Next gen­er­a­tion Cargo Com­mu­nity Sys­tems

Amar More, Di­rec­tor, Kale Lo­gis­tics So­lu­tions, an­swers the ques­tions fre­quently asked by sup­ply chain com­pa­nies be­fore in­vest­ing in IT tools and so­lu­tions.

Cargo Talk - - Front Page -

Q What are the risks that a lo­gis­tics com­pany usu­ally faces when adopt­ing new tech­nolo­gies?

Tech­nol­ogy has evolved its role in the lo­gis­tics in­dus­try from be­ing ‘nice to have’ to be­ing the ‘nec­es­sary evil’ and is now a ‘busi­ness driver’. Tech­nol­ogy has to be aligned with the pro­cesses which in turn have to be aligned with the or­gan­i­sa­tion’s strat­egy. There is also a risk in chang­ing the sys­tem with­out chang­ing the mind­set. If this hap­pens then such projects can only be up­grade of tech­nol­ogy plat­forms but the users may not get the true process ef­fi­ciency ben­e­fits as the im­ple­men­ta­tion will re­sult in the new sys­tem mim­ick­ing the old one. The lo­gis­tics com­pa­nies also have to look at the ex­pe­ri­ence and cred­i­bil­ity of their tech­nol­ogy part­ners. The most im­por­tant fac­tor to con­sider is the com­bi­na­tion of do­main ex­per­tise, com­mit­ment to the in­dus­try and the change man­age­ment ex­pe­ri­ence of the ser­vice provider.

Q What are the fac­tors that sup­ply chain firms should take into ac­count be­fore in­vest­ing in tech­nol­ogy?

Sup­ply chain firms should first of all have clar­ity about the ob­jec­tives of chang­ing their tech­nol­ogy. Then they should have re­al­is­tic bud­gets for such projects. The sup­ply firms should con­sider the to­tal cost of own­er­ship of the sys­tem and the ben­e­fits as­so­ci­ated with the change. The choice of the tech­nol­ogy part­ner has to be based on cred­i­bil­ity, proven ex­pe­ri­ence, in­no­va­tion ca­pa­bil­i­ties and do­main ex­per­tise. Fi­nally, the firms have to be open to adopt­ing the mod­ern pro­cesses brought about by the new tech­nol­ogy and not in­sist on recre­at­ing the old sys­tem.

Q What is the ideal in­vest­ment that lo­gis­tics com­pa­nies should make for tech­nol­ogy adop­tion and im­ple­men­ta­tion?

We are now ex­pe­ri­enc­ing a wave, as part of which, for var­i­ous rea­sons, lo­gis­tics com­pa­nies have to up­grade their sys­tems. The key word is ‘in­te­gra­tion’. They have to in­te­grate the func­tion­ing of their in­ter­nal de­part­ments through new gen­er­a­tion web-based En­ter­prise Re­source Plan­ning (ERP) sys­tems and they need to in­te­grate with their sup­ply chain part­ners through EDI for cre­at­ing a seam­less sup­ply chain. The ar­eas in which lo­gis­tics com­pa­nies need to in­vest are ERP, Elec­tronic Data In­ter­change (EDI) (stake­holder con­nec­tiv­ity), busi­ness in­tel­li­gence and mo­bile apps. Most lo­gis­tics com­pa­nies in­vest 0.6 per cent of their rev­enues in IT whereas the global av­er­age is around three per cent and most suc­cess­ful lo­gis­tics com­pa­nies in­vest up­ward of six per cent on tech­nol­ogy.

Q What im­pact will the In­ter­net of Things (IoT) have on sup­ply chains?

The In­ter­net of Things al­lows ob­jects to be sensed and con­trolled re­motely across ex­ist­ing net­work in­fra­struc­ture. In the lo­gis­tics in­dus­try, vis­i­bil­ity and se­cu­rity are two very crit­i­cal pa­ram­e­ters. With IoT the abil­ity to con­trol or track ship­ments in­creases, re­sult­ing in more ef­fi­cient and se­cure sup­ply chains.

Q Please tell us about the 'Com­mu­nity So­lu­tions' pro­vided by Kale Lo­gis­tics So­lu­tions.

We have cre­ated the next gen­er­a­tion Cargo Com­mu­nity Sys­tems (CCS 2.0). In ear­lier times, the word CCS was mis­used for mes­sage ex­change. But what we do is that we ac­tu­ally built a dig­i­tal cargo com­mu­nity of im­porters, ex­porters, for­warders, cus­toms bro­kers, air­ports, air­lines, freight sta­tions, cus­toms, cham­bers of commerce, banks, and oth­ers.

Kale Lo­gis­tics has the unique dis­tinc­tion of cre­at­ing In­dia’s first and only multi-modal cargo com­mu­nity sys­tem UP­LIFT in part­ner­ship with ACAAI which is the fastest grow­ing CCS. It has also cre­ated the world’s most com­pre­hen­sive air­port cargo com­mu­nity plat­form GMAX at Mum­bai air­port. Th­ese com­mu­nity so­lu­tions are very dif­fer­ent from tra­di­tional CCS. First of all, they have much wider range than be­ing only for­warder to air­line or air­line/for­warder to Cus­toms EDI, as was the case ear­lier. Th­ese also al­low the SME play­ers to run their en­tire busi­ness on the CCS ap­pli­ca­tion. Th­ese have sev­eral ful­fil­ment mech­a­nisms in­clud­ing web por­tals, sys­tem to sys­tem in­te­gra­tion and bureau ser­vice.

Our CCS so­lu­tions are not trans­ac­tion-cen­tric but are stake­holder cen­tric as we fo­cussed on the end users across the sup­ply chain as op­posed to just one en­tity like a for­warder or an air­line or an air­port. Our com­mu­nity sys­tems are avail­able on Soft­ware As A Ser­vice (SAAS) ba­sis and com­pa­nies can just pay as they use, us­ing just any de­vice with an in­ter­net con­nec­tion. The so­lu­tions are avail­able across mul­ti­ple plat­forms such as PCs, mo­bile phones and oth­ers.

Amar More Di­rec­tor Kale Lo­gis­tics So­lu­tions

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