Supply Chain Frontiers issue #34. Read all articles in this issue.
Supply chain professionals have many sources of logistics information at their disposal, but the growing volume of facts and figures on cargo flows can be difficult to manage. The Center for Latin-American Logistics Innovation (CLI), headquartered in Bogotá, Colombia, started a research project this September to develop a common communications platform that will help managers to derive more value from the mass of logistics information they receive, regardless of its origins.
The main technologies currently used by Colombian enterprises involved in the movement of freight are RFID (Radio Frequency Identification), GPS (Global Positioning System), and mobile communications. In recent years, the use of these technologies has increased dramatically, and the number of applications is expected to increase over the next few years.
This project aims to identify which technologies are used most often by the freight transportation sector, and the manner in which industry organizations interact in order to optimize the flow of information through the supply chain.
The initial research findings have revealed that the mass implementation of EPC/RFID in conjunction with GPS and mobile communications systems causes substantial problems in supply chains. There is little or no integration of the information across value chains, especially when freight carriers communicate with shippers and other third parties such as distribution centers. The research has identified a number of reasons for this fragmentation, including:
- The diversity of the information protocols used by trading partners.
- Technology platforms that lack the capacity to handle the different information streams.
- Too few databases capable of consolidating the various types of information flows.
- The absence of clearly defined interconnection strategies between trading partners.
When important supply chain data goes astray or is misinterpreted by information systems, the result can be costly delays and misrouted shipments. Moreover, investments in online cargo tracking technology are devalued when the information generated before, during, and after the transportation process is flawed. A primary reason for adopting digital tracking technology is to eliminate much of the inefficient documentation and manual processes associated with traditional means of monitoring shipments. When the information on cargo movements is inadequate, however, automation is less effective – and even sophisticated tracking systems are unable to provide the supply chain visibility that companies need.
Creating a common standards-based communications platform for the supply chain community is one solution. CLI believes that such a platform will allow companies to share freight information no matter where or how it is generated. Unifying disparate information streams in this way will make it easier for companies to take advantage of new communications technologies.
The CLI researchers are learning how to configure a collaborative platform through enterprise-scale tests of truck delivery operations. CLI also wants to use the research to improve the processes that underpin the management of information generated by road distribution networks.
This 10-month project has the support of SENA (National Apprenticeship Service), a government organization that oversees education and research budgets in Colombia. About 300 vehicles owned by one of Colombia’s largest logistics operators are taking part in the project. Information on the status of the trucks is captured at distribution centers operated by manufacturers, carriers, and retailers in selected supply chains. The research encompasses both new and existing communications technologies; the type of information collected includes the locations of trucks and shipments (GPS), product features (RFID), and proof of delivery notifications (mobile). In combination, these details give companies complete visibility of cargo movements.
The diversity of logistics information sources now available to companies offers new opportunities for improving supply chain efficiency and lowering cost, provided the data can be effectively managed and interpreted. A common platform for exchanging information will help companies to capture these opportunities.
For more information on CLI’s communications platform research project, contact Maria del Mar Hermida, mhermida@logyca.org .