ACTA U N IV ER SITA TIS LO D ZIEN SIS POLIA OECONOMICA 157,2002
F rank A ren d t*
A D V A N C E D COMMUNICATION TOOLS TO COPE
WITH THE INCREASING NEED FOR INFORMATION
EXCHANGE ALONG TRANSPORT CHAINS
Logistics requirements force operators to enhance their electronic communication abilities. Status information are required to monitor and control supply chains. Operators need communication tools enabling the link between their in-house application systems and tlie external electronic communication, i.e. ilie automated generation and reception o f messages. One successful example fo r tools o f that kind is the AIM (Application Interconnectivity Management) approach. The paper will present the concept and examples fo r application.
B ackground
R equirem ents
The organization, m anagem ent and m onitoring o f com plex interm odal transport chains and networks increasingly enforce all participants to be flexible and reliable partners. One o f the key abilities o f those partners is to exchange inform ation in a high quality - alw ays actual, by electronic m eans, on dem and, event-driven or regularly. So, transport netw orks imply inform ation netw orks.
G lobalization, outsourcing and other logistics trends let the num ber of partners and the num ber o f interfaces grow.
In a long-term view, operators which do not fulfill these requirem ents from clients or network m anagers, will lose m arket shares.
Integrated solutions are necessary including traditional EDI, interactive W W W -based solutions being open to new and old standards, allow ing to include
ISL Institute o f Shipping Economics and Logistics, E-Mail: arendt@ isl.org
additional business logic (in order to interconnect different business m odels) and keep an eye on security issues.
A ctual situation
In contrast to these requirem ents, the actual situation is quite different and can be characterized in the follow ing way:
> operational and adm inistrational procedures differ e.g. from com pany to
com pany, from country to country, from port to port
> inform ation bits and pieces are scattered all over the participants > inform ation pieces are not consistent
> application system s and data contents are not com patible
V EDI standards (such as EDIFACT) are quite com plicated; agreem ents procedures take a long time
> old system s not designed to com m unicate > inform ation exchange by fax and phone prevail.
In bigger ports, inform ation nodes (called Port C om m unity System s) have been built, but these focus on nodes and not on chains or networks. So, bilateral agreem ents have to be found am ong the partners - one by one or betw een the “chain/netw ork” m anager and the operators. Even in the latter case, w orking for different operators m akes the thing com plicated again.
Thus, the need for cheap and powerful tools for collection, presentation and distribution of inform ation is evident. Such tools shall cover EDI and web, as well as m obile com m unication (W AP, UM TS, GPRS, ...). In the follow ing chapters an exam ple for such a tool will be presented.
T he AIM (A pplication Interconnectivity M anagem ent) concept
From p roject to product
Between 1996 and 1998 the EC funded project BOPCom (B altic O pen Port C om m unication) provided the platform to develop the AIM concept. From this basis the com ponents have been im proved and extended in functionality during the past years. Further extensions, e.g. for XM L, C O R BA , W A P, etc. are in preparation.
T he tools have been used in other R & D projects as well as in com m ercial environm ents.
The problem
Y our staff use various softw are products to carry out their daily w ork tasks. Y our business also depends upon the exchange o f inform ation with your own custom ers, your suppliers and with the authorities, each o f which have their own EDP application systems.
T here are basically two m ethods for realizing the exchange o f inform ation with your com m unication partners:
1. You have got an EDP application system which is capable o f processing the inform ation to be exchanged, as well as im porting and exporting it.
Exam ple: You have got softw are that is custom arily used am ong freight forw arders, shipping agents, shipping com panies and others and which is capable of processing custom s declarations and then storing the data contained within as a file in your com puter.
2. You haven’t got an ED P application system which is capable o f processing - as well as im porting and exporting - the inform ation to be exchanged.
Exam ple: You have to file a hazardous cargo report with a regulatory agency, how ever you have no specific softw are that can do this. You do this with the help of a form ula written under W ord, which you fill out on your com puter and then fax to the agency.
A pplication Interconnectivity M anagem ent (AIM ) is a solution for both methods o f inform ation exchange with custom ers, business partners and with regulatory agencies.
AIM consists o f a set o f tools for integrating EDI and internet com m unication in transport related application areas offering the follow ing com m unication alternatives:
AIM direct
The “direct” method requires that both you and your com m unication partner have ED P application system s which are capable o f both im porting and exporting and processing the information to be exchanged.
It is not, however, necessary that the structures and form ats o f the files w hich your softw are can export and the softw are of your business partner can import be identical. T he required conversion is carried out by AIM. T o the extent that there are m anual operations external to the EDP application system s that need to be carried out, AIM provides a w indow for this.
Your Staff
Staff of Your Business
AIM online
Neither you nor your com m unication partner have the necessary EDP application system s required for the processing o f the inform ation to be exchanged. In this case, AIM provides you with the necessary form s over the Internet (via a W W W browser, such as Netscape C om m unicator or M icrosoft Internet Explorer).
For the exam ple o f a hazardous cargo report, you receive a w indow for the entry o f data, which is then recorded by AIM. AIM also sends a w indow to your com m unication partner, which may be different from the one that you receive. T he required data is entered and processed and the new inform ation is again recorded by AIM. You now have access to this inform ation, and so forth.
AIM mixed
Only one o f the com m unication partners has a suitable EDP application system with which inform ation can be generated and then recorded by AIM . The other partner, the one who does not have a suitable ED P application system , uses the "online" m ethod. He accesses the data by using the forms accessed by the standard W W W browsers, processes the inform ation and records it again with AIM . From here, it can be im ported into the application system o f the other com m unication partner, processed further, and so forth.
AIM consists o f several com ponents which may be com bined to m eet the exact requirem ents and conditions in your com pany. You may possibly need only one, single com ponent: OSIS - and that would be in the situation where your EDP application system, as well as that of your partner are capable of im porting and exporting ASCII files with the required data and no manual processing of file contents is required.
Components Short Description
CoDaBa Comm unication database for the intermediate storage o f data between sender and receiver
MeGa "M essage Gateway” for the import o f data in ASCII files into the comm unication database and, vice versa, for the export o f ASCII files out o f the communication database
OSIS "Open Systems Interconnection Software" for the transmission and logical conversion o f information available in the form of ASCII files, for the handling o f the various protocols and services and for the handling o f the interfaces o f the EDP application systems for the control o f the importing and exporting o f files
ApVis “Graphical User Interface” in the form o f Java Applets, which can be started from within the WWW browsers and enables access to the data in the communication database
AIM A pplication areas/E xam ples
Four com pletely different application areas show the potential o f AIM to support electronic com m unication in transport and logistics:
> Linking truck and port operation in container transport ^ C onnecting a term inal with the outside world
> Providing an eB usiness platform for goods import and distribution >" Im plem enting a tracking and tracing solution
Exam ple I: Truck pre-notification in ports
In the container term inal B rem erhaven, new procedures for enhancing the co-operation betw een the term inal operator EU R O G A TE and truck operators calling at that term inal have been im plem ented containing the subm ission of transport pre-notifications with qualified responses e.g. on availability.
Truck operators can now clarify beforehand, if the containers they want to pick up or deliver are ready to be processed by the term inal, i.e. if they have been discharged, released, if dangerous goods inform ation is available, etc. So, unsuccessful trips can be avoided in the future - planning can be optim ized. On the other hand, the terminal operator can optim ize his resource planning and operation if knowing in which period of time he will expect which am ount of trucks to be processed.
The realization with pilot truck operator EKB was based on the integration o f existing applications at both sides o f the co-operation link. An adequate set of ED IFA C T m essages (C O PIN O /IFTSTA ) had been agreed upon.
The sequence o f actions is as follows:
1. The dispatcher generates pre-notifications for planned truck transports directly from his in-house system s via AIM.
2. EKB subm its these pre-notification m essages to EU R O G A TE via dbh, the operator o f the Bremen Port C om m unity System.
3. EU R O G A TE/dbh checks, if the data correspond with the loading/dischar ging orders, if codes are valid, if import containers are ready to be picked- up, etc.
4. EU R O G A TE/dbh subm its a reply: either a confirm ation or rejection. A dditionally deviations betw een order and pre-notification will be reported.
5. EU R O G A TE/dbh subm its additional status m essages for pre-announced transports: „gate in“ for export containers, „gate out“ for im port containers with time stam p and license plate o f the truck.
6. EKB processes these replies with their in-house system again; the dispatcher will be warned if he has to act on a certain transport
7. The EU R O G A TE gate processing can be autom ated and accelerated.
The im pacts by using this form of co-operation are convincing: interm odal transports becom e faster, more reliable and predictable and the com panies will enhance their productivity and cost effectiveness.
Exam ple 2: Com plete com m unication solution f o r a container term inal
NTB (N orth Sea Term inals B rem erhaven), a com pany ow ned by EU R O G A TE and M aersk, operates a container term inal in B rem erhaven.
In 2001, a new term inal operation softw are had been installed. For the Bremen ports it is m andatory that all export containers have to be announced electronically via the Port C om m unity System BHT. M oreover, all actions such as every container move on the yard has to be reported to BHT.
T he softw are supplier refused to build all the “B rem en specific procedures” into his standard product. Therefore, the AIM com ponents were configured to solve this task, i.e. com m unication with
> Shipping com panies (e.g. for bay plans and schedules, loading/unloading reports)
^ Port Com m unity System (e.g. for container m oves, gate in/out, loading/unloading)
> The “neighbour” term inal on containers to be shifted from one term inal to the other
M oreover, additional functionality for special operations such as processing stop m essages from the custom s which could not be processed by the operation softw are, are handled by AIM with special internet based viewers.
In total about 40 EDI m essages and procedures have been im plem ented; the w hole system is operational since Septem ber 2001.
Exam ple 3: eBusiness platform f o r goods im port an d distribution
A Brem en based logistics service provider wanted to create a new business in im porting cakes from the US and distributing them through w hole Europe.
The “before” situation was quite bad: a lot o f inform ation pieces existed e.g. in Excel tables and had to be re-keyed for each step o f operation. Delivery addresses fiom different sources did not correspond and m ade labelling o f packages a difficult task with a high percentage o f return shipm ents. Custom s clearance procedures were extrem ely tim e-consum ing.
W ith the link o f the different sources with AIM these draw backs could be skipped.
Functions are: conversion and import o f order lists from the m anufacturers in any format, online orders using web shops, subm ission o f addresses for checking to external softw are or service, autom ated production o f lists for custom s declaration, Preparation of shipm ents on order date, delivery date, delivery addresses etc., integration o f product m anagem ent and stock m anagem ent, label print, m anagem ent o f return shipm ents, tracking and tracing. A ppropriate viewers exist for order m anagem ent, custom er m anagem ent, custom s declaration, Preparation of shipm ents, m anagem ent o f return shipm ents.
The system is operational since end o f 2001.
Producer Web Shop Call Center
Product Stock management Label print Shipment
Management
Exam ple 4: Tracking and tracing
Ports know much about cargo and their details. Why not providing this inform ation to other parties and adding inform ation from different sources? V A TT (V alue added tracking and tracing) went this way. Status inform ation (based on events) of containers or even consignm ents can be retrieved per EDI or Internet. Agents in overseas ports are able to enter status inform ation via internet which then can be generated to EDI m essages autom atically - by it’s “heart” AIM (the “m ixed” operation presented above).
C ustom er tailored configuration allow specific events and codes, selection o f data sources and m edia such as EDI, W W W , E-M ail or Fax as well as the transm ission at fixed times or im m ediately (e.g. defining alarm events). The V A TT system is in operation for more than 2 years.
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AIM is a good exam ple for m odem com m unication tools being required for a lot o f tasks in intermodal transport and logistics. O perators being forced to deliver electronic inform ation to their cooperation partners need tools like this in order to stay com petitive and in the market.
The four exam ples showed the variety of application areas: > a truck operator enabled to com m unicate along a chain > a container term inal operator com m unicating as node > a logistics service provider solving his eB usiness procedures
> an inform ation service provider collecting and distributing status inform ation.
A dditionally, this a good exam ple how results from projects funded by the European C om m ission survive after the funding period.
