Whether it will be a hard or a soft Brexit, deal or no-deal, the fact is that the UK will no longer be part of the EU as of 30 March 2019. In the best case there will be a transition period lasting until the end of 2020, with a possible one-time extension until the end of 2022.

But although the ultimate deadline may be uncertain, one thing is blindingly obvious: all scenarios will bring customs obligations with them, and trade with the UK will involve formalities that have to be met.

Which measures can you take already now?

1. Make sure you understand your own flow of goods and what your Brexit weaknesses are: longer transit times, the need for additional documentation, import duties …

Assume the worst.

To carry out a Brexit scan see:
– general (Federal Govt. Dept. of the Economy)
– specifically for VAT matters (Customs & Excise)
– Flanders Investment and Trade

2. Brush up your knowledge of Customs & Excise, because if you’ve never traded with a non-EU country you’re in for some unwelcome surprises.

Agree who is responsible for what within your company.

3. Speak to your customers, suppliers, service providers etc.

Review your current and future work procedures, agreements and conditions. Screen the contracts for liabilities, KPIs, Incoterms, capacity, exchange rate conditions etc.

4. Contact customs to request your EORI registration.

You need this Economic Operator Registration and Identification Number to import or export outside the EU (and so also the UK).

5. Get a third party to take care of your customs processing; make sure they have the necessary information to do this correctly.

6. Look at the possibilities for investing in customs technology in order to cope with the increased volume of transactions and clearance costs.

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Or are you more of a planning-is-already-part-of-the-holiday type? Do you enjoy mapping out your route, comparing hotels and poring over timetables?

It’s a matter of personal preference, of course, but the prices of the two approaches are difficult to compare. At first sight the all-in option is more expensive, because you don’t count the hours of preparation in the second option.

But what also don’t get counted are the hitches that have to be solved along the way and so can’t really be considered as vacation time. Anyway, there is no such thing as the perfect formula for a successful vacation, because it’s such a personal thing.

Also, it’s temporary in nature: holiday hiccups are an annoyance, but with time they fade from memory. Well worth the risk.

But where you really mustn’t take risks is with your company’s IT environment. Risks such as system crashes, getting hacked, no longer being up to date …

To say nothing of the variable costs, the headaches and the lost personnel time that an “on premises” IT environment brings with it.

The alternative? The Cloud

Our customers who run their TRIS solution in the Cloud minimise their risks in many ways.

1. They don’t have to invest a big budget that weighs on their cashflow. Instead they pay a perfectly manageable monthly rate.
2. They don’t have to worry about hardware performance declining and the need for updates.
3. Their system is fully secure.
4. The application is configured via https, with the necessary certificates.

With our Cloud solution you play it safe

1. The systems are always up to date (which also minimises the chances of security leaks).
2. Remote working is always secure.
3. You have your own private server, so you don’t have to share your Cloud with anyone.

And if these reasons aren’t already enough, your possible downtime is reduced to a minimum. The updates are done after regular working hours and at the weekend, so they don’t get in the way of your day-to-day work.

And if there’s a power cut or your internet connection goes down, you can simply carry on working from a different location.

So, you’d rather play safe?

Perfect! We’ll get you up and running in the Cloud within three weeks!

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Patrick Van De Looverbosch, CEO of Intris, explains the advantages that Intris offers for this.

“The preparation work is absolutely critical. We take as long as necessary to analyse our customer’s business processes. Our people have followed Prince2 training in project management for this.

In consultation with the customer they draw up realistic objectives and attainable milestones. Another important precondition for success is knowledge of the logistics world. Our people are familiar with the challenges facing the customer. e

We speak the same language, and they appreciate that,” says Van De Looverbosch.

Workflow management

“Our solutions are very practice-oriented, which also makes them particularly user-friendly. We have translated the paper files into software, as it were, so that the user follows the same logical steps as if leafing through the familiar papers. But the system is designed so that it cannot make errors or miss out a step.”

“Together with the customer we inventorise the SLAs and KPIs and translate them into to-do lists that have to be checked off one by one. The dashboard function shows immediately which steps are most urgent. The same goes for the accompanying documents. At management level, this dashboard shows the financial data for each file.”

All links in the supply chain

“We focus on the three important links in the supply chain, namely forwarding, customs and warehouse. In each of these solutions we have integrated the operational and financial aspects fully with each other, including the digital document flow.

Most of our customers take two of these solutions or all three, depending on their core activities. But even if for example they outsource their customs formalities to a third party, we can integrate the external packages seamlessly with our system, so that no additional manual input is needed.”

Seamless integration

Getting an international consignment from producer to end customer easily involves 100 people, each with their own communication system. “To avoid additional input we have developed the TRIS Squid integration and communication platform,” Van De Looverbosch explains.

“This provides direct connections with the customs authorities, port platforms, portal sites, software solutions used by third parties, etc. The communication is seamless, with zero avoidable errors. Furthermore we are the only ones in Europe to have AEO certification for our communications with the customs authorities.”

Worldwide network

As of this year Intris is a member of WiseTech Global, a stock exchange-listed group. WTG develops and supplies cutting-edge logistics solutions that stand out for their far-reaching integration, detailed compliance capabilities and worldwide reach.

WTG has among its customers more than 7,000 logistics companies spread over more than 130 countries, including 33 of the top 50 worldwide third party logistics service providers and 24 of the 25 largest global forwarders.

“By joining the WiseTech Global worldwide network, Intris offers its customers secure future prospects: the significant innovation capacity that is invested locally ensures that all links in the supply chain (including customs management) can keep up with and even anticipate the rapid changes in society,” Van De Looverbosch concludes.

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The Internet of Things will offer interesting opportunities both for existing and for new technology companies. In the short term, at least. But hardware suppliers and installers of IoT systems will have to start looking out now for diversification, or for a radical switch in their activities.

Short term

Companies that offer complex system integration solutions are much sought after. Despite all the integration possibilities and interoperability of the systems, combining devices and software into an IoT environment is an extremely complex undertaking.

By offering integrated solutions, suppliers can accommodate their customers in the short term. In the longer term the research institute expects that there will be greater demand for all-in vertical solutions and large-scale horizontal platforms.

Four types of survivors

1. Developers of relevant IoT technology that have specialised in inexpensive components. Examples include sensors with low consumption that offer cheap connection possibilities, etc.

2. Owners of IoT data. For instance, manufacturers of industrial machines equipped with sensors. The hundreds of terabytes of streaming data that these generate will provide a transparent overview of possible anomalies, thus avoiding outages before they happen and permitting preventive maintenance.

3. Platform suppliers. Third parties will be able to develop apps for these platforms, with the platform supplier ensuring interoperability of the apps. Successful platforms will generate lucrative networks, since each new customer and each new application will offer added value for all parties.

4. Suppliers of end-to-end solutions. According to McKinsey, these suppliers have the greatest advantages since the Internet of Things demands a high degree of customised work. This ensures that companies that can offer complex solutions (hardware, software, installation and services) will have the edge. These suppliers of end-to-end solutions will be able to position themselves in the field of components, software or integration systems.

New business models

The IoT will also bring new business models for companies that use the Internet of Things: new pricing models and service-based business models.

• New pricing models: customer-specific, dynamic pricing models based on specific customer preferences. These models can offer advantages both for the user and for the supplier. Examples include car insurance companies that tailor policies to the insuree’s actual driving behaviour, generated by the vehicle’s data sensors.
• Service-based business models: instead of capital-intensive investments, the supplier operates a pay-per-use model: energy per hour instead of a gas turbine, transport services instead of cars, printed pages instead of laser printers. These “as a service” models offer the advantage for the customer of not having to invest in upgrades or maintenance.

The post Which software companies will survive the IoT era? appeared first on Intris - Transportation Software.

That’s how much added value the Internet of Things can potentially generate from 2025 onwards. Per year.

At least according to the McKinsey Institute.

11% of world GDP

9.3 billion is a maximum figure. McKinsey actually calculated a range from 3.2 to 9.3 billion euros. The difference between the two figures is 66%, but it’s still a staggeringly large amount. According to the World Bank, global GDP should amount to 83.98 billion euros by 2025. So the IoT could account for 11% of that GDP.

Industry stands to gain the most from this. By “industry” the McKinsey Institute means standardised production environments and places with repetitive work routines. In other words not just factories but also data centres, hospitals, farms and anything else.

This sector could generate annual added value of 1 to 3.1 billion euros by 2025.

Industry 4.0

It’s a much-used term nowadays, but what does it actually mean?
Industry 3.0 covered all forms of automation and standardisation. Industry 4.0 refers to IoT machines that are connected to each other and managed by IoT sensors. Think remote monitoring, tracking and control.
This technology will generate profit especially for industrial environments on the workfloor and in maintenance of equipment.

Optimising operations

McKinsey has calculated that this will yield cost savings of 5 to 12.5% and added value of 0.5 to 1.5 billion euros. By using sensors it is possible to raise the performance of machines, fine-tune workflows and make better use of infrastructure.

Some examples. General Motors uses sensors to monitor the humidity in the car plant and so optimise the painting process. If the conditions in the painting cabin are less than optimal, the component can be sent to another part of the plant that does meet the right conditions so that it does not have to be sprayed a second time.

In agriculture IoT sensors continuously measure soil conditions, weather conditions and plant growth, permitting more accurate forecasts and better management decisions.

In hospitals improved patient tracking and monitoring in combination with mobile equipment should raise performance by 250 nursing hours per year, for 50 million nurses worldwide.

Predictive maintenance

In the IoT age, machines and equipment will no longer be maintained on a “repair & replace” basis; thanks to sensors, equipment managers will instead operate by “predict & prevent.” In other words, sensors will continuously monitor the machines and so prevent breakdowns. Furthermore the sensor data can be used to predict when and where maintenance is required.

The McKinsey Institute has calculated that this will lead to 50% less downtime and 3 to 5% more production time. This in turn means that factories will be able to save 527 billion euros annually, hospitals 58 billion. Worldwide.

But ….

These figures can only be attained if all the IoT systems can talk to one another, as interoperability accounts for 40 to 60% of the added value. Also, more intensive use needs to be made of the existing data: at the moment there is still a lot of low-hanging fruit to be gathered.

This means that manufacturing plants, hospitals, data centres and agro-businesses will have to upgrade and/or replace their equipment so that it can be interconnected. In addition there are various other investments that are necessary in order to generate profit from IoT, including:

• systems for data analysis,
• basic technology such as sensors and micro-electromechanical systems (MEMs),
• cloud data storage and computer systems.

The post Why industry stands to gain most from the Internet of Things appeared first on Intris - Transportation Software.

Large “public” cloud service providers (think Amazon, Google, Microsoft and Oracle) have launched innovative services in the past few years such as blockchain applications, IoT back-end data services, encryption services, “serverless” computing services and new computing hardware services.

Another IT research bureau, 451 Research, has calculated that 69% of large companies will have a multi-cloud or hybrid IT environment by 2019. Within two years 60% of the workload will run in the cloud, 15% more than at present.

Four types of cloud

If you read the research, articles and opinions it becomes apparent that there are four types of cloud. The most well-known is the public cloud. Think of your Office 365, Google Docs and suchlike, where you don’t have to bother about the management, maintenance or security of the data centre where your data are stored.

The direct opposite of this is the private cloud, where the company has its own cloud facilities. Such a private cloud can run within the company’s own premises or in a secure data centre. In this case the company itself takes care of the hardware investments, maintenance, back-ups, updates and so on.

Then there is the multi-cloud which applies to a large number of companies and also private users. To return to the public cloud suppliers: if you use the Office 365 email application and share your documents via Dropbox, then you are a multi-cloud user since you are utilising both the Microsoft cloud and the Dropbox cloud.

Finally there are hybrid IT applications which are also a reality for most companies, where certain applications run in the cloud and others on the premises.

What’s in a name?

The main thing companies worry about when they hear the term “public cloud” is security, as they associate this concept with a public space where anyone can wander in and out.

Nothing could be further from the truth.

“Our customers who have switched to TRIS-cloud are by definition in a public cloud, since a private cloud is prohibitively expensive for them. But within this public cloud they have their own private cloud which is ring-fenced and secured. For instance, their cloud environment can only be accessed from certain IP addresses that they themselves specify,” explains Intris CTO Tony Vertenten.

IAAS, SAAS or both?

Intris offers its own logistics software in various ways. You can buy everything “on-premises” or opt for a “rental” formula: this is the well-known SaaS concept (software as a service). “This cloud solution saves a whole lot of problems for the customer in terms of maintenance, updates and security,” Vertenten continues. “Furthermore this business model doesn’t take a big bite out of your budget, so the company can accurately calculate its expenditure and use its cashflows for other purposes.”

Then there is the IaaS solution: Infrastructure as a Service. In this case the company opts for the server on which its software runs to also be located in the cloud. “Our cloud solutions cover both ‘services,’ but if the customer also wants to run non-TRIS applications on a virtual server, for instance its own accountancy package, then that’s perfectly feasible,” Tony Vertenten concludes.

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Alibaba makes contracts with Maersk, Kuehne+Nagel, UPS and others.

Coolblue manages its own product distribution.

Many forwarders and logistics service providers are uneasy as a result. Will the internet giants invest more and more in physical goods handling? Will existing logistics companies get swallowed up by them, or simply disappear?

Read the remedies put forward by Christian Leysen (executive chairman Ahlers), Jan Cools (CEO Be-Mobile) and Wilfried Grommen (CTO Hewlett Packard Enterprise), three top players in the logistics world.

From logistics operator to data analyst

Christian Leysen expects that his company will lose 30 to 40% of its traditional business to these internet giants.
In response Ahlers has for some years now been targeting new, international opportunities by focusing on its customers’ data. The new added value comes from smart combination of the different data to yield big gains in efficiency, both for the customer and for the supplier.

His remedy: be more active internationally, offer new added value and make smart use of the existing data.

Become a large logistics consortium

By analogy with the big alliances between shipping companies, Wilfried Grommen pleads for the logistics sector to set up its own large consortium, with the various members together offering end-to-end solutions.

Data are important, and the Internet of Things is a future reality, but don’t ignore the efficiencies that are already there to be exploited, he says.

His remedy: no reason to panic, the added value offered by logistics operators is what makes the difference and indeed can become even more efficient.

The future lies with niche markets

The internet giants go for the largest common denominator, namely big volumes and advantages of scale. But there is still plenty of room for players with a business model in niche markets, according to Jan Cools. They can still offer added value that these big players are not interested in.

Technology can help us with this, provided we share the data with each other.

His remedy: good data are important (not too much and not to little) to share information efficiently with one another.

Conclusion

No, logistics operators will not be swallowed up by the internet giants. On condition, that is, that they specialise, go in search of greater efficiency, make smarter use of the existing data flow and share it among themselves.

Source: Great Logistics Debate, 13 June 2017, organised by Interactive Supply Chain Network

The post How can logistics operators stand up to the Amazons, Alibabas and Coolblues of this world? appeared first on Intris - Transportation Software.

But putting this simple scenario into practice is easier said than done, as logistics professionals have always known. They know also that there is no magic formula for managing the supply chain efficiently.

Certainly not one that applies year-in, year-out, as society, technology and the economy are all constantly changing.

And the changes are getting more and more rapid. It’s no longer enough simply to “keep up”: you have to be one step ahead in order to stay in the game tomorrow.

Logistics service providers who want to continue playing a role in the worldwide logistics scene in 2030 will have to be flexible and pro-active.

So, what are the five trends not to be missed?

Go to the Cloud

Not just with one application or a single solution, but with everything, including the servers.

Because we’re heading for “industry 4.0” in which new technologies (the Internet of Things, Big Data, 3D printing, mobility, the digital economy, Cloud computing) offer a wealth of opportunities for efficient management of the supply chain.

Get into Big Data

In particular, join the data bundling and data sharing initiatives. Once all the logistics links in the supply chain share their data with each other (albeit on a neutral platform such as NxtPort in Antwerp or iShare in the Netherlands), this can only offer advantages for the planning, visibility and seamless interconnection of the supply chain.

Re-think the uncertain processes

Uncertain processes lead to loss of time, loss of quality and unnecessary costs. So regularly challenging the company’s internal processes is something you can’t afford not to do.

Identify the uncertain processes and make the choice: outsource or improve.

Intensify the collaboration and connectivity with partners and suppliers

In the ideal logistics world, all trucks, trains, ships and planes travel with a 100% load factor, and all inbound and outbound movements are in lock step.

Freight consolidation is a realistic option, provided all parties are ready to accept intensive collaboration and thus also connectivity.

Don’t lose sight of the customer

The more connectivity, visibility and mobility, the smaller the world appears from the perspective of the supply chain, and customers demand ever faster and more individual treatment.

To gain a better understanding of the customer’s needs and tailor your logistics services accordingly, strategic collaboration is essential.

The post Supply Chain 2020: the five “to do’s” appeared first on Intris - Transportation Software.

With the emphasis on “was.” Then came the age of “the customer.”

Suddenly it was all about the customer. They had to be “earned” daily in their millions, and when the customer had everything, the market gurus switched to “customer experience.”

This customer experience still counts for a lot, as demonstrated by Ryanair, Uber and Airbnb. These “disruptors” are leaving many conventional companies helplessly behind.

So what more can they do to further justify their existence in future?

Focus on the product: a Miele is for life

The 1960s were dominated by new appliances that made daily life easier for us: washing machines, vacuum cleaners, lawn mowers … you name it.

The main objective of each manufacture was to make the best product. Not just the best quality, but simply indestructible. The German appliance manufacturer Miele was famous for this: “Expensive, but made to last a lifetime.”

The profit margins of Miele (and other producers) lay in standardisation: the fewer variants of the product, the more profit could be extracted from the critical mass of components.

The same applied to service: here too, the emphasis was on quality and standardisation. Computerisation contributed significantly to this.

The most successful companies were the ones that could “sell” as many of their services to as many customers as possible.

Focus on the customer: all extras as standard

But then customers became even more demanding. Or manufacturers became more inventive. Which came first? Difficult to say: it’s always been a chicken-or-egg question. But whatever the case, customers demanded – and got – ever more customisation.

Standardisation was now “out.” No two cars identical, no two customers served according to the same pattern. The customer is king. Even more than that: manufacturers and service providers no longer charge for the “extras,” in the hope of retaining the customer.

Based on this customer-centric thinking, companies seek to distinguish themselves from the competition through the concept of “experience.”

Steve Jobs (yes, the Apple guy), was one of the first to put this customer experience front and centre: “We have to start from the customer experience and then work back to the technology, not the other way round.” Not like IBM and Microsoft, in other words.

Focus on a fast-changing environment

But putting the product or even the customer front and centre no longer applies in these fast-changing times. Nobody wants a cumbersome standard solution any more, let alone a “customised” solution that actually has only one characteristic, namely lack of flexibility.

“Flexibility,” now we’re talking. The concept may not be new, but now it is more essential than ever in order to meet the challenges posed by the rapidly increasing number of technological solutions.

Uber would never have managed to disrupt the old-established taxi operators without the technology that made it possible to have a user-friendly app that instantly matched supply and demand.

AliBaba would never have managed to scare the pants off the forwarders without a technology that permitted internet shopping at container level.

Are these new products, or even new services?

No. They are still the same cars, containers and taxi trips.

What’s different are the processes. And they are changing constantly.

Focus on the processes

To react in a flexible way to rapidly changing situations, the unpredictable market and the unique requirements of each customer, we need to focus on the process.

Do that, and you no longer need to cling fast to the product, service or customer.

Companies that can put their customers’ business processes front and centre and react quickly and flexibly to each stage in the process have a golden future in front of them.

Because the world will keep changing.

And technology will continue to accelerate.

In the not-too-distant future, cars will drive off the ship by themselves, all components will be 3D-printed in the warehouse for a fully customised product, and our built-in chip will tell us when it’s time for the next check-up.

Right?

The post Forget the wonderful product: go for the flexible process appeared first on Intris - Transportation Software.