Uninterrupted flow of information is the foundation of effective supply chain operation. One of the ways to ensure efficient communication within an enterprise is the implementation of IT solutions. More and more companies are recognizing the benefits of computer-aided transport management. Such solutions are offered, for example, by TRANSPOREON, a system provider whose implementation has been chosen by companies such as RR Donnelley (one of the largest printing houses in Europe, which also has plants in Poland) and Whirlpool (one of the world’s leading suppliers of household appliances). The system’s operation is based on the constant exchange of information between the entrepreneur and a group of carriers.
Practical reasons for implementing a logistics platform
Fabio Legnani, Supply Chain Management Manager and Operations Director at Whirlpool, remembers well that in 2005, transport planning was done randomly via phone, fax, or email. Additionally, there were overloads during truck loading and unloading at peak hours, especially at the end of the month, which in turn required significant financial and labor resources. Such a system made data analysis difficult, including the analysis of carrier performance. Furthermore, it was not easy to introduce transparent transport planning, error-free order dispatching, and time-slot management for loading and unloading. There was a need to structure the supply chain using an appropriate system that would, on one hand, ensure transparent transport planning and, on the other, change the traditional approach to the transport market, while significantly reducing costs and labor time. The decision to implement an IT system at RR Donnelley was driven by the same challenges and problems faced by many companies in Poland. Product portfolio diversification means that distribution management requires significant labor input. It is necessary to take into account many parameters characterizing diverse products. A large amount of data creates massive information noise. Previously used methods, i.e., communication via fax, phone, or email, became insufficient to ensure fast and effective material flow, and any bottlenecks caused chaos and generated additional costs.
Implementation
The TRANSPOREON logistics platform is used to integrate the work of the shipper, carrier, and recipient. A loading company that decides to implement it is first responsible for assembling a permanent, closed, and verified group of carriers and freight forwarders with whom it will cooperate within the platform. The method by which the company assembles the base of carriers and forwarders is arbitrary and depends solely on its individual preferences. For the system to work correctly, technical infrastructure in the form of a PC and Internet access is also necessary. Installing the software in the enterprise was a standard procedure. Before starting to use the system, the people responsible for logistics management participated in a short training session. The key action – that is, assigning transport orders to companies in the database – is carried out using the ‘best carrier’ and ‘no touch’ modules. The latter often forms the basis for order management in a loading company. It assigns orders automatically based on pre-defined criteria. This means that in the case of repetitive orders, it is possible to completely eliminate the dispatcher’s involvement in the entire process. A request is sent to transport and forwarding companies, containing full information about the cargo parameters, pickup and delivery dates, and the agreed price. Companies in the database can confirm acceptance of the order. In the event that more than one company submits an offer, the order of submission is decisive. The ‘best carrier’ module is used for non-standard and one-off orders that require special attention from the dispatcher. In this situation, they have the ability to manually select a carrier for each transport.
The article comes from the magazine “Logistyka” 2/2010.