Simacan Control Tower

 

 

Dear reader,

 

The previous blogs were mostly about Control Towers and the ideal way how control towers are implemented and used in supply chain solutions. The Simacan guest lecture showed me a more practical approach to control towers. Next to that the simacan control tower is a real case which makes it more interesting.

Simacan is a company that  was founded by two former engineers of TomTom. The company offers Control Tower solutions with the main thought that the control of the logistic operation should be with them who are responsible for it. The control tower is already integrated by companies like Ahold-Delhaize and the Port of Rotterdam. The solution offers clients the ability to monitor their current operations and take action wherever it is needed. In the next part of this blog I will elaborate on the four pillars they found were at core of there solution.

The four pillars of solution;

1. Focus
2. Resolve
3. Inform
4. Achieve

 

1. Focus

The focus element is based on specific routes for transport. To gain visibility real time traffic information such as congestion and accidents are crucial. The system calculates overtime based on these extra traffic information elements. For the last mile process and transport that is related to procuction processes it is very usefull to have a system that calculates the time that is needed based on real time information. For example when a truck load that needs to go in the production is stuck in traffic. With the simacan system this would be known at the factory and thus enabling them to produce another product first. The fact that the system knows about service KPI’s enables it to monitor.

 

 

2. Resolve

The basis that is laid in the focus element is further used in the resolve part. The information that has been gathered is here used to resolve problems. For example when a transport planner gets information about its trucks he then has to solve how all the transport is going to take place regarding customer wishes and traffic specifics. This element enables customers meet consumer expectations and thus customer wishes.

3. Inform

The inform element makes sure every involved party is informed accordingly. This means the user can find valuable data about shipments in an overview.  For the customers information is available regarding why shipments are late. It also contains general information regarding transport such as requested arrival times of customers.

4. Achieve

The achieve element gives a way to go for the future, whit the data that is collected processes can be optimized which can lead to new ways of reducing cost or achieving more from certain processes. With the data new standards can be put in place that lead to more efficient processes and thus in the end a higher ROI for the involved companies.

I hope everybody enjoyed reading.

Roy Smits

Artificial Intelligence in Control Towers

 

 

Dear Reader,

 

Todays blog is about artificial intelligence in control tower solutions. The idea of AI in a control tower was first presented to me in the Samsung case presentations. At first I was like; this is the future and not even closely related to my future working area. after doing some research on AI and appliances of this trend it started thinking different, this is the reason I wrote this blog and I hope you enjoy reading it.

 

What is Artificial Intelligence?

In my opinion as I said AI is still very futuristic. After doing more research the definition I found was; Intelligent machines that work and react like humans. So machines or computers that can make decisions based on the input they get, next to the input they get, they learn to read and predict patterns with the help of algorithms. So in a control tower situation this would mean; making crucial decisions for entire or combined supply chains by a computer with a algorithm on it.

 

Appliances of AI in Control Towers

Because artificial intelligence is trend of the past years, there are not many known appliances of AI in control towers looking from supply chain perspective. The systems that are now being used, are forecasting programs or automatic planning programs. This is not really the bases of AI, but there are resemblances. For example an automatic planning program chooses the best route based on input, but it does not learn anything from previous actions.

 

 

In the figure above; different air control towers and their heights are shown. This are not are control towers as known in a supply chain. The means of air traffic CT and a supply chain CT are comparable.  Both make sure supply meets demand with regard of capacity. The example I have found is about an airport in Sweden. At this airport there is air traffic camera system that is controlled by people at a other airport 90 miles away. There is no artificial intelligence in place yet but data that is collected could in the future be analysed by AI solutions. The fact that this is going to take place gives a hint for supply chain control towers that could also benefit from AI solutions. Supply chain control towers need data for information and based on this data they make decisions. These decisions by humans bring in the possibility of human error. AI solutions could prevent these.

 

 

This was my blog about AI in control towers, I hoped you enjoyed reading.

 

Roy Smits

 

 

 

 

 

 

 

 

https://futurism.com/airports-are-starting-to-use-unmanned-control-towers/

 

Collaboration in Control Towers

Dear Reader,

 

Todays blog is about the collaboration part of a control tower solution, next too that will give an insight in the gain sharing that comes from profit made using a control tower. Because collaboration is needed to gain from certain control tower solutions their has to be a model to share the profits.

What is collaboration actually? The words that come to my mind first are phrases like; working together, collaborating to achieve a greater goal. The Cambridge dictionary states; ‘’ The situation of two or more people working together to create or achieve the same thing’’. In control towers were not talking directly about people, but about businesses and people who work for those businesses.

For a control tower it is of vital importance that players within the control towers collaborate to achieve a common goal. Control towers have lots of technological applications to make them work and to gain visibility across the chain, but in the end critical decisions are made by persons that operate the control tower. These decisions are based on data. When talking about data there is a link to collaboration in control towers. For a control tower to work data from across the chain has to be analysed. My experiences from different internships at different companies tell me that data is a valuable that is not something to easily share with other supplying companies. Especially when the competition is involved in such a control tower initiative clear agreements have to be made about data and this can sometimes cause problems for control tower solution in general.

The white paper by Cape Groep stated that one of the key success factors of a control tower is that there is trust and believe in the collaboration aspect of the solution. Then the second key success factor they mention is a joint business case for al involved partners. This is were the part of gain sharing comes in. Are the profits divided evenly or does the biggest stakeholder get the most profit? The definition logistiek.nl has for gain sharing is the following; having an open book cost calculation between partners in a business venture. Parties give each other insight in the financial books and evenly splitting cost and savings. So this means that profit sharing goes further then just dividing each saving over the involved parties.

 

In my opinion collaboration is import if you are working together with other people or companies. When a control tower is not provided with the correct data it becomes hard to take decent analysed decisions. For example if a transport company does not provide tracking information to the CT the decisions are less fact based.

For the matter of profit sharing I think that profit should be divided evenly over the involved parties according to the investment made. So when a company invests 80% of the project they should get 80% of the profits made with this investment. So an even split of the profits but based on the investment made.

 

 

I hope you enjoyed reading my blog.

 

 

Roy Smits

 

The Business model canvas

 

 

Dear reader,

 

Todays blog is going to give an insight in the business model canvas, next to that I am going to give an description of my experiences with it. The first part will cover the elements that are used in the model and after that my experiences will follow. As a logistics student a helicopter view is an advantage, with the business model canvas every important element in business is described so this helps with understanding the general elements of a business.

The business model canvas is a model used to gain insight in important aspects of a start-up or business. The model was designed by Alex Osterwalder who wrote a book about it together with Yves Pigneur.

 

The business model canvas consists out of nine elements. Each will be described down below and examples will be given.

• Customer segments
• Value proposition
• Customer Relationships
• Channels
• Revenue streams
• Key Resources
• Key activities
• Partners
• Cost structure

As the model is mostly used for start-ups the model is usually printed on a big paper so that it can be filled in with a pen during a brainstorm session or training. In the figure down below a business model canvas is shown with all the elements on one paper.

 

Customer Segments

The customer segment element is about who you want to sell your product of business too. For a business, customers are the ones who generate money, this means it is important that when you start or run a business you know clearly who your customers are and what they want. For example you are running a shampoo business, this would element would clarify if you sell your products to males or females, or young people or adults.

 

Value proposition

In the value proposition it becomes clear what you offer your customer, so what is your customer paying for. Are you as a business operating in a specific or niche market? For example the do sell razor blades or do you offer a service that every customer has their product at their home delivered within 24 hours after they order.

 

Customer Relationships

The customer relationship element explains itself. What relation does company want to have with their customer. Is every customer sold products in whole sale or is it also possible to order one product online at your business. For example Samsung sells products via media market but also via their own website.

 

Channels

The element channels specifies how you want to  sell your product, this is a bit aligned with customer relationships but more focussed on the sales channels. So how are the products sold to the customer. So do you choose every supermarket like albert heijn and jumbo to sell your product or only specified diary shops that are strategically placed throughout a country.

 

 

Revenue streams

The revenue stream describes how you make money and how you that a company is making money in the future. For example do you buy products and sell them or do you produce them yourself. The revenue streams is what company is made off so it is important to clarify how generate revenue.

 

Key resources

Key resources are the enablers of a company. They support a company in generating value for customers. For example to build container ships you need heavy equipment and dry docks, an ERP specialist only needs his laptop and software. Next to that personal or a patent on a certain technology can also be seen as a resource.

 

Key Activities

The key activities make clear how you use your resources to create value for the customer. So what are the activities that are making money for the company, also called the core competences of a company. For example the core business of Samsung electronics is manufacturing electronics.

 

Partners

What partnerships are required to do business. Do you collaborate with your competitor? For example in the beginning of air transport airlines never would have imagined working together with competitors on the same route, if you look at Sky Team now an alliance of airlines that work together to maximize efficiency.

 

 

Cost structure

The cost structure determines where the cost are made to fulfil the key activities. This linked to the key resources and key activities. For example a logistic service provider needs warehouses and trucks to fulfil their activities.

 

My experiences

My experiences with the business model canvas is that it is helpful to understand key elements within a company. When I got introduced for the first time I was bit sceptic because it’s a white paper model and I thought that not all elements would be included. After we used it in the third year to set up a business I saw the value of the model. For me this value is that when I have an business idea and I want to think broader about I use the BMC.

 

I want to thank you all for reading and hope to see you around at my next blog

 

 

 

 

 

 

 

 

1 till 4PL

 

 

Dear Reader,

 

Today’s blog is about the level of integration of logistic service providers in relation to control towers. First of all I am going to explain what the levels of party logistics integration are. Next I am going to describe the relation of control towers to this matter. At last my own opinion on this matter will follow.

 

The logistic party pyramid is build up out of four levels with different actors and different services. My description starts at the top.

 

1PL

The 1PL moves their goods between places while they act as both sender and receiver. They are the owner of the cargo. There are different types of businesses that can be called a 1PL. For example manufacturers or retailers.

 

2PL

A second party logistics provider is a company that focusses itself on transporting goods for customers. This means it ranges from solo truck drivers to larger transport companies. The 2PL includes all transport businesses such as trucking, airfreight and sea shipping.

3PL & 4PL

A third party logistics provider runs its business on managing logistics for their customers. They provide services such as warehousing, transport and value added logistics and services. These services go as far as raw material provision and or daily delivery services. The big difference with a 4PL is the level of integration with the customer. a 4PL creates a complete logistical solution. The 4PL has the resources and the technology to operate such a solution itself for their clients.

 

Relation to Control towers

In my opinion this matter is definitely related to control towers. A 1PL company is related to control towers because they could benefit from a CT solution and in fact there are already examples of it. Companies as Unilever and the Dutch grocery company Jumbo are already using control tower solutions to optimize their supply chain.

 

2PL companies are related to control towers because they are the ones that execute the transport in many occasions and thus they could benefit from load optimization.

 

3PL and 4PL companies are the ones who design, implement and operate a control tower in almost all of the occasions as they have the technology, skilled people and resources that are needed in complex solution like a control tower. For example a company like Kuehne & Nagel which is 3/4PL provider was also mentioned in the slides of the course.

 

 

Thankyou all for reading my blog

 

 

 

Roy Smits