Logistics industry sees shift to cloud computing

Cloud computing, the latest information technology (IT) buzzword, is starting to make its mark in the world of logistics. A smart move most experts would agree because unlike many other IT fads that have come and gone over the years, cloud computing is changing the face of business by streamlining operations, reducing cost as well as reducing the strain on resources. Michael Henning, general manager of Easyclear, says there is no denying the importance of cloud-based technology in business today. Best described as the use of computing resources (hardware and software) that are delivered as a service over a network – typically the Internet – cloudbased technology is one of the trends that Easyclear is picking up on, says Henning. “There is definitely a shift toward cloud-based technology as well as the use of smart mobile devices,” he told FTW. “They are being integrated into existing software to provide executives with up-to-date information on the status of their shipments, providing much more visibility within the supply chain.” It is a trend that Easyclear, launched in November 2004, is monitoring closely. “We have always focused on simplifying the operational aspects of our clients’ businesses, developing systems to meet with everyday challenges of the logistics industry,” said Henning. “Staying ahead of the game by reviewing current and future trends in technology and adapting to keep up with the changes in order to provide clients with software that aligns with business strategy – or in some cases influences business strategy – is part and parcel of our offering.” Henning says through cloud computing, businesses within the industry can increase performance. “It is also important that a business aligns itself with a third party vendor who applies best business practice and is making use of current technology – not to mention keeping up with current technological advancements,” he said. CJ Pagel, Easyclear managing director, agrees, saying any company’s single biggest asset is its people – closely followed by the systems in place to provide its staff with the tools to manage their job as effectively as possible. “Cloud-based technology – along with smart phone and mobile device technology – is the next wave of change that has not yet been fully embraced, particularly within the freight industry,” he said. “Being able to offer our clients these solutions is crucial as it enables them to ultimately perform better.” The logistics industry continues to face some challenges when it comes to electronic solutions – and the single biggest has been to implement the technological changes within the operational environment as part of the Sars modernisation process, says Henning. “The welcomed modernisation of Sars has been embraced in most sectors of the industry but faces constant and persistent resistance from an operational perspective as business struggles to understand and implement the changes imposed upon them by the technological advancement,” he said. “This is not limited to trade only as Sars themselves struggle with the implementation of new software and systems that are set to provide full visibility of the supply chain.” Pagel and Henning say from a clearing agent’s perspective the latest trend is the e-Rfm and supply of relevant documentation to Sars electronically, while logistics service providers are more focused on finding solutions to ensure seamless integration and visibility throughout the supply chain. CAPTION Michael Henning … ‘simplifying operational aspects.’ CJ Pagel … ‘enabling clients to perform better.’