Shippers should think twice before developing a dedicated software solution with their logistics provider, according to a new Shippers' Voice Opinion, Policy & Insight Paper - Keeping your options open through a collaborative IT approach.
A bespoke solution can tie a manufacturer, exporter or importer so closely into one logistics company that the cost of changing to another provider becomes prohibitive.
"We know that many processes have been made simpler, cheaper, more efficient through the use of new technology and sophisticated IT programs. And the movement of goods around the world is no exception. From booking to route planning to proof of delivery, the developments have been amazing," says one of the paper's authors, Shippers' Voice managing partner Dr Andrew Traill.
"But how does a company select the best IT solution? What questions should be asked? How do shippers make sure they retain control of their supply chain and the associated costs? How do they ensure they maintain the option to change their service providers?"
The paper suggests that companies should think twice before going down an independent development path.
"Technology is an enabler, and not an objective in itself," says Traill. "Technology should run in the background, supporting and accelerating your processes ... a collaboration platform has to be designed to allow information gathered directly for any IT system. The solutions need to be hardware and software independent, meaning that any existing hardware or software configuration should be able to share data - whether a simple web browser, a telephone or a sophisticated ERP generated XML message."
Co-authored by Andrew Traill and Harold Bossé, international marketing manager of Transwide, the paper advocates ‘seeking common standards' so that everyone involved in the supply chain has easy access to the collaborative platform and of course the system must be secure so that only authorised people have access to the information.
"With a collaboration platform, transport buyers have two-way electronic communication with all their contractual carriers through one single connection."
