Technology

Tech Trace

Track and Trace – Global View

Supply chain and logistics operations have changed in recent years by becoming far more digitized, global, and networked. Today, order fulfillment involves efficient orchestration across multiple parties that rely on multitude of systems and technologies. End-to-End Supply Chain Visibility and Logistics Track and Trace are now paramount to consistently delivering competitive advantage as well as running cost-effective operations.

While modern supply chain is now capable of delivering previously unimaginable promises, the newfound complexity has also exacerbated organizational silos and created a critical need for end-to-end, real-time visibility and control. A 2017 Supply Chain Worldwide Survey by Geodis showed that insight into and control across multiparty networks are sorely lacking, with only a paltry 6% of participants claiming to have full visibility within their supply chains. A Deloitte Global CPO Study in 2018 found that just 6% of respondents had full transparency of their entire supply chain, while 65% had either no visibility or felt highly limited visibility. In a 2018 IDC supply chain survey, 87% of respondent companies said that they were engaged in efforts to improve visibility, but only 32% were focusing on true end-to-end visibility.

While any visibility is better than none, the journey to full visibility remains aspirational for most companies. Rising customer and consumer expectations are further challenging companies to deliver faster than ever before, in increasingly narrow time slots and at lower prices. Meeting these demands requires optimizing complex processes across a network, which is impossible if companies are not properly sharing data or if they can’t act on that data in a timely fashion.

Track and Trace in Oman’s Logistics Sector

Oman’s logistics sector plays a key role in economic diversification. The sector benefits from Oman’s strategic location linking the East and the West, as well as being on the route for trade centers in the GCC, India and China. OLC and ASYAD were established in 2016 with a mandate to implement the Oman Logistics Strategy (SOLS 2040) which provides a vision on strategic capacity building of the logistics sector and its vital role in Oman’s economic development.

With significant improvement in cargo movements to and from Oman through international trade and a growing consumer demand for goods through eCommerce, Oman’s logistics sector participants must adopt the latest track-and-trace systems. If the logistics players are not sharing information on the goods and their delivery status, the end consumer is not aware of the delivery progress and does not have complete confidence in receiving the goods as per the estimated time of arrival. Moreover, not sharing the logistics information does not allow logistics players to plan ahead and use their resources like manpower, machinery and time more efficiently.

Capturing cargo information digitally and sharing it across the stakeholder ecosystem can help deliver world-class logistics services and reduce economic losses due to the delays in consignments. Furthermore, it will definitely contribute to improve Oman’s position in both GCC and global e-commerce markets as well as world class indices like the LPI and GCI.

Oman’s Performance against NLS 2040 Ambitions

  • Oman’s performance is asymmetric, Customs and Tracking and Tracing are the weakest parts; only two out of six components improved, others declined.
  • Shippers loose visibility at lengthy clearance process, if this improves, T&T is likely to improve with it.

Track and Trace in Oman’s Logistics Sector

  • OLC Tech Pillar is focused on ushering modern technology within the logistics sector of Oman for the near real-time tracking of goods and consignments that are imported or exported from Oman.

  • We recommend setting up of an Integrated and comprehensive tracking standard for all logistics activities conducted in the Sultanate of Oman in order to improve logistics efficiency and customer experience during transportation of goods & cargo.

  • These guidelines aim at improving the cargo visibility and business friendliness in trade logistics for all participants especially the end consumers and the logistics service providers involved in moving and storage of goods.

  • A Track and Trace network of interconnected logistics chains brings together ports and terminals, authorities, ocean carriers, inland transportation, 3PLs, shippers, and other stakeholders.

Roles for Oman’s Logistics Sector Stakeholders

Shippers /Sellers

Gives information on readiness of the shipments and its documentation to start the logistics chain

Gets information about the logistics activities from all the successive stakeholders until delivery is completed 

Benefits from the information visibility and transparency towards goods delivery, early notification of issues and faster claim on goods invoices,

Freight Forwarders

Gives information on end-to-end transport plans across all modes, documentation and events updates

Gets information about shipment movement from Shipper, Transporters and Government Agencies

Benefits from early visibility for better planning and inland transportation events, information on intermodal handoffs, and document filings

Land Transport

Gives information on planning and execution of first or last mile shipment leg with updates on delivery completion

Gets information about pickup and drop appointment of shipments and coordinated hand-offs from previous or successive air/ocean legs

Benefit from improved planning and utilization of assets, faster freight bill claims

Ports and Terminals

Gives information about arrival/departure and berthing of airplanes/ships along with cargo movement within their premises until released

Gets information from pre-built EDI connections to air and shipping lines and other state actors for faster information processing,

Benefits from end-to-end visibility of air and ocean shipping corridors, improved port and terminal planning

Customs Systems

Gives information about the export and import clearance status for shipments into and out of the country

Benefit from more informed risk assessments, better information sharing, less manual paperwork, and easier connections to national single window platforms

Air / Ocean Carriers

Gives information about the planning and execution of shipments transport across the air/ocean leg

Benefit from reduced customer service and network integration cost, less revenue leakage, and less mis-declared cargo due to a digital audit trail of end-to-end shipment events and source documents

PCS / TOS

Engage with the entire stakeholder base as a single-window system for documentation and shipment status

Benefit from being the single window system for the entire trade chain with a single version of truth for the entire supply chain process as well as providing value-added services for a fee

Customs Brokers

Gives information pertaining to export and imports clearance process and updates to shipper/consignee

Gets information from the state actors and the customs agencies on cargo clearance the platform as a consumer of supply chain information

Benefit from easier connections to all the stakeholders thereby providing better service and faster updates improved tools for customs clearance brokerage function,

Banks

Engage with the trade chain as a consumer of supply chain information

Benefit from access to a definitive, real-time, and immutable source of information for trade finance and trade insurance

Buyers / Consignees

Engage with the entire trade chain as a consumer of shipping information and digital documentation

Benefit from greater confidence on shipment arrival times, early notification of issues and delays, full transparency to validate fees and surcharges, and real-time access to the end–to-end supply chain data to improve effectiveness of track-and-trace tools

Logistics Chain – Consumer Demand Vs LSP Event Visibility

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