Tag / logistics

by Mike Poverello

Is Google moving into box tracking?

container-trackingThe US Patent and Trademark Office has granted Internet search giant Google a patent on a system for securing, monitoring and tracking containers. According to United States Patent 8284045, it describes a two-way communication system, supported by an electronic bolt seal, a network gateway, a web-based platform, and a mobile device, that allows containers to be networked for the transfer of data. Shipping containers are networked for transferring data between the shipping containers. The shipping containers include sensors for detecting conditions associated with the shipping containers. The conditions sensed by any shipping container whether transported by rail or ship is transmitted from an ad hoc network, via a gateway configured for satellite or cellular communications for example, to a container-tracking application server or equivalent computer system. The computer system is remotely located to the shipping container for central compilation, analysis, and/or display of data regarding the shipping containers.

The system describes an environmental sensor that can travel with a product within a carrier’s logistics network. The environmental sensor being configured to sense an environmental condition capable of affecting the product to generate product environment data. The system includes a scanner configured to read product environment data from the environmental sensor. The system also includes a hub control unit configured to communicate with the scanner and receive the product environment data from the scanner and determines whether the product environment data transcends a limit of exposure of the product to an environmental condition. The hub control unit is also configured to generate a transporting instruction to redirect transport of the product to an alternate destination different from its original destination if the hub control unit determines that the product environment data indicates the environmental condition of the product has transcended the limit of exposure. What a mouthful! I dare say that there are people out there that can decipher the patent content and relate to its various diagrams. If you are interested in this topic, please visit the following link – http://www.archpatent.com/patents/8284045. Also visit the Patent Buddy for similar information. Hopefully as the business case for this patent unfolds things may become a bit more clearer – and perhaps a little sinister too for some!

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by Mike Poverello

‘State of Logistics’ survey – SA’s progress revealed

The 8th Annual State of Logistics Survey, a joint project by Imperial Logistics, the University and Stellenbosch and the CSIR reveals good news for South Africa. Logistics costs – as a percentage of GDP – have dropped to the lowest level ever at 12.7%. The in-depth report, which is available online at http://www.csir.co.za/sol/, provides some fascinating insights from some of the industry’s logistics thought leaders.

Transport costs are singled out as the most significant factor impacting the country’s logistics costs, comprising 53.2% of the logistics bill. “The marked impact of the 11% fuel price increase between 2009 and 2010 is no surprise considering the fuel price is the primary transport cost driver,” says Zane Simpson of the University of Stellenbosch. “Had the fuel price remained as it was in 2009, total transport costs in 2010 would have been R5.8billion less, consequently putting logistics costs as a percentage of GDP at an even more favourable 12.5%.” Transport costs as a percentage of total logistics costs would then have been 52% instead of 53%.

Globally, transport costs as a percentage of logistics costs are less than 40% which makes South Africa’s percentage relatively high. “For logistics to become a competitive weapon for South Africa, change is required,” said Cobus Rossouw, chief integration officer of Imperial Logistics. “South Africa is a leader in complex, dynamic logistics and has achieved success despite geographical impediments, severe skills shortages and lack of economies of scale “South Africans need to recognise that we are and can be counted among the best in logistics. And while we will always have much to learn from others, we need to recognise that we also have a lot to offer.” Source: CargoInfo.co.za

by Mike Poverello

China leads shake-up in distribution methods

Out of respect for copyright, I would encourage all logistics followers to visit this link to learn more about a significant shift occurring in the distribution of containerized goods. Some food for thought considering local conditions in South Africa which currently appear to marginalize (if not discourage) inland localisation and multi-modal distribution of goods between the hinterland and major air and sea ports in Southern Africa. Source: FT.com

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by Mike Poverello

Importance of Seal Integrity for Customs

RFID SealSupply chain security in the maritime environment is underpinned by the need for seal integrity. The road to paperless trade eliminates much of the paperwork traditionally required for customs clearance and cargo reporting. The movement of ‘containerised’ import and export cargo does, however, require physical validation of the ‘integrity’ of cargo from its point of dispatch to point of delivery at destination. This is not wholly a customs requirement but at the same time one which any legitimate trader would expect in respect of the safe and secure transportation of his/her cargo.

Technology developments in the logistics industry see many forms of automated gate controls and inventory management. However, if this technology does not support a mechanism to ensure the validity of means of transport, conveyance equipment and seal, then there exists a risk of a breach in the movement of such goods.

From a customs perspective, all parties in the supply chain are both vulnerable and responsible for maintaining such integrity. For this reason, the introduction of Authorised Economic Operator (AEO) programmes and security programmes require a customs administration to implement seal integrity. SARS already contemplated the need for this through provision in the Revenue Laws Amendment Act, introducing Section 11A – Seals and sealing of containers and sealing of packages and vehicles. Formal promulgation of this has not occurred due to the fact that it is dependent on the licensing of logistics operators, its self a modernisation deliverable.

To illustrate at a practical and operational level the import of seal integrity, please refer to an article, authored by Andre Landman (SARS), place under “Downloads”, titled “Seal Reporting Requirements for Containerised Goods“.

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