South Africa has a modern and well-developed transport infrastructure that has been highlighted by government as a key contributor to SA's competitiveness in global markets.
From well-maintained roads, to the largest air and rail networks on the continent and natural stopover ports - our transport structure is key to growth and development.
It is this development which has sparked plans to spend R9 billion on improving and extending the transport infrastructure in nine cities to cope with the massive influx of visitors expected for the 2010 World Cup.
These plans include upgrades to the country's airports, consolidation of passenger rail entities, transformation of the bus industry, taxi recaptilisation and general transport system enhancements.
Such a large undertaking not only requires substantial capital, but insight into the complex process to ensure that not only are the upgrades done systematically and efficiently, but that they are done effectively, optimising the resources available. If we consider that such insight comes from information management and consequently the central concept of business intelligence (BI) is to enable users to achieve this goal, surely then, the value that a BI solution can bring to such a sector cannot be denied.
BI allows users to take data from different parts of the process, identify problem areas across the sector, and intervene if need be. Data that is stored in a BI system, often a data warehouse, can be accessed by any managerial person to analyse the information and highlight the real-time trends and risks that can be seen. Some of the possible BI applications in this sector include:
* Performance evaluation: The performance of third-party companies can be analysed on various factors like on-time delivery, cost, adherence to supplier's standards, etc. This analysis can be used to assign quality points which can significantly help in selecting the best third-party companies for projects.
* Supplier compliance analysis: Often suppliers do not ship materials or equipment on time, resulting in delays. New minibuses, train coaches, buses and even station-revamp materials are currently needed on time for 2010 projects and non-compliance by suppliers in providing such equipment would result in delays, which at this stage cannot be afforded. Supplier compliance can therefore be analysed over a period of time, across different points, so that the supplier can be concerned about trends in such delays.
* Capacity planning: BI can significantly help in analysing available capacity, loss of revenue due to shortfall in capacity, and future capacity increments. It can also help in short-term capacity planning.
* Cycle time analysis: The importance of cycle-time - time gap between placement of order and the actual receipt - cannot be overemphasised. BI tools can help critically analyse the entire cycle-time for different combinations of goods, routes, modes, weather conditions, etc - essential for meeting the 2010 deadline.
* Routing and scheduling: BI tools can help in routing and scheduling by presenting an updated view of capacity and manpower available at any point in time.
The management of the transport sector is a complicated and labour-intensive task, especially with the countdown to 2010 and the mounting pressure to get it right.
To prevent time delays and properly manage relationships with complicated supply chains, managers and procurement specialists, access to accurate, real-time information is required constantly. BI-based transport management systems can help monitor the provision and consumption of supplies and bridge information gaps between suppliers and customers.
These systems combine rich analytical capabilities (measuring inventory, costs, production, and consumption levels), with proactive messaging capabilities (generating reports for review by management and staff, as well as communicating with order, shipping, and sales systems within a company or external vendors and customers).
In total, the injection of BI into the management of the transport sector can be a crucial step for SA to optimise and streamline logistical systems, drive forward improvement plans for 2010 and ensure the transport industry continues to be a key element in social and economic growth.
* Martin Rennhackkamp is COO of PBT.
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