freight companies, shipping lines and logistics service providers. It supports multi-user operations across a number of sites in a number of countries. The product uses Oracle Web development tools and database and runs on a variety of hardware platforms including IBM, HP and SUN.

Consignment tracking includes collections, deliveries, point-to-point movements, pick up and multiple drop, multiple pick up and drop. Movements can be managed across multiple journey legs with full tracking at consignment and product levels. It includes an in-cab geofence interface and there is an online supplier advice page for progress tracking.

The information highway

The Internet has been invaluable in extending real-time capability to smaller companies in the supply chain and logistics sector. For example, you no longer need investment in costly EDI systems to be part of an extended supply chain. Shipments, orders and even invoices can simply be posted on an extranet. Several transport management specialists have been introducing their customer base to this concept. It is the means by which manufacturers check carrier availability, carriers pick up loads and the recipient can check on order progress. It is the posting site for all real-time data, from vehicle location to consignment tracking.

For haulage and distribution companies, the Internet provides the opportunity to offer the kind of professionalism in logistics services that has traditionally been the preserve of the large third-party logistics providers with bespoke IT systems.

Affordable and easily accessible real-time data is a key factor in integrated logistics. GPRS is the big enabler. You pay only for data sent to and from mobile devices, but the units are effectively online all the time, connected to the hub of operations even though they may be a hundreds of miles away.

This technology has helped fuel a growth in the market for hosted Internet services. Application Services Providers (ASPs) supply the software and a secure hosted Web site that customers can access to check order status and delivery progress. To the customer, it looks like the company's own Web site. All the data is kept there, so can be accessed from anywhere with an Internet connection.

Mandata's recently relaunched ASP package, for example, is an Internet-enabled version of the company's established Manpack 3 traffic management system. It not only provides live status on deliveries, but can also be connected to a warehouse management package, giving customers live access to inventory information. The core WMS and transport management modules are interfaced through the "traffic pad", and the data needs entering just once. And as soon as jobs are allocated to a vehicle, the details are sent to the driver via a PDA. Customers can enter their own jobs via the Web site, too.

Meek Distribution is one satisfied customer. "It is very streamlined, and is taking significant administration costs out of our processes," says managing director Andy Meek. The company, which operates 30 vehicles from its 6,000 sq ft warehouse, is now planning to add on-line proof-of-delivery capability.

Real-time PoDs

Real-time PoDs are emerging as a key function in integrated logistics systems. Not only do these offer online customer consignment tracking and faster invoicing for deliveries; also crucial can be the knowledge of whether a vehicle is free to pick up another load, or has space for an extra last-minute consignment delivery. The farther the vehicle is away form base, the more useful this data becomes in avoiding half-empty or empty running.

Deltion's Web-based collaborative transport platform, for example, includes an integrated PoD scanning function as part of its real-time track and trace facility.

Drivers access the Deltion system remotely via mobile phone, with the capability for barcode as well as RFID scanning. PoD details are available immediately for verification of details against the job information received from the PDA or via the driver's mobile phone.

Piyush Shah, chief executive officer, comments: "Many organisations within the transport industry are still using separate PoD scanning systems which can cost several thousand pounds, and still may not offer much in the way of functionality. Having this information available in real time without the need to re-input is creating major time savings for users. Customers can now view the PoD information in real time without the need to enquire about the delivery by telephone."

Synchro Tess, from German software company Inform, continually re-processes schedules and routes according to changing transport requirements - whether these come about because of new orders, traffic delays or other factors.

The system aims to give the transport office a complete view of all vehicle movements. It advises on the most economic way to load vehicles, and presents schedules and routes on screen through tables, graphs and maps. It includes full facilities for tracking and tracing, order capture and pre-planning.

Data matters

Another big hurdle has been the complexity of making data available in real time and readable to everyone who needs to see it, from customers and transport managers through to accounting staff. The data has to be stored in a format that can be easily retrieved by enterprise systems and by mobile devices, whether they are warehouse wireless data-capture units or in-cab handhelds or PDAs. XML data formats are now widely used because they allow the data to be read by a variety of mobile applications, including real-time PoDs.

The complexity and cost of linking telematics solutions into corporate databases and enterprise environments has long been one of the hindrances to integrating logistics and transport activities into the operations of larger companies. Open applications programming Interfaces (APIs) have emerged as one solution, and should also help third-party systems developers bring telematics-enabled applications to market more quickly.

Cybit, for example, now offers Open API connectivity with its FleetStar-Online telematics system. Open API interface capability provides direct access to core Cybit telematics information including GPS positioning data held in extensive data sets. This data is stored in XML format on Fleetstar-Online's clustered SQL Server 2000 database, which handles the vehicle and asset tracking data for thousands of vehicles.

Integrating with Fleetstar-Online enables Cybit customers, for example, to compare volume telematics-derived data directly with information held in enterprise database systems. This might include comparing actual activity derived from the Fleetstar-Online platform with data derived from planning tools, and matching driver hours worked with payroll systems, or producing more comprehensive analysis of data for strategic planning purposes.

Many organisations are recognising the value of the business information that's locked within their telematics data, says Cybit's chief executive, Richard Horsman. "With our new Open API interface, we're effectively unlocking this information and giving organisations the flexibility they need to develop an entirely new generation of telematics-enabled asset management solutions."

Customers can connect to the Fleetstar-Online system and retrieve a range of raw data, as well as formatted, live feeds and inbound data. Typical information could include fleet and vehicle details, location information, speed and heading details, and data relationships. Volume data requests are then made to the Cybit API Server which processes and manages all communications.

More choice

One sign that the integrated logistics market is growing is that companies are now coming into it via various routes. Microlise, for example, started from warehouse management, and is rapidly building a reputation for on-board tracking and mobile data packages that link directly to its transport management and WMS systems.

Cognito is best-known for its managed mobile data services, but is now targeting integrated logistics operations by adding a GPS- based tracking and geofencing application. Cognito sees tracking as a critical offering for operations where stringent customer service level agreements (SLAs) apply, whether it is logistics and courier companies or the service sector.

Cognito's GPS tracking uses a GPS receiver fixed in the vehicle linked to the mobile unit via Bluetooth. Information is captured on the receiver and can include speed, ignition on or off, or distance travelled since the last event. Up to 1,200 events can be stored on the GPS receiver between connections.

Get the planning right

As you can see, there are many routes to full integration, and it doesn't have to be rocket science. But that doesn't mean you should assume it will always be easy, either. Don't take your supplier's bland compatibility assertions with a pinch of salt; probe them, and insist on seeing reference sites before committing yourself. And make sure you explain ALL the systems you expect integration to work with; it's no good throwing in surprises later.

While there are now few genuine technical barriers to integration, the process can still be fiddly and complicated, and it's something some suppliers are apt to wave through as if it were of little importance. Not so; in fact getting it right will probably deliver as much benefit to you as picking the right system in the first place.