“It can work dynamically”
Slower transport operations, a lack of capacities and missed time slots aren’t god-given facts – not even with Brexit. 4Flow’s Felix Kaemmerer and Shippeo’s Thomas Spieker held a webinar recently illustrating the potential dormant in the data-based optimisation of resources.
The problems facing freight forwarders in their road transport activities are all too well known. In a recent webinar Felix Kaemmerer, vice-president of 4Flow, and Thomas Spieker, Shippeo’s director for Central Europe, described ways in which the vicious circle of insufficient capacity utilisation, long dwell times, missed time windows and additional administrative work can be broken – especially during the peak season.
Comprehensive approach essential
In a holistic view of the supply chain there are clear reasons to opt for a neutral platform. Or, as Spieker put it, “for the power of neutrality in planning and technology.” So what effects can a freight forwarder achieve with such a partner on board?
“What we call silos of knowledge are broken down,” according to Spieker. “API interfaces all the way to the depths of the logistics system ensure the full integration of every player – and the flow of real-time data.” In addition, a lot can be achieved with an external partner, even with a small investment.
Kaemmerer referred to the concrete preparation process, addressing the importance of “strategic redundancies and bypasses” to create the necessary relief in the processes. In addition to deploying IT tools to handle peaks, preparations for the day-to-day handling of bottlenecks should also be made, in order to make the best of operational capacity utilisation.
So information – which is actually the new gold – should be used for forecasting solutions. “We also build data models with artificial intelligence (AI), to better predict the future,” says Kaemmerer. “They can also function dynamically.” Once the patterns and cycles are recognised, a user’s own network can be set up with the right capacity management.
Two core problems have repeatedly arisen of late, especially in the context of Brexit. Freight forwarders had to turn down orders, because they lacked capacities to carry them out, partly also due to slower transport activities.
Fingers on the pulse of transport
But with system support, new capacities can also be purchased quickly on spot markets. And the “dynamic rescheduling” of booked time slots can be carried out through Shippeo. According to Spieker, Shippeo’s own algorithm consists of 200 parameters, which, for example, facilitate time-slot management with shippers and traders on long journeys, with up to 95% precision when determining the location.
And what are the concrete benefits? According to the experience gathered by the two experts, freight forwarders in particular can reduce their waiting times by 20–30% on average; they can be 40–50% more productive in scheduling; and win 20–30% more tenders, thanks to their improved performances. On top of this, customer services record 20–40% lower outlays and the company saves 20–30% of the fines it used to have to pay due to delays. “Everyone benefits from our collaborative approach,” says Kaemmerer.
Promises to improve performance have been made – now they ‘only’ have to be redeemed too.
