Here’s a look at the key takeaways from our session 6th of May 2020.
SFL Co-Founder and CEO, Ikraam Reyaz was joined by Raja Ratandeep SFL Co-Founder and COO, Abbas Sethwala (EFL Chief Administrative Officer) and Martin Schultze, Managing Director of Contra Consolidations.
We’ve outlined key takeaways from the session below as a recap for those who attended and a quick catch up if you missed the live session. Click below to view the full session.
THE MACRO PICTURE
Challenges to the Industry
Industry challenges were examined from a lens of changing government regulations as countries enter new phases in the battle against Covid-19. Some of the key challenges were:
- Equipment shortages
- Port congestion due to ineffective government intervention
- Overcoming overstay and demurrage by transferring cargo to Customs licensed depots operated by consolidators
- Premium rates for existing capacity in air freight
- Decrease in availability of trucking personnel
Industry predictions for the next six months were analyzed against a Ushaped economic recovery and included:
- High air freight rates for the next 3-6 months
- Increase in sea freight and the adaptation of smaller package sizes
- Increased financial exposure and risk
ENABLING THE MICRO
Organizational Challenges and How to Overcome Them
Three fundamental challenges organizations will have to grapple with were outlined as:
- Remote working: as an “onsite” industry becomes “offsite”
- Silos: Disconnected Independent Systems
- Workforce: Retool and Training
For effective remote working, workflow implementation was discussed as being the goal to achieve within organizations. Abbas and Martin shared their real- life SFL journey in implementing the PAVE process to enable process creation, workflow and the use of controls around key areas of importance to their businesses; highlighting the importance that workflow implementation was integral to continuing operations, enabling visibility and creating room for capacity.
Technology to Enable ‘Lowest Cost’ in Transactional Business
Lowering cost through the automation journey as economies enter recession was discussed by implementing 4 trends.
Rate engine automation enhanced by CW1’s integration of two software – Cargo Sphere and Cargo Guide – for increased visibility and ease of booking by auto rating and auto costing. This will be supplemented by Robot Process Automations (RPA) for data entry replacing 8 hours of manual data entry by 10 minutes of robotic entry.
Global Container and Airway Bill automations augmented by stand alone tracking software to integrate with CW1 or similar third party software, overcoming the challenge of 100% data accuracy and human intervention.
Digital Documentation flow for EBL/DO/LC/COO through blockchain technology enabling a paperless logistics industry.
Greater utilization of API and Digital connection through Middleware solutions to enhance CW1 and connect to third party Systems.
Optimal Software is Necessary but Not Sufficient
Connecting Silos within your organization was discussed as the next integral step to proper utilization of software to ensure sufficient technological application within the business. Three products within CW1 enabling this were:
- Electronic Document Storage
- Connecting Operations and Finance
- Digitalizing the Payment Process through an Inter Agent Netting Solution.
This was presented through an overview of each solution, problems businesses face, the process of implementation and the benefit of use.
Finally, opportunities for the workforce were encouraged through retooling and training by focusing on business process initiatives and embedding training material into software.