Barcelona, April 11, 2019.-Born in 2009 as a personal project of Renatas Slenderis, CEO of finished vehicle services provider Fracht. He intended to respond to: When managing vehicle sales and logistics in the finished vehicle logistics industry, speed of communication and response is imperative for any successful business. This rule applies for every related party, be it the OEM, the dealer, the compound manager, the car-carrier, the transport manager or the driver. Juggling the multitude of actions that need to be processed, while not complex, is a significant and timely necessity. Renatas Slenderis thought that the best way was to create an alliance of companies to build a communication platform
The first version of ALCS emerged in 2012 and two years later over 265 companies were using it on a regular basis. Today, the platform connects 481 transport companies which use it regularly, although the total network includes 1,481 companies and more than 7,000 vehicle transporters.
The Fracht Alliance was established for parties wanting to access the transport data exchange and management platform, ALCS (Automotive Logistics Control System). The ALCS platform connects the demand with the resources in real time; just as Uber’s app connects small taxi operators with fee-paying clients who need a taxi. Like Uber, Fracht has made it easier to do business through its platform.
Fracht knows privacy is paramount to LSPs and OEMs and it can offer complete separation of loads that are being moved internally within the LSP from work that is exposed to the Alliance for fulfilment. In this way, any member can benefit from the speed, visibility and automation of previously manual tasks, without exposing information to peers, such as the nature of loads (though still benefitting from backloads that reduce operational costs by cutting waste).
There are three categories of members in the Fracht Alliance:
• OEMs that have vehicles to move.
• Major LSPs that juggle large contractual commitments and have deadlines to meet.
• A large and growing network of tier two LSPs who are agile and hungry for work.
However, the Alliance is about much more than hailing a transporter. There has been significant investment in automating the pairing of flows for members, leading to an average 10% increase in truck utilisation, therefore cutting waste and cost across the Alliance.
The ALCS platform not only offers critical functionality for communication between OEMs and suppliers, but major benefits for the OEMs and their logistics service providers (see box above for full details):
• For OEMs: send advanced transport notice; transport order; damage report; transport forecast (annual, monthly, weekly); blocking or unblocking vehicles; special forecast notification (end of year, production stops); delivery restrictions; spec of vehicle.
• For LSPs: send information about planning; truck plates; loading confirmation and exit confirmation; forecast response; planned load configuration; geo-positioning transport asset; transparency over the complete supply chain, especially from FBU to dealer delivery, with data available for everybody involved in the process – but secured against unauthorised access.
Fast and appropriate data exchange
The platform can adopt the individual OEM standards or quality requirements, such as truck checks, to ensure that every LSP is made aware of all the standards pertaining to the load that they are about to transport.
The platform enables a faster and more efficient reaction time, the avoidance of data management errors, and the ability to operate from anywhere in the world. The reaction time within the data exchange has been increased up to 20 times, enabling managers to make timely decisions and the system to execute the operation efficiently.
The user can monitor any data managed by the system – KPIs, schedule amends, supplier capacity, delays – and the system automatically informs all related parties responsible for operations. Where permitted, the platform will share data with customers, partners, drivers or other personnel in a simple and usable way, and at the same time maintain business continuity.
Slenderis concludes: “So far, the platform has acted in a similar fashion to a freight forwarder – without the fax, email and phone calls. Many OEMs and top LSPs already have vehicles being processed on the platform. But we want to go further. We want to cut more costs by offering the platform directly to these groups to use and gain benefits from.”
- Empty mile savings
By pairing the flows in real time and automating the truck management, members can reduce empty driving miles, which also cuts carbon emissions. - E-gate solution for incoming trucks
Automated optimisation and notification of truck arrival management to reduce waiting times and optimise loading times; includes sub-contractors. - Transportation transparency
Communicating the location of the vehicles throughout transportation rather than only after loading or unloading; data can be delivered after the activity. - Governance compliance
Operating to local and global governance requirements, such as data storage and GDPR (General Data Protection Regulation). The platform acts as a connection between continental and country regulations. - Real-time information
Each business process is shared in real time as it is published, reducing duplication and risk of error. - Accessibility
ALCS apps speak to the core system and provide universal communication. - For drivers:it can turn any phone into an advanced VIN/barcode scanner, enabling easy sharing of VIN and other data for pick-up, delivery times and damage reporting, plus e-ticketing for entry to compound.
- For dispatchers:it allows them to sell (or buy) loads, confirm offers and inform compounds about scheduled trucks
- Accurate, simple support
Managing and striking the contracts and business online for all members, including sub-contractors.
Miquel Tarragona, Director General SETRAM 