Transportation and Logistics Managementwith SAP Business One®

Technology adoption within transport and logistics businesses in AfricaUsing technology as a driver to steer your transport business towards efficient and profitable routes

The transport and logistics industry is a dynamic environment that is characterized by constant cost pressures, new players, advancing globalisation, increasing rules and regulations, as well as rapid digital transformation.

Globally, companies are achieving international growth through acquisitions, joint ventures and alliances, which is reshaping the transport and logistics industry. The emergence of a global village has also lead to a decline in trade barriers, which has enabled many new competitors to join the same route.

In the age of instant gratification and immediate access to information, customers’ expectations have transformed. Customers are now demanding quicker, more reliable, accessible and more efficient transport and logistics solutions. Simple logistics companies have had to expand their service offering to now include services throughout the supply chain and not only the delivery of goods.

Now, more than ever, transport and logistics companies need to comply with industry rules and regulations. This process involves

implementing Health, Safety and Environmental (HSE) systems to ensure that fleets comply with regulatory standards.

These standards often differ from country to country and are aimed at minimising as much risk as possible for employees and assets. For HSE to become an efficient and streamlined process, all documents, tasks, license renewals and activities need to take place within a single integrated business management solution.

Digital transformation is also a key trend to keep top-of-mind as processes and operations are increasingly in the spotlight to become more streamlined and mobile. There is also increased demand, and use, of telematics to monitor and track vehicles. Telematics allow transportation businesses to gather accurate data on fuel consumption, asset operation, routes, current location and engine status.

In order for businesses in this industry to maintain a competitive edge over new entrants to the market, it has become standard to adopt technology as a platform to increase efficiency, streamline processes and better manage financials.

Transportation & logistics complexities & challenges arise from dynamic operating environmentsThe transportation and logistics industry is one of the most complex business environments to operate in. There are a wide range of factors that need constant attention and that need constant monitoring to ensure compliance, adherence to safety guidelines and to maintain a competitive edge. Some of the challenges that transportation companies have to face include, among others:

• Utilisation: Getting the most value out of each kilometer by minimising driving times and reducing vehicle idling.

• Compliance: Keep abreast of industry rules and requirements that apply to labeling and manifest reporting as well as vehicle and asset maintenance. There is increasing pressure for transportation businesses to reduce carbon emissions and adhere to stringent sustainability best-practices.

• Paperwork handling: Many SME’s are still using paper-based methods of invoicing, maintenance management and inventory tracking.

• Multiple systems: In additional to paperwork and manual processes, many transportation businesses run multiple, non-integrated systems that are traditionally required to cater to a wide range of needs.

• Customer/driver communications and asset monitoring: Many businesses still rely on manually calling drivers for updates, ETA’s and delivery progress. This is a time-consuming and costly way of getting updates and tracking progress.

• Tracking: Manual inventory management and tracking numerous shipments is laborious when dealing with different tracking numbers and logistics suppliers.

• Communication: When dealing with multiple suppliers, information is often not distributed effectively as there is no central communication platform for all parties involved. This leads to costly shipping errors due to miscommunications or misunderstandings.

• Accelerate transactions and improve cash flow: Automate everyday financial tasks and integrating them with other business processes

• Enhanced decision-making: Compile up-to-date financial statements to support business decision making by reducing the time it takes to draw financial reports or close your books at the end of every period.

• Financial legislation: Comply swiftly and fully with the legal requirements of each country where you do business.

• Analysis & reporting: Satisfy the financial analysis and reporting requirements of your business and make better top-level strategic decisions with powerful analytics.

• Cost per kilometer (CPK) and profit per kilometer monitoring: The Shipping Order allows businesses to collect all the expenses and revenues on a trip for accurate and quick cost assessment.

• Customer billing: Shipping Order allows for the update of additional services rendered e.g. load adjustment, waiting charges before closing the trip, etc.

• Driver, route, tour, and vehicle financial monitoring: Businesses are now able to monitor the profitability for all these parameters. Decision-making is made easier by having access to updated and accurate financials.

Financial Management

• Dispatch planning/routing: Shipping wizard shows vehicle status and next available date, how many job cards are open for individual vehicles, as well as the work load for each vehicle and driver during dispatch.

• Freight management: Tracks the ordered, dispatch, and delivered quantities. It also allows reference/lot numbers to be recorded against freight loads.

• Journey expenses management: Route definitions allow allocation of budget for individuals trips. Anything higher than the allocated budget is automatically sent for approval by a manager.

• Proof of delivery: A CMR consignment note allows customers to indicate the delivered quantity. A trip cannot be completed without indicating this quantity.

• Driver settlement: All cash paid out to drivers for a specific journey is recorded and compared against the route budget. The system can give an account of the driver’s financial standing with regards to awarding bonuses or if he/she needs to be charged for shortages.

• Freight tracking: Integration with Geotab GPS tracking allows businesses to automatically collect location details. It also allows security officers to manually update the locations and delays for each vehicle where necessary.

• Pre/post vehicle inspections: Integrated checklist functionality allows for detailed inspections. If required, the solution can automatically create a job card for the maintenance workshop should any work need to be carried out.

• Status of loads: Shipment status reports indicate what loads are out for delivery and what the DG classification is for that specific load.

Journey Management

• Inspections: Force users to work through all items on a checklist and further add specific issues found during any vehicle walk-around inspection. Items identified during an inspection are transferred to a job card where the maintenance manager can allocate technicians to pick up the work the be completed – all within a single system.

• Job cards: The system allows for the creation of job cards both manually and automatically via inspection checklists.

• Security release from workshop: Security staff at the exit gate are able to electronically check if the vehicle has been cleared the leave the yard.

• Inclusion of workshop staff: A simple to use internal website is provided which is clean, easy to use and intuitive. It also does not require much end-user training. This feature has allowed many workshop staff to get familiar with technology, and more specifically computer systems.

• Fuel consumption monitoring: The system is intuitive enough to define the amount of diesel to issue to a specific truck which is scheduled to travel to a specific destination.

• Technician scheduling & monitoring: Worked performed in the workshop can be tracked through notes and time recording. These job cards become part of the vehicle’s maintenance history and is accessible at the click of a button.

Vehicle Maintenance Management

• Violations: Record incidents and prevent a driver from entering a vehicle if they have accumulated a certain amount of violations.

• HSE incidents: Traditionally, incidents with fatalities, serious injuries and near misses cannot be monitored or tracked in the workshop. With an integrated system, incidents can be recorded and monitored in 1 business management system via reports and analytics dashboards.

• Alcohol & drugs: Utilise the system as an operational risk management function to record and alcohol and/or drug violations. This feature of the system conforms to the Total Driver Points System (DPS).

• Hazards: Each route can have a risk assessment profile captured and a report printed before a driver leaves the yard so they can be aware of, and prepare for, any potential dangers on the route. Route risk assessments are traditionally maintained in Excel and manually printed for drivers during dispatch, which increases the chance of manual errors and increases administration time.

• Dangerous goods handling: Transportation businesses are required to monitor dangerous goods that are on the road based on specific ISO quality certifications, which can be difficult to track and maintain. Our integrated system allows transportation businesses to indicate the DG code on all materials being transported to alert others to dangerous good and adhere to safety regulations.

Health, Safety and Environment Management

• Regulatory compliance: Currently, transportation businesses cannot reliably monitor and control dispatch of drivers who have expired permits. In our solution, alerts and reports are standard that show permits e.g. heavy goods vehicle (HGV) driver licenses that are overdue. This feature of the solution conforms to Total/Puma and Engen standards.

• Recruitment & assessments: Allows for the recording of job candidates along with their qualifications and experience. The system automatically generates onboarding tasks e.g. issue employee handbook, first aid training, etc.

Transportation and logistics businesses are required to, but struggle with:

• Showing the end-to-end process of recruiting new drivers.

• Recoding periodic physical assessments. These are usually manual and completed on Excel and are not tracked within a business management system.

• Standardising ways to orient new employees

Driver Management

About Bluekey Seidor

Bluekey is Africa’s most awarded SAP Business One partner, SAP PartnerEdge Gold status, SAP EMEA Pinnacle Award Winner, SAP Business One Africa Partner-of-the-Year 2005-2011, SAP Business One Africa Retail Partner award 2013-2014 and SAP Business One VAR of the year 2105.

Our 100+ staff service more than 280 customers across the continent through full service branches in Johannesburg, Cape Town, Durban, Nairobi, Dar es Salaam and Port Louis, and our extensive business and technology partner network enhances our reach and capacity.

Used by more that 55,000 customers around the world, SAP Business One brings sales, financial management, banking, purchasing, manufacturing, inventory management, service and customer relationship management together in one flexible, responsive system.

Bluekey Seidor is the No. 1 SAP Business One Partner in Africa.

Contact Us

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