Case Study 21: DP WORLD Takes Port Management to the Next level

Q1: How did Identec Solutions’ RFID-based technology help DP World increase the
efficiency and effectiveness of its customers’ supply chains?

Identec Solutions’ RFID-based technology was helping DP World to improve customer’s

supply chain. Identec Solutions’ RFID-based technology help DP World increase the
efficiency and effectiveness of its customers’ supply by using automated gate system and
RFID tracking system. Trucks that visit a port terminal are equipped with active RFID tags
supplied by Identec Solution that are fixed on the rear chassis. As a truck moves towards the
gate, its unique tag ID number is ready by an RFID reader, which is integrated with an
automated gate system. By using the information supplied by the system, the driver will be
guided to use the specific lane to load or unload container. By using this system, it helps to
determine time of pick up and drop off of containers automatically. Hence, Customers are
able to have their goods cleared and shipped at much faster speed.

Other than that, Identec Solutions’ RFID-based technology enable DP world to increase the
productivity of container handoffs, speed the entry and exits of trucks through terminal gates,
and increase fuel efficiency. RFID would improve gate efficiency through improve truck
management, reducing queues and congestion around gates, and removing the number of
trucks from public roads by streamlining procedures and eradicating a number of lengthy
procedures.

Q2: Describe two improvements that resulted from implementing the Identec RFID-
based solution.

Victoria Rose, Regional Office project Coordinator at DP World Sydney stated that the RFID
could improve gate efficiency through improved truck management, reduce queues and
congestion around gates, remove the number of trucks from public roads by streamlining
procedures.

RFID has helped it to tighten security by providing better accuracy on inbound and outbound
truck movements through the terminals. For instance, the system can automatically check
whether a truck has a booking and weather it is authorized to enter the port.

It also helps the elimination of lengthy paper transaction and manual inspection at gates and
the reduction in manual data input error.

Q3: How does the concept of supply chain execution relate to this interactive session?

Supply Chain Execution (SCE) is the management of products movement through

distribution centers/warehouses in ensuring products are delivered efficiently. DP World
implemented SCE by using Radio Frequency Identification (RFID) in its supply chain
system. DP World spent several months performing proof-of-concept trials involving several
competing RFID suppliers and after extensive testing and evaluation DP World selected
Identec Solutions, a global leader in active wireless tracking solutions, as its RFID suppliers.
Identec’s RFID-based solution has enabled DP World succeed in improving customer
satisfaction enhancing the efficiency of customer’s supply chains through smoother, faster,
and more effective of their containers at the terminal gates. At the gate, an Optical Character
Recognition (OCR) system track whether the container is loaded, identify the truck container
ID number and truck license plate number as a backup identification. The system can also
automatically determine if the truck is on time which is essential information for the efficient
pickup and drop off containers.

Q4: What managerial, organizational, and technological challenges might DP World

have faced in the early stages of the RFID project’s deployment?

Managerial Challenge:

High implementation cost might be occurred during the early stage of the RFID project’s
deployment. The RFID help to eliminate a number of lengthy procedures, increasing
productivity at the ports and improving customer satisfaction. So, the shipping good turn-
around will increased. From that, DP World spent several months performing proof-of-
concept trials involving several competing RFID suppliers. It also had key challenge for
many vendors that are rugged environmental condition at the ports which is required 99.5%
of all tags are read successfully.

Organizational Challenge:

The organization will need to train the employee to use the new system as they may only
familiar with the old culture and system. Employee adaptation is very important for a new
system to be success. If the employees are not familiar or resistant to learn the new system, it
might be a major issue and challenge for the organization.

Technological Challenge:

Adopting new RFID technology can be difficult and complicated to a company as it requires
additional server space and capacity to support the new system. When the new technology
first implemented, it may not be able to run smoothly as the current system just started to
work together with the new system. Errors may occurred during the pre-test session. The
problem of system break-down might be happen very often in the early stage due to server
stress.
Case Study 22: Customer Relationship Management Heads to the Cloud

Q1: What types of companies are most likely to adopt cloud-based CRM software
services? Why? What companies might not be well-suited for this type of software?

Types of companies which are most likely to adopt cloud-based ERP and CRM software
services will be startups, companies that want to reduce internal IT costs and companies that
want to reduce their capital costs and companies that are struggling with a lot of data.

That is because it enables them to achieve operational excellence and customer intimacy. It
releases them from infrastructural maintenance and its respective fixed and operational costs.
It provides them with operational ubiquity and allows them to easily subscribe and cancel the
subscription without losing large upfront software licenses and hardware investments.

Companies which might not be well-suited for this type of software are those companies from
small to middle-sized companies. These companies have senior finance professionals and
they concern about security and the lack of information and understanding about cloud
technology which are the main reasons for organizations are staying away from cloud ERP.
Large firms in fast paced evolving industries are also not suited for ERP and CRM cloud-
based software. This is due to the need for flexibility. Firstly, firms require not only deep-
seated technology changes but also fundamental changes in the way business operates.
Installations of the new software require employees to change their working methods.
Employees must learn how to perform a new set of work activities. This requires new
organizational learning and provides training for them. Companies that are unable to accept
the changes and also provides training for their employees will be not be suggested to use this
type of software.

Q2: What are the advantages and disadvantages of using cloud-based enterprise
applications?

Advantages Disadvantages
Cost Efficiency Security and privacy in the Cloud

This is the biggest advantage of cloud
computing, achieved by the elimination of the
investment in stand-alone software or servers.
By leveraging cloud’s capabilities, companies
can save on licensing fees and at the same time
eliminate overhead charges such as the cost of
data storage, software updates, management.
Security is the biggest concern when it comes to
cloud computing. By leveraging a remote cloud
based infrastructure, a company essentially
gives away private data and information, things
that might be sensitive and confidential. It is
then up to the cloud service provider to manage,
protect and retain them, thus the provider’s
reliability is very critical. 

Backup and Recovery Increased Vulnerability

The process of backing up and recovering data is Related to the security and privacy mentioned
simplified since those now reside on the cloud before, note that cloud based solutions are
and not on a physical device. The various cloud
providers offer reliable and flexible
backup/recovery solutions. In some cases, the
cloud itself is used solely as a backup repository
of the data located in local computers.
exposed on the public internet and are thus a
more vulnerable target for malicious users and
hackers. Nothing on the Internet is completely
secure and even the biggest players suffer from
serious attacks and security breaches. Due to the
interdependency of the system, If there is a
compromise one one of the machines that data
is stored, there might be a leakage of personal
information to the world.

Increased Storage Capacity Limited control and flexibility

The cloud can accommodate and store much
more data compared to a personal computer and
in a way offers almost unlimited storage
capacity. It eliminates worries about running out
of storage space and at the same time It spares
businesses the need to upgrade their computer
hardware, further reducing the overall IT cost.
Since the applications and services run on
remote, third party virtual environments,
companies and users have limited control over
the function and execution of the hardware and
software. Moreover, since remote software is
being used, it usually lacks the features of an
application running locally.

Q3: What management, organization, and technology issues should be addressed in

deciding whether to use a conventional CRM system versus a cloud-based version?

Management:

Risk Assessment: it is hard to assess the risk when the company does not own the
infrastructure that supports the ERP and CRM systems.

Dependability: companies using cloud based CRM and ERP solutions might become
dependent of their providers since they do not store the data, and might not be able to easily
export it to another system if required.

Organization:

Human Resource Optimization: while traditional ERP and CRM solutions demand for
technical staff, cloud based solutions allows optimizing HR to focus on operation and
increase efficiency.

Technology:

Security: using the web as infrastructure, cloud based ERP and CRM solutions suffer have
difficulties in offering security comfort to companies that own sensible data.
Availability: due to the web failure tolerant model, cloud based ERP and CRM solutions
suffer from availability issues that might cause business operation failures.