Shipper’s IT
By Geoff Whiting
The shipping industry is considered a slow adopter of new technology, but when it comes to mobility and smartphones pressure to modernize is building within.
According to research firms IDC and Nielsen, in the second quarter of 2011, smartphones — those that can run apps and access advanced email systems — outstripped basic and feature phone shipments in nearly all developed markets across the globe. For some markets, like the United States, this was the first time smartphone shipments ever surpassed the 50 percent mark.
This means smartphones are entering the supply chain work force everywhere from the executive office to the warehouse.
Today many employees have more processing power in their pocket than on their desk which allows them to be fully mobile while still connected to company systems. Shippers can quickly communicate with logistics service providers about breakdowns, delays, problems, changes
and even just general status updates all along the supply chain, allowing for faster reactions to situations. This applies not only to addressing problems, but also verifying when freight arrives at its final destination and potentially submitting payments to carriers.
Mobility applications are allowing more workers to react to logistics changes and problems from the field, and carriers will start to supply this information as more demand it.
Adrian Gonzalez, president of Adelante SCM, a supply chain and logistics executives’ group, points to the size of systems and their reliance on satellites as the biggest historic obstacle to adoption of mobile technology in the supply chain.
Shifting to cell technology, Gonzalez said, will greatly help the industry because not only is it cheap, it can reliably and easily send information from familiar and sometimes cheaper devices.
It’s not surprising that carriers built for speed, such as FedEx, UPS and DHL, have enterprise and consumer apps to provide shippers with near real-time tracking for shipments.
One somewhat surprising place where advances in mobility have emerged is in the U.S. rail industry. This certainly highlights mobility’s growing importance among railroads to provide constant location data for shipments along traditional routes and shows that demand for mobility is coming from all angles.
Both CSX and Union Pacific released apps at the end of 2011, in October and December respectively. CSX introduced a mobile app “ShipCSX” for the iPhone that allows customers to track freight and trains across its rail network as well as giving them the specifics on railcars such as equipment dimensions and weight. For CSX, this was an extension of its existing e-commerce tools and functions, including real-time arrival information and travel history.
In December, UP released an app that is also an extension of existing offerings. UP developed a mobile version of its Web tools that allow customers to track freight and check train status. Since it’s built on existing services, the app is fully integrated into its system. The company said more than 99 percent of shipping instructions are electronic so integration without data loss was easily accomplished.
According to Gonzalez, customer expectation across all modes is driving established companies and market sectors to adopt mobile technology. “At the end of the day they want to be viewed as innovative and keeping up with the times,” he said.
Demand for mobility is more than about specific customer requirements; it’s a cultural issue. Shippers expect to be kept up to date on the location and situation of their freight and will see this functionality as a requirement because these capabilities are so prevalent everywhere else.
Today, information from all business sectors is readily available on the Web and mobile devices. There are more than 525,000 apps available for the iPhone alone, all building up the expectation of instant access.
Mobility does bring a new challenge to the table in terms of making all of this data available instantly. Gonzalez said much of the information a shipper will want to see with an instant update capability is traditionally housed within a company’s ERP (enterprise resource planning), transportation management or warehouse management systems. These servers also contain data companies do not want to share, making both security and access management a new concern.
When complying with demands for mobile solutions, companies must always be mindful of the size of the application. Neat and clean is the way to go with a mobile app or mobile Website, since these devices often have more limited download and upload speeds. Users need to be able to start the app and get directly to the function they want in as little time as possible. Limiting the amount of text and options presented at the onset will make it easier to resolve issues since screen size is limited.
As mobile apps continue to evolve, it’s likely they will offer enhanced event management functionality allowing shippers to truly manage their supply chains remotely. Apps with less clutter that open directly to the trouble ticket will see more use and garner more customer appreciation for their ease of use.
Mobile technology is coming down the pike as younger workers enter the logistics industry. Gonzalez explained that reaching new workers via mobile technology is important because of their familiarity with it. “It’s the world they grew up with,” he said.
Part of that world is also the ability to communicate with each other almost instantly, which is another big function the industry can take advantage of.
While the push to add mobility solutions will likely come from software vendors, a company’s customers and employees in the field stand to benefit the most from adding in an app for smartphones and tablets. Shippers seek access to critical information from wherever they are, and whether or not a logistics provider can give these types of updates could easily be a differentiator when it comes time to sign the contract.