New Era, Same Old Fundamentals

It’s shape-up time for shipping industry players.

Figures released by Container Trades Statistics indicate that global volume growth in the container shipping industry was largely stagnant at 1.3% for the first half of 2019 compared to 4.5% at the halfway mark last year. The reality of falling demand and the decline of containership supply do not seem aligned with the positive outlook about which the shipping industry observers and analysts had been hopeful.

Vessel operators too continue to face the mounting pressure of having to reckon with high costs and risks in these increasingly volatile economic and geopolitical times.

“Looking forward to 2019-2020, the carriers still face challenging conditions, although the nature of the challenges will be changing — some gradually, and some more acutely,”

cautions Lloyd’s List.

Do these eventualities signal a new era in global shipping?

The game-changer seems to hark back to good old-fashioned ‘survival of the fittest’.
Since the dawn of business, the most resilient companies have always been the best to observe the environment, then adapt and evolve with change. Similarly, shipping industry players must constantly relook and reinvent themselves to remain relevant. For the mostly traditional shipping industry that has been comparatively stagnant in adopting new technologies in operations, the digital revolution can be a shock to the system for the uninitiated. Companies that are slow to keep up with technological advancements face intense pressure just to keep up with the ever rising demands of their more-digitally-evolved customers and partners in the supply chain.

As BCG puts it,

“Innovative players are speedily bypassing traditional shippers with new and efficient digital business platforms that deliver more benefits to customers. Indeed, digital isn’t just a nice-to-have philosophy: it’s the very key to survival, and serves as the launch point for transformational turnaround.”

Leaders must be open to redesigning their business models and processes to keep up with their customers, employees and partners in order to enjoy a competitive edge in the rapidly advancing economy.

To keep pace, today’s maritime players must keep a discerning eye out for technology that provides visibility, and facilitates collaboration and data sharing for greater productivity and overall customer service levels. Only then will they be able to reach above the disruption, above the symptomatic and patchy fixes that waste valuable resources, toward a new era of sustainable profitability, growth, innovation. And smoother sailing.

Lloyd’s List Outlook 2019: Containers, 30 November 2018.

SaaS Version of Premium Container Carrier Operations Solution ALLEGRO to be a Gamechanger

Pay-per-use model for powerful real-time reporting, accessibility and cost management

16 July 2019, Singapore – CyberLogitec, the leading provider of maritime, port/terminal and logistics operations technologies, today announced the new ALLEGRO SaaS, an integrated container carrier operations solution.

The solution expands CyberLogitec’s comprehensive container carrier management portfolio, which is being used by leading global carriers such as Ocean Network Express, Pacific International Lines and NileDutch. With ALLEGRO SaaS, container carriers will enjoy similar visibility and control of their end-to-end supply chain while paying only for the modular functions that they have selected.

Jason Hyeon, Managing Director of CyberLogitec Global, said, “ALLEGRO has been helping international carriers transform resource utilization and cargo yields, and we wanted the same success for regional carriers. With ALLEGRO SaaS, carriers can choose what they need and avoid hefty CapEx investments.”

He added, “As carriers streamline operations, they are freed up to focus on value creation. ALLEGRO SaaS will give regional carriers a real shot at levelling the playing field.”
Besides allowing for shipping processes to be hosted on a single system, the cloud-based ALLEGRO SaaS runs in a robust, web-compliant operating environment and user-friendly interface, enabling remote teams to have always-on, easy access to data. As the entire range of activities, from Place of Receipt to Place of Delivery, is updated in real time, the carrier maintains 24/7 visibility of the supply chain end to end. This provides room for improving operational efficiency and enhancing revenue controls.
The solution is available in three tiers: Tier 1 (Foundation), Tier 2 (Operations) and Tier 3 (Full).

Tier 1 (Foundation) provides fundamental functionalities such as Vessel Operations, Vessel Scheduling, Service Network Management to help carriers looking to kick-start their digital strategy.

Tier 2 (Operations) includes all Tier 1 functionalities, as well as core operation functionalities to enhance efficiency and asset management. These functionalities include Container Movements, Container Master and Lease and Empty Container Repositioning. Customers can purchase additional modules such as Third-Party Recovery Billing, and Maintenance and Repair to better control operational costs.

The full version or Tier 3 contains all the functionality of Tiers 1 and 2, with additional commercial functionalities to optimize business yield management. These functionalities include Freight Rate Control, Booking and Documentation, Sales Force automation, Slot Allocation, Joint operations Settlement and Container Sales Quotas.

ALLEGRO SaaS is available worldwide. Interested parties can contact CyberLogitec for a free online demonstration.

For more information, visit www.cyberlogitec.com
Media contact: Jas Foo, Senior Marketing Manager, CyberLogitec
Contact email: jas.foo@cyberlogitec.com

About CyberLogitec
CyberLogitec empowers the world’s supply chain with advanced technologies that solve operational challenges and meet the exacting demands of our industry. From maritime shipping operations, port and terminal operating systems to logistics forwarding and warehouse management, our integrated solutions help your business respond swiftly to changing operational needs. Our technology’s advanced algorithms digitize and automate data exchanges to improve efficiency, competitiveness, productivity, and service, no matter which part of the global supply you operate within.

A Collaborative Platform for Container Shipping

Technology will foster a global logistics ecosystem where partners can connect, collaborate and create unlimited opportunities. The future of smart cooperation between container shipping companies is very positive, as the values shared between collaborative liners are also of value to other players in the ocean logistics domain. In fact, the ongoing evolution of smart cooperation between container lines will likely be the very seed of tomorrow’s maritime logistics marketplace.

CONTAINER LINE COLLABORATION

Faced by the pressures of overcapacity, growing demand to lower costs, and uncertainties in global trade politics, container lines are upsizing to gain efficiencies and a competitive edge. The chart below (Figure 1) highlights the direction of container lines through the years. Plotting the top 100 container liners in the chart from 2006 to 2018, based on average vessel size and fleet capacity, we notice the prominent movements of liners towards either greater ‘economies of scale’, by increasing capacity of vessels, or greater ‘economies of scope’, achieved through the deployment of more vessels.

Rather than pursue both strategies concurrently, which usually adds up from a financial and marketing perspective, container lines tend to go with either ‘economies of scale’ or ‘economies of scope’. So, working together makes sense

To meet the needs of a market that is demanding wider coverage and greater frequencies, but always at lower costs, partner liners band together. Those who have economies of scale will offer lower slot costs, while those with economies of scope offer service flexibility.

These win-win collaborations between container lines have been working in many ways for decades, a trend outlined by the Federal Maritime Commission Agreement Library (Figure 2). However, these various ways of working together have traditionally been fraught with challenges.

BETTER WAYS TO COLLABORATE

From slot swaps to strategic alliances, an elaborate chain of processes is triggered when container lines work together — from discussion to consensus, agreement, contract, vessel & port operation, handling each liner’s legacy system, and ultimately settlement. Every process is about sharing code, data or information, and communicating, be it directly or indirectly, with one or several parties to provide or acquire a service.

Basically, all processes surrounding collaborative partnerships between container lines revolve around the same functions. However, when too many communications are involved there can be a great amount of duplicated effort, especially with closed networks. Missing data, unmatched codes and outdated information are just some of the issues that can lead to underutilization of slots, unproductively long negotiations, and delays due to non-consensus during the settlement phase.

A unified IT platform would be able to harmonize cooperation in practical ways through IT technology. Essentially, it would enable the slot seller to offer the latest available slots on a vessel to a buyer, who can then reliably complete the shipment order with real-time precision and visibility from booking to delivery.

TRADITIONAL TO TACTICAL

If we drill down into the chain of processes involved when a slot seller (operating line) and buyer (booking line) connect, there are many steps involved such as sending, receiving, understanding, confirming, recording and validating data. In traditional modes of communication – email and phone calls – multiple partners have to replicate the same data, information or process many times over throughout the course of the collaboration. This creates room for error, inaccuracies and lost opportunities.

The fact is 84% of booking line working processes rely on the action of the operating line, while 73% of operating line working processes are for booking line. Therein lies the source of great inefficiencies and inflexibility with the traditional system. Why not streamline the processes and remove duplicates and inefficiencies? Advanced IT technologies and proven methodologies already connect players on a single system in many other industries, such as retail and manufacturing.

Easy communication regardless of code, information or channel, open trade based on smart contracts and settlements, and the real-time sharing of information by intuitive data are no longer a complicated matter with today’s technologies. All key data can be aggregated and integrated on a single multi-tenanted platform where collaborative container lines can connect and work with each other securely for an individual and collective good.

The various cooperation contracts can also be standardized and used as smart contracts, opening up the possibility of forming a slot market for trading services in real-time. Instead of working based on different processes, policies and regulations, connected parties can work more efficiently using unified and standardized processes, creating greater order under one common rule.

THE FUTURE OF COOPERATION

As Doug Braun, CEO of Kewill, suggests, “The key to a global trade network is connecting all these supply chain partners through technology that is easily and instantly accessible to everyone”. Connected on one unified platform, container lines will not be the only ones to benefit. Eventually players within the supply chain – forwarders, suppliers and even customers – along with partners outside the supply chain, will be able to leverage an open and collaborative IT platform, powering a universal ecosystem that provides opportunities for all.

About the Author

As a Business Consultant in CyberLogitec, KY is passionate about advancing technologies for the platform business as well as maritime logistics solutions. With rich experience in the industry, he has managed global projects helping shipping liners be more agile and competitive in the evolving market. KY understands the importance of customer service excellence and by managing a team of product managers, he was instrumental in developing CyberLogitec’s wide range of solutions by listening closely to the needs of the customers so as to drive overall product satisfaction.

About the Organization

CyberLogitec empowers the world’s supply chain with advanced technologies that solve operational challenges and meet the exacting demands of our industry. From maritime shipping operations, port and terminal operating systems to logistics forwarding and warehouse management, our integrated solutions help your business respond swiftly to changing operational needs. Our technology’s advanced algorithms digitize and automate data exchanges to improve efficiency, competitiveness, productivity, and service, no matter which part of the global supply you operate within. For more information on CyberLogitec, please contact us at: sales@cyberlogitec.com

Strengthening Capabilities. Seizing Opportunities.

YTN, one of the well-known broadcasting company in Korea, features CyberLogitec in their TV channel. As a global leader in the maritime, port and logistics industry, CyberLogitec’s end-to-end suite of solutions and consulting services help the industry adapt quickly to evolving needs of the market. Established in 2000, we remain focused on strengthening our capabilities and seizing technological opportunities to innovate to emerge stronger than ever. As our future plans and goals, we continue to widen our range of solutions by developing new platform business for the logistics industry through the adaption of new technologies, harnessing big data, blockchain, IoT for the 4th industrial revolution.

Click here to watch the clip in Korean.

CyberLogitec launches OPUS Terminal M, an advanced terminal operating system for multi-purpose terminals

Accessibility, flexibility, scalability and advanced capability key attributes of browser- and cloud-based solution for smaller- to medium-sized terminals

12 June, 2019, The Netherlands and Singapore – CyberLogitec, the leading provider of maritime, port/terminal and logistics operations technologies, today announced the addition of OPUS Terminal M to its extensive range of advanced IT solutions serving the global supply chain.

OPUS Terminal M, a true multi-purpose TOS, handles container and a range of cargo including breakbulk, project and bulk cargo, and RO-RO. The solution also supports multi-terminal operations for operators that run more than one facility, including container ports, inland container depots and empty depots.

Jason Hyeon, Managing Director of CyberLogitec Global, said, “OPUS Terminal M sets new standards for the industry. Besides accessibility and flexibility, it presents the full functionality of bespoke container TOS systems, offering terminals of all sizes the benefits and advanced operational efficiencies that were previously exclusive to mega terminals because of cost considerations.”

Designed to meet the needs of smaller and medium-sized terminals, OPUS Terminal M provides an advanced solution that enables operators to pursue greater operational efficiency and optimize productivity and profitability.

OPUS Terminal M builds on the innovation of CyberLogitec’s well-established OPUS Terminal solution, offering advanced functionality from Vehicle Booking System to Advanced Yard Planning and Advanced ITV Pooling. One of its most tech-forward functions is real-time 2D and 3D visualization of full cargo and yard operations, to support better management and decision making as well as ensure high safety standards.

The solution is browser-based, enabling easy data accessibility across locations in real-time, and key features to be available on a variety of mobile devices such as tablets and phones. A complete and integrated system, it greatly reduces the need for third-party systems although a flexible interface ensures a high level of inter-operability.

As OPUS Terminal M can be deployed on-premise or on the cloud, customers have the option of deploying via a hosted solution or through a SaaS model, which allows functions to be made available in modules. It is currently the most advanced multi-purpose TOS that can support multi-terminal and multi-modal operations on the cloud platform.

OPUS Terminal M is based on standard J2EE architecture and utilizes thin clients. It takes advantage of Ignite cache to reduce network overhead and the server can be setup on any operating system, facilitating a quick, easy and cost-effective deployment. Multiple facilities can be defined in one licence.

Mr. Hyeon added, “It was important to us to offer terminal operators access to the benefits of digitalization at a cost-efficient price point, while extending how the solution can be used by our customers now and into the future.”

The solution will be showcased in TOC Europe 2019, 18-20 June, 2019, Rotterdam, The Netherlands.

OPUS Terminal M

For more information, visit www.cyberlogitec.com

Media contact:  Jas Foo, Senior Marketing Manager, CyberLogitec

Contact email:  jas.foo@cyberlogitec.com

 

About CyberLogitec

CyberLogitec empowers the world’s supply chain with advanced technologies that solve operational challenges and meet the exacting demands of our industry.  From maritime shipping operations, port and terminal operating systems to logistics forwarding and warehouse management, our integrated solutions help your business respond swiftly to changing operational needs. Our technology’s advanced algorithms digitize and automate data exchanges to improve efficiency, competitiveness, productivity, and service, no matter which part of the global supply you operate within.

 

 

Star Cluster Logistics Improves Operational Processes and Administration with OPUS Logistics

Star Cluster Logistics (SCL) is a freight forwarding company that specializes in moving cargo for Glovis, the house handling company for Hyundai Automotive. They chose OPUS Logistics because of its advanced functionality and to help them better manage the challenges of fluctuating cargo volumes.

All seven of their locations and 50 total employees use the OPUS Logistics solution through a private cloud for accounting, operations and administration. The system provides centralized access to their data that manages 98% of their operations, including P/L reports, balance sheets, and monthly / yearly profit reports.  Arrival notices, delivery orders, creation of bills of lading and per shipment profit reports are also taken care of by the system. They particularly like the fact that they can now have better visibility into their data with improved business performance reporting.

“If OPUS Logistics was taken away tomorrow, employees would most likely start to panic because they would not be able to print the documents necessary to process shipments.  I am pretty sure employees would still be able to do their jobs, but just not as fast, and there would probably be many more mistakes,” said Claire Won, Deputy General Manager of Accounting and Administration at Star Cluster Logistics, USA.  “It also helps us keep all our numbers accurate when pulling reports and it keeps us organized,” Claire continued “It is easier to keep track of the flow so definitely it helps us increase revenue and reduce costs.”

CyberLogitec’s support team is also a huge benefit for Star Cluster.  “If our company needs additions to the system, the CyberLogitec team is there for us.”

According to the results of the TechValidate/OPUS Logistics customer survey, Star Cluster Logistics said that they have seen an improvement of between 50% and 75% in the following business processes[1]:

  • Standardization and streamlining of shipment operations;
  • Customs/carrier filing per bill of lading and invoicing;
  • Sales management and account closing lead time;
  • Customer and interoffice communications;
  • Visibility into real-time status of customer orders;
  • Improved decision making from volume and performance reporting; and
  • Overall customer service.

[1] November 2018 OPUS Logistics Customer Survey by TechValidate.

Want  to know more about OPUS Logistics?  Click Here:  

How Top Logistics Providers are Improving Their Operations

Logistics service providers facilitate the movements of goods through the global supply chain. They are the glue that holds it all together. Their jobs depend on the ability to optimize the end-to-end logistics for their customers, beneficial cargo owners. To do this effectively, they need technology partners who can support their efforts, keep them up to date on the latest solutions and help them get the most out of their technology investments. They need technologies that integrate all aspects of the business and help them manage their day-to-day operations including, reducing costs, providing visibility, insightful reporting, inter-office and customer communication and collaboration, all while managing sales.

Recently, TechValidate, a third-party survey company, surveyed customer users of CyberLogitec’s OPUS Logistics to access the value they are getting from this logistics technology. CyberLogitec learned from their customers, leading freight forwarders, NVOCCs and 3PLs, just how important the OPUS Logistics technology solution is to their business operations. In fact, 81% said that they would recommend OPUS Logistics to other logistics providers and gave it a 7.9 out of 10 rating.

They chose OPUS Logistics because of the price compared to other solutions (40%), the extent of the advanced functionality (36%) and the working relationship they had with the sales team (35%). Additionally, we learned that they were looking for a solution that could give them more flexibility in their processes (50%), better shipment visibility (35%) and better systems integration (35%).

We discovered that OPUS Logistics does help logistics providers achieve these goals by improving shipment visibility and business decision making, communications and reporting processes, and overall customer service.

  • 74% improved the generation of volume and performance reporting by 25-49%
  • 75% improved visibility into real-time status of customer orders by 25-49%
  • 71% improved the sharing of information with customers by 25-49%
  • 70% saved time with sales management & account closing lead time by 25-49%
  • 74% improved & saved time processing customer orders by 25-49%
  • 31% improved and saved time with standardization and streamlining of shipment operations by 75% or more

In short, OPUS Logistics helps logistics service providers ensure on time delivery and more efficient operations management through access to insightful and actionable data that empowers intelligent, optimal and educated decisions.

*About the survey: TechValidate conducted a survey of 229 users of OPUS Logistics from 98 companies. The survey was delivered on November 7, 2018 and received a 27.4% response rate.

Want to know more about OPUS Logistics?  Click Here –  

CyberLogitec Improves Logistics Operations Management with OPUS Logistics SaaS Model Solution

Advancements in implementation and management procedures will help global logistics providers reduce costs, improve visibility and operational efficiencies.

April 9, 2019, Cerritos, California and Singapore – CyberLogitec, the leading provider of maritime, port/terminal and logistics operations technologies, today announces the launch of OPUS Logistics SaaS, a new, more robust version of its logistics operations solution, designed for ease of use, implementation and IT infrastructure management.

The need for more flexible and efficient technologies that improve visibility across the supply chain is more important than ever as international trade, ecommerce and online retailing continues to grow. As a cloud-based, software-as-a-service, subscription solution, OPUS Logistics SaaS helps freight forwarders, NVOCCs, 3PLs and warehousing operators meet the increasing demands of their customers’ requirements. Centralized, cloud-based sales, operations management and financial accounting tools provide logistics companies with the ability to manage business processes any time, from anywhere.

OPUS Logistics SaaS reduces technology infrastructure investment and software license costs, making it easy to install and remain current with automatic, seamless updates. Self-service, online training modules enable new users to quickly get up to speed.

“Supply chains are constantly evolving and challenged by the demand for cost competitiveness, superior service and quality, transparency, delivery speed, and flexibility,” said Jason Hyeon, Managing Director, CyberLogitec Global. “By creating our latest logistics solution in a SaaS model, CyberLogitec empowers the industry to scale quickly and meet customer expectations. Our end-to-end solutions provide enhanced capacity, flexibility and scalability. We designed the OPUS Logistics SaaS solution to deliver more adaptability and scalability, with access to real-time data anytime, anywhere.”

For more information, visit www.cyberlogitec.com

Media contacts:

Michelle Gaubert
Director of Marketing
CyberLogitec Americas
mgaubert@cyberlogitec.com
Jas Foo
Marketing Manager
CyberLogitec Global
jas.foo@cyberlogitec.com

About CyberLogitec

CyberLogitec empowers the global supply chain with advanced technologies that solve operational challenges to meet the demands of our industry. From maritime shipping operations, port and terminal operating systems to logistics forwarding and warehouse management, our integrated solutions help businesses to quickly respond to changing operational needs. Our technology’s advanced algorithms digitize and automate data exchanges to improve efficiency, competitiveness, productivity, and service, no matter which part of the global supply you operate within.

The Importance of Digital Technology in the Logistics Space

Standardization and automation of processes is more important than ever.

In 2019, the technology priorities for logistics companies are likely to shift towards building the resiliency of freight operations to trade tensions, currency exchange rate volatility and rising interest rates. Ultimately, logistics companies must utilize advanced technologies to automate their operations to handle data-heavy processes and stay flexible to meet rising consumer demands.

Several logistics companies are taking the lead to boost efficiency, utilizing the latest technologies. CKB Logistics, for example, is using Ramco Systems, a provider of cloud-based software, to digitize their supply chain and centralize their operations. CKB understands the importance of having a unified technology platform to automate their information flow and provide customers with consistent high service levels.

In addition, ZIM Integrated Shipping Services recently announced that they have become a member of TradeLens, a blockchain-enabled digital shipping solution to enable trust between multiple trading partners. This move supports their corporate vision to promote technological innovation in all aspects of its operations.

But there are still improvements to be made to ease digital transformation and enable more to benefit from advances in technology. The vast array of logistics solutions available with different standards inhibits communication and collaboration between supply chain partners, highlighting the ongoing need for more standardization and automation of processes.

Here are 3 ways to improve digital logistics processes:

1. Unify Formats
Freight forwarders face the big challenge of unifying various rate sheets. To add to the complexity, data comes in various file formats, with different naming conventions and different layouts, creating more confusion and extra work to consolidate the data. Standardization is needed to enable efficient collaboration. In addition, having rate management software will help to support and digitize operations in a way that could not be done before.

2. Leverage Digital Platforms
The key to a robust global trade network is connecting supply chain partners through technology that is easily accessible to everyone. Many digital solutions today are available as subscription-based models. For businesses of every size, cloud-based is synonymous with lower upfront costs and quicker set up and deployment centrally from the cloud. Within a unified platform, forwarders, suppliers and even customers can also leverage one open and collaborative environment which will offer new ways to share data.

3. Deliver Quality Service
Delivering a good customer experience is important to keep any business thriving. Logistics providers are turning to technologies that can confidently offer real value along the supply chain. An integrated, end-to-end solution that manages information consistently, accurately and effectively demonstrates a commitment to deliver service excellence.

Enabling Smarter Logistics that Will Shape the Future

“Shippers looking to control logistics costs need creative thinking and innovation. That creates opportunities for start-ups and new technologies offering novel solutions to transportation challenges.”

This was the conclusion of the 29th annual state of Logistics report released in Washington last year.

It was noted that shipping expanded by 4% in 2018 – the fastest growth in the past five years. Whilst seaborne trade is doing well, there are looming concerns in the form of trade tensions between China and United States, where trade wars could potentially reshape trade patterns and dampen the optimistic outlook.

With this in mind, incremental rate change may not be within the control of logistics companies. How can they positively influence customer experience and pricing with the tools on hand? The data silos within the industry must be broken open for the industry to realise its full potential. A 2017 worldwide Supply Chain Survey performed by Geodis found that only 6% of firms felt they had “complete visibility” of the supply chain. Working in silos makes it nearly impossible for logistics, finance, warehousing or customer service teams to have full data visibility and make informed decisions on shipment matters, thus facilitating an optimal process and excellent customer experience.

As processes are automated and streamlined, forwarders and customer service teams gain greater visibility into the container journey, and can better predict delivery dates and advise customers ahead of time of delivery delays. External parties can not only deliver faster responses to customers, but it also benefits internal teams as it reduces repetitive and manual work.

Piquing interest right now is the data analytics that freight forwarding software can provide to facilitate decision making. Freight forwarding software like Opus Logistics is a web-based solution that is designed to deliver simple and efficient data management and exchange on a single-instance platform. It enables greater collaboration between stakeholders in the value chain and creates an ecosystem that logistics companies and their clients can turn to as a reliable source of data and intelligence.

So what does this mean for 2019?

Shippers must remain poised for change. With the likes of Zim Lines who chose to partner with Sparx Logistics, it seems that leading carriers are working to become end-to-end logistics providers. Carriers are seeking ways to differentiate themselves with premium service offerings. Shippers are now expecting guaranteed container loadings and transit times as well as faster container offloadings.

Operational processes are being tested by the increased volumes from mega ships and it is challenging us to take a hard look at the status quo of the maritime logistics supply chain. It is therefore time to harness capabilities and resources to effectively unlock greater performance for better service delivery for end customers.