6th DVZ conference: The right TMS as the key to forwarding 4.0.
On November 7, the 6th DVZ Conference took place in Frankfurt am Main, at which we were represented as sponsors. The motto of the prestigious logistics event was: ‘The right TMS as the key to forwarding 4.0’. The informationization of logistics along the entire supply chain, including all persons and physical objects involved, was the focus of all presentations and discussions. Advanced digitization and automation of the entire supply chain present a significant opportunity for process optimization and digital collaboration. However, they also bring forth a myriad of questions and challenges, all of which were thoroughly examined in Frankfurt this year. We found the presentation by Prof. Dr. Thomas Krupp and the joint project of logistics experts Reiner Hoppe and Abacab Cloud Solutions’ Managing Director, Christian Meyer, particularly interesting. They provided a deeper insight into the current changes and the future of the forwarding industry.
End-to-end digitization of transport orders
Thomas Krupp is Professor of Transport and Traffic Logistics at the Cologne University of Applied Sciences. He has headed the Master’s degree program (M.Sc.) Supply Chain and Operations Management since 2016. As a member of the expert council ‘Digital Transformation in Transport and Logistics – ETL’, which was established in 2023, he showed us the difference between the ideal and real IT landscape of a freight forwarder. In his presentation on the digitalization of a transport company, he described the challenges involved in processing transport orders. A digital delivery bill, the use of RPS (Robotic Process Automation) or eCRM can not only reduce process time, but also significantly reduce financial expenditure. A modern software environment that supports the transport orders is important here.
He also emphasized the importance of ‘business IT alignment’, i.e. the connection between corporate strategy and IT strategy. Professor Krupp highlighted the fact that a well-considered business strategy is the starting point for the right IT landscape. In his opinion, IT expertise is a fundamental requirement for future business as a logistics provider.
2023: Status of process optimization and automation
Reiner Hoppe and Christian Meyer gave a very interesting presentation on the automation of processes in medium-sized forwarding and transportation companies. The two logistics experts reported on the need for harmonious interaction between administrative and operational, IT and transportation. Based on the comparison of the DVZ Forwarding Monitor from 2019 and 2023, they showed us the most important results and conclusions.
Mr. Hoppe counted among the decisive conditions for process optimization:
Improvement of physical processes
Stable networking of all relevant data sources
Better data quality
Less complex tariffs and conditions
Consideration of operational processes (transshipment warehouse, NV scheduling and drivers)
Solutions integrated into TMS for route planning, CO², driver apps and shipment forecasts, etc. – no new stand-alone solutions
Shipments per day per employee in shipment processing
Handling shipments per day per warehouse employee
Handling shipments per day per m²
Invoiced shipments per month per employee in payroll accounting
Proportion of admin employees to total number of employees
According to Hoppe, processes have generally improved in recent years, but there is significant potential for further optimization. “Companies that have replaced their TMS with a modern solution could achieve the most significant improvements,” said Hoppe. His advice: Don’t flog a dead horse.
Conclusion: Xfreight is a modern, sustainable IT solution
The DVZ conference enriched us with new interesting contacts, a lot of inspiring experiences and useful information, but also gave us the confirmation that we have developed and continue to develop advanced freight forwarding software. Xfreight is an intelligent element of the supply chain, in which digital coordination and process automation work together at the highest level.