Supply Chain Benefits
| |
Traditional on-premises software |
CarrierNet Transaction-based
Software as a Service |
| Manufacturers |
Real time visibility usually not
possible |
Full visibility with exception alerts for
advanced customer service. Real
time management of sub contractors. |
| Retailers |
Extended supply chain real time
visibility not possible |
Management of all supply chain
stages from factory gate to RDC
and stores, including sub contractors |
| Web-based retailers |
Not suitable because of real time
web service demands |
Real time allocation of carriers and
visibility of order progress |
| 3PL and logistics service providers |
Usually restricted to management
processes based on historical data |
Enables collaboration, total visibility
and service management in real time |
| Sub-contractor management |
Only with historical data |
Real time control and comparison for
all levels of sub-contracting |
| Sub contractor load allocation |
Not possible with most systems |
Real time full transparency and
collaboration at all levels |
The Logistics Benefits
| |
Traditional on-premises software |
CarrierNet
Transaction-based
Software as a Service |
| Multi-site logistics operations |
Complicated set up |
Standard feature, easy to set-up and
use |
| Supply Chain visibility |
Only with hindsight |
Real time, enabling event management |
| Supply Chain collaboration |
Difficult, real time knowledge not available |
Real time, accessible to all authorised personnel internally and externally |
| Accessibility |
Limited to office premises |
Any time, any location, 24x7 |
Logistics community networking
and blogging |
Not possible |
Now becoming standard feature |
| Customer relationship management |
Slow and re-active |
Real time, pro-active. Alerts can
indicate problems before they arise -
“Web Touch” approach |
| Which size company is it designed for? |
Tends to be either expensive (i.e. for
large companies) or poor in
functionality for small companies |
Because of Pay-as-you-Go model,
suitable for companies of all sizes with
same in-depth functionality |
The Financial Benefits
| |
On-premises software |
Cloud Computing |
| Pricing |
Perpetual license + maintenance
+ support |
Pay as you use transaction or
subscription costing and features |
| Capital expenditure |
Software licenses, hardware |
None |
| Cost of entry |
Very high |
Very low. virtually ZERO investment risk |
| Return on investment |
Prolonged, based on full licence and
hardware costs |
Rapid, based on low up-front costs |
| Total cost of ownership |
High but difficult to measure because
of many components and hidden costs |
Low and totally visible. Costs all
included in Pay-as-you-Go fees |
| Hidden and additional costs |
Hardware, support, maintenance,
installation, customisation |
No hidden costs; low configuration
costs |
| Cost to benefit time |
High based on high up-front costs |
Low based on low up-front costs |
| Budgeting |
Capital expenditure |
Operating costs, flexible basis |
| Tax implications |
Capital allowances; VAT paid up front |
Costs 100% tax deductible; VAT
referred. |
| Upgrades |
Expensive |
Free and part of the service |
The IT Benefits
| |
On-premises software |
Cloud Computing |
How easy to adapt the latest and most
recent technology developments? |
Most new technologies are developed
for the web and traditional software is
not designed for this. |
Takes advantage of web tools (WEB2.0,
Google Maps, search tools) and mobile
technology including iPhone, GPS
phones and hand-helds, track and
trace equipments |
| Capacity |
Bought and paid for upfront (software,
hardware) |
Provided and paid for on an as needed
basis |
| Database backup |
User has to plan and implement |
Provided automatically |
| Deployment |
Difficult and expensive: servers,
training, installation |
Easy: accessible by any browser-
enabled device. Intuitive to use. |
| Implementation |
Long (months) |
Short (weeks) ; implementation risks
minimised |
| Ease of use |
Can be difficult - new interface to learn |
Browser based so intuitive for users
who know web |
| Upgrades |
Expensive |
Free and part of the service |
| Hardware |
Must be added when extra capacity
needed |
Not required |
| Scalability |
Additional hardware, more user
licenses |
No limitations: pay monthly per
additional transaction |
| Support and updates |
Extra charge |
Included in transaction cost |
|
