END-TO-END SUPPLY CHAINS THROUGH COLLABORATION AND WORKING WITH THE COMMUNITY
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CREATING A RESILIENT SUPPLY CHAIN END-TO-END SUPPLY CHAINS THROUGH COLLABORATION AND WORKING WITH THE COMMUNITY Richard Morton, Secretary General, International Port Community Systems Association (IPSCA) A simple way of explaining the concept no two PCS are exactly the same. We share increase efficiency and information flow of a Port Community System (PCS) is the our differences, too! through the supply chain. spider’s web: a PCS is at the centre of the Ports are the vital link in millions of sup- web, enabling stakeholders (port author- ply chains. Many PCS operators have ex- COLLABORATION ity, terminal operator, Customs and other panded their services to support compa- Kale Logistics has taken the UN Recom- authorities, shipping line, agent, haulier, nies and stakeholders along those chains. mendation 33 for Trade Facilitation and ‘re- rail operator and so on …) to exchange Among our members, India’s Kale drawn’ it to look at the basic building blocks real-time information via a secure and Logistics, with its technology and solu- of the supply chain. That approach includes neutral platform, thus driving and support- tions for the supply chain; France’s MGI, Customs management system; regulatory ing the smooth and swift flow of messages providing connectivity between hinter- supply chain; air and sea port community and cargo. land road, rail and barge; and Australia’s and free zones; marketplace – insurance, There is more – of course there is! With- 1-Stop, with its solutions for vehicle and freight forwarding, etc.; and cross-border, in IPCSA, our members share knowledge, terminal booking to optimise flows and including Kale’s involvement in IPCSA’s Net- expertise and experience and that is based throughput; are three great examples of work of Trusted Networks (NoTN). on the fact that they provide similar servic- what is being achieved through collabo- When one considers the marketplace es and have similar challenges. However, ration, communication and community to and movements of goods cross-border, 2 EDITION 108 WWW.PORTTECHNOLOGY.ORG
CREATING A RESILIENT SUPPLY CHAIN
there are a wide number of elements to tems, as neutral platforms, will be able to participate in any manner possible without
consider before the goods are even hand- offer a lot of added value services along the altering anything they are doing currently.”
ed over – price discovery, capacity discov- supply chain in the coming years. For ‘less connected’ users, Kale offers ac-
ery, traceability, etc. Free zones are often Kale’s approach is about connectivity and cess via a portal and via standard connectors.
forgotten, but they are usually next to the collaboration. “While 20% of stakeholders And there is another option aimed at compa-
port or airport and require a high level of are responsible for 80% of the transac- nies that are only creating a few documents
synergy. There is also the question of com- tions through a PCS, 80% of stakeholders and exchanging them with several people,
municating with the next port or airport will be much smaller, accounting for 20% of such as Customs. The system allows for that
along the supply chain – for example, be- transactions. But if you do not bring in the same document to be uploaded on to Kale’s
tween two Customs authorities. Kale sees smaller ones, you are not a community,” portal like an attached PDF; a combination
all of these solutions coming together as Malhotra said. of Optical Character Recognition (OCR) and
building blocks in an end-to-end supply “Large stakeholders have all the IT con- machine learning is used to extract the infor-
chain. nectivity they could need. But smaller mation from the document and put it into
As Vineet Malhotra, Director at Kale Lo- stakeholders – agents, importers, truckers, the PCS. Kale processes 1,500 documents
gistics, said: the definition of a PCS is very warehouse operators – often do not have a day in this way, helping smaller operators
broad, and everyone has a different take on that ability. Bearing in mind these ‘have (who might otherwise feel daunted) to play
it. What is clear is that Port Community Sys- nots’, our system design ensures they can their part in optimising supply chains.
EDITION 108 3
CREATING A RESILIENT SUPPLY CHAIN COOPERATION COMMUNICATION When it comes to supply chains, no port is Optimising flows and throughputs at ports “WE ARE GOING A an island. Hence it makes sense for PCS to and terminals is essential to avoiding long consider ways to optimise sections of the queues of trucks clogging up the terminal LOT FURTHER THAN supply chain in both directions from the or waiting outside the port gates (all the port outwards. while wasting time, fuel and money, and MOST PCS – WE ARE IPCSA member MGI, based in Marseilles, throwing out exhaust fumes). goes much further than port limits with its In Australia, 1-Stop had slightly differ- A PORT COMMUNITY Ci5 network. This PCS already interconnects ent origins to a traditional PCS, working with the IT systems of barge and train op- with the supply chain community to un- SYSTEM, BUT WE erators to offer traceability of goods across derstand their pain points and build prod- a wide hinterland (which stretches as far as ucts and solutions to create paperless ARE EXPANDING TO Lyon via the Rhone), tracking the informa- ports, information validation and messag- tion of containers loaded or unloaded on ing services to track and trace containers, BECOME A WHOLE barges or trains. as well as to comply with regulatory pro- Having clear information in advance about cesses such as the Maritime Security Ac- COMMUNITY SYSTEM.” which goods will arrive when at the terminal cess Card (MSIC) and local port require- is a major focus in the world of logistics. Work ments. - Catherine Mégélas is under way to connect Ci5 to the Coopera- 1-Stop’s flagship product, the Vehi- tive Intelligent Transport System, which pro- cle Booking System (VBS) was created to vides drivers with real-time traffic information maximise terminal operations and coor- on the highways. This could provide drivers dinate the efficient flow of trucks through ABOUT THE AUTHOR and terminals with even more precise arrival a facility. Over the past 16 years, 1-Stop times, depending on factors such as typi- has continually reinvested in the VBS to Richard Morton has been Secretary cal traffic loads, congestion, traffic incidents ensure the supply chain is optimised in General of the International Port Com- and even weather, and is another way to link order to make cargo move smarter. The munity Systems Association (IPCSA) trucks, barges and trains to ports and airports use of 1-Stop’s VBS in conjunction with since its beginnings as a European to create streamlined supply chains. other 1-Stop solutions has reduced dwell organisation in 2011. As an expert in MGI also wants to be more interconnect- time by 50%, increased yard utilisation by trade facilitation and the exchange ed to the city’s IT system to provide infor- 47% and enabled operators to grow their of electronic information, Richard is mation in both directions. “The city is really capacity by 30% with no further invest- in demand across the globe as an ad- interested in the data we are capturing into ment. The VBS is now being implemented viser and speaker. He is a member of the PCS, for example for them to give infor- in non-containerised ports to connect to the Experts Committee of the APEC mation to citizens on activity at the port so the wider supply chain community. E-Commerce Business Alliance and an that they know, for instance, when there will The next step for 1-Stop is combining and Expert at UN/CEFACT. be more port traffic,” said Dominique Lebre- analysing information gathered to provide ton, Member of the Executive Board of MGI. users with new levels of visibility, improve ABOUT IPCSA Catherine Mégélas, Head of Corporate efficiency and reduce congestion – not just and Internal Communication, added: “We at the terminal but at all container and rail IPCSA is an international association are going a lot further than most PCS – we facilities, all based on real-time data. It is of sea and air port community opera- are a Port Community System, but we are another example of extending value along tors, sea and air port authorities and expanding to become a whole community the supply chain and increasing efficiency single window operators that is rec- system.” far beyond the port gates. ognised across the globe for providing At present, by connecting the various 1-Stop’s goal is to bring everything on advice and guidance on the electronic stakeholders and IT systems in its ecosys- to one platform, providing real-time traf- exchange of information across bor- tem, Ci5 provides traceability and fluidity fic and other important information to ders and throughout the whole supply of information on what is arriving in the help hauliers plan their journey to pick up chain. The association has nearly 50 terminals. The more it connects to the hin- or deliver a container. It could advise, for members from across the globe who terland, the more it will be able to improve example, if traffic is building up on one handle the exchange of information the attractiveness and performance of the route, or if it would be more efficient to for Business to Business, Government logistics chain. collect one container before another. In to Business and Government to Gov- By delivering rapid information exchange, the terminal, it could raise the alert if a ernment processes and facilitate the PCS can speed up goods transit, track car- truck were five miles away but the con- smooth cross-border movement of goes and enable productivity increases – tainer it was coming to collect was still goods. This equates to the electronic and there are environmental advantages at the bottom of the stack. It’s all about exchange of information relating to too. If trucks spend less time waiting to load helping users make the best decision for more than 500 million TEU move- or unload cargo, emissions are reduced. optimum efficiency. ments and 10 billion tonnes of cargo That’s important too, in a world where mul- 1-Stop could see the power of the data for air, sea and land transport – esti- tinationals are seeking greener supply chain and started talking to the industry about mated to be in excess of 50 billion mil- solutions – and increasingly taking an inter- what else. Why wouldn’t they take the op- lion exchanges every year. est in each link along the way. portunity to create further efficiencies? 4 EDITION 108 WWW.PORTTECHNOLOGY.ORG
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