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PTI Blog: Containerization’s Impact on Supply Chains

PTI Blog: Containerization’s Impact on Supply Chains

Blog contribution by 1-Stop Connections

Containerization rapidly changed the landscape of the supply chain and alongside its significant benefits, so came the respective impacts of the new supply chain. 

What started as infrequent and small vessels quickly grew to the large vessels we see today and of course, the landside congestion increased with the associated need for infrastructure.

At the beginning and due to the short opening hours of container terminals, carriers/hauliers would often queue all day and when they were unable to gain entry to a terminal, they would simply leave their trucks in the line and sleep, ready to try again the next day.

The industry tried to address the queues and the port congestion, but initial efforts were not very successful.

A common theme was the lack of communication between the ports and the carriers with trucks arriving without any pre-warning to the port. 

This resulted in congestion, equipment demand exceeding supply during key parts of the day, and resulting in huge inefficiencies across the supply chain. 

A change was required which came in the form of a capacity management and forward planning system now known as the vehicle booking system (VBS).

Patrick Melbourne introduced the VBS to Australia in the mid-80s. 

Read a Port Technology technical paper by Michael Bourari, CEO of 1-Stop Connections, in which he discusses digital disruption throughout the global logistics industry

A manual paper process allowed carriers/hauliers to book ahead for the hour they wished to pick up their goods.

Enhancements came to this with the introduction of the dial-up internet. 

The next iteration of the VBS eliminated calls to the terminals but containerized volumes grew rapidly requiring further innovation. 

The next big step then came through online systems connected to the terminal operating system (TOS).

Whilst this was a big step, the industry still lacked validation, visibility and smooth access into a port.

 

View 1-Stop's technology portfolio in Port Technology's Supplier Directory

 

Whilst step changes were made in the efficiency of the supply chain through digital transformation, 1-Stop’s progress and innovation did not stop.

Today, further connectivity has occurred with payment systems and security card interaction – all separate systems. 

Through our VBS, links are made to cashless payment systems for the immediate receipt of goods allowing containers to be picked up immediately. 

Another improvement came with secure identification cards, which validated the driver with the arrival at the terminal gate. 

Read a Port Technology technical paper about automation and AI: by 1-Stop Connections

This ensures that the correct driver has arrived at the same time as their appointment in the VBS, for the correct container, with all fees paid, on the correct truck, and that they know the safety requirements of the terminal.

The technology we were able to implement has led to connectivity; leading to efficiency; and in turn, leading to optimization of the supply chain:  Smooth, error-free entry and exit access between trucks and the port – A smooth access port.

Rather than a single system to encompass all functionality, 1-Stop’s approach is to use best of breed systems connected to one another. 

This provides the advantage of being able to utilize new and emerging technologies where appropriate to deliver improved efficiencies for the community.

Our Port Community System (PCS) aims to formulate an eco-system that provides the industry with connectivity, leading to a collaborative and efficient supply chain. 

Following on from what we have been able to achieve, 1-Stop follows the credo that our platform will create a smooth experience for each sector in the supply chain through a connected port community.  

But our work is not over…

1-Stop continues to innovate as we have done for the last 16 years (Est. 2002) by working with the Port Community. 

New technologies and digitalization continues to challenge and enhance the supply chain, whether that is through new methods of connectivity such as blockchain or emergent technologies such as autonomous vehicles…

However, throughout this change, our principles of a connected port community to improve business outcomes remains.

About the Author: 

Jeremy Chee is the General Manager Strategy & Business Development of 1-Stop Connections, a solution provider that is delivering innovative products and services to the freight and logistics community.  At 1-Stop he currently leads their growth activities including Research and Development, Product Management, Marketing and Strategic Partnerships.

With over 15 years’ experience, Jeremy has worked in and consulted to Defence, Transport, Logistics and Port industries where he has specialised in Strategy, Supply Chain, and the application of Technology.

1-Stop Connections’ objective is to improve productivity in the port community so that all users benefit from efficiency gains.

It strives to support the port terminals as well as the freight and logistics community.

 

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