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The Tech-Driven Yard: How YMS Is Transforming Logistics · Speaking of Supply Chain

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Speaker 1: You're listening to Speaking of Supply Chain, a Meeboch podcast.
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Speaker 1: This is a show for logistics professionals looking to learn
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Speaker 1: more about the latest innovations in supply chain. Each episode
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Speaker 1: will feature a conversation on topics such as mitigating supply
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Speaker 1: chain disruption and reducing risk, current automation trends, sustainability initiatives,
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Speaker 1: and more. Let's dive right in.
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Speaker 2: Hello, and welcome to Speaking of Supply Chain, where we
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Speaker 2: explore trends, current events, and innovations impacting the logistics and
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Speaker 2: supply chain industries. I'm your host, Ellen Wood. In the
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Speaker 2: digital age, there seems to be a management system for
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Speaker 2: every aspect of logistics WMS, TMS, LMS, and the most
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Speaker 2: recent addition to this lexicon is YMS. The yard is
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Speaker 2: often the unsung hero of supply chain operations. It's where
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Speaker 2: the rubber meets the road literally. Today we're diving into
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Speaker 2: the world of yard management with my guests Michael Augustein
1:05
Speaker 2: and Matias Platzer from Westernocker, and we're going to talk
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Speaker 2: more about yard management. Welcome, gentlemen, thanks for having us.
1:15
Speaker 2: So what is it that Westernacker does for any of
1:18
Speaker 2: our listeners out there that may have not heard the
1:20
Speaker 2: name what is it that Westernacker does.
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Speaker 3: So, especially in the English speaking countries, it's a very
1:27
Speaker 3: hard name to pronounce because as you might tell by
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Speaker 3: our name, we are German based company Westernacher Consulting. So
1:34
Speaker 3: what we do is we are an SAP implementation partner
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Speaker 3: that is focusing around digital supply chain and digital transformation
1:41
Speaker 3: using latest SAP technology. And in context of that and
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Speaker 3: context of the digital supply chain, we are also heavily
1:49
Speaker 3: engaged in the supply chain execution space which mainly involves transportation,
1:54
Speaker 3: warehousing and the topic that we are talking about today,
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Speaker 3: which is yard management and art operation. So my name
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Speaker 3: is Michael Augson. I am a managing partner here Westerner Consulting,
2:05
Speaker 3: the global practice director for our yard logistics practice. So
2:09
Speaker 3: for almost seven years I'm mainly doing dealing with yard
2:16
Speaker 3: processes and how customers can optimize their yacht operations.
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Speaker 4: I'm Kizasa. I'm the practice director for Uploatistics in Europe
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Speaker 4: from Westonata. I deal with yard management software and the
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Speaker 4: art management for over ten years now, so all my
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Speaker 4: professional life to be honest, So.
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Speaker 2: Let's get into our topic today which is yard management
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Speaker 2: and it seems so intuitive or second nature, And maybe
2:45
Speaker 2: that's just because I've been in the supply chain industry
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Speaker 2: for long enough now that everything just kind of sounds logical,
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Speaker 2: like why wouldn't you have this? But this isn't something
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Speaker 2: that every operation is utilized to help organize the work
3:02
Speaker 2: that they have in their facilities and in their campuses.
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Speaker 2: So what is the hold up? Why would organizations not
3:09
Speaker 2: have this in place? In this digital age where all
3:12
Speaker 2: of our information and all of our processes are to
3:15
Speaker 2: a point of being managed by a software, what would
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Speaker 2: be the reason that companies are holding off on managing
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Speaker 2: their yard operations.
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Speaker 3: It's a good question, and I think that you've partially
3:27
Speaker 3: already given you the answer to yourself by your introduction.
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Speaker 3: So it's part of the supply chain story, the yard
3:33
Speaker 3: management aspect of it, but to be honest, it's a
3:36
Speaker 3: smaller part of it. And there are other parts that
3:38
Speaker 3: are at first, when you look at it on paper,
3:41
Speaker 3: more important and more pressing, namely transportation and warehousing, but
3:45
Speaker 3: also of course other aspects. But still, in the end
3:48
Speaker 3: of the day, what I think we in the industry see,
3:51
Speaker 3: but also what our customers are seeing, is that everything
3:55
Speaker 3: is getting more and more connected, more and more closer
3:57
Speaker 3: to each other. Ten years ago, you implement or you
4:00
Speaker 3: would optimize your warehouse operation, you would optimize your transportation operation,
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Speaker 3: and you would leave it there and basically run in
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Speaker 3: a more sideloed fashion, whereas nowadays everything comes so much
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Speaker 3: more together in terms of the processes, how they integrate,
4:15
Speaker 3: how they handshake. And this is where a lot of customers,
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Speaker 3: a lot of people in the industry start to identify, Okay,
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Speaker 3: there is something missing if we are only talking about transportation,
4:25
Speaker 3: only talking about warehousing and production, and that is the yard.
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Speaker 3: So we see the trend definitely happening that more and
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Speaker 3: more companies turn their attention into yard management, given the
4:36
Speaker 3: fact that it is so important and that it is
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Speaker 3: also the linkage between the transportation and shipping process on
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Speaker 3: the one side and the warehousing and production manufacturing process
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Speaker 3: on the other side. So if this link, even if
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Speaker 3: it's not as big in the overall and end process,
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Speaker 3: but if this link doesn't work one hundred percent or
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Speaker 3: creates a bottleneck, you can optimize your transportation as much
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Speaker 3: as you want, you can optimize your warehouse production as
4:59
Speaker 3: much as you want. But if something in the middle
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Speaker 3: doesn't work, the end to end process doesn't work, and
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Speaker 3: that's where a lot of pension now grows around this topic.
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Speaker 2: Well, and I think that's probably why I'm having trouble
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Speaker 2: wrapping my brain around it, because the transportation management and
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Speaker 2: then of course the warehouse management, they are completely dependent
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Speaker 2: on that interim section, which is getting the goods out
5:21
Speaker 2: of the transportation and into the facility. So to me,
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Speaker 2: it's a no brainer. I'm glad you're here to help
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Speaker 2: our listeners understand the crucial role that it plays. So
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Speaker 2: if we're talking about that potential disruption of goods not
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Speaker 2: being where they need to be at that time, how
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Speaker 2: does the yard management other than the obvious of knowing
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Speaker 2: where the goods are, but in terms of resilience and
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Speaker 2: planning and mitigating some of those other potential disruptions.
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Speaker 3: So basically what we have seen over the last years, yeah,
5:56
Speaker 3: talking about supply chain, supply chain resilience. Basically everything started
6:01
Speaker 3: five years ago with global pandemic. Then we had things
6:04
Speaker 3: going around like the sewers canard crisis, so supply chains
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Speaker 3: are under major stress all the time. What has definitely
6:12
Speaker 3: changed in focus is that a couple of years ago
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Speaker 3: no one was really that concerned about supply chain nowadays
6:19
Speaker 3: or back back in the days that I've mentioned, everyone
6:22
Speaker 3: was all of a sudden talking about supply chain, because
6:25
Speaker 3: in the end of the day you will notice when
6:27
Speaker 3: you are going into a grocery store and all of
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Speaker 3: a sudden, something is missing or something is missing for
6:31
Speaker 3: your production. This is when you notice that you have
6:34
Speaker 3: a problem in your supply chain. Problem is it's too
6:37
Speaker 3: late in that point of time. So in terms of
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Speaker 3: how you can mitigate these impacts that I've just mentioned,
6:43
Speaker 3: it's of course always the end to end picture. And
6:45
Speaker 3: as I've already mentioned, the end to end picture when
6:48
Speaker 3: we are talking about supply chain and bugistics is not
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Speaker 3: only transportation and warehousing. There are multiple components that come together.
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Speaker 3: Yard is being one of those components. And the example
6:59
Speaker 3: is very easy. If you're looking at industries that are
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Speaker 3: producing just in sequence, it is cru sure that you
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Speaker 3: have a very very constant and planned flow of goods
7:08
Speaker 3: into your production line. For that the last thing that
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Speaker 3: you want to happen is bottlenecks at the gate, for example,
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Speaker 3: where the truck driver has to wait thirty minutes until
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Speaker 3: they can enter the premises or you don't want basically
7:21
Speaker 3: some kind of goods arriving into your warehouse too late
7:24
Speaker 3: or too early, so you need to give them a
7:26
Speaker 3: time when they are basically expected to arrive. So these
7:30
Speaker 3: are things that are necessary for a seamless supply chain
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Speaker 3: execution that also increase the resilience of your supply chain
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Speaker 3: because it gives you a lot of visibility at the
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Speaker 3: end of the day, you know upfront if something goes wrong.
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Speaker 3: From a yard and warehousing perspective, if you actually track
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Speaker 3: these processes and if you maintain these processes correctly, rather
7:49
Speaker 3: than flying blind and basically not knowing when what is
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Speaker 3: going to arrive, or simply losing time in the entire
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Speaker 3: process itself.
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Speaker 2: So what would be the strategy behind managing all of
8:01
Speaker 2: that equipment, those goods, and just all the other uncertainties
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Speaker 2: that can come up in that transportation process Mathias.
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Speaker 4: Yeah, it's already mentioned by Michael. Uncertain this in the
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Speaker 4: supply chain would be whether you get your supply or
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Speaker 4: you don't get the supply. Yeah. In perspective of the yard,
8:19
Speaker 4: this means there is either an incoming cargo or an
8:23
Speaker 4: incoming means of transportation, or there would be an outgoing
8:26
Speaker 4: cargo or outgoing means of transportation. The un certainly is
8:30
Speaker 4: you would never know when a certain cargo is due
8:33
Speaker 4: to arrive. So the strategy is to manage this influx
8:37
Speaker 4: of cargo. You need to lend beforehand. You need to
8:40
Speaker 4: have like a forecast to see when is cargo due
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Speaker 4: to arrive at your warehouse, at your yard and when
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Speaker 4: it is due to leave your warehouse or your yard. Again,
8:52
Speaker 4: and this is also taking here in parallel the warehouse
8:55
Speaker 4: and the yard. It's very important not only to focus
8:59
Speaker 4: on the stock levels in the warehouse, but you also
9:02
Speaker 4: need to take into account the stock levels of cargo
9:05
Speaker 4: in your yard. So a lot of cargo is temporarily
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Speaker 4: stored within the yard and you need to have this
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Speaker 4: in your over picture. And the strategy here is actually
9:16
Speaker 4: to smooth the peak times throughout the day. So there
9:21
Speaker 4: there is that you have an available capacity of equipment
9:25
Speaker 4: of workers in the yard, but this is moving throughout
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Speaker 4: the day, so you don't have your peak times and
9:31
Speaker 4: you don't need an excessive amount of workforce for example,
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Speaker 4: and you don't need to react to a major influx
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Speaker 4: of incoming traffic and so on. So there there is
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Speaker 4: to have this integrated forecast to steer the incoming trucks
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Speaker 4: or railcars, et cetera, to just smooth your total yard
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Speaker 4: utilization throughout the day.
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Speaker 2: So really, this is just a matter of holistic supply
9:58
Speaker 2: chain execution. When it comes to the needs of the facility,
10:02
Speaker 2: the production facility, the storage warehousing, when it comes to
10:05
Speaker 2: the transportation, there needs to be that connection that knows
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Speaker 2: when the transportation's coming in, what the warehouse has the
10:13
Speaker 2: capacity to hold, and all of the in between movement
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Speaker 2: that is taking place between those two. So, Michael, can
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Speaker 2: you tell us a little bit more about the role
10:24
Speaker 2: of that importance. I mean, because to me, it sounds
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Speaker 2: absolutely critical that all of this happens in the order
10:31
Speaker 2: that it needs to happen, in the timeframes that it
10:33
Speaker 2: needs to happen, with the when it comes to labor,
10:36
Speaker 2: when it comes to everything that Mattias was just saying,
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Speaker 2: this is critical for especially larger production facilities that need
10:44
Speaker 2: to have their campus I would say functioning daily.
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Speaker 3: Absolutely, it's mission critical in the end of the day
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Speaker 3: that all of these components work hand in hand together.
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Speaker 3: And luckily us as a consulting company, we have the
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Speaker 3: privilege of talking to a lot of customers from a
11:02
Speaker 3: lot of different industries. So we are not only exclusively
11:05
Speaker 3: talking about a trend that comes from one specific angle
11:08
Speaker 3: or viewpoint, but what we are getting talking to our customers,
11:11
Speaker 3: and it doesn't matter which industry we are talking to
11:14
Speaker 3: which customers. More and more we are seeing the trend
11:18
Speaker 3: towards holistic supply chain execution. So this really talks about
11:24
Speaker 3: the logistics process, no matter whether you're a shipper manufacturer,
11:29
Speaker 3: whether you're a logistics service provider. But that's basically what
11:32
Speaker 3: a lot of customers are driven nowadays, whereas in the past,
11:35
Speaker 3: as I've already mentioned, these kind of operations used to
11:38
Speaker 3: be siloed. So why we are seeing this is very
11:41
Speaker 3: very simple. Number one, it's a market trend as well. Yes,
11:45
Speaker 3: so if I'm producing something and I'm sending this to
11:48
Speaker 3: my customers, I have a request from my customer to
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Speaker 3: update my customer anytime about the status of the shipment,
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Speaker 3: no matter whether it's in transportation, no matter whether it's
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Speaker 3: in sitting in the art and waiting to be picked up,
12:00
Speaker 3: no matter whether it's still in the warehouse. But there
12:02
Speaker 3: is an increased demand across all the stakeholders in a
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Speaker 3: supply chain to provide visibility. So talking about the yard,
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Speaker 3: it is very, very crucial to always know if I'm
12:14
Speaker 3: talking about a trader that is sitting in my yard,
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Speaker 3: what is on that trader, How long has it been
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Speaker 3: sitting in that yard, Which orders are on that trader.
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Speaker 3: Is there an order that has priority because it's sitting
12:25
Speaker 3: on there too long, or it's already missed the date.
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Speaker 3: These are all crucial information in order to steer my
12:31
Speaker 3: entire process in the end of the day. If I'm
12:33
Speaker 3: not seeing this information, I'm not able to drive transportation
12:37
Speaker 3: or warehousing on the other side as efficiently as I
12:40
Speaker 3: want to. And this is exactly what we are seeing.
12:42
Speaker 3: And the second thing is, and I'm sure we are
12:44
Speaker 3: going to talk about this later as well, is of
12:46
Speaker 3: course also the technology aspect of it. So nowadays, with
12:50
Speaker 3: the technologies that are available in the market and the
12:53
Speaker 3: enterprise software that is available in the market, you can
12:57
Speaker 3: integrate all of your supply chain processes. These processes talk
13:01
Speaker 3: to each other, have them exchange data, increase that visibility
13:05
Speaker 3: so that when I'm in transportation or when I'm actually
13:08
Speaker 3: in transportation planning and I already know okay, in seven
13:12
Speaker 3: days and fourteen days, this is what comes into my yard,
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Speaker 3: and based on this, I can already determine this is
13:18
Speaker 3: the amount of traders I need, or if I'm operating
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Speaker 3: raycars in my yard, this is the amount of raycars
13:23
Speaker 3: I need, and with that the amount of movements that
13:26
Speaker 3: I need to perform in order to basically meet those requirements.
13:29
Speaker 3: So you see, it's all connected in the end of
13:31
Speaker 3: the day. What we are seeing over the especially over
13:34
Speaker 3: the last five years, is going from a siloed approach
13:38
Speaker 3: where you will do your transportation, you will do your yard,
13:40
Speaker 3: you will do your warehousing. Everything gets more and more
13:43
Speaker 3: connected to really create this solistic supply chain being able
13:48
Speaker 3: to optimize the entire process because number one, it's mission critical,
13:51
Speaker 3: as we have already mentioned. Number two, this is also
13:54
Speaker 3: where you can get a competitive advantage in your supply
13:57
Speaker 3: chain towards your customers, but also towards your suppliers if
14:01
Speaker 3: your supply chain is up and running versus if you
14:03
Speaker 3: are having any issues.
14:04
Speaker 2: Here you mentioned technology, and one of the other technologies
14:08
Speaker 2: that we've been talking about here on the podcast with
14:11
Speaker 2: a number of different guests are autonomous vehicles and the
14:14
Speaker 2: vehicles or other types of technology. Are those able to
14:18
Speaker 2: be incorporated into this yard management as well when there's
14:23
Speaker 2: not a person guiding this AGV or this other vehicle
14:27
Speaker 2: moving goods throughout the facility.
14:29
Speaker 4: I think actually we then need to answer this in
14:31
Speaker 4: two different So when we're talking about achivs, they would
14:36
Speaker 4: have been around for years now. So hivs are I think,
14:40
Speaker 4: thinking back to my university courses, we already sort examples
14:45
Speaker 4: back in the days twenty years ago about hivs in
14:48
Speaker 4: container eras. So the most known examples would be the
14:52
Speaker 4: Port of Los Angeles or the Port of hamber And
14:55
Speaker 4: as we speak, these ahivs are often used in container
15:00
Speaker 4: terminals there, so at the moment that we can only
15:02
Speaker 4: think of examples of container terminals here. So if anybody
15:05
Speaker 4: out there we have a different example that ahivs in
15:08
Speaker 4: yards are used for other cargo than for containers, just
15:11
Speaker 4: reach out to me. I want really want to know
15:13
Speaker 4: about this. But yeah, the hivs, Yeah, they of course
15:18
Speaker 4: need a management system in the background. They need to
15:21
Speaker 4: have the root guidance, they need to have the requests
15:24
Speaker 4: and their orders sent to them. So everything is system driven.
15:28
Speaker 4: Everything is system driven for h tivs. So h TV's
15:33
Speaker 4: are a great opportunity to automize and to optimize your processes.
15:40
Speaker 4: Just think of the safety distance between two transportation equipments
15:46
Speaker 4: in the yard. So when manually driven you need of
15:48
Speaker 4: course a longer distance in between just in case of
15:52
Speaker 4: exceptions of breaking, et cetera. With h TV's you can
15:55
Speaker 4: reduce these safety distances between the two vehicles moving on
16:00
Speaker 4: the yard. When talking about then the yard design, when
16:03
Speaker 4: using htvs in your yard, htvs normally operate in enclosed areas,
16:09
Speaker 4: so there is just each movements in this area, so
16:14
Speaker 4: there is no combination between manuator trucks and this automated
16:19
Speaker 4: guided vehicles. And this is what we saw in the
16:22
Speaker 4: last couple of years with autonomous driving taking over not
16:25
Speaker 4: only in the yards but also on the spreeeds. We
16:29
Speaker 4: now have a combination of this. So there are the
16:32
Speaker 4: first projects out there. There are the first startups out
16:35
Speaker 4: there or autonomously shunted trailers with little shunters that are
16:42
Speaker 4: of course electronically powered, but also autonomous driving. Also system
16:47
Speaker 4: driven by a yard management system. The yard management system
16:51
Speaker 4: also gives the requests the from location, the two location,
16:55
Speaker 4: the orders what to move, what to move from which
16:59
Speaker 4: area of the yard to rich location in the yard
17:01
Speaker 4: and so on. But with this new technology, autonomous driven
17:06
Speaker 4: shunters with autonomous hunters, we would actually have a combination
17:10
Speaker 4: there so we can use them in open areas of
17:13
Speaker 4: the yard. So just as an example, an Excellal truck
17:17
Speaker 4: driver could come in into the yard, would move his
17:22
Speaker 4: or her excenal truck around in the yard. But still
17:25
Speaker 4: in between there would be the shunters autonomously driven by
17:28
Speaker 4: the system shunting their internal yard movements between the areas
17:34
Speaker 4: of the arc. This is actually the latest trend in technology.
17:38
Speaker 4: We've seen this now for a couple of years and
17:40
Speaker 4: the first startups are actually working on this optimization potential
17:46
Speaker 4: for the yard.
17:47
Speaker 2: How is the adoption rate of YMS going? I mean
17:51
Speaker 2: it has lots of roles in the supply chain optimizing
17:56
Speaker 2: yard operations obviously, but there's the visibility issue, there's the
18:01
Speaker 2: cost issue. How many companies, how many facilities, how many
18:06
Speaker 2: campuses are actually utilizing this technology to their benefit.
18:12
Speaker 4: I can give you an exect number on this here,
18:15
Speaker 4: but we of course see an increasing number of companies
18:18
Speaker 4: here where the yard management gets into focus. Why just
18:23
Speaker 4: imagine we have visibility in warehouses. For years now we
18:28
Speaker 4: have automated warehouses. Everything is fine in the warehouse, we
18:31
Speaker 4: have our KPIs, we do optimization there. We also see
18:35
Speaker 4: supply to networks where transportation is working fine. We have
18:38
Speaker 4: our systems for this for years now well established. We
18:42
Speaker 4: have our visibility there, we have our optimization going on there,
18:46
Speaker 4: we have our KPIs. And this is the arc management.
18:49
Speaker 4: The just this gap between transportation and warehouse was often
18:53
Speaker 4: overlooked over the last now let's put it like fifteen years,
18:57
Speaker 4: ten years. But since ago we see this increasing number
19:01
Speaker 4: of companies that are interested in managing their yard processes. Why,
19:06
Speaker 4: managing is all about getting control over processes. So without
19:11
Speaker 4: getting control over processes, it's just a blind spot. So
19:15
Speaker 4: for most of the companies, the yard was actually a
19:18
Speaker 4: blind spot where they couldn't react, where they wouldn't even
19:21
Speaker 4: see that there are problems in their hubs, in their
19:25
Speaker 4: campuses and so on. So first of all, they need
19:30
Speaker 4: a system to manage their processes, to get the visibility
19:35
Speaker 4: over their data. Once they collect the data, and once
19:39
Speaker 4: we establish in the yards KPIs and reporting and so on,
19:44
Speaker 4: we then identify where are the bottlenecks, Where do I
19:48
Speaker 4: need to react, Where do I need to all my
19:52
Speaker 4: processes better? Or where am I lacking of control of
19:56
Speaker 4: all my processes? This is why we see an increase
20:00
Speaker 4: using number of yard management users out there.
20:03
Speaker 3: And just to add to what Matis is saying, a
20:05
Speaker 3: yard management system is not EXL so because I think
20:10
Speaker 3: most of the reality is you go to a customer
20:13
Speaker 3: site and you ask them how do you manage your process?
20:15
Speaker 3: Because the process exists for years already, as Matiss said,
20:19
Speaker 3: so it's not like it hasn't been looked at or
20:22
Speaker 3: touched it. But the reality also is that I would
20:25
Speaker 3: say in eight out of ten cases where I'm going
20:27
Speaker 3: to a customer that has not implemented a YM as yet,
20:30
Speaker 3: they are using EXL and walkie talkies and basically John
20:35
Speaker 3: is yelling at Jake to move a trailer from A
20:37
Speaker 3: to B. And that is of course, that is a
20:40
Speaker 3: new reality, and this is not a yard management process
20:43
Speaker 3: which is system driven. And this is exactly where a
20:45
Speaker 3: yard management system comes into place to replace these processes
20:49
Speaker 3: and then in the end of the day also optimizes them.
20:51
Speaker 2: How then, are these technologies integrated with the WMS, with
20:57
Speaker 2: the TMS, with all of the hardware, the mechanics on site,
21:02
Speaker 2: how does this really fit into all of those other
21:07
Speaker 2: components of the supply chain management.
21:10
Speaker 3: So it's very important that you choose a yard management
21:13
Speaker 3: system that, besides the functionalities of yard operations, also offers
21:19
Speaker 3: a variety of options in order to integrate into the
21:22
Speaker 3: supply chain network. So to give you an example, if
21:26
Speaker 3: you're looking at a largely used enterprise software as AP
21:31
Speaker 3: for example, is that comes with a lot of standard
21:34
Speaker 3: integrations that are already existing out of the box between
21:37
Speaker 3: the transportation, warehousing, and yard processes. So if you're running
21:41
Speaker 3: all of this in one common technological layer, it's very
21:46
Speaker 3: easy to connect these processes because you have standard out
21:49
Speaker 3: of the box integration as scenarios and processes that you
21:52
Speaker 3: can easily configure, and then you're up and running, and
21:55
Speaker 3: then you're actually also seeing the benefits that we have
21:57
Speaker 3: already talked about in terms of visibility, in terms of
22:00
Speaker 3: having all these processes talking to each other and also
22:03
Speaker 3: the mandatory handshakes. But of course there are also scenarios
22:06
Speaker 3: where a yard management system that you're implementing has to
22:10
Speaker 3: talk to a variety of other systems. Yet it could
22:12
Speaker 3: be that on the transportation side, I'm using System A,
22:15
Speaker 3: whereas on the warehousing side, I'm using System B from
22:18
Speaker 3: two separate suppliers. In that case, it is always important
22:21
Speaker 3: that you choose a system that offers open integration technologies
22:25
Speaker 3: so that you can easily integrate your art management system
22:29
Speaker 3: into these areas, because in the end of the day,
22:32
Speaker 3: we have already touched upon the siloed operation. If you
22:35
Speaker 3: do not integrate all of these components and make them
22:38
Speaker 3: talk to each other, yes, you might be able to
22:41
Speaker 3: digitize your processes, which is already a benefit, but the
22:44
Speaker 3: true benefit that you want to see comes out of
22:46
Speaker 3: the integration, and for that it is very important to
22:49
Speaker 3: not just choose any solution that is out in the
22:52
Speaker 3: market from a yard management perspective, but that you choose
22:55
Speaker 3: the system that fits into your supply chain that ideally
22:59
Speaker 3: already you built on technology that you are using already
23:03
Speaker 3: could be. For example, in the case that I've already mentioned,
23:05
Speaker 3: if you're using SAP today, it makes sense to look
23:09
Speaker 3: into an SAP product rather than a third party product
23:11
Speaker 3: because it makes live easier at the end of the day.
23:14
Speaker 2: So as we're talking more about making life easier for
23:19
Speaker 2: these companies, one of the major struggles that companies are
23:23
Speaker 2: facing right now is labor and workforce management and having
23:27
Speaker 2: available labor. So what does this do to the needs
23:32
Speaker 2: of the organization When it comes to the yard workers
23:35
Speaker 2: that are already there who are operating, there's a number
23:39
Speaker 2: of different roles. I can't imagine that this is going
23:43
Speaker 2: to replace jobs because, as you said, this is something
23:46
Speaker 2: that they've been doing. This is just more visibility into
23:49
Speaker 2: the impact that it has on both sides of the equation.
23:52
Speaker 2: But reducing the manual labor effort, we were talking about
23:56
Speaker 2: AGVs a moment ago and not having manual operated vehicles.
24:01
Speaker 2: What other efficiencies would a YMS have for that aspect
24:06
Speaker 2: of the supply chain operations.
24:10
Speaker 3: Yeah, So first things first is it's definitely not about
24:15
Speaker 3: reducing the head count that is involved in that process.
24:18
Speaker 3: So implementing your management system in order to digitize the
24:22
Speaker 3: process potentially automate the process is not about getting rid
24:26
Speaker 3: of people. It is more about asking yourselves to questions
24:31
Speaker 3: Number one is how can I make the life of
24:33
Speaker 3: these guys easier? And as you have already heard throughout
24:37
Speaker 3: our conversation, we are talking about a process here that
24:40
Speaker 3: might not be as complex but which is nowadays managed
24:44
Speaker 3: in excell spreadsheets and people talking to each other trying
24:48
Speaker 3: to manage the process at hoc as it happens. So
24:51
Speaker 3: this is a very cumbersome way of working, and it
24:55
Speaker 3: is also a very complex way of working because you
24:58
Speaker 3: are not basically guided through the So how can I
25:01
Speaker 3: make the life of my workers and my staff easier
25:04
Speaker 3: and how can I make the process more efficient? Because
25:08
Speaker 3: rather than having one person sitting all day long at
25:12
Speaker 3: the gatehouse doing nothing else than making sure that whoever
25:16
Speaker 3: comes has the right is on time, comes with the
25:20
Speaker 3: right cargo on it is the right person that I'm expecting,
25:23
Speaker 3: maybe it makes more sense to facilitate that process and
25:27
Speaker 3: have him do something else at the gate. So instead
25:30
Speaker 3: of registering drivers all day long, maybe it makes more
25:34
Speaker 3: sense for this person to in the future look at
25:36
Speaker 3: the condition of the trucks and traders going in, so
25:39
Speaker 3: are they damaged, doing a thorough inspection to make sure
25:42
Speaker 3: that also on that end, I'm reducing costs Because one
25:45
Speaker 3: thing that always happens, or happens quite a lot, is
25:48
Speaker 3: that all of a sudden you're getting an email from
25:51
Speaker 3: a carrier who says, hey, my trailer got damaged why
25:54
Speaker 3: it has been on your yard And if you don't
25:55
Speaker 3: have a proof of that, well, guess wood has to
25:58
Speaker 3: pay for it. So there are things that you have
26:01
Speaker 3: to look at. Yes, so how can I make the
26:03
Speaker 3: life easier of my staff and what is it that
26:06
Speaker 3: these guys can do for me in that process that
26:08
Speaker 3: adds more value rather than just spending time on activities
26:12
Speaker 3: that can also be done by a system driven approach.
26:15
Speaker 3: And then, of course, also one thing that we always
26:18
Speaker 3: need to look into is the training and upskilling aspect
26:22
Speaker 3: of it, because especially with people that are not used
26:25
Speaker 3: to work on a system, and that pretty much applies
26:29
Speaker 3: to anyone who's not having an office desk job, who
26:32
Speaker 3: sits in front of a desk all day long, but
26:34
Speaker 3: who's outside in the field and actually executing their process.
26:38
Speaker 3: It is very important that we also view their activities
26:42
Speaker 3: from a perspective that these guys are not skilled in
26:45
Speaker 3: using a system, so we need time in order to
26:49
Speaker 3: upskill them in order to train them on that new process,
26:52
Speaker 3: but in order to also take them by the hand
26:55
Speaker 3: and explain them why are we doing certain things differently? Now,
26:59
Speaker 3: what is going to be the impact of that, What
27:01
Speaker 3: is going to be the benefit of you doing this
27:04
Speaker 3: going forward. So it also has a lot of to
27:07
Speaker 3: do with change management in that sense, because we're expecting
27:11
Speaker 3: people who, as I've said, work for numerous years and
27:15
Speaker 3: it could be sometimes even twenty thirty years that these
27:17
Speaker 3: people are working there in excelspects, sheets, walkie talkie is
27:21
Speaker 3: kind of managing their life day in day out. Then
27:24
Speaker 3: we come in there with a yard management implementation and
27:28
Speaker 3: with a system driven approach. There's a lot there's a
27:30
Speaker 3: huge gap that needs to be closed and it also
27:32
Speaker 3: needs to be founded for when doing these projects. Oh.
27:35
Speaker 2: Absolutely, Yeah, that change management is critical when it comes
27:38
Speaker 2: to upskilling a labor force that may be resistant to
27:43
Speaker 2: that particular change. But you bring up another excellent point
27:47
Speaker 2: when you talk about you know, these aren't people who
27:48
Speaker 2: sit at desks all day. They are out in the
27:51
Speaker 2: yard in the elements. They are around lots of moving
27:56
Speaker 2: vehicles and there's a lot of traffic taking place. So
28:00
Speaker 2: what are some impacts or some safety impacts that this
28:04
Speaker 2: will have measures in order to enhance that worker protection
28:09
Speaker 2: out in the field and in the yard.
28:11
Speaker 4: Yeah, to take this we need to focus actually on
28:14
Speaker 4: a certain industry. You can imagine there are so many
28:17
Speaker 4: different industries with different types of yards out there, with
28:21
Speaker 4: so different safety measures be taken. First of all, I
28:25
Speaker 4: think we need to focus a little bit on the
28:27
Speaker 4: example of a chemical yard. In a chemical art there
28:30
Speaker 4: would be a lot of safety measures to be taken
28:33
Speaker 4: just in ocations, depending on actually the time of the
28:37
Speaker 4: day of depending on the material that is being loaded
28:42
Speaker 4: or being unloaded, on the type of equipment which truck
28:46
Speaker 4: is coming here, and also on the role the art
28:50
Speaker 4: work is actually performing in this operation. And this is
28:54
Speaker 4: a whole rule book just with safety guidelines or with
28:58
Speaker 4: safety checks or with safety procedures to be taken, and
29:02
Speaker 4: this of course can be reflected in the system. Why
29:06
Speaker 4: not letting the system work for you, Why not letting
29:09
Speaker 4: the system know what needs to be done, and this
29:11
Speaker 4: is done actually or reflected by guided procedures for the
29:17
Speaker 4: workers outside, meaning the workers have system driven a questionnaire,
29:23
Speaker 4: a guided question catalog, a guidance on what they need
29:26
Speaker 4: to do. This is first of all in the happy flow.
29:30
Speaker 4: So if everything goes right and they do their checks
29:33
Speaker 4: before the loading, during loading, after the loading, and so on,
29:36
Speaker 4: this would be just taken over by the system and
29:39
Speaker 4: the system actually guides the worker through the opportunity itself.
29:45
Speaker 4: But this is also then very important when it comes
29:48
Speaker 4: to exceptions. Now, whenever there's an exception in the normal
29:52
Speaker 4: in the standard procedure, somebody needs to know what to
29:55
Speaker 4: do and this can also be taken over the system. Again,
29:58
Speaker 4: so there is a lot of let's call it business
30:01
Speaker 4: rules that can be defined in a system that can
30:05
Speaker 4: be taken over by the system just to make lives
30:08
Speaker 4: easier of the worker outside. So this is the first
30:12
Speaker 4: way of how the technology can improve the safety measures
30:16
Speaker 4: taken in the yard. But the second approach list would
30:19
Speaker 4: also be to automate these safety inspections, these safety procedures
30:24
Speaker 4: that they are not longer done by workers directly by
30:28
Speaker 4: machine for example, cameras osio technology comes to my mind.
30:32
Speaker 4: Oh the art technology, so optical character recognition could also
30:37
Speaker 4: help or can also help a lot when it comes
30:40
Speaker 4: to identifying certain drugs or transportation equipment in the art
30:46
Speaker 4: can also help identify damages, so irregularities in the pictures
30:50
Speaker 4: and so on. This is what we saw over the
30:53
Speaker 4: last couple of years already, and now AI actually takes over.
30:57
Speaker 4: We can also make use of AI in a management
31:00
Speaker 4: systems yep. So they can AI can actually learn countermeasures
31:05
Speaker 4: for exceptions in standard processes. So I is still something
31:11
Speaker 4: that we need to introduce to the art management systems,
31:15
Speaker 4: but I think we will see this in the next
31:16
Speaker 4: couple of years.
31:17
Speaker 2: Okay, So you were talking about AI, and one of
31:22
Speaker 2: the things that we've touched on a number of times
31:25
Speaker 2: is just the scheduling and that aspect of the management
31:29
Speaker 2: making sure that things are where they're supposed to be
31:31
Speaker 2: when they're supposed to be there, flattening out that workload
31:35
Speaker 2: throughout the day so there are less peaks and valleys.
31:38
Speaker 2: So what's the role of appointment scheduling if you want
31:41
Speaker 2: to call it that, and improving the turn times for
31:44
Speaker 2: the trucks or reducing congestion. I mean, appointment scheduling seems
31:49
Speaker 2: like such a no brainer here, but clearly it's rather
31:52
Speaker 2: the cornerstone.
31:54
Speaker 3: It definitely is, and it is one part of the
31:57
Speaker 3: process which either makes or breaks the entire the entire
32:00
Speaker 3: story here. And I'll always try to make that comparison
32:04
Speaker 3: when you order a piece of furniture or anything large
32:08
Speaker 3: which is not Amazon dropping a package in front of
32:10
Speaker 3: your door, but anything large where truck comes and needs
32:13
Speaker 3: to deliver something at your door. They will also provide
32:16
Speaker 3: you with a timeslot, and if that doesn't fit into
32:19
Speaker 3: your schedule, then you are rebooking that time slot because
32:22
Speaker 3: it is mandatory for you to be at home, for example.
32:24
Speaker 3: So we're kind of looking at the same thing. And
32:27
Speaker 3: it's very interesting actually that if when you're standing in
32:31
Speaker 3: front of a yard, you will always see these peak times,
32:34
Speaker 3: so very easy example is in the morning between eight
32:38
Speaker 3: and ten am, you will have trucks coming or arriving
32:42
Speaker 3: every thirty seconds, all of a sudden, and then from
32:46
Speaker 3: ten am to two pm, all of a sudden, there's
32:48
Speaker 3: no truck arriving. It would be that there's nothing happening.
32:50
Speaker 3: And then all of a sudden, from two to five
32:52
Speaker 3: in the afternoon, boom, there we go. It's again the
32:55
Speaker 3: same thing. So this is one of the major inefficiencies
33:00
Speaker 3: that we are seeing in terms of the yard operations,
33:02
Speaker 3: because you cannot handle that much volume at the time,
33:06
Speaker 3: and then all of a sudden you have and even
33:08
Speaker 3: if you would account for that, all of a sudden,
33:10
Speaker 3: you have such a big drop that there is not
33:12
Speaker 3: a lot for you to do anymore. So it is
33:14
Speaker 3: important that we not only smooth now the arrivals of
33:18
Speaker 3: trucks and trailers in the yard, so that we can
33:20
Speaker 3: kind of deal with that, but it is also very
33:23
Speaker 3: important for us that we ensure I get the right
33:26
Speaker 3: stuff at the right time. So a truck that I
33:30
Speaker 3: need at ten am in the morning because it has
33:32
Speaker 3: something on it that I need in my warehouse in
33:34
Speaker 3: my production is something that I need to prioritize versus
33:38
Speaker 3: a truck that would also arrive at ten but maybe
33:41
Speaker 3: it's something that has something that is not crucial. It's
33:44
Speaker 3: just dropping an empty trainer whatever, So I need to
33:46
Speaker 3: tell that guy, okay, come at eleven am, for example.
33:48
Speaker 3: And this is where as you've already mentioned, this is
33:51
Speaker 3: also something where AI can play a role in order
33:54
Speaker 3: to do intelligent appointment scheduling in terms of suggesting this
33:58
Speaker 3: is what I need at which point in time. But
34:01
Speaker 3: in order to do that, and we are now coming
34:03
Speaker 3: back to that mantra we are talking about here, you
34:06
Speaker 3: need systems in place that talk to each other, that
34:09
Speaker 3: provide that visibility, that hold that data so that you
34:11
Speaker 3: can make these educated decisions. Otherwise you end up with
34:14
Speaker 3: what you're having right now, which is basically all the
34:17
Speaker 3: trucks coming in between eight and ten in the morning.
34:19
Speaker 3: You have no idea what's on these trucks. You don't
34:22
Speaker 3: know what it is until you open the trailer, and
34:24
Speaker 3: that causes all that efficiency that we in.
34:27
Speaker 4: Nowadays basically see.
34:28
Speaker 3: So which is why it is very important to have
34:31
Speaker 3: these scheduling processes in place, especially for larger side operations
34:36
Speaker 3: where we are talking about hundreds of traders and trucks
34:39
Speaker 3: coming in every day, but also on other aspects where
34:42
Speaker 3: we are dealing with gray cars containers. It's very important
34:46
Speaker 3: to plan accordingly because it gives us, when we are
34:49
Speaker 3: talking about your operations also the ability to plan our processes.
34:53
Speaker 3: The other thing that we haven't talked about yet as
34:55
Speaker 3: much as we probably should is also the topic of
34:58
Speaker 3: cost and cost reduction. I think it's also a great
35:01
Speaker 3: bridge here tying into that doc appointment scheduling topic, because
35:05
Speaker 3: one of the key levers that you have implementing a
35:07
Speaker 3: yard management system is detention costs. So we are talking
35:11
Speaker 3: about trailers, containers, raycars, any asset that is sitting in
35:17
Speaker 3: your yard, you cannot have it sitting in your yard forever,
35:20
Speaker 3: and so there are obviously contractual obligations how long you
35:23
Speaker 3: can keep these assets in your yard. For that, it
35:27
Speaker 3: is extremely important to plan your entire process and this
35:30
Speaker 3: is where docupoint is scheduling basically comes into play. Yeah,
35:34
Speaker 3: if you know that trailer container that comes into your yard,
35:38
Speaker 3: you will actually not touch it for forty eight hours
35:41
Speaker 3: because it has no priority. You need to be aware
35:44
Speaker 3: of that because your time window in order to load
35:47
Speaker 3: or unload that asset and get it out again then
35:49
Speaker 3: become smaller. So you might want to accept it early,
35:53
Speaker 3: or you might want to see whether you only accept
35:55
Speaker 3: that trailer or that container at that time when you
35:58
Speaker 3: actually need it. And that it is very important to
36:01
Speaker 3: have these processes in place and also align this with
36:04
Speaker 3: your carriers because this is the next topic. Right, I
36:07
Speaker 3: as a shipper or I as a manufacturer, I can
36:11
Speaker 3: set this up and basically say, okay, I need a
36:13
Speaker 3: time slot, but you need to also talk to your
36:15
Speaker 3: carriers because your carriers need to be aware. Your carriers
36:19
Speaker 3: might need to be onboarded onto a platform where they
36:22
Speaker 3: are able to book these time slots. There are also
36:25
Speaker 3: contractual obligations with it, so there are a couple of
36:28
Speaker 3: side effects of side processes that come with this, but
36:31
Speaker 3: bottom line is it's very important and very crucial for
36:34
Speaker 3: efficient yard operations.
36:36
Speaker 2: You gave the example a minute ago of having a
36:38
Speaker 2: piece of furniture delivered at home and needing to be
36:42
Speaker 2: there during that delivery window. And what kind of difference
36:46
Speaker 2: does this technology make in terms of that real time
36:51
Speaker 2: information sharing being able to enhance customer service? Now, I
36:55
Speaker 2: know a lot of times when we're talking about these companies,
36:57
Speaker 2: these customers are not end customers. This isn't a furniture delivery,
37:01
Speaker 2: but this is an internal customer or an interim customer.
37:04
Speaker 2: And you know, as you were just saying, talking with
37:06
Speaker 2: the transportation companies and the carriers, those could be considered
37:11
Speaker 2: a customer and coordinating those efforts to improve that business relationship.
37:17
Speaker 4: Actually, I could answer here with a use case or
37:19
Speaker 4: to identify actually the tracking and tracing once again, I
37:24
Speaker 4: had this now several times today. Already tracking and raising
37:27
Speaker 4: is well established in transportation. Already. What we get are
37:31
Speaker 4: updates the shipment is en route, the shipment arrived to
37:34
Speaker 4: a certain hub, the shipment left a certain hup, and
37:38
Speaker 4: so on. Ye, so you would get status updates with
37:41
Speaker 4: the yard with the happening between, but you wouldn't see,
37:43
Speaker 4: you wouldn't have the visibility, you wouldn't have any updates
37:46
Speaker 4: what is happening in the yard itself. So what was
37:49
Speaker 4: happening with the shipment? Was it unloaded, was it inspected?
37:53
Speaker 4: Was it damaged? So this is at the moment again
37:56
Speaker 4: a blind spot with the yard management. You can actually
38:00
Speaker 4: proof this customer service to give updates what is happening
38:04
Speaker 4: directly in the yard, meaning a certain shipment was now
38:09
Speaker 4: loaded onto a truck, or it was offloaded of a truck,
38:13
Speaker 4: it was inspected by customs, and there was for example
38:18
Speaker 4: a finding, so it needs to be blocked for customs
38:20
Speaker 4: at they're very point in time. Now, this is what
38:23
Speaker 4: we call also passive tracking and tracing. The next step
38:27
Speaker 4: would be an active tracking and tracing, meaning not only
38:30
Speaker 4: giving you updates on a certain inspection took place, but
38:34
Speaker 4: also giving you options as a customer to react to
38:37
Speaker 4: that what should now happen. For example, this was damaged,
38:42
Speaker 4: should now be a new shipment ordered? Or should a
38:46
Speaker 4: shipment be repaired in the yard. So these are actions
38:50
Speaker 4: that can be ordered directly by the customer. This also
38:54
Speaker 4: comes then when a certain connection, for example, wasn't reached
38:58
Speaker 4: in a help so shipment didn't get into the yard
39:02
Speaker 4: on time, so the onward transportation by vessel, by railcar,
39:08
Speaker 4: whatever was missed, giving you, once again as customer, giving
39:12
Speaker 4: you the option on reacting to that, giving you a
39:17
Speaker 4: possibility to react to book an alternative transportation, for example,
39:22
Speaker 4: or to book an additional service, and so on and
39:24
Speaker 4: so on. This is the new way of active tracking
39:27
Speaker 4: increasing all right.
39:30
Speaker 2: Now, That leaves just one area for us to talk about,
39:33
Speaker 2: and we got into it very briefly when we were
39:36
Speaker 2: discussing AGVs and electric vehicles and those types of things.
39:41
Speaker 2: But the sustainability and the environmental impact of this, I mean,
39:46
Speaker 2: I can think, just off the top of my head,
39:48
Speaker 2: if you've got all of your trucks arriving in that
39:52
Speaker 2: same two hour window in the morning, and they're all
39:54
Speaker 2: waiting in line or congested at the gate, there's emissions
39:57
Speaker 2: taking place while they're idling. So obviously, by smoothing out
40:02
Speaker 2: the entire process and having a better scheduling process in place,
40:07
Speaker 2: you're able to reduce the amount of idle time. You're
40:10
Speaker 2: able to reduce even just the amount of drive time
40:12
Speaker 2: by having them only come when it's needed and not
40:15
Speaker 2: just driving around waiting. But what are some other strategies
40:19
Speaker 2: for reducing the carbon emissions and promoting sustainable supply chain
40:23
Speaker 2: activities with the yard management software.
40:27
Speaker 3: So there are basically a couple of viewpoints too that
40:29
Speaker 3: we can take here, one of which is the operational viewpoints.
40:33
Speaker 3: So how can my yard operation help me in reducing
40:36
Speaker 3: carbon emissions and also then potentially reach my sustainability targets.
40:41
Speaker 3: We've talked about a lot about the importance of your
40:43
Speaker 3: management and optimizing the art process. So if you think
40:46
Speaker 3: about a truck coming in and loading or unloading something
40:51
Speaker 3: and they are on site for thirty minutes, that truck
40:53
Speaker 3: driver will never turn off his truck period.
40:56
Speaker 4: That's what it is.
40:57
Speaker 3: If we can reduce that turnaround time to twenty minut
41:00
Speaker 3: then you have basically ten minutes less on site, which
41:03
Speaker 3: is basically exactly where you're saving on those emissions. The
41:07
Speaker 3: other example from a more operational perspective is if we
41:10
Speaker 3: are talking about operations that involves a lot of junting.
41:13
Speaker 3: So I'm moving with internal vehicles, I'm moving trailers, or
41:18
Speaker 3: even I'm moving raycars, I'm moving containers with internal vehicles.
41:23
Speaker 3: The less movements I have to make with these internal vehicles,
41:27
Speaker 3: the less emissions I'm going to produce. So instead of
41:30
Speaker 3: for example, having an unefficient process, unoptimized process where these
41:34
Speaker 3: internal assets have to do a lot of empty runs
41:37
Speaker 3: because I'm constantly saving them from one side to the
41:40
Speaker 3: other without really having that process planned, optimizing these internal
41:45
Speaker 3: internal movements to an extent where I'm limiting empty runs
41:49
Speaker 3: as much as I can. This is where I'm not
41:52
Speaker 3: only getting an efficiency increase of my operation and also
41:55
Speaker 3: with that more utilization of those assets. But this is
41:58
Speaker 3: also where obviously I have a reduction in my in
42:01
Speaker 3: my CEO two emissions. So this is where already operationally,
42:04
Speaker 3: by optimizing our process in the yard, I can reduce
42:08
Speaker 3: a lot of emissions. And then, as already said, of
42:11
Speaker 3: course from a technological perspective, from a let's say, more
42:15
Speaker 3: asset driven perspective like AGVs, there are of course also
42:18
Speaker 3: a lot of things.
42:19
Speaker 4: That can be done.
42:20
Speaker 2: All right, Well, thank you gentlemen so much for your
42:24
Speaker 2: time today for this discussion. I know one of the
42:27
Speaker 2: assets that I downloaded from the Westernocer website was a
42:31
Speaker 2: white paper called bridging the Gap Optimizing your supply network
42:34
Speaker 2: by introducing digitized yard processes, and it is it's a
42:39
Speaker 2: great asset. It goes into a lot of detail and
42:42
Speaker 2: it even goes into some industry specific best practices. So
42:47
Speaker 2: I'm going to make sure that our listeners have access
42:50
Speaker 2: to that link to the website and the white paper
42:53
Speaker 2: in the description of today's episode, and that brings us
42:57
Speaker 2: to the end of this episode. A very special thanks
43:01
Speaker 2: to Mattias and Michael for joining us today and giving
43:04
Speaker 2: us the skinny on yard management. If any of our
43:08
Speaker 2: listeners out there have a suggestion for a topic or
43:11
Speaker 2: would like to be a guest on our show, we'd
43:13
Speaker 2: love to hear from you. You can contact me at
43:16
Speaker 2: podcasts at meboch at any time. As always, thank you
43:20
Speaker 2: for listening to Speaking of Supply Chain. If you've enjoyed
43:22
Speaker 2: today's show, please rate and review us on whatever podcast
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43:33
Speaker 1: Meeboch Consulting is one of the largest and most globally
43:36
Speaker 1: recognized supply chain consulting, engineering and advisory firms. For nearly
43:41
Speaker 1: fifty years, we've helped clients achieve supply chain excellence and
43:44
Speaker 1: sustainable competitive advantage across the entire spectrum of the supply
43:48
Speaker 1: chain by delivering improvements and innovation strategically, tactically and digitally.
43:54
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