RangeGate addresses critical supply chain issues with Logistics-Edge

June 2004 Products

RangeGate has completed development and pilot projects of its Logistics-Edge packaged solution for the courier and third-party logistics environments.

The solution allows companies to deploy and obtain electronic proof-of-delivery (EPOD) in realtime wherever vehicles or stations are in the country, while resolving critical inefficiencies in the supply chain.

"The courier and logistics industries face a number of critical issues related to efficiencies and costs, particularly the number of queries per invoice issued," says Mark Lilje, managing director of RangeGate. "Some companies make up to 12 phone calls per query. When that happens, it impacts the entire supply chain with the retailer, courier, distributor and manufacturer potentially incurring costs as high as R100 to reconcile each exception."

Logistics-Edge helps reduce paperwork, queries are resolved at point of contact and credit notes are eliminated, leading to a reduction in debtor days, with a direct impact on revenue.

It also enables companies to perform same-day deliveries. Many companies face a scenario that sees them perform a collection in Pretoria, for example, return the parcel to the distribution hub, flag it as a same-day delivery and despatch it to Midrand that afternoon.

"Logistics-Edge makes it possible to perform the collection in Pretoria and remotely update the device in the vehicle, informing him that the parcel, package or pallet must be delivered to Midrand. Efficiencies are greatly enhanced because the parcel never enters a distribution hub," says Lilje.

Lean invoicing is also made possible, as cash management is improved with the new product to the point that an invoice/delivery note is only issued once packages or parcels have been offloaded.

That improves debrief efficiencies for drivers returning to the depot and it allows vehicles to become roving warehouses in a van sales environment.

"If a customer orders 50 pallets of goods, but at the time of delivery only 48 are available, for whatever reason, a pre-printed invoice leads to a discrepancy. This results in a query and ultimately in the delayed settlement of the transaction. That is inefficient, and so Logistics-Edge ensures that everyone in the entire process is constantly aware of the status of deliveries, vehicles and drivers," Lilje continues.

Other operational enhancements that Logistics-Edge enables are:

In addition, the solution has a built-in vehicle monitoring capability that drivers can use to update the status of their vehicle, and workshop managers can use to maintain vehicles, leading to better vehicle availability and smoother workshop operations.

Famac, a parcel delivery firm in Northern Ireland, is already using the product to manage delivery and collection procedures across its supply chain. Among the benefits that it reports are improved traceability of parcels after they leave the depot; improved operational accuracy; better customer service levels; fewer goods lost in transit; and greater efficiency in electronic data capture and retrieval.

"We wanted to take control over our supply chain process to meet the changing requirements of our customers and to continue our ongoing programme of improvement," says Michael Donnelly, operations director at Famac. "RangeGate's understanding of our business and its planning of the solution was excellent, and ensured the new system was implemented to optimum effect."

For more information contact Mark Lilje, RangeGate, 011 723 9300, mark.lilje@za.rangegate.com

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