Softship’s Lars Fischer talks automation in the maritime supply chain and adding value in port
Recently, talk surrounding the automation of shipping, digitisation, and the rush towards the realm of ‘Maritime 4.0’ has had the maritime industry abuzz. But is Maritime 4.0 all just talk? As an industry, are we reaching the peak of our digital capabilities? More importantly, is digitisation a step in the direction? The question that we should be asking is: Are our supply chains – in shipping and beyond – fully optimised for a digital age in a purposeful way? Are we utilising technology in a way that enables us to work more efficiently, to enhance our delivery of services and better control supply chains or, instead, are we complicating matters by replicating systems or processes designed for very different industries? I say this from the perspective of a software provider for the global container liner and ship agency markets, with products designed specifically to meet the needs of these businesses as they carry out their work in managing the movement of cargoes in port and at sea. Often, we see the impact of shipping organisations reliant on computer applications or workflow systems designed for other industries which are not working seamlessly together, absorbing an enormous amount of effort to keep them running. Also, I see shipping businesses that launch headfirst into adopting gimmicky solutions with limited practical purpose and are under-automated, and the effects are felt across the supply chain – especially when cargoes or vessels experience delays in port, or OPEX costs rise due to inaccurate data management and subpar IT strategies.
The solution? Somewhat ironically, it’s a digital one. Shipping needs to be on par with the advanced capabilities of partners across the supply chain and requires integrated solutions, as well as the ability to aggregate and analyse significant amounts of data while mobile. Also, it needs to provide complete transparency for both management and clients to ensure efficient movement of goods worldwide.
Here, we assess what Maritime 4.0 ought to deliver and whether it’s a step in the right direction.
Why does a ship agent’s IT capabilities matter?
Ship agency is not a single offering or service but rather a multitude of tasks selected and delivered to meet the exact needs of a customer, vessel, or call. Agents are responsible for coordinating the quay-side requirements of the vessel: ship supplies, spares and maintenance services, crew changes, husbandry, customs, and immigration formalities, to name a few.
FONASBA, the association for ship agents, identified more than 130 potential operational undertakings for an agent in port – that doesn’t include actions that require careful planning or follow-up to ensure that everything happens when it should, and businesses billed accurately. At its heart, ship agency is a ‘people business’ and is reliant on the skills, expertise and capabilities of trained individuals in ports to ensure the necessary operations that are critical to the smooth management of entire supply chains receive careful and efficient handling.
For an effective service, the right tools are essential. And this is where our digital capabilities matter – when they exist to add value, to solve issues, to bolster capabilities and to serve a purpose. Maritime 4.0, in this respect, should be about thought-out and strategic digitisation, not digitisation for the sake of it.
In it to win it
Unfortunately, and to their detriment, ship owners and operators, as well as charterers, often fail to recognise the ability of ship agents to enhance operation and add value to the supply chain. But, in a market where margins remain constricted, and operating costs are likely to rise yet further, the role of the humble ship agent should not be overlooked. Nor should the capability of all ship agents to deliver services to the same high standard be assumed.
Ship agency is a sector marked by great disparity in means by which services in port are coordinated, delivered, and administered, which is at significant odds with claims that shipping has reached 4.0 status. No agent is the same as the next – some agency businesses utilise highly integrated software solutions, which they can work from on-the-go, anywhere and at any time. Meanwhile, other agency companies still rely on out-dated systems, with some continuing to operate primarily offline entirely.
While I do not wish to be disparaging, as there is always merit in the adage “if it isn’t broke, don’t fix it”, there is, perhaps, greater truth in the phrase “you have to be in it to win it”. To compete in today’s increasingly connected shipping industry, agents have a responsibility to assess their limitations and ability to remain relevant in an increasingly digital world while continuing to add value.
Levelling up
Softship.SAPAS, for example, is an intuitively designed cloud-based solution designed specifically to manage all administrative, reporting and service delivery functions for shipping agents of all sizes. It is not virtual reality for agents, nor is it seeking to be – it is purposeful and practical. The software has a responsive design for seamless use from any web-enabled device, including mobile phones. It does away with the paper and spreadsheets and, importantly, eliminates the re-keying and constant transferring of information from one medium to another that can bog down even the very best agents. The software enables agents to do what they do best, without being cumbersome.
For instance, the central database of Softship.SAPAS is flexible and can be customised to suit individual working practices. A good example is port tariffs, which can be hugely complex and based on a range of factors such as vessel GRT, NRT, LOA, port stay days, and other measures. It is important to capture all this data and aggregate and synthesise it into useful information that can be automated and applied seamlessly to provide significant operational and efficiency savings. Therefore, it is designed to allow optimum control over operations in port and to protect the wider supply chain
Softship.SAPAS is specifically designed to enable ship agents to move with the times without having to sacrifice long-term business relationships – it does not force an overhaul of a successful business under the assumption that it is Maritime 4.0 or bust. Instead, it ensures shipping supply chains remain relevant. Without a doubt, our digital determinism is a step in the right direction.
This article was originally published in the Marine Trader, IMPA’s official journal for maritime procurement and supply chain management, in issue 04 of 2017. Head over to www.impa.net to find out more or simply read new issues on the go with the MT Journal app.
