CASE STUDY onFreight ICT applications:

The applications for Kuhne & Nagel Hellas S.A

Prof. Giannopoulos

Lecture for World Bank

22-6-10

Outline

• The K+N Group in Greece

• The existing Rail Management System of PROODOS (FRETIS platform)

• The E-POD system

The KN Group in Greece

• Headquarters in Athens • 3 Branch offices in Aspropyrgos, Thessaloniki,

Inofyta & Magoula • Subsidiary company Proodos S.A. specialized in Rail

transportation • Participation in the shared capital of: • Sindos Railcontainer Services S.A.: 50% Kuehne +

Nagel AE, 50% Gartner S.A. • Current Number of employees: 660 • Total covered storage area of 125,000 m² over 14

sites in Aspropyrgos, Inofyta, Magoula & Sindos

Overview of business and Market Position in Greece

• No. 1 in Rail transports from Europe to the Balkans – Rail siding within the premises in Sindos consists of 7 rail tracks (total 2

km), which can accommodate 3 trains simultaneously and with possibility of unloading 90 wagons daily

– Train surveillance via tracking and tracing • No. 1 in Road logistics

– Road Charter with more than 21.000 truck departures per year – Experts in full loads

• No. 1 in Airfreight – The only company in Greece specializing in shipspare logistics – Strong partnerships with forwarders in Turkey for transit transports to U.S.A.

• No. 2 in Contract Logistics – Privately operated distribution network of mainland & the island of Crete

• Increasing share in Seafreight

Tracking & Tracing -Rail Transportation (I)

• Kuehne + Nagel has presence in Rail through Proodos S.A. • Proodos S.A. started its activities in railfreight in 1946 and in

1997 implemented a new train system, which has been adopted by the competition.

• Wagons coming from different European countries are formed into trains in 6 junction points and without any intermediate stops are destined to Makis’ junction point, where trains are formed country-wise, per destination.

• The fact that they have the ability of cargo trans-shipment within our premises allow them to offer door to door service without further interference.

• Today KN sets in motion more than 3,500 trains with 2,300,000 freight-tones annually

Tracking & Tracing -Rail transportation (II)

Tracking & Tracing -Rail Transportation (II)

Train composition – Wagon and shipment assignment

Search possibilities for various criteria

Information per Station

Trains scheduled to arrive and departInformation on available wagons left in station or cut wagons (due to possible problem)

GIS Interface

On-line tracking via RFID (Future extensions)

RFID tags attached on wagon Attachment MethodsThe tag can be attached using screws,rivets, double-sided adhesive strips, or avariety of other methods appropriate forthe application.

RFID readers installed on train stations The readers installed on entrance and exit of station enables tracking of wagons with attached RFID tags.

Description of the e-POD Application

The application is about a complete system of monitoring deliveries made (Proof of Delivery - POD) that has as its main purpose the

creation of electronic receipts in a real time environment, while at the same time providing added value to the services.

The introduction of such a system is of vital importance since it allows for potential customers to monitor their products

transportation from start to finish.

Track & Tracing

POD System Requirements

POD – Proof of Delivery

PDA with integrated Barcode Reader

Connectivity through mobile networks(GPRS/3G)

PODMobile Terminal

POD DataBase

WMSDataBase

Web Service Web Service

.xml files .xml files

Communication between terminals

• Use of web services for the communication between the systems database and the different databases the customer operates (KN WMS).

• Development that is based on the latest standards in order to achieve maximum interoperability and the possibility for future integration of other systems.

Friendly and easy to understand end user interface

• User friendly Interface at the users terminal allows for effective and efficient use of the system.

Scenarios for the usability of the system(1/2)

Phase: Loading

• After the loading of a truck and the creation of the complete list of deliveries, the list is forwarded to the drivers PDA while at the same time the system considers the loading complete and verified by default without further checking.

• Possibility of creating a receipt of the list of deliveries to be made via the WMS.

• The driver checks products, by scanning the Barcodes during the loading phase, and in addition informs the system for the creation of the appropriate list of deliveries that need to made.

Scenarios for the usability of the system(2/2)

Phase: Delivery• During the arrival to the recipient, the driver has the option to select the specific delivery from his PDA and update the system when the cargo has been successfully delivered.

• In the event that a barcode exists (either on the cargo or on the delivery list) scanning it will also verify that the delivery has been successful.

• It is also possible to acquire the digital signature of the recipient on the PDA for the further validation and verification, as well as to send the signature to the central base of the POD system.

Improvements on the routing and loading of trucks.

Reduced time of deliveries.

Increased level of customer service.

Reduced delivery/transportation costs.

Advantages of the application

E-POD going to the next level

• So far with the existing technologies/Network capabilities mostly structured data could be transferred back to the WMS

• Upon delivery additional status data are entered in the WMS • Even though smart methods exist the hard copies have to be

scanned and linked upon return to the Warehouse. • New technologies enable new capturing methods not available

before • New possibilities are opened to supplement the tracking &

tracing data with the scanned images of the delivery note as a fool proof of the delivery

• A new next level e-Pod solution will be deployed in 2010.

Conclusion

• Benefits:– Reduced reliance on human factor– More efficient operations– Improved tracking and tracing – Reduced time for the initial train composition and

the re-composition of trains– Easier collaboration with operational partners

• Mainly through the exchange of standardized messages – Increased visibility offered to partners and

customers