Author: Milena Sand

Change on the logistics market?

“Six sells” was a title line in the latest issue of DVZ (the leading German publication for transport logistics). It was referring to the price increases for road transport announced for the 1st October by DB Schenker, the forwarder subsidiary of Deutsche Bahn. DSV Road immediately went along with this and likewise announced a price increase of 6% from 1st October. Whilst DSV and Schenker rush into the offensive, other heavyweights in this sector were more tentative, for example “We will have to look into the question of possible price adjustments” said Dachser CEO Bernhard Simon.

Now as a company buyer, one asks oneself the question as to the justification of the Schenker and DSV suggested 6% in a year with dropping fuel costs. The service providers have indicated many causes: increased production costs due to traffic growth, border controls in the Schengen area, required investments in digitalisation, network extension and the mega issue of personnel resources with the carriers.

There is talk of a general change in the market conditions from a buyer to a seller market. In upcoming price negotiations with service providers, it is important to stabilise the business relationship long-term on a fair basis for both parties.

The HDS International Group would be pleased to support you in these issues.

Blockchain in logistics: Moving into the “Internet of secure transactions”

Blockchain is a technology used to store data that was invented by the developer community around the open-source Bitcoin project and has been optimized for digital currency. However, it has the disruptive potential to question existing business models in other industries as well. For example, in logistics and supply chain management.

Counterfeits of transactions are impossible

What is the technology about? The word “blockchain” in English a “chain of transaction blocks”. Behind this is a decentralized database. It allows companies, means a bank or a notary, to organize private transactions, payments, or other transactions without an intermediary. In this way, any information can be stored in encrypted and compressed data units, the so-called “blocks”, and not on a central server, but on all the storage media in the network.

Before this, however, a check is carried out and the data is updated on all storage media in parallel. The principle behind Blockchain: “Transactions are neatly listed one after the other – in a seamless chain, each transactions gets a time stamp and is protected by cryptological procedures, using private and public key of both parties – sender and receiver.

A follow-up transaction only applies to the predecessor, which is ensured via a hash link. In doing so, these data chains lie identically on a multiplicity of decentralized computer systems, which makes counterfeiting impossible.

The blockchain technology provides plenty of room for imagination

However, if these transactions are to be certified in the future via a blockchain and stored decentrally globally, many new possibilites are offered. For example, the secure storage of business transactions can also be validated outside one’s community and for all parties at any time. With the help of Smart Contract orders could only be automatically confirmed unter automated conditions (automatically variable) or automatically paid. Futher possible applications:

  • Order documents are digitally signed by the participants (Stampery)
  • Files for an order are saved decentrally and securely
  • Trough “Trusted Internet of Things” a secure data exchange between globally authenticated devices in the order context can take place
  • Worldwide secure authentification of “Unique Assets” (e.g., containers, wagons, packages …)

The blockchain technology offers a lot of space for our imagination. At some points, the vision of the automated value-added chain can be realized. The magazine “The Economist” with the title “The trusted machine” has brought the key to the point. Due to its characteristics, the blockchain answers trust technically, which up to now has been offered by intermediaries as a service.

The entry first appeared in the BVL blog

In logistics, the clocks tick differently

Claims, the legislature wishes, expire after three years (general limitation period). In transport, however, the clock ticks faster. This is not a three-year limitation period, but a one-year term.

The general information period, which is valid for the most frequent occurrence of claims from daily life, such as rent payments or purchase payments, is used in some industries, e.g. for real estate, is significantly extended (five to ten years). A claimant shall have one year to assert the claims arising from a carriage with the respective carrier. The limitation period applies both to the main claims and to additional obligations. The annual period begins on expiry of the day on which the goods were delivered by the carrier. 

A one-year limitation in the freight law can be “inhibited” by the sender, that is, the deadline stops and does not continue. Such an “inhibition” of the claim must be made in text form by means of an explanation. If the freight forwarder refuses claims, the limitation period continues. The same also applies in the warehouse. The depositor has one year to assert claims from his storage contract to the warehouse manager.

About HDS

Transparency in all logistics costs is promised by the HDS International Group with its news logistics Dashboard. This management cockpit provides an ideal overview with KPI’s and graphics as well as access to standard reports and individually defined analyses. The Dashboard is a comprehensive information centre for reviewing all logistics costs within the company.

transport logistics 2017: We will be there!

The transport logistic in Munich is an international trade fair for logistics, mobility, IT and supply chain management. More than 2.000 exhibitors from more than 60 countries present their products and services for the multilayered freight transport on road, rail, sea and in air. The product range includes logistics and freight transports, telematics as well as in-house transports and material flow. In addition, transport logistics provides you with an in-depth overview of new markets, trends and innovations in the international transport and logistics industry.

We are looking forward to be back in 2017!

This year, you will also learn about intelligent logistics cost management, automated invoice auditing and our in-house software HDS Rebell®

Would you like to arrange an appointment with HDS? Write us!

We would like to welcome you at our booth in hall 5a place 306!

Lower logistic costs trough improved transparency

The logistic- and process costs in many companies are higher than necessary. Above all, the predominantly manual order and invoice processing is very inefficient. The software HDS Rebell® from HDS International Group automates invoice processing.

The potential for optimizing logistic- and process costs is frequently underestimated. Excessive prices, a manual and time-consuming invoice process and the lack of cost transparency for orders and customers are among the typical problems. With electronic billing and accompanying benchmarking the software HDS Rebell® enables an unprecedented level of transparency.

A new transparency with the logistics Dashboard

Transparency in all logistics costs is promised by the HDS International Group with its news logistics Dashboard. This management cockpit provides an ideal overview with KPI’s and graphics as well as access to standard reports and individually defined analyses. The Dashboard is a comprehensive information centre for reviewing all logistics costs within the company.

The main benefits of HDS Rebell®

  • Automated calculation of all logistics costs
  • Complete electronic processing of all logistics processes
  • Digital link with the consignor’s ERP system
  • Regular benchmarks of all logistic costs in market and industry comparison
  • Correspondence and difference clarification with forwarders
  • Automated self-billing system for each logistics service-provider
  • Logistics Dashboard

HDS Rebell® performance modules

HDS Connect® is a web interface for digital orders placed with any number of forwarders or haulage contractors.
HDS Calculate® ensures the calculation and consolidation of complex loads and surcharges.
HDS Flow® combines with all common ERP systems used by consignors and all major freight forwarding systems.
HDS Control® evaluates and monitors the logistic KPI’s and structures. The module creates periodic standard reports, custom reports and graphically with the dashboard
HDS Contract® manages complex tariffs for contracts for land, air and sea freight as well as for warehouse and service contracts
HDS Tender® supports tenders in conjunction with sales forecasts

Selfbilling System

At the highest stage of automated invoice checking, the self-billing system is also available. Invoicing the transport services to the consignor is then not as previously by means of an invoice raised by the carrier but the process is reversed, which means that on instruction from the consignor HDS raises a credit note for the carrier and thus replaces his invoices

DIN ISO 9001 Certification

HDS is once again successfully certified according to DIN ISO 9001:2015

In December 2016, HDS was again able to recertify itself according to the internationally recognized DIN ISO 9001:2015 in the field of quality management.

The quality management standard DIN ISO 9001:2015 is the most common and important standard in national and international quality management (QM). Certification according to ISO 9001:2015 is possible for companies and organizations of all sizes and all sectors. It forms the basis for the continuous improvement process (CIP) of the company-internal quality management systems (QMS).

The certification specifies the minimum requirements for a quality management system that must be implemented by companies in order to meet customer requirements as well as other requirements for product or service quality.

With the introduction of a QM system, for example:

  • the transparency of operational procedures can be increased
  • a higher customer satisfaction can be achieved
  • the error rate and thus costs can be reduced

An essential principle of ISO 9001:2015 is the process orientation. A process-oriented QM system accompanies all essential operational processes and puts them to the test. This can also be used to identify opportunities for improvement in good organizations.

Do you control your transport costs?

Logistics is an area that is growing very fast in most companies, and transport costs are als rising accordingly. But many companies do not really know what exactly they are paying for. In this article we would like to show you some examples

First some facts to the topic of transport costs in companies. It is fact that more than 80 % of European companies pay to high values for freight forwarding. By the constant export growth in Europe, which is connected with rising forwarding costs and individual requirements for the logistic service provider, it is getting more and more complicated for companies to prove these costs on their correctness.

A factor that leads to high transport costs is that companies work with a lot of service provider together and these serve a lot of clients with different performance requirements. Contracts and tariffs come in many different forms. Important aspects  are, for example, the receiving country, which regions are to be supplied, the type of Transports (LTL, FTL) and many more.

The cost of transportation will increase rapidly as a result of currency differences, waiting times different from country to country or non-existent consolidation proposals. These are just some of the more obvious points which lead to high transport costs. Other such as e.g. Different discount structures and tariff structures, where it is unclear how certain cost items are rounded off or how the weight is actually measured, are usually unfamiliar to the customers of the freight forwarders.

About HDS.

The HDS International Group ios one of Europe’s largest consulting companies in the field of logistic Controlling and transport costs Management. HDS analyzed the actual costs, making cost comparison with alternative models condition and provides vulnerability analysis for logistic processes and- costs.

Digitalization in the field of ocean freight

More efficiency, slimmer processes, who does not know these two phrases in logistics? In a survey, the business and consulting company PwC has dealt with the topic: “Where does container logistics go?” employed. To this end, she questioned managers from the industry about possible scenarios and thereby identified what will also be implemented in the coming years. The result is interesting.

According to this, almost nine out of then shipowners (87%) expect digitzation in ship traffic to become extremely significant in the coming years. One out of every four maritime executives surveyed assumes that ships will be controlled by the country in the future – without a crew or helmsman being on board. This scenario was seen by 96% of th19e shipowners in the distance two years ago.

Change in the service spectrum

That these new possibilities will significantly change the service spectrum in martitime sector, is obvious. Half of the respondents (51%) believe that shipping companies will have to assume more tasks within the supply chain in the future in order to remain competitive.  Nearly two-thirds of the respondents (63%) even expect to cover the entire supply chain (“from house to house”) instead of only the pure shipping transport. “The advancing digitalisation now forces the German shipping companies to deepen their service portfolio and cover the logistics chain more extensively – not just at sea, but also on land,” says Claus Brandt, Partner and Director of the Competence Center Maritime Economy at PwC.

Competition from technology companies

62% of shipowners surveyed expect that companies like Google will support the industry with technical services and know-how. Direct investment in the area, on the other hand, Amazon has already done. Since the beginning of 2016, the company’s Chinese subsidiary has been licensed for merchant shipping on the high seas.

Economic situation

The economic situation in which shipping has been going on for several years has been an obstacle to the necessary investment in digital business models. Just a third of respondents believe that, revenues will rise in the upcoming months. In addition, the environmental requirements for shipping companies are steadily tightening. A good of 90% of the respondents are also expecting that requirements will increase in the coming years.

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