Opening Opportunities – Connecting the Global Supply Chain Live with Tech, Talent and Partners

17 April 2019

Connection is such an important part of a healthy supply chain. To be efficient, everyone needs good timely information about their loads. Real time information. Phone calls, spreadsheets and faxes are ok, but they are not always on time and rarely can they be automated, so people are required to continuously process the information received. This slows down the process and adds to cost.

As business in China continues to develop, is there a collaborative approach to sharing information between logistics partners in real time?

The challenge of reducing empty miles for logistics providers

Many trucks run empty for up to half the time which adds to the costs of vehicle transport for all parties. Markets across the globe have faced logistics challenges such as slow market growth, rising costs and more specifically, restrictions on truck dimensions in China. When any market is faced with challenges like these, it is time to recognise new ideas that are instrumental in taking the business forward.

In the digital age, business need to look to technology for new ideas. Technology solutions designed specifically for the automotive logistics market can help to increase productivity, deliver a better service, improved compliance, simplify and improve workflows as well as reduced lead times. However, timely communication and accuracy of information is key.

Technology – do you invest in an external or in-house solution?

Many organisations naturally look to develop an existing internal system to help them manage their transport logistics better or develop a new system so that it meets their exact needs. However, whilst there is often some benefit to this approach, it is likely to mean that you need to access and update multiple partner’s system as well. Then, how do the systems talk to one another? If you update details on one, how do you make sure it updates the details on all other systems? What about opportunities with businesses you are not connected to yet?

Businesses need access to a platform to manage their own trucks/cars/information as well as having visibility on movements that are relevant to their business and partners who are requesting movements or promoting empty legs. What is even more important is that this information is in real time so that anywhere in the World, your business can make decisions based on accurate information.

In-house designed IT systems can work well when the trucks from just one provider are used; they can connect to the one brand of telematics in use by all of the trucks. Drivers equipped with software in the cab can update the inhouse system promptly.

But that is often not how logistics providers actually work, because it’s not an efficient way to work. Why send a truck on a route where there is no return load, when a sub-contractor can offer return load rates, making it cheaper and at the same time free up valuable in-house capacity. As a result, sub-contracting is a good and normal activity. But this is the key weakness of most in-house IT systems.

The sub-contractors have their own IT systems and cannot interact with the In-House system. So email, fax and spreadsheets are all used to try to fix the problem. Information is delayed and lots of phone calls are made to find out what is happening.

At Fracht, we have used some of the most innovative technology available to build a readily accessible platform that improves truck utilisation by matching truck resources with loads that need to be moved.

What about a FVL Transport Logistics Alliance?

An Alliance can be formed for mutual benefit; giving members access to and building relationships with like-minded partners. Members can offer, accept and transact loads electronically. The search for backloads is made easier therefore utilisation and income are both higher for the logistics providers.

OEM’s and their agents benefit because they can move vehicles quickly and cost efficiently. Members can also track the load easily, no matter who is actually moving the vehicles; everyone is connected. Taking a collaborative approach to logistics means that providers, agents and OEMs can work together more efficiently.

Members need much more than a simple load exchange market place. They need people who have worked in the finished vehicle logistics market to develop it – people who first hand, understand the frustrations and the needs of this market. The platform needs to be coded to the business processes of this industry, not the industry fit itself into a technology solution.

Many of our Logistics partners only use ALCS, our software is their transport management system coping with everything from drivers’ hours to truck servicing schedules, toll payments and billing.

However, at Fracht all partners can readily connected with little effort; ALCS takes data from 18 different telematics suppliers and our software deploys to all mobile platforms such as Android and IOS. So, no matter who transports the load, as an OEM or their agent, you can see instantly what the status of every load is, and the business process is un-changed.

As such, with this level of integration and functionality all ready, we think you will agree that ALCS is the only solution that really works well in the real world of finished vehicle logistics.

What is the Opportunity?

We welcome the opportunity to meet with potential logistics service providers and OEMs or their agents. We are currently at the Automotive Logistics Global Shanghai conference in Shanghai with a view to building relationships. We are looking for opportunities to deploy ALCS into the Chinese market.

We already work with thousands of logistics providers in Europe and want to work with new partners in the Chinese market to grow our network into the Asian region. Our CEO, Renatas Slenderis is at the conference.