The inaugural PricewaterhouseCoopers/EMA Clever Companies Survey released in August shows that while most New Zealand companies want to grow and expand, they are lacking the innovation to do so. Further, the survey shows businesses recognise the importance of technology, information and processes but are slow to adopt them.
That’s a bit of a wake-up call to New Zealand businesses because we tend to pride ourselves on our ‘early adopter’ approach to new technology.
When it comes to the freight industry, the speed and level to which we embrace new technologies is vital if we are to remain competitive on a global scale.
Take, for instance, the move from paper to electronic documentation. This process is making significant strides here in New Zealand and will ultimately produce tangible benefits for all parties.
Speaking at CBAFF's annual conference earlier this year, Peter Chong, IATA’s Regional Director Cargo Asia – Pacific, highlighted the financial and general advantages a Cargo Paperless Environment (CPE) could bring to the global industry.
He told delegates that CPE could mean an aggregate industry benefit globally of more than US$1.1 billion a year.
Each year global exports are around US$7.5 trillion and air cargo makes up around US$1 trillion of that. The top 50 airports in the world make up 90 percent of the exports. And each shipment sent around the world has 25 to 30 documents.
Mr Chong said the financial benefits of a CPE included an improved cashflow; reduced printing, warehousing and distribution costs and a decrease in headcount costs. It also meant revenue retention and growth and an increase in market share versus other transport modes.
These are technology benefits – improving bottom lines, efficiencies and productivity levels – that make changing the way we do business perfectly sensible.
Another technology offering our industry tangible advantages is RFID and widespread cost benefits are likely once this is universally rolled out.
Short for "radio frequency identification", RFID is a technology similar to bar code identification.
RFID systems can be used just about anywhere, from clothing and pet tags to export consignments and individual pallets – anywhere that a unique identification system is needed. The tag can carry information as simple as a pet owner’s name and address to an export container’s source and destination details.
One of the key differences between RFID and bar code technology is RFID eliminates the need for line-of-sight reading that bar coding depends on. Also, RFID scanning can be done at greater distances than bar code scanning.
As its use becomes more widespread in our industry it will become easier to monitor and track the movement of freight through warehouses, ports and airports.
Some technology, however, seems far from sensible and tends to create more barriers than it removes - and automated phone systems are a prime example. This is the type of technology has been sold to the bean counters as a cost-saving tool and introduced under the guise of improving customer service.
But doesn't "customer service" imply that one serves the customer?
Time is money for all of us – yet if we’re unable to talk quickly and directly to the people we need to reach productivity suffers and blood pressure rises. When technology goes bad we shouldn’t be afraid to revert to what works best – which in this case is simply answering the phone when it rings.
