“The objective in the industry is to have the information flow running as smoothly as the flow of goods. If you have an integrated supply chain of data flow, then you will have a more efficient flow of goods,” he explains.
In response to industry requirements, a software standard was created by the IT industry to solve problems arising from poor information flows between the supply chains and the client.
This standard, coupled with relevant software solutions, facilitates true information flow, allow- ing all parties in the supply chain to use the Internet as a means of accessing real-time and up-to-date data.
“With this approach, it is finally possible to offer a broader supply chain solution. “Banks, warehouses, and trucking and shipping industries can now all be integrated and have the opportunity to work together to achieve great productivity and efficiency,” concludes Vercellotti.
“Dariel Solutions is able to develop such software systems to manage all the bits and pieces in the supply chain – increasing visibility and efficiency and allowing for bigger savings.”
Vercellotti says that these types of systems have been introduced to an industry focused on integrating warehousing, transportation, finance systems, banks and customs and provides visibility across all the supply chains.
The efficient distribution of goods has been a focus globally, states Vercellotti. “The goods are moving well but the flow of information between supply chains and clients is not efficient. We have discovered that a 15% savings of costs in the distribution channels can be achieved by having more efficient flow of information. This, in turn, has an impact on the flow of goods.”
The new integrated IT systems available to the industry enable the user to pinpoint and tend to parts of the supply chain that have broken down. This is as a result of the visibility the software provides over the entire supply chain, says Vercellotti.
“Business users can also proactively troubleshoot problems, making the supply chain more efficient and cheaper to operate, ensuring that service levels are met more regularly.”
Where the industry was fragmented before, integrated software systems, have enabled fragmented supply chains to work in tandem, explains Vercellotti.
“These software solutions enable collaboration between supply chains and clients. “The client did not know what was happening in supply chains before, and where goods were at any given time,” he says.
The use of a letter of credit, issued by a bank and on behalf of a local buyer, to show that funds are secured to facilitate international trade, is now more efficient with the development of such systems, says Vercellotti.
“When a letter of credit is issued, a lot of information is required. “Historically, this was done by fax and was a manual process. “Today, software systems are able to send information electronically and the letter of credit can almost be created without human intervention. This makes the process efficient and a lot cheaper,” explains Vercellotti.
He says that the software systems also eliminate the time-consuming process of capturing data often duplicated across the supply chain industry.
“Logistics would traditionally require clerks to capture data, and would have the different parties in the supply chain all capturing their own data. These would often be a duplication of the data recorded by another party in the supply chain.”
Vercellotti states that the integration of the supply chain industry was not possible ten years ago, but the ability to share information is becoming more efficient with the Internet.
“The Internet is critical because it offers easy and cheap access to all players in the supply chain. “There are standards and technologies that facilitate the ease with which players can collaborate at an application and systems level. “Without the Internet, we would not be able to move the data and messages between organisations and applications,” he explains.