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Information Chains:
Removing Roadblocksto
Logistics Digitalization
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Introduction
As the dust settles and the supply chain industry moves past pandemic-triggered
volatility and lessons learned, the focus on reducing inefficiencies has sharpened.
However, despite the hype around Artificial Intelligence (AI), blockchain, and other
tech innovations, they must provide a one-step or one-size-fits-all solution.And, in this
business, most stakeholders are experts at planning, executing, and tracking goods
movement—not technology.
Third-party collaboration has risen in strategic importance as companies prioritize
the ability to nimbly select, implement, and pivot with tech solutions. But, as the
application of technology moves past digitization or automation of single steps into a
wholly integrated revision of the business,we must also consider the need for change
management. Bridging these emerging gaps beyond tasks and tools is fundamental to
digital transformation.
Step 1 for many is digitizing the analog information, moving away from the oft-cited
industry dependency on Excel.When we progress from data to processes, applying
digital technology, such as Enterprise Resource Planning (ERP) systems, can
streamline decision-making around everything from inventory to billing and vendor
management. Each step builds on efficiencies, automating tasks involving the now-
more-accessible data. Digitalization, in turn, can lead to the broader organizational
change that defines the digital transformation of an industry, creating new business
models and disruptors.
To get there, one must overcome roadblocks at each stage, including impacts on
existing process. Most solutions require implementation on top of legacy systems;
synchronization with variable processes and regulations in different countries; and the
ability to scale with new partners as well as emerging risks.
Table of Contents
Introduction................................................................................................................. ii
Building broadly............................................................................................................1
Starting point.............................................................................................................. 3
Fighting fear................................................................................................................. 4
Seizing the moment.................................................................................................... 5
A question of labor...................................................................................................... 5
Conclusion................................................................................................................... 6
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Digitalization holds vast potential to improve accuracy,productivity,and customer
service.However,the fear of investing in the wrong solution or throwing good money
after bad can stall many plans.And lack of standardization and interoperability represent
insurmountable hurdles unless industry leaders step forward with bold commitments
and decisions.Making those moves requires calculations,thoughtful planning and
guidance,with the right experts in the room and long-term strategy in place.
Building broadly
Successful digital transformations require investment in more than software.
A holistic outlook encompasses processes and services, human effort, and
automation. In supply chain and logistics, specifically, a deep knowledge of the
working of the industry is also vital to translating new systems into practice. The
genuine transformation of business processes often benefits from an outside
consultant who develops an understanding of the client’s domain to combine the
right technology, analytics, and talent.
A standard tech solution from an outside services provider may just address the tip
of the iceberg. It is unlikely to deliver optimal business benefits. Business Process
Management (BPM) tackles the hidden part of the iceberg.
BPM is defined by Gartner as:
“The discipline of managing processes (rather than tasks) as
the means for improving business performance outcomes and
operational agility. Processes span organizational boundaries,
linking together people, information flows, systems, and other
assets to create and deliver value to customers and constituents.”
Providing the skills and knowledge to adjust and re-engineer processes, compensate
for resource-and service-level requirements and drive change are especially important
where legacy systems, local practices, and geographical variation in regulations are in
play. BPM creates space to solve new risks—from cybersecurity to legal implications
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and data resiliency—and any fallouts that stem from
changes surrounding data quality, master data sources,
and data governance.
The BPM perspective can power unique solutions,
exemplified by WNS Malkom, an intelligent automation
platform designed to comprehensively transform the
shipment value chain. Malkom harnesses Machine
Learning (ML) and AI to automate manual processes,
optimize process performance, and offer seamless
visibility into shipment status. Its track record shows
over 99 percent accuracy of data output, up to 50
percent savings in overall cost, and 25-30 percent
improvement in productivity.
Malkom comprises the following key components:
• Integrated e-mail and case management
module with omnichannel capability
• Built-in document editor and classifier
• Intelligent digitization engine
• Built-in milestone tracker, providing real-time
visibility into shipment status
• AI-powered conversational chatbot for
personalized virtual assistance
These components, combined with Malkom’s features,
propel its effectiveness in delivering tangible benefits
to organizations. Some notable elements include:
• Serverless architecture powered by AWS,
ensuring seamless scaling up and down
• Modular and customizable workflow that
incorporates e-mail management, allocation
and exception management
• Business rules engine integrated with ML, guaranteeing excellent
accuracy
• Multiple integration options available via API, blockchain, and RPA
Take,for instance, the Less-than-Truckload (LTL) space. Here, Malkom is propelling
change by empowering drivers with an intuitive mobile scanning app–layered with
AI, ML, and pattern recognition–for instant and accurate data capture. Similar
automation at various points of the value chain is adding up to power improved
compliance, better customer experience and easy scalability for the enterprise.
These technologies rarely work in isolation. Instead, they are tailored into bespoke
solutions based on an enterprise’s needs.
A leading LTL carrier partnered with WNS,
deploying robotic process and intelligent
automation across office operations to
increase speed, accuracy, and efficiency.
Myriad regulations and documents
associated with cross-border
transportation had been a challenge.
Close collaboration helped minimize
disruptions and led to the development
and deployment of BOTs, creating
an error-free process. Next came a
robotic process automation platform
CoE.Automation opportunities were
identified, and a roadmap was created to
maximize benefits by improving the most
repetitive tasks.
The company realized $3 million in
annual savings, 35 percent productivity
benefits, higher documentation accuracy,
75 percent automation of the bill of
lading release process, and 50 percent
improvement in customer data quality.
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A specialist might walk an organization through minor efficiency improvement
processes or toss out legacy systems and completely automate business processes.
And this may take the form of a Center of Excellence (CoE), a team providing
leadership, best practices, research, support or training for a focus area. CoEs address
particular issues, such as purchase order management or robotic process automation.
“We have to consider the principles of human-based design and co-creation,” says
Jaison Augustine, head of the shipping and logistics vertical at WNS.“Digital needs to
address human problems.” Augustine notes that digital accelerators, like a dashboard
visualization tool,work best when integrated with personas and empathy maps.“If we
try to be in the shoes of the users and customer and see how that feels, it helps create
a more painless, seamless experience with a better level of customer journey.”
Starting point
Digitalization of business processes begins and ends with an organization’s mission
and goals. Increasingly, those KPIs include sustainability and ethical impacts of
operations and shipments.
“Digital is complex. Every client and industry are different,” Augustine says.“If you
come to them with standard solutions, it will not deliver the business benefits needed
because of different data, legacy systems, etc. Each company has its own internal
culture and maturity in the ability to adopt new tech. Different people respond
differently to operating in a more digital way.”
The terminal operator that wants to minimize cost per move will need different tools
from the trucking company that aims to double its reefer business or the shipping
line aiming for a zero carbon footprint. However, all must first benchmark, determine
bottlenecks and challenges, create a roadmap, and finally monitor and evaluate.When
a company can identify underutilized data and repetitive manual tasks, and where
integration, collaboration, and automation can be most strategically applied to achieve
business goals, it is becoming future-ready.
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Of course, many other steps exist, especially when finding and prioritizing problems.
How much time does it really take to deal with that recurring customer service
problem? Concentrating on areas where technology will make the most difference is
key. Could a chatbot funnel the inquiries down to just a few needing a human touch?
There is room for business process improvement in physical infrastructure and
managing physical operations, too—think autonomous driving,AI, ML, Radio-
frequency Identification (RFID), Internet of Things (IoT), real-time tracking, robotics, etc.
“But it is early days,”WNS Chief Digitial Officer Adrian McKnight says.“In this industry, it
is sometimes one step forward and two steps backward.Aspirations are far bigger than
results.AI and ML applications, I think, are the low-hanging fruit in the industry.”The
vast amount of information flow in the industry that is manual and in an unstructured
format holds significant potential; time will tell how quickly algorithms will achieve the
sophistication needed.
Fighting fear
Digital solutions are evolving and improving rapidly, and therein lies the challenge for
many—why invest today when a newer, better solution might be available tomorrow?
Fear exists of trying to digitalize on the strength of a 20-year-old platform,for one.
Simply understanding that there are options, and many ways to roll out and ramp up
digitalization, might help address the pain points. It isn’t all-or-nothing.
“In digital, many people have had their fingers burned,” Augustine says. Demos create
solid foundations for prototypes that de-risk the commitment and investment, provide
a deeper level of understanding and build stakeholder confidence, he explains.“The
world moves too quickly, and there is too much complexity around digital for [upfront,
one-time waterfall investments] to work now.”
One of the best ways to secure benefits from digital transformation is to “sprint,”for
example. Seeing progress within a two-or three-week cycle validates the process
quickly or allows a relatively painless fail-fast.As time goes on and more sprints
deliver value, companies gain a certain level of comfort.Throughout, minor course
adjustments are being easily made.
“Upgrades keep on happening. It is not like you invest and you are done,” says Krishnan
Raghunathan, head of finance and accounting at WNS.“In business systems, there is
a cycle of a large change approximately every 7-10 years. Many new solutions, such as
scan to cloud, have already moved into free version upgrades. If you aren’t advanced
on these solutions now,you are already behind.You are losing money you could have
saved.And it must be noted: somebody else is already doing it.You will be left behind.”
Agile BPM transformations involve journeys open and willing to incorporate new
opportunities that help businesses evolve in lockstep with a changing landscape.
“Upgrades keep on happening.It is not like you invest and you are done.”
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Seizing the moment
In February 2023, the Digital Container Shipping Association announced nine ocean
carriers would move to 100 percent electronic Bill of Lading (eBOL) by 2030, marking
a significant change to how one of the oldest elements of the shipping process is
handled.Within surface transportation, 29 LTL providers (carriers, 3Pls,freight brokers,
and tech companies) have committed to adopting an eBOL standard by July 2023.
These companies represent a significant market share in the $85 billion a year LTL
market, reported the Journal of Commerce.
The need for harmonization in a notoriously fractured industry is recognized. In buying
logistics capacity, now more than ever,you need to know that you can seamlessly work
with multiple partners.To this end, shippers and forwarders need interoperability.“Five
bills of lading are five bills of lading,whether electronic or paper,” Augustine notes.
Long-awaited progress is here. In eBOLs, the adoption curve is clearly visible, but it is
early, and the moment to jump in is now.
A question of labor
As companies balance recruitment and retention needs, the question of which skills
to invest in has come to the fore.The ability of an outside partner to bring in hundreds
of data scientists and IT specialists is a clear advantage.“Even if you can get the
people, is that the right home for technology talent? There is no career path in a port or
shipping line for tech people,” McKnight posits.
For a UK-based global consolidator,WNS recently tackled process improvement for
large volumes of complex multi-page Brexit documents. Packing lists, commercial
invoices, and Certificates of Origin culled from e-mails,web portals, and mobile
devices were fed into a source system for the WNS Malkom platform.With a dash
of API, Malkom could extract and evaluate information utilizing AI, ML, and data
validation.Those few outliers with issues were routed to a client subject matter expert.
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Simultaneously, the vast majority of data was pushed directly to the global logistics
platform CargoWise for automated task allocation.
The results were decisive: more than 100,000 annual export/import documents can
now be processed in less than 120 minutes.That is an 80 percent improvement in
turnaround,with 90 percent of the fields auto-captured and 99 percent accuracy.
Client documentation costs were cut in half.
Beyond the platform itself, the expertise of an outside partner skilled in the balance of
tech, process, and human resource management,was significant.The client originally
planned to hire 700 people to manage the volume of compliance documents, McKnight
explains.WNS suggested a combination of its proprietary technology and labor
instead, reducing the number of additional staff needed.“The process was effective,”
he says.“Information went into systems more accurately and much faster, giving them
actionable insights in real-time as millions of transactions were processed.They were
able to identify the most profitable shippers, trade lanes making the most money and
the shippers that send incomplete information.They could add operational support,
digital technology, and analytical support.”
Conclusion
One of the biggest constraints to progress is not technology but the individual
response to operating more digitally. Business process management partners step
into the unknown and shepherd customer employees through change.They provide
insights into the user experience, creating empathy maps and a fresh eye on a
company’s services that can jumpstart design thinking.And using accelerators—
existing effective tech tools—can leapfrog the process of digitalization.
However, companies don’t just need a tech product; they need a partner to work
shoulder-to-shoulder with to accomplish real goals.
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A standard solution from an outside services provider is unlikely to deliver optimal
business benefits because every company is different,with different data, legacy
systems, culture, and the ability to adopt new technology.An in-depth understanding
of company challenges and goals is necessary to achieve digital transformation.
Strategies must be reworked to digitalize business processes that build value.The
logistics industry needs to catch up to the game, especially considering the massive
number of transactions carried out each day worldwide. Forward-thinking companies
are finding ways to enhance operations and efficiency, better manage inventory,
improve transaction visibility, boost delivery reliability, lower carbon footprints, please
customers, and generally outfox risk.
“Every international shipment has more than 200 docs with 30-40 entities invoiced
–supply chain, banks, notify party, etc. Other industries, such as banking, insurance,
and airlines, did a better job of coming up with industry standards, such as SWIFT in
banks and AMADEUS in airlines.This industry has stubbornly refused to do that.There
is no plumbing for all the information to flow together globally.This is a mindset to
overcome.The industry is not going to come together,” McKnight notes.
“We must optimize each company within their own four walls.”
And when industry standards materialize,companies without a digital roadmap will still lag.
“We are marching toward millennials forming a larger percentage of stakeholders as
employees, buyers, etc. Change is coming,” Raghunathan says.
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“We are marching toward millennials forming a larger percentage ofstakeholders.”
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About WNS
WNS (NYSE: WNS) is a digital-first business transformation partner
to more than 400 global organizations, including 25+ Shipping and
Logistics companies. Our team of 6300+ Shipping & Logistics specialists
across 64 delivery centres empower our clients to elevate customer
experience, achieve financial effectiveness, overcome organizational
silos, convert data to insights, and implement digital. Leveraging deep
domain expertise and cutting-edge digital solutions such as WNS
Malkom, an AI / ML digitization platform, we enable them to aggressively
and expeditiously move toward digitalization. While our smart
automation and analytics capabilities help drive intelligent, resilient, and
sustainable operations across the value-chain – ensuring they are ready
for the ‘next’ in the Shipping and Logistics industry.
To know more about WNS Shipping and Logistics practice, read here.
About Journal of Commerce
The Journal of Commerce, part of S&P Global, provides daily authoritative
analysis of international containerized transportation and logistics
offered on a subscription basis and organizes industry-leading annual
conferences, including TPM, that provide immersive information and
networking experiences. Information produced by a team of specialized
subject matter expert journalists supports tactical and strategic decision
making among corporate logistics teams and senior management at
container shipping lines, logistics firms, truckers, railroads, marine
terminals, port authorities, truckers and others participating along end-
to-end international supply chains.
www.wns.com
www.joc.com
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