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Published on March 14, 2008

Ten thousand routes, 14,000 vehicles and 40,000 destinations may sound scary from a logistics point of view, but technology has ensured that SCG Logistics Management can keep track of them all from a single point of access.

SCG Logistics Management, formerly known as Cement Thai Logistic (CTL), has deployed many kinds of technologies, such as transportation management system (TMS), global positioning system (GPS) and radio frequency identification (RFID), to enhance the performance of its logistics system.

Vinit Vichittanaporn, system management department manager at SCG Logistics Management, said due to the huge volume and complicated services provided to clients inside and outside the SCG Group, systematic management is needed to manage the system effectively in real time and at a single point of access.

TMS is an important tool to enhance the company's logistics system. This system is linked with Web-based e-ordering and order management system.

An order equipped with customers' requirements, including product type, size, weight, destination, volume and quantity, comes through the e-ordering channel over the Internet, and is sent to TMS for load and route planning process.

The system will analyse the order details and arrange the shipment of products. It will automatically design the route and vehicle type to fit the order requirement.

"Our customers include 500 dealers of SCG Group and 200 companies in different businesses who use the company's logistics services. The various types of products require different types and sizes of vehicles. Also, their varied destinations mean a different route as well. Overall, our logistics network covers about 10,000 routes and 40,000 destinations throughout the country," Vinit said.

In some cases, the system can also analyse and merge orders which can share the same route and vehicle.

Following this, a company vehicle is assigned for shipping. There are about 400 vehicle-providers in the company's network which operate 14,000 vehicles in all. These 400 vehicle-providers can access the company's TMS system to receive a shipping assignment.

"Because the e-ordering system and TMS are linked, all information of shipment details stored in the database will be available on the website. Customers can access this to monitor the shipment in real time," Vinit said. As all systems are integrated, information in different systems can be shared and lets the company use its logistics system infrastructure with the utmost efficiency.

GPS is another system that is used to the company's advantage. The company has installed GPS receivers on 1,100 vehicles for tracking purposes. It helps the company to keep an eye on vehicles and sound an alert when the truck takes a wrong route or makes an unscheduled stop.

"In some trucks, we also embed a sensor chip at the container gate to prevent unauthorised opening when the trucks are on the way. If the container is opened, the sensor will be activated," Vinit said.

For shipments containing large product volumes and details, the company uses RFID to help store and identify such data.  This technology helps process the logistics chain electronically without using paper-based documents.

"It is used in shipments with large volume of products or where multiple shipments are involved such as paper rolls, lignite, and gypsum. We deliver about 4,000 tonnes of gypsum per day using 100 trucks.

"RFID helps us manage the working process of gypsum logistics from the mine to distribution centre at Nakhon Sawan province and to the plants," Vinit said.

Instead of drivers carrying documents with details of the shipment such as product information and route, all this data is stored in a small chip in an active RFID tag placed on the truck's windshield. Once the truck leaves the mine, the RFID reader installed at the gate forwards details of the shipment to the server via RFID communication. Meanwhile, information regarding the assignment is sent from the server to the truck.

"All communication between the RFID tag and RFID reader is stored in the server. It not only helps hasten the working process but also helps the firm and customers reverse-track the shipment process," Vinit said.

Apart from these main systems, there are other solutions including digital map, paperless e-customs, import and export system, warehouse management system (WMS), yard management system and document tracking system.  These systems are established and integrated to ensure seamless processes.

Asina Pornwasin

The Nation