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IT - Setting the Cornerstones

The more FleetWatch moves around this industry, the more we realise the influence Information Technology (IT) is having on the new structures of trucking. And it's not just about the internet. In fact, that tool is only now coming into its own in terms of value added services to the truckng industry. It was quite a while back that FleetWatch's technical correspondent, Dave Scott wrote: "There will be a computer in your future" - and he was so right for that future has arrived. It is NOW!

With all this in mind - and as a service to our readers - FleetWatch will, from this issue , be featuring a monthly column discussing IT issues.

We have appointed Tony Davis as our IT correspondent who will be sharing his knowledge and experience with us. Tony heads up Dovetail Solutions and is a man with a great deal of experience in using IT systems to find transport solutions. And let no reader fear of vested interest creeping into this column. Tony will be writing generically rather than from his own company's perspective. Enjoy!

Implementing an IT strategy is a precarious business. Not only is it disruptive to existing processes and systems but it is critically important that it is done correctly the first time around.

This means you have to get the foundations right and make sure the cornerstones are set properly. Unfortunately, the IT industry has a large degree of "hype" attached to it and companies are often lured into buying into the latest "fad" without securing the underlying foundations.

For example, many companies are creating web pages and trying to get into e-commerce before the proper business processes are in place. Current systems not designed to process e-commerce and business-to-business activities are going to fail. In other words, the foundations are unable to take the strains being imposed upon them. The results can be catastrophic from all points, financial and other.

To avoid this type of situation, it is important to take note of the four cornerstones of implementing an IT strategy, namely : automation, information, customer relations management and revenue generation. These will be discussed over the following months through this column starting with automation.

These articles are not going to primarily discuss hardware and networking issues as these are commodities obtained anywhere. Even though they may represent two thirds of the cost of an average IT system, we want to talk about the heart and mind of IT. Hardware and peripherals will be discussed from a non-technical perspective at a later stage.

The first cornerstone : Automation

Automation is the most important cornerstone in implementing IT as it is, by nature, the first. Stemming from the early accounting packages, (do you know of anyone still doing their accounts manually?) automation is the IT component that increases productivity, efficiency, overall effectiveness and control - assuming, of course that it is correctly applied!

It uses the power of the computer to perform functions in seconds that before took hours, days or were too time consuming to compute. It assists in controlling the processes of the business and reports when things are amiss.

Secondly, automation enables you to capture data from all aspects of your business. This is critical as this data becomes the foundation from which you can extract the information you need to run your business. Without the data, you have no basis on which to make decisions. This applies to all levels of business, be it minute by minute operations, or long-term strategic directions.

In the road freight business, this means being able to measure warehouse and vehicle fleet productivity and utilisation. It also involves real time POD management, tracking and tracing, invoicing, dispatching, receiving, route planning and scheduling. All these activities are linked through a single IT system. The information presented is the brains behind decision-making processes - particularly in the two key areas of business, making profits and collecting revenue.

Automation is not cheap but because it saves money through its streamlining effect, operating costs are actually reduced. It is common knowledge you make more money by reducing overheads and expenses than you do by increasing revenues. Furthermore, now you have the data, decisions can be made to constantly fine-tune the business to increase profits.

In summary, the main focus of automation is to speed up your processes and thus become more efficient with more control. Work smarter, not harder. It is also responsible for the collection of data that is used to manage all aspects of your business. Automation is the first cornerstone, and without it, all further building is but mere waste.