Carreras, a large Spanish logistics supplier, cooperates with almost 6,000 SME road carriers. These SMEs have limited or no IT support for their activities, doing most of the operations manually that create a disadvantage when working amongst bigger players. Their large business partners and customers usually have more advanced tooling but cannot use this to communicate with SMEs. This endangers the position of the SMEs for example because they cannot offer the same visibility to the end-customer as large operators can.
The problem addressed in the Spanish Living Lab includes inefficiencies in collaboration between companies because many operations are still performaed manually instead of electronically. On average the administrative process takes 25 minutes and at least 2 phone calls per operations and 55 minutes in case of an incident, which happens in about 5% of operations. Even a small reduction in the amount of manual work would have a major impact for both sides. Additionally, errors and untimely sending of invoices by SMEs typically lead to postponed payment and thus can weaken the financial position of the SME.
The objective of the Spanish Living Lab is to enable SME transport service providers to automatically exchange data with large forwarders. Especially transport orders, execution status and invoicing.
LogiCon delivered apps for web and smart device for SME trucking companies and truck drivers to support service information exchange, e.g. tracking of truck departure and arrival, creating and sending of transport orders and invoices. The app solutions and architecture behind it can communicate directly with large Transport Management Systems of forwarders and shippers. This substituted information exchange via phone/mail with automatic data exchange. The apps were generic and so made the solution more acceptable than specific solutions for customers or TMS systems.
Solution: on-board MRM:
Benefits for SME’s and large players
Benefits for SMEs are improved performance because of simplified operations with their major contractors resulting among others in reduction of invoice preparation and management, real-time tracking information, etc. This may strengthen the SME’s market position towards becoming preferred partners for their large customers. Large players are also beneficiaries of the LogiCon solution. In the past they tried to implement similar solutions for SMEs themselves. However, the impact was limited, because SMEs got offered multiple solutions. Therefore the creation of a neutral architecture with critical mass, based on a feasible business model for SMEs and interoperable with other systems is preferable.
- universal and neutral data exchange
- single app to entire sector
- administrative costs reduction
- invoicing time reduction
- justification against complaints
- incident tracking and evidences
- non invasive supervision
- reaction time reduction