Leveraging Technology to Make Your Supply Chain More Efficient
Efficiency and quality are synonymous. Goods that pick up and deliver on-time, without error, reduce costs for everyone, not to mention how this satisfies customers. No quality system is complete without the information systems that collect data that can be used for continuous improvement. According to Mr. Doug Kimmerly, President of DSN, “you can’t manage what you can’t track. In order to be good at a particular process, you must have the systems in place to monitor and track key performance indicators. I’ve always said, we’re not really in the transportation business, but rather, in the information processing business”
“we’re not really in the
transportation business,
but rather in the information
processing business”
This seems like a very dramatic statement! Mr. Kimmerly defends his point of view by saying that “when you really look at what a 3PL does, they are really managing the flow of information. From the requirements of the shipper, the shipment and the ultimate delivery criteria, a 3PL’s job is to put all that information together and choose a service provider that solves the problem for the shipper.” Mr. Kimmerly is the key driver of technology at DSN and in addition to being the President of DSN, he also consults on Information Systems for large truckload carriers. This gives Mr. Kimmerly key insight into both sides of carrier-3PL relationship.
“Most shippers cannot allocate the resources to shipment and carrier management systems that we can. It’s mission critical for DSN to have these systems in place, it’s how we add value in the supply chain.” Says Kimmerly. At DSN extensive carrier management tools are in place. In today’s World, where safety and security are key, DSN keeps a database of all carrier qualifications. From license and insurance data to safety information collected from the Department of Transportation website: Safersys. “This is key,” says Kimmerly, “when we have a choice of carriers, the information is instantly available to our dispatch team to choose the safest carrier.”
In addition to carrier information, DSN collects a wide variety of information about the shipper, consignee and the shipment. All of this information is stored in DSN’s transportation system and is at the fingertips of each one of DSN’s staff to make sure a shipment goes smoothly and according to all the specified criteria. For example, “controls are in place to disqualify carriers whose
insurance has expired, or to disqualify non-hazardous carriers from receiving a hazardous shipment. In essence, our quality system can be built into our computer systems to reduce the chances for error,” said Mr. Kimmerly.
DSN’s systems have always been quality based. Many 3PL’s focus solely on cost reduction and leave performance out of the equation. While DSN understands they operate in a cost conscious industry,
Mr. Kimmerly has always recognized that, “if products do not reach our customer’s customer on-time and safely, the lowest price is often irrelevant. That is why DSN has always designed their systems around quality.” At DSN, carriers are monitored for performance. That is to say data is collected and monitored for on-time pick up and delivery. DSN’s Diamond Carrier Program is designed around giving the best performing carriers the most shipments. “If you don’t have the information systems in place to monitor this key performance indicator, how can you effectively manage your carriers?” asks Kimmerly.
“If products do not reach
our customer’s customer
on-time and safely, the
lowest price is often irrelevant.”
Sharing information with shippers, carriers, and consignees has also been long standing philosophy at DSN. Mr. Kimmerly has been instrumental in developing on-line shipment tracking on DSN’s website. “We’ve worked hard to make our web interface in real-time sync with our AS/400 dispatch system. Our customer can log on to our website and see the exact information our dispatchers are working with, without a time delay,” explains Mr. Kimmerly. The next initiative Mr. Kimmerly is developing will allow DSN’s customers to log on to their website and actually enter the order on-line. Mr. Kimmerly explains that, “many of our customers spend time typing up faxes and emails to send orders to us. Our newly available on-line order entry via the internet, will allow our customers to enter the order directly into our system, with easy drop down menus. This will definitely save time and reduce chances for error.”
In a nutshell, the key elements of DSN’s technology are: collecting information, using the information and sharing the information with the end goal of picking up and delivering on-time and safely. Information used effectively is key to DSN’s quality system. In this light, 3PL’s really are in the information processing business!