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From the Top - CargoSmart

This From the Top interview is with CargoSmart's Joe O'Brien Joe O’Brien, managing director of CargoSmart North America.

 

ec-bp: What is the current focus of your company’s business?

O'Brien CargoSmart Limited is a Software as a Service (SaaS) global shipping and logistics solutions provider, with advanced visibility and exception management, that enables shippers, consignees, logistics service providers, NVOCCs, and ocean carriers to keep cargo moving and delivered on time. Through online tools and integration services, CargoSmart enables customers to plan, process, and monitor the critical path of multiple-carrier shipments and communicate in-depth, timely information to key supply chain associates. CargoSmart launched its services in October 2000, and has helped over 17,000 customers lower transportation management costs, streamline operations, and reduce the risk of late shipments. We are currently focused on delivering more value to our customers through new supply chain visibility and workflow management solutions.

ec-bp: How has this focus changed in the last 2 years?

O'Brien CargoSmart is focused on helping importers and exporters adapt their supply chains to changes in the global economy and to new international trade regulations. As a result of the global economy, shipping lines have been making frequent schedule and vessel changes to control costs and run their operations more efficiently. Shippers' cargo is at risk of being late and incurring downstream costs if they are not able to secure space on their intended vessel, if their cargo is rolled to another vessel, or it misses a connection at a transshipment point. As importers keep low inventories and operate within very tight delivery windows, on-time deliveries are extremely important. We see importers, exporters, and logistics service providers increasingly differentiating ocean carriers by their service levels. Another change in the industry is that governments worldwide have implemented new trade security measures that require advance notice of detailed shipment information. Examples include the U.S.'s 10+2 ISF rule and China's 24-hour rule. The highly competitive economic environment and new regulations require importers and exporters to have a new level of supply chain visibility and collaboration to comply, minimize costs, and keep their supply chain moving smoothly.

ec-bp: What are your current initiatives?

O'Brien In 2010, CargoSmart will continue to deliver solutions that help importers and exporters comply with new regulations, monitor their shipments through the supply chain, and measure their carriers' performance so that they can make ongoing improvements in their supply chain. Customers are seeing the benefits of our new exception management tools, advanced visibility reports, and ISF solution. We are dedicated to introducing new products to help customers keep their transportation costs low and allow them to improve their operations.

ec-bp: How has the market for EDI changed in the last few years?

O'Brien The demand for EDI has continued to grow over the last several years. It remains the most popular means of direct integration. High volume shippers and large logistics service providers use CargoSmart as a hub for managing their ocean carrier data and transactions by EDI. Customers only need to maintain one connection to CargoSmart, and CargoSmart manages the connections with their multiple carriers, saving the customers time and effort setting up and maintaining the connections. Most of our EDI customers use CargoSmart’s online application to complement their EDI direct integration. Online services that complement the data the customers receive directly to their internal systems include exception management, performance reports, and compliance.

ec-bp: What are the greatest challenges for your customers?

O'Brien Three challenges our customers face with EDI include: 1. Data quality – The quality of shipment data provided by customers’ carriers can vary widely. Customers must monitor whether the data is correct and if any data is missing to ensure that the data they receive is useful. 2. Reliable and timely data – Customers want to ensure that their data is delivered smoothly and on time. 3. The cost of implementing EDI – It can be cost prohibitive for small- and medium-sized logistics service providers to set up and maintain EDI connections.

ec-bp: How are you helping your customers address these challenges?

O'Brien We are helping our customers address EDI data quality, reliability, and costs with the following solutions: · EDI performance reports – In 2009, CargoSmart introduced EDI performance reports. CargoSmart's integration customers can receive weekly reports to measure their EDI data quality. The reports identify missing and out-of-sequence events by ports and carriers. CargoSmart works with customers and their carriers to resolve data quality gaps for important cargo routes and to improve data sharing. · End-to-end monitoring – CargoSmart developed a comprehensive monitoring system to track the delivery of EDI messages. CargoSmart’s EDI support team uses the monitoring system to ensure all messages are properly processed and delivered on time, and to alert customers and carriers when exceptions occur. · EDI integration for small- and medium-sized logistics service providers – Many shippers use forwarders and Non-Vessel Operating Common Carriers (NVOCCs) who do not have systems in place to handle EDI integration. CargoSmart partners with forwarders and NVOCCs to manage the EDI integration for their customers. Forwarders and NVOCCs view their customers’ shipment visibility online, while shippers connect by direct integration for the shipment data they would like to access through their in-house systems. Logistics service providers can provide value-added services without incurring the costs to implement EDI systems in-house.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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