Global IT services provider Savi Networks, which specialises in supply chain security and intelligence, says its customers are asking for applications that improve the total visibility of in-transit inventory.
According to the company’s Senior Vice President of Network and Business Development Steve Sewell, this includes the location of shipments at any time, anywhere- as well as the security status and the health, or environmental condition, of the products.
“International shippers and their service providers are seeking a complete, real-time picture of the geographic and environmental status of their shipments,” Sewell says.
“They also want their information services to include automated alerts that let them know when there are exceptions to their plans, such as unexpected routing, delays, environmental hazards to their products such as excessive temperature, humidity and shock) or potential security breaches.
“Global customers prefer to utilise information services that can enhance supply chain execution and management as well as reduce security risks, especially around high-value products such as pharmaceuticals and electronics, or high-risk commodities such as petro-chemicals,” Sewell says.
"Real-time visibility addresses both these challenges with the same information service, which we call SaviTrak™.”
Sewell maintains wireless tracking systems such as GPS, cellular and RFID that are integrated into a software platform are the current state-of-the-art solution.
“High-tech devices affixed to containers that communicate with information systems can be configured to provide a wide array of visibility features, including location information, environmental conditions and security status.
"This is a quantum improvement over existing visibility approaches that rely on human input, which is often inaccurate and untimely.”
Savi Networks’ SaviTrak™ is an online intelligence service that provides decision-making information through real-time data feeds from of wireless tracking technologies, such as cellular, GPS and Radio Frequency Identification.
“Containers equipped with these devices automatically communicate location, security and environmental data to our software platform,” Sewell explains.
“SaviTrak processes and converts the data into actionable information, which can be easily accessed in a highly secured environment by our users, their partners and appropriate government authorities, such as Customs agencies.
"This type of information can also help Customs officials with risk targeting, or finding that needle in the haystack that might be a potential problem.”
Sewell says that following 9/11, nearly everyone was most concerned about terrorist attacks. “More recently, the focus has returned to pre-9/11 days when theft and shrinkage were the paramount issues in the supply chain."
"Estimates of global cargo theft alone are as high as $150 billion if you take into account the value of the lost goods and the cost of insurance, replacements and customer claims. Of course, terrorism continues to be on everyone’s radar screens.
"All these concerns are good reasons to have services that provide real-time information on security breaches anywhere in the world. The same solution can address both terrorism threats and cargo theft."
After 9/11, the United States took the lead on incentivising greater cargo security measures, such as through the Container Security Initiative, which provides US Customs support in countries exporting to the United States, and through the Customs-Trade Partnership Against Terrorism (C-TPAT), a voluntary program validating cargo security practices in the supply chain community.
“In recent years, other countries and their Customs agencies have developed innovative and collaborative programs to encourage greater cargo security,” Sewell says.
“For example, the Smart and Secure Trade Lanes (SSTL) initiative involves Customs agencies in China and the European Union, as well as a number of major international shippers and solution providers. This program, which has utilised the SaviTrak information service, provides faster Customs clearances, often called “Green Lane” benefits, to shippers using real-time monitoring services.”
“We think this program has tremendous potential as government and commercial entities recognise the dual benefits of these new information services that provide both security and financial benefits.
In 2009, Savi Networks will also be participating in the European Union’s Framework Programme 7 (FP7), which will utilise data from wireless devices, like ours that provides information on the location, security status and contents of the container, and combines that information with container scanning data, allowing better risk targeting.”
Sewell says the greatest challenge is how to provide the information and security required in a cost-effective way and without slowing the flow of commerce.
“Both government regulators and commercial entities should support solutions that improve security measures, but at the same time can deliver financial and operational benefits and in fact improve the efficiency of cargo movement.
These solutions do exist, but there are perceptions (and—where the wrong technology is used--the reality) that security regulation can impede commerce and create extra cost burdens on those being regulated. The key is to apply the right technology that provides financial benefits that more than offset security costs. This can be done.”
In terms of the future, Sewell says Savi Networks will continue to work with government authorities, such as Ecuador and other South American entities, and partnerships, such as FP7 and SSTL, to develop forward-thinking, collaborative approaches that improve security and the flow of global trade at the same time.
“These multi-partner approaches also involve major international shippers and logistics service providers who provide insights on what is practical and financially beneficial. We will also continue to work with cargo owners who have problems with theft and pilferage.
"Our solution can reduce loss, aid in claims resolution and insurance costs. “SaviTrak has been designed to overcome the enduring problem of having multiple and disparate software systems that provide fragmented views of the supply chain,” Sewell says.
“It’s important to have flexible software that utilises Service Oriented Architecture so that software systems can be integrated for a common picture of the supply chain. All parties then have access to Statement of Fact data that allows real-time management of cargo.
“At the same time, it’s important for Government authorities and multiple trade partners to share visibility of shipments at appropriate times and locations across the supply chain. All of this can be accomplished with our existing solution.”
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