In literature, logistics is often compared to the circulatory system. But what would circulation be without a nervous system coupled with it? Using an analogous comparison, one could say that in logistics, the equivalent of the nervous system is undoubtedly the ZSI – Integrated Information System. In a modern company operating under conditions of strong competition, the basis for all decisions should be an efficiently operating information system. Only then does it have a chance to exist on the market, and above all, to meet the expectations of increasingly demanding customers. Many logistics companies are only just discovering this truth, yet the efficiency of a company’s operation depends to a huge extent on access to information and the ability to use it. Today, logistics means managing a complex process that practically cannot exist without support from modern technologies.
Magdalena Skórka-Sawina’s questions are answered by Tomasz Kuroń – IT Manager at Trans-Południe.
What is an Integrated Information System?
An Integrated Information System is, in short, a system managing the flow of information created to support the company’s operations, and its main goal is to streamline and coordinate activities. The functioning of the ZSI consists primarily of connecting in one system the processes managing all the company’s activities, starting from the transport department through forwarding, all the way to warehousing or the finance department. In the ZSI, the enterprise exists as an integral whole, and individual spheres of activity are coupled with each other, creating a unified system.
What types of solutions are used in your company?
The IT system is based on leading IT solutions that ensure efficient operation at various levels of operational activity. The solution consists of three main modules. These are: SAP Business One – providing financial and accounting functionality, Lokalizator – a GPS system responsible for locating the fleet’s vehicles, NAVI – a system for managing and handling forwarding activities, integrating the entire solution. It is of key importance for the entire system, which could not function efficiently without it.
When did you implement the ZSI and what decided the choice of these specific solutions?
The system was launched in January 2004, after about 6 months of preparations. The previously functioning solution did not provide sufficient efficiency in the face of the company’s dynamic development. The factors that decided the implementation of the new system were: expected flexibility and efficiency of the software, the possibility of dynamic implementation of new functionalities, the need to introduce an integrated system, the possibility of cooperation between company branches (Dębica – Tarnów – Straszęcin – Ostrowiec Świętokrzyski).
Implementing IT systems is usually associated with the problem of integrating new systems with existing ones. How did this process go for you?
In IT ventures, problems usually occur on the design, technological, and organizational levels. However, thanks to the work of the entire team, it was possible to minimize most of the associated risks. The work was very extensive, as SAP and NAVI systems were being implemented at the same time. In the initial period of use, low connection bandwidth posed some problems, but this issue has already been resolved, and after the initial adjustment period, the system works stably and efficiently. It was also possible to successfully meet the users’ expectations, because it was with them in mind that we decided on these solutions.
How long does it take to implement the system and what does it depend on?
The implementation time depends on the degree of adaptation of the existing solution to the customer’s needs. It is approximately 3 to 6 months. This is the time needed for integration with existing systems, data conversion, and user training, because even the best-operating system is useless without competent and efficient operation. That is why the human factor and its “compatibility” with the system are so important in this case.
How can the description of the operation of the systems you have implemented be presented most simply? What does their functionality consist of?
The main functionality of the system ensures full forwarding handling of transport orders and their settlement. The entire process takes place using the SAP and NAVI systems, which cooperate with each other. In NAVI, the transport order is registered and priced, drivers and vehicles are selected, and a waybill is issued. After preparing the purchase and sales invoice data, further handling is transferred to the SAP system, where the invoice awaits booking. Thanks to this approach, forwarding processes have been clearly separated from financial and accounting ones. However, it should be emphasized that this does not involve additional labor costs. It is also important that the order processing time has been significantly shortened, which does not remain without influence on the quality of customer service.
What does system integration consist of?
The information integration of an enterprise is a fundamental step on the way to building an effective management system, allowing to meet the challenges of the modern, competitive sales market. The integrating element is the NAVI system, which, in addition to its own functionality, directly uses data from SAP (e.g., service names, VAT rates, currency exchange rates), and also cooperates with the GPS system to obtain data on vehicle location, route planning, searching for towns and streets.
What are the benefits of using ZSI?
The NAVI system is based on leading, modern, and recognized standards. It is implemented in the Java language, in ThinClient technology, and functions as a WWW application. This means that only a browser and access to the intranet or the Internet are needed for work. Such an approach allows for work in several locations (also at home), with a guarantee of access to always up-to-date data. NAVI also acts as middleware – intermediary software. There are several systems in the company: SAP, GPS Location System, e-Map – a server of digital vector maps. Combining selected functionalities from each system into a whole creates a new quality and allows the company to operate at the highest level.
However, no system is infallible. What dangers are associated with the operation of ZSI?
In any, even the best IT system, a physical failure of system components can occur. The real danger is the inability to restore the system’s operation after such an incident or the loss of accumulated data. Protection against these types of threats consists of prior appropriate preparation of a backup server, which can be started in case of a main machine failure. A daily backup protects against data loss. There is also the possibility of intercepted transmitted data by unauthorized persons. However, in the NAVI system, communication between the server and the workstation is encrypted with a 128-bit session key, which effectively solves this problem. It constitutes a guarantee of the highest level of security.
Apart from expanding the currently existing solutions, do you plan to implement more?
Certainly, the systems we currently work on will be expanded taking into account the interests of our customers. Currently, a module for settling course service costs has been implemented, which allows for precise control of fuel consumption excesses or route length. Final works integrating NAVI with the company’s GPS system and the vector map server are also underway. The next step will be to make information about the current location of vehicles in Europe available to companies cooperating with us.
Can customers directly track the route of orders thanks to these systems?
After completing the integration with the GPS system, customers will receive access to the order route tracking system via the Internet. It will be possible to view both current and historical course data as well as some financial information (e.g., invoices for settlement).
What is the cost of implementing and maintaining the system?
The price depends on the size, degree of dispersion, complexity of the specific solution and amounts to about 10-15% of the system value per year.
What is the scope of system modularity? What does the possibility of implementing new functionality in the system look like?
J2EE (Java 2 Enterprise Edition) technology standards, which are based on a component model, were used to implement the System. Thanks to this, new functionalities can be added as subsequent modules, which, due to the standardized solution, can be provided by various suppliers. An additional advantage in terms of developing new functionalities is the lack of need to install the system on employee workstations. All changes or modifications to the system’s functionality take place exclusively on servers in the company and are immediately available to employees, without the need for additional actions.
How did the implementation of ZSI affect the operation of Trans-Południe and how did customers react to it?
The use of ZSI solutions in the company significantly affected the streamlining of its operations and raised the level of coordination. This is not without significance for our customers, who, using ZSI, have an influence on its functioning, and are also beneficiaries of the resulting benefits. In practice, this means better access to information, shorter service time, and consequently – increased satisfaction with the services provided.