BY applying information technology
better, container shipping lines can generate savings of five to 10 per cent
through managing vendor contracts, monitoring volumes, controlling expenses,
handling invoices and processing accounts, says a Chennai IT executive.
Monitoring bunker costs and usage
could save two per cent, solving empty repositioning could save two per cent
while container stowage auto-planning could cut costs five per cent, said
Solverminds Solutions & Technologies vice president Gaurav Sharma.
Mr Sharma said shipping lines are
increasingly focusing on costs through information technology as the flood of
tonnage in the market turns attention away from revenues because rates beyond
their control, reported Lloyd's List.
"Shipping lines can't do much
about revenue," Mr Sharma said. "It is the cost factor you need to
focus in on to maximise the value addition."
That new focus means finding ways to
monitor supplier costs; port fees, terminal charges, feeder operator and
trucking expenses.
"We are saying by having a
better IT system you will know how many containers you have loaded and how many
you have discharged," Mr Sharma said.
"So once you have those
volumes, you check against what the ports have charged you and if there are any
differences you can raise a dispute," he said.
Having better visibility when it
comes to charges can improve the way carriers manage their cashflow.
"Because of the economic
situation over the last four years, these are the factors driving costs. They
are saying we need to manage our costs better, we need to magnify and examine
our cost control and ask if the way we are doing it is it the best way,"
he said.
Source : HKSG.
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