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Viewed dispassionately, the distribution and logistics industry ought to be the prime mover in developing advanced electronic data interchange (EDI) systems, since it has much to gain from the benefits that such systems can offer.
Successful international distribution requires the close co-ordination of numerous parties in the transport chain; the shipper, forwarder, carrier, customs and other regulatory authorities, third party handlers at ports and airports, hauliers, financial institutions and insurance companies. If all of these can be linked so that the flow of data is automatic and unimpeded, then many of the potential problems inherent in such complex transactions can be overcome. Most of the service providers in the transport chain are already connected via EDI systems leavingonly what is probably the most crucial link of all to be established, that between the shipper and the forwarder.
There are, it seems, three major stumbling blocks to the widespread acceptance of EDI by the majority of shippers. These are the costs both in time and resources, a failure to perceive the benefits that can be obtained and, perhaps most importantly, a fear that by going down the EDI road with a forwarder, the shipper will be tied-in to an exclusive and hard to break relationship with a supplier.
At MSAS, we fully understand these doubts but in turn feel that the advantages for both shipper and forwarder to be gained from a true EDI partnership far outweigh any misgivings there might be to entering into the relationship in the first place.
For a true partnership to develop between shipper and forwarder, it is essential that both parties allocate their information technology (IT) or EDI specialists, so that the forwarder can understand the customer's business requirements and the customer can in turn appreciate what services and solutions the forwarder has to offer.
There can of course be problems with the allocation of such resources. There could be added financial costs where companies employ outside IT consultants, or what IT resources there are might be fully occupied with financial and other management functions, thus leaving logistics and distribution at the end of a very long line of priorities.
We have found that such difficulties apply to many...