COMPLEXITY SIMPLIFIED: STEERING THE GLOBAL SUPPLY CHAIN BY SHARING DATA SEAMLESSLY
COMPLEXITY SIMPLIFIED: STEERING THE GLOBAL SUPPLY C BY SHARING DATA SEAMLESSLY Niko Hossain, CEO and Managing Director of logistics.cloud on providing a collaborative logistics platform for supply chain partners worldwide.
2
CHAIN
3
LAUNCHED IN 2018 AND BORN FROM MULTI-IND INNOVATION, LOGISTICS.CLOUD IS DRIVEN BY A THE FUTURE OF LOGISTICS WILL INVOLVE A SEAM EXCHANGE ACROSS ALL SUPPLY CHAIN PARTNER hampioning higher data quality, greater levels of transparency in the supply chain and easier connections among partners, logistics. cloud is powered by Lobster – offering a neutral logistics platform for shippers, carriers, customs, forwarders and third parties with low entry barriers. Joining us to share insights into logistic.cloud’s vision for building the ‘Internet of Logistics’ is Niko Hossain, CEO and Managing Director. Niko begins by explaining how logistics.cloud spans industries by offering a global and multimodal solution for exchanging transport data between all participants in a supply chain. The aim? Maximum transparency and automation: in realtime and across companies. “Logistics.cloud has been created to connect the whole world of logistics,” says Niko. “In logistics, you have a 4
highly fragmented environment with hundreds of thousands of different players, which of course use completely different software solutions. These might be for capacity bookings, transport management systems, logistics service provider search platforms, visibility, track and trace or control. “Logistics.cloud acts as a connection hub for all these different environments and enables customers – such as logistics companies, shipping companies and IT partners – to have an easy and standardised connection interface in terms of submitting data back and forth. “We are steering the data rather than hosting the data centrally. We are not the cloud on the top, where we receive all the data from everyone and hold it there as a kind of portal. Instead, we act as a steering system where we get the data infused by one company and
DUSTRY BELIEF THAT MLESS DATA RS.
we integrate and then generalise and forward the data to the output format of the recipient. “For example, we might identify a booking for DHL Express from a shipper, and then we directly steer it into DHL Express system – getting the
confirmation and sending it back to the shipper as well – so the companies know that everything is on track with the booking. “We built this steering solution as the first of its kind to address the gap in the market, with the goal of 5
connecting logistics providers around the world. As it stands, we are well established in the European market, with new connections emerging globally in China, the USA and other regions.
data exchange, while avoiding being locked into one connection with one company. We are trying to build the ‘Internet of Logistics’ by serving as a communications platform rather than an application platform.”
“For now, our major focus is still Europe because we are growing very fast but at the moment it is still a situation where most companies don’t even know that something like this exists.
Niko explains that one of the crucial benefits of seamless data exchange is the added value as each company or entity contributes new layers of information to the data, which has a compounding effect on the overall usefulness of the insights.
“Essentially, our clients can make use of logistics.cloud like a plugand-play solution for integration in logistics. The benefits are that it’s a much faster, cheaper and more flexible means of securing connected 6
“In days gone by, businesses knew it was beneficial to share data but there was a feeling that somehow you lost control of an asset in the process,” says Niko. “But nowadays companies
“WE ARE TRYING TO BUILD THE ‘INTERNET OF LOGISTICS’ BY SERVING AS A COMMUNICATIONS PLATFORM RATHER THAN AN APPLICATION PLATFORM” supply chain much more convenient and cost-effective.”
are realising it’s completely the opposite with data. The data will always stay with you, but if you share it, you see benefits because you create value for the other parties you share the data with but also your own organisation, adding value along the supply chain. “Imagine that you have up to 50 different touch points with multiple parties when you have a global supply chain for shipments, for example. It is a huge advantage when you share the data related to the shipment with all these parties. We have one of the most interesting business models today, but also for the future, because it makes coordinating logistics in the global
As logistics.cloud is entering an exciting phase of growth and worldwide expansion, Niko emphasises that the company’s service directly benefits the global supply chain by tackling some of the major pain points for the logistics industry, particularly for distribution by sea and air. “There are a lot of challenges in operating global supply chains because of the geographical implications when you have European or US companies who have suppliers in Asia or on the other side of the world,” says Niko. “You have the procurement departments which are ordering designated products from afar and, depending on the terms of trade, you then have to align if the forwarder is responsible throughout all the processes, which can be expensive. Or, if you are responsible 7
for the whole supply chain, and then you have to secure all the information and share it with the designated parties. “For example with maritime logistics, items must be collected from the plants, transported to the harbour, placed in the right container and allocated to the right ship. The ship might then travel for weeks, touching several harbours on its way to the final port of destination before unloading and distribution. Throughout the process, you need detailed information in real time to inform the relevant logistics parties and companies along the way. “Depending on the nature of the global supply chain in question, you might have at least 10, 20, or even 30 different parties involved because all the connected logistics companies will, in turn, also use their own suppliers for their services. There are a tremendous amount of potential touch points and many fragmented parts in the supply chain, which we are trying to connect at logistics.cloud to make it possible to have a flow of data information with clear visibility and precision. “With air freight, it’s a completely different story because you have incredibly short notice times so there’s even more urgency for real-time data and access to the 8
9
latest information. Typically, the value of the goods transported by air freight is very high as well, which only complicates things further because expectations increase accordingly.” According to Niko, a major driver and motivator behind building the ‘Internet of Logistics’ is helping its customers and partners have end-toend visibility and transparency across their entire supply chains – regardless of the size or scale of the companies involved. Niko explains that logistics. cloud helps users at the earliest opportunity to facilitate this goal. “Logistics.cloud steps in at the very beginning, right from the point where 10
we receive data from ERP systems or lead-in systems when a shipment or demand is created,” says Niko. “We retrieve the data from their systems and then we directly share it with all parties along the supply chain. That's a huge benefit because if you have already shared the data with an individual connection, for example, you will usually lose most of the information because in terms of data integration, much of the data which is not needed for that specific player will be erased or left unused. The loss of information passes onto the next actor in the supply chain and you cannot extract relevant insights further down the line.
“LOGISTICS.CLOUD STEPS IN AT THE VERY BEGINNING, RIGHT FROM THE POINT WHERE WE RECEIVE DATA FROM ERP SYSTEMS OR LEAD-IN SYSTEMS WHEN A SHIPMENT OR DEMAND IS CREATED” “So we step in at the earliest opportunity to get the data from the ERP and then share it to the TMS system. As a result, logistics service providers and all the parties along the supply chain which need this data can access it – but we also ensure that the seamless integration works in both directions. We share this data with the other logistics companies, shippers, suppliers and customers so that everyone handling and acting
with these shipments has the same information.” One of the challenges logistics.cloud reconciles is working with companies of various sizes, operating in dozens of languages, using diverse systems and bringing them together seamlessly and effectively. Niko describes how this is made possible by the company’s data model and system architecture. 11
12
“SO WHAT DOES THE FUTURE HOLD FOR THE DIGITAL SUPPLY CHAIN INDUSTRY? NIKO EMPHASISES FIVE MAIN DEVELOPMENTS: VISIBILITY, PREDICTION, SUSTAINABILITY, ARTIFICIAL INTELLIGENCE (AI) AND CONNECTIVITY” “We created a highly comprehensive data model which covers air freight, sea freight, road transportation along with courier and express transportation,” says Niko. “We analysed all of these different commodities of transport and created a generic data model for them. It's published on Swagger UI so anybody can examine the model. If we see a new requirement coming up, we just add that to our data model. In addition to our comprehensive data model, we have a decoupled exchange which means that we are not directly connecting one company with another. Instead, we have an outer core where we connect these companies individually with their systems. Within this, we integrate the data in an inner core of our system, which is then generically working with our data model. That means that we have a two-layered translator. So first of all we take the language of origin, say it’s English, and we translate it into a universal language internally. From this generic centralised language, 13
we send it to the data’s destination site and retranslate it into the specific language of the receiver. Our method means we can make all the global systems talk with each other seamlessly.” So what does the future hold for the digital supply chain industry? Niko emphasises five main developments: visibility, prediction, sustainability, artificial intelligence (AI) and connectivity.
and consumption are on the horizon so the environmental impact of an organisation’s operations will have to be considered just as carefully as their overheads and costs. “I think AI will help scale up the speed of connectivity across multiple industries and sectors. Today, we are in the early stages of its usefulness where we are analysing data, finding structures in the data and correlating or checking the insights
“WE HAVE WORKED TOGETHER WITH SOVEREIGN SPEED SINCE OUR EARLY DAYS BY COLLABORATING WITH THEM AND ALL THEIR CLIENTS VIA THE LOGISTICS.CLOUD PLATFORM” “The whole topic of visibility is still on the rise, so I think in the future all shipments will have to be completely visible,” predicts Niko. “But that's just the beginning. The logical next step will be prediction. Where's the demand? How can we analyse what’s happening and identify the best course for future action? How long should processes take and how can we keep customers accurately informed? These are the sorts of questions that will become increasingly important. “Sustainability is already a crucial topic, but it will become even more prevalent in the digital supply chain. New regulations related to emissions 14
accordingly. But I think we are approaching the stage where we will be able to execute these processes completely automatically, in seconds. It will then be a question of applying machine learning to the automated AI processes, which is where I see tremendous potential for driving value for businesses whether it's in planning, market analysis, pricing or applications. “Lastly, connectivity and integration are on the rise in the digital supply chain, enabled by companies like logistics.cloud, which will help businesses thrive by increasing tracking visibility and offering real-time insights but also by
a seamless and connected system which everyone in the supply chain could make use of. Sovereign Speed is a fantastic strategic partner for On the topic of collaboration, Niko us because they have been pushing emphasises the importance of logistics.cloud forward alongside embracing working with strategic our own internal efforts to build the partners at logistics.cloud since the company. Together, we have created company launched in 2018. a lot of success stories with their clients by exchanging data from “Sovereign Speed was one of our first different systems via one unified partners, which has really worked connection. Today, we are doing all for both of us,” says Niko. “We have worked together with Sovereign Speed Sovereign Speed’s data integration across Europe in various different since our early days by collaborating commodities, in everything from long with them and all their clients via the haul and last mile to warehousing logistics.cloud platform. They have an impressive range of large clients in operations. More and more companies are joining their business, logistics working as service providers so it’s been a terrific success story to for them. Sovereign Speed saw the work with Sovereign Speed.” value in using logistics.cloud to build fostering strategic partnerships and collaboration.”
15
“MYLEO / DSC CAN REALLY FOCUS ON THEIR FEATURES, APPLICATIONS AND CUSTOMERS WHILE WE COVER THE CONNECTIVITY TO THE LOGISTICS COMPANIES AND OTHER BUSINESSES. WE WORK TOGETHER AS A TEAM, IN CLOSE PARTNERSHIP” “Another valuable strategic partner we’ve relished the chance to collaborate with is myleo / dsc,” adds Niko. “Myleo / dsc was one of the first large software partners we had join us at logistics.cloud. They are a software-as-a-service company that is very much driven by empowering their customers by offering fast usage of the software they make available.
Myleo / dsc have a lot of customers in different industries and offer them a vast range of solutions. We partnered with myleo / dsc in an arrangement where they act as the application layer and we are the connectivity layer below it. The concept plays out fantastically because myleo / dsc can really focus on their features, applications and customers while we Your Digital Supply Chain
Supply Chain Teamwork Makes the Dream Work Time and again, events occur along a
myleo / dsc - with the help of
“myleo / dsc simplifies logistics
supply chain that require close coor-
logistics.cloud as a connectivity
processes and working methods
dination between the individual play-
solution - is the easiest and most
for companies and people in
ers. A continuous flow of information
efficient supply chain collaboration
an increasingly complex reality
between the partners is required in
and SCM platform for all industries
and creates a better and crisis-
order to plan, commission and handle
and modes of transport. It connects all
proof logistics world through
transports on time, but also efficiently
process participants in the cloud and
connectivity and collaboration.”
in terms of costs, CO2 and capacity
focuses on communication: shippers,
utilisation.
suppliers, carriers and consignees
ANDRÉ KÄBER
have access to relevant information
CEO & Founder
However, many work steps are carried
such as freight orders at all times. By
of myleo / dsc
out by different parties in different or-
linking logistical objects with process
ganisations. Even today, this exchange
and business data, myleo / dsc creates
often takes place by telephone, e-mail
maximum transparency.
or fax. This costs time and energy. Even a simple direct truck transport of goods to a consignee can involve up to ten parties in the process.
16
Take your logistics to the next level at www.myleodsc.com!
cover the connectivity to the logistics companies and other businesses. We work together as a team, in close partnership.” Wrapping up our discussion, Niko lauds the upward trends of innovation
and collaboration in the digital technology field. “Having worked in this field for several years now, developments come and go but currently I really see a rising wave of exciting developments 17
related to digital solutions and automation,” says Niko. “In a context where we face labour shortages and uncertainty in the supply chain, it is reassuring to see a shift towards data, technology and innovation to deliver services the customer needs and wants. “AI is an enabling force accelerating this digital journey, adding energy to the drive for innovation. “Digital ecosystems built on technological connectivity and strategic partnerships among businesses are also on the rise, when we compare to the situation a few years ago. Back then, every solution provider and every player on the market tried to operate independently with a winner-take-all mentality. Fortunately, today there is an understanding that you have to work together in large digital ecosystems to survive and thrive. There are so many different players and solutions now, you cannot solve problems all alone. You have to play together to create value for the customer.” Visit logistics.cloud to learn more. 18
ADDED VALUE
RIDING THE WAVES OF INNOVATION Niko loves to surf and draws parallels between the sport and succeeding as a business. “It’s about finding the right wave, riding it and then paddling back to find the next one,” says Niko. “I’m totally convinced that the waves of innovation and the communities of companies driving digital technology will take things forward positively. “I’m incredibly proud and happy with what we’ve achieved at logistics.cloud so far. Our initial idea and inspiration has evolved into a wave of innovation and we are thrilled more and more companies are joining us as we grow as a business and expand into new regions around the world.” Connect with Niko
19
logistics.cloud
20