EMS completes the visibility picture (page 2)

-- Logistics Management, 6/1/2005

Page 2 of 2
It's important for users to be realistic about what EMS systems can do. A common error is setting unrealistically high expectations about the data that's coming in from carriers. "You can set up alerts that tell you when certain activities don't take place on time," says Provia's Pulling, "but if the carrier is only sending batches of [data] every couple of days, you won't get real-time input and the event [notifications] won't do you any good."

Another pitfall to avoid is setting up alerts for every event that occurs during the course of every shipment. Information overload will result as hundreds of e-mail messages flood the shipper's inbox, Pulling says. Instead, it's best to rely on EMS for notifications and alerts regarding important developments such as delays. "Start with the bigger stuff and work your way backwards," he recommends.

In return for an EMS investment of $50,000 and up (usually significantly more, based on the number of systems with which it's integrated), shippers can realize such benefits as reduction of inventory due to improved shipment visibility, and an automated system that doesn't require a phone call or website visit to check on the status of routine orders. Expect to see a return on investment within a year or less, says Obal, who points to the diminished need for human intervention as the key ROI generator. "You can't reduce the human intervention to zero," he adds, "but close to half of the interaction normally handled by a customer service rep can be handled automatically by EMS."

As supply chains become more global and hence more complex, there will be increasing demand for supply chain visibility, and that will drive demand for EMS applications. Shippers are likely to continue to turn to TMS, WMS, and GTM systems to obtain event management capabilities, predicts G-Log's Johnson. "Event-driven services that manage the business process will be the dominant driving force in business applications over the next five years."

Author Information

Bridget McCrea is a freelance writer who frequently covers logistics and supply chain technologies.

EMS in Action

Not too long ago, Adam Gregori had to pick up the phone if he wanted to know when a shipment of chemicals was going to arrive at one of DuPont's regional distribution centers. Gregori would call the carrier's dispatcher, who would then put a call in to the driver (who hopefully was in the truck at the time) to obtain a rough estimated time of arrival (ETA). "There was a lot of back and forth verbal communication," recalls Gregori, logistics manager for Wilmington, Del.-based DuPont's refinish business, which supplies aftermarket auto paint.

Two years ago, Gregori's ability to track shipments and foresee potential problems changed dramatically when he began using A. Duie Pyle's "Dashboard to Desktop" event management system (EMS). The less-than-truckload carrier transports the DuPont unit's time-critical shipments nationwide, but most are outbound shipments within the Northeast.

Gregori says the EMS system allows him to track every shipment from the time it leaves the distribution center until the time it reaches the customer. When a specified event such as a delivery delay occurs, Gregori is notified via e-mail. He also can verify a shipment's status by accessing the carrier's on-board satellite tracking system via the Internet.

The EMS is particularly useful during times of crisis. One such instance occurred last year, when an order from Europe was seriously delayed. "Everyone in the plant was waiting for it," Gregori recalls. Over a two-week period, he was able to track the containers in the shipment in real time. The EMS system was set up to automatically e-mail him when a container arrived at the port, was unloaded, and was delivered. "Even when I was out of the office," he says, "I just used my laptop to make sure that the deliveries had occurred like they were supposed to."

In addition to freeing up Gregori's time to focus on more important matters, the EMS system has helped the company better manage inbound freight and properly supply its manufacturing line, he says. The system, moreover, enables DuPont to provide its customers with accurate order and shipment information. "It's a way for us to make sure we can provide the type of service that we've committed to our customers," says Gregori.

Your Delivery ETA for Pro#: 75068536 consigned to [Company Name] in Hagerstown, MD 21742 originating from [Company Name] in Worcester, MA 01615 is between 10:00 AM and 10:30 AM today, barring any unexpected traffic delays or extraordinary delivery delays at other delivery stops. Currently the shipment is 2 Mi. NW of Shiremanstown PA & 5 Mi. W of Harrisburg PA. I will do my best to deliver your shipment during this timeframe.

Your Delivery Driver

A. Duie Pyle, Inc.

04/08/05 @ 8:19:17AM

EMS in Action

Below are just a few of the software vendors that offer event management (EMS) capabilities, either as a stand-alone product or as part of a broader solution.

Categoric

Command & Control Center (C3)

www.categoric.com

Descartes Systems Group

Global Logistics Service

www.descartes.com

G-Log

GC3

www.glog.com

GT Nexus

Global Transportation Control

www.gtnexus.com