The cost of running on disparate solutions
Organisations large and small dedicate substantial resources daily to improving data quality and integration, because the quality of that data shapes the quality of every executive decision. In the current economic environment, no carrier can afford to invest in systems that aren't delivering process improvements and measurable business performance.
It is critical for organisations to identify shortcomings in system integration and remedy them. The key is a fully comprehensive integrated system that supports the business processes across the broadest scope possible — not another point solution that adds to the existing patchwork.
“Access real-time data — supporting decisions.”
The fragmentation problem, named
The disparate liner solution pattern is recognisable across the industry. It's almost never the result of bad decisions — it's the result of years of good local decisions that didn't have a unifying architecture behind them.
- Pricing and tariff maintained in Excel
- Booking and documentation built in-house or on third-party
- Operations also tracked in Excel
- Container maintenance and repair on a third-party system
- Vessel scheduling built by in-house IT team
- Import documents on the agency system at the discharge port
- Equipment tracking on a separate third-party system
- Manifest correctors maintained on MS-Word, email, and the accounting system
- Vendor payment in liner/agency/accounting/disbursement systems
- Cargo & hull claims on Excel files and hard copies
- Invoicing receipt on the agency system at the discharge port
What integration actually is
Integrated software information systems are sophisticated programs that replace stand-alone applications — each of which handles a different aspect of the business or process. An integrated system blends and interfaces various logical systems seamlessly. The decision to invest in an integrated solution benefits the enterprise as a whole.
Concretely: liner operations consolidate into a single system with an associated booking process, allowing efficient, real-time information distribution end-to-end. An integrated liner shipping system relays real-time information across the organisation, letting users simultaneously track bookings and container inventory — and making management decisions backed by real-time data, not yesterday's spreadsheet.
Six benefits that compound
An integrated system promotes efficiency and reduces cost. Without integration, managing multiple systems and ensuring data consistency is a laborious task that requires investment in additional manual reconciliation systems and headcount.
- Improve response time across the organisation
- Performance management — lower labour costs and improved operations
- Unified data collection across functions
- Software and device compatibility — no system islands
- No double entry of data anywhere in the workflow
- Real-time updates — the data is current, not as-of-last-sync
Interface vs. integration
Almost all business software today can create and accept import/export files. That lets you transfer data between independent solutions. An interface lets you take data from an export system and download it to an import system each time a transaction is created — but a file has to be created or run, and downloaded through a custom interface or import utility. It might only take five minutes, but it's still an extra step every time.
The catch: your data is only as current as your last download. If you're not interfacing frequently, the application data goes out of date. Example: a freight corrector and the impact in invoicing — the possibility of not taking an FCN into account because two disparate systems haven't synced yet.
Interfaces require extra work and are typically not real-time. They're useful for tying two systems together and eliminating repetitive double entry. But they're not the same thing as integration.
“Interfaces are only as accurate as the last update. With integration, changes happen in real time.”
Where integration unlocks the next level
Many organisations still operate in disparate silos, focusing on one function or process at a time. This traps valuable data inside the silo, creates duplicated work, and prevents the synergy and alignment a modern carrier needs across departments. The larger the company, the more harmful the silo pattern becomes.
Applying analytics to big data is increasingly a competitive differentiator — not just a nice-to-have. The key to those opportunities is integrating all data points across departments to give a holistic organisational view. That holistic view across disparate big-data assets cannot be achieved through interfaces alone.
SVM LRP/ARP — what this looks like in production
SVM LRP/ARP — the Liner & Agency Resources Planning system — is a fully integrated platform designed to help container shipping lines and agencies collaborate and manage shipment core competencies on one integrated platform. It ensures consistent real-time data flow, gives executives unprecedented visibility into global operations, and supports better-informed decisions.
The integrated modules provide instantaneous information flow from agency to line, enabling immediate analytics and reporting of business performance. Executives at line head office and the shipment agencies can plan, track and monitor their businesses, take proactive decisions to optimise asset utilisation and reduce cost. SVM LRP/ARP has powered many container liner-shipping companies to achieve operational efficiencies, maintain invoice accuracy, and improve revenue and cost-control processes.
“Full integration is the only way to survive and compete with cost and performance efficiencies.”