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A
Layman's Perspective in Understanding IT Costs
(September 29, 2003)
Some regular readers of this
column contacted me last week to relay their appreciation
for the last two articles I wrote about the "human
face" of IT in the Philippine ports industry.
According to them, they somehow felt comfortable
knowing the personalities behind technology initiatives
that directly impact their business activities
as port users.
At the same time
they requested if I can write something about
IT costs in a manner that will help them appreciate
- if not fully understand - why IT costs in their
respective organizations always seem to be getting
bigger and exceeding budgeted amounts.
After giving some
thought on how to write about this topic in a
manner that will appeal to the layman and business
practitioner, I have decided to approach this
by focusing on the identification of various components
of what can generally be categorized as IT costs.
Let us assume
the scenario of a standard-size business enterprise
intending to buy an accounting software package
for its finance department.
Typical IT
investment components
The typical IT investment summary checklist would
normally consist of the following components:
a) hardware costs
- the host server on which the accounting software
will be installed
- PC workstations that the finance people will
use to connect to the host server in order to
use the accounting software package
- printers to be utilized in generating accounting
reports (involves either a network printer shared
by all system users or individual printers permanently
connected to client PC workstations
b) network infrastructure
costs
- the network hub or device through which all
PC workstations are physically connected in order
to access the host server
- network cabling costs pertaining to the cable
wiring that will connect the PC workstation and
network printer to the network hub and the host
server and network hub
c) software costs
- network operating system software (such as Windows
NT or Windows 2000) that will manage the way client
PCs and printers communicate with the host server
- application software cost which is the accounting
software package itself that will reside on the
host server
- client PC operating system software such as
Windows XP which will reside on PC workstations
- office productivity software installed on PC
workstations (Microsoft Office - Word, Excel,
PowerPoint)
d) training costs
- technical training for in-house IT staff who
will configure, manage and administer the network
server and application software
- user training for the finance staff who will
directly use the accounting software package
- specialized application software training if
you want your own in-house staff to acquire the
capability of making future system enhancements
such as additional reports or data extraction
programs
e) implementation
costs
- professional services to be rendered by application
software vendor in the event the software package
has to be customized to fit your specific requirements
(e.g., new screen designs that are not standard
feature or new report format which is not part
of the list of standard reports that come with
the software)
- onsite presence of the vendor staff within your
premises during and immediately after software
installation and when your system goes "live"
f) software maintenance
costs
- the amount you pay the vendor if you want coverage
for software troubleshooting and problem-solving
after the standard software warranty expires (this
can either be software support through telephone,
email or onsite response by vendor staff)
- the costs of regular software version upgrade
or patches enhancement in order for you to have
the most recent software version
Some helpful
tips
In order to ensure that you pay only the costs
that are applicable, my first advise is to require
your vendor or supplier to identify all the costs
you will incur based on the checklist above. Clients
should never hesitate to ask all these information
and require clarification on items you do not
understand.
My second tip
is to take time and review the purchase contract
presented for your signature. Watch out for things
like software maintenance provisions wherein for
an annual fee you are entitled to a free software
major upgrade (old version 3 to new version 4)
and yet you will actually pay for implementation
services to install the new version and re-configure
your system.
If your IT vendor
is unable or hesitant to provide the abovementioned
clarification and information, my strongest advise
is to stop any further business dealing with him
and look for another vendor who is more willing
to listen to your requirements and understand
your business needs.
The author has
20 years experience in the development, project
management and implementation of IT projects in
Philippine ports, transport and logistics. He
is presently an independent consultant for IT
projects and initiatives in Philippine ports and
transport industries. For comments or inquiries,
email him at
leo@morada.name.
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Personalities
who make IT happen in Philippine Ports Industry
(September 15, 2003)
Today's column
will again feature the human side of IT in the
Philippine ports sector.
Last 01 September,
I wrote about key personalities at the forefront
of technology initiatives in the industry during
the 1990s and where they are right now.
In this issue
let me focus on personalities who play key roles
in the computerization of various aspects of Philippine
port operations.
Deputy Commissioner
Alexander Arevalo
As Customs Deputy Commissioner for MIS & Technology
Group, DepCom Arevalo faces the challenging task
of overseeing the smooth transition of customs
automation efforts to a new technology and policy
environment.
In the aftermath
of the promulgation of the Electronic Commerce
Law and its implementing rules and regulations
as well as the pervasive utilization of Internet-based
systems for business-to-business transactions,
DepCom Arevalo is expected to address head-on
the opportunities and challenges in several major
areas: major upgrade of BOC hardware systems (already
more than five years in asset operating life),
expanding ACOS system implementation in other
major ports (such as the one undertaken in SBMA),
and probably paving the way for eventual migration
of ACOS to the new web-based version of ASYCUDA
software.
All of these are
in addition to keeping a close watch on the latest
initiatives resulting from ongoing programs of
the World Customs Organization and dynamic demands
of enhancing current functionalities of ACOS.
A very important positive factor for his technology
initiatives is the fact that the BOC computerization
continues to receive tangible support from both
private industry and international funding agencies.
Elizabeth C. Follosco
Beth, as colleagues and peers in the port industry
call her, is presently the Manager of Management
& Information Services Department (MISD) of
the Philippine Ports Authority. She is also the
Project Director for the PPA Management Information
System (MIS) computerization project - a technology
initiative intended to automate PPA's mission-critical
business activities nationwide in all the ports
that it manages.
A major challenge
posed by the PPA MIS project, which has been rolled
out in some piers at the North Harbor, is that
it is so far the single most important technology
initiative in the ports industry in terms of comprehensive
nationwide scope and timetable.
Beth initially
joined government service in June 1978 after graduating
from the University of the Philippines with a
degree in chemical engineering. At present she
is also Deputy Head - Permanent Secretariat of
the ASEAN Ports Association (APA).
Elzar Dodjie Simon
I consider Dodjie Simon as one of the most interesting
IT personalities in the ports industry today for
a single reason - he exemplifies the successful
fusion of the music and IT corporate worlds.
A very well-known
composer, he is the winner of several local and
international song-writing contests; he also bagged
the grand prize at the Metro Pop song competition
a few years ago. His songs have been interpreted
by many of the country's leading singers. One
of his recent compositions is being used in the
TV advertisement of a leading IT educational institution.
But before everyone
forgets that our column today is about IT personalities,
let me mention that Dodjie is currently ATI's
Vice President for Information Technology. He
worked as systems manager of the Veterans Affairs
office of the US Embassy before joining ATI six
years ago. He is also the Regional IT Manager
for East Asia of P&O Ports, a position that
gives him responsibility to oversee IT initiatives
in P&O terminals in China, Thailand, and Indonesia.
One of his major
challenges is aligning ATI's IT strategy with
corporate business strategy and global P&O
Ports technology initiatives.
Elmore Ignacio
As MIS Manager of ICTSI, Elmore ensures that MICT's
IT systems and facilities support mission-critical
business activities of the country's busiest container
port. Elmore ensures technology support and direction
for MICT, which this year is again expected to
breach the 1-million TEU mark.
Elmore oversaw
the in-house development of a highly innovative
terminal monitoring software to enhance operational
efficiency and productivity. The software, known
as Terminal Operations Management System or TOPMAN,
provides real-time information on key container
operations for both vessel and yard activities
through a dashboard-style graphical view of ongoing
operations.
So there you are
- those are the key personalities who currently
influence the technology landscape of Philippine
ports. All have an in-depth understanding of the
core business requirements of their respective
organizations, and all know fully well how to
effectively utilize information and communication
technology to ultimately benefit Philippine port
users.
The author has
20 years experience in the development, project
management and implementation of IT projects in
Philippine ports, transport and logistics. He
is presently an independent consultant for IT
projects and initiatives in Philippine ports and
transport industries. For comments or inquiries,
email him at
leo@morada.name.
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People
who helped make IT happen in RP Ports Industry
(September 1, 2003)
Today's column
will be different from all the others I have written.
Our topic is not about the latest technology trends.
Neither is it on cargo security which I have delved
upon during the last 2 issues of this column.
I have no intention
even of writing about my recent IT work experience
during the past 3 weeks in one of India's leading
IT centers (the city of Hyderabad of course somehow
pales in comparison with the city of Bangalore
where Microsoft Chairman Bill Gates, the CEO of
Dell Computers and the founder of Yahoo all made
highly publicized visits).
Today I will write
about the human side of IT in the Philippine ports
sector. Specifically, I will re-visit the 1990s
and enumerate leading personalities who by virtue
of their organizational position and responsibility
were thrust into the forefront of influencing
and even determining the future direction of the
technology landscape of our industry.
I am very fortunate
to have directly worked with all of them in numerous
technology initiatives and their vision, dedication
and hard work helped make IT happen during those
years.
Commissioner Guillermo Parayno
If there is ever to be a first name that must
be mentioned, my hands down choice is Commissioner
Parayno who is now the present BIR Commissioner.
Everyone remembers him for his legacy in implementing
BOC computerization.
One of my most
unforgettable work experience with him was in
1995 when I had to accompany him to the rooftop
of the Customs Port of Manila building and demonstrate
the operations of our newly-installed radio data
terminal system in Asian Terminals. For those
who do not know that area, the only way to get
there is to climb several flights of wooden -
and wobbly - stairs.
To this day, I
make it a point to read his roadmap to customs
modernization because the document encapsulates
his IT vision and strategy for the Bureau of Customs.
Deputy Commissioner
Oscar Brillo
The first time I met Oscar Brillo was when he
was still District Collector of the Port of Manila.
During the early stages of the customs modernization
project, it was from him that I gained full understanding
of the concept and dynamics of the single administrative
document (SAD) as an important trade facilitation
instrument.
He was the first to be appointed as BOC Deputy
Commissioner for the MIS & Technology Group.
The creation of that position is a milestone in
the operationalization of capacity building for
sustaining customs automation throughout the future.
He is currently
very active in activities of Port Users Confederation.
Deputy Commissioner
Cecilia Reyes
The technology projects on which I worked very
closely with Mrs Reyes were the electronic inward
foreign manifest system and the development and
implementation of the customs On-Line Release
System. These initiatives constitute milestones
in the beneficial collaboration between BOC and
its stakeholders in the cargo-handling sector
- ATI and ICTSI.
She is currently
an Assistant Secretary at the Department of Transportation
and Communication where her long experience in
information and communication technology is proving
very valuable in overseeing the continued implementation
of various technology initiatives under that department.
She is also a member of the Project Steering Committee
for the PPA MIS Computerization Project.
Paul Finley
Mr Finley joined ATI in the mid-1990s as Senior
Manager of the Information Management Department;
he was my immediate superior. Then and now, Paul
is a windsurfing enthusiast. It was during his
time that ATI successfully implemented its radio
data transmission (RDT) system, Navis SPARCS vessel
and yard planning system, and Client Access System
for electronic inquiry for vessel schedules and
container movements.
He later became
ATI Senior Vice President for Operations. He then
went on to join Navis Corporation in the US as
director for global sales. Mr Finley currently
holds a senior management position in Northport,
Klang, Malaysia.
Carlo Mojica
As MIS Manager of ICTSI a few years back, Mr.
Mojica's position provided him with technology
leadership responsibilities to ensure that ICTSI
stays in the forefront of continuously improving
MICT port operations efficiency through information
technology. His designation as MIS Manager ended
a period that lasted several years during which
ICTSI had several IT heads in quick succession.
He currently works
at Jurong Port Corporation in Singapore where
he and his family have relocated.
These personalities
constitute the human face of IT in Philippine
ports during the 1990s. I will soon feature in
my next columns the current personalities at the
helm of making technology work for all of us.
The author has
20 years experience in the development, project
management and implementation of IT projects in
Philippine ports, transport and logistics. He
is presently an independent consultant for IT
projects and initiatives in Philippine ports and
transport industries. For comments or inquiries,
email him at leo@morada.name.
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Indian
Suppliers' Compliance with US Cargo Security Requirements
(August 18, 2003)
HYDERABAD, INDIA
- Returning to India on my second business visit
in less than two months, I cannot help but notice
similarities in challenges the manufacturing and
transport supply chain sectors here confront just
like their counterparts in the Philippines.
A front-page article
published in the 11 August issue of leading Indian
newspaper, The Economic Times, caught my interest.
It was entitled "US Retailers May Ask Indian
Suppliers To Be On Guard".
According to the article, security guards monitoring
close circuit televisions (CCTVs) round the clock
may soon become a reality for Indian companies
supplying to US retail giants. High-tech security
devices such as surveillance cameras could become
ubiquitous in Indian factories because of a law
which requires exporters to take strict measures
to reduce the threat of terrorist attacks.
Leading American
retailers and apparel brands such as Wl-Mart,
JC Penney and Phillips Van Heusen are in the process
of implementing a plan to bring their dedicated
suppliers in India under stringent cargo security
checks and measures in compliance with requirements
of the Customs-Trade Partnership Against Terrorism
(C-TPAT) program intended to secure commercial
shipments to the US against terrorist attacks.
The measures include
mandatory installation of CCTVs with a view of
critical locations in Indian plants or factories.
US buyers are reported to be insisting that each
factory should have 8-foot fences or walls to
keep out intruders. The building should be constructed
with materials resistant to unauthorized access.
The objective
of the program is spelled out in a communication
(including a detailed questionnaire on security
measures) that Wal-Mart recently sent to all its
suppliers in India.
The communication
states: "Wal-Mart's policy is that all suppliers
establish procedures to guard against introduction
of non-manifested cargo into inbound shipments.
Such items would include drugs, biological agents,
weapons, radio-active materials, illegal aliens
and other contraband."
C-TPAT recommendations for manufacturers are very
straightforward insofar as developing and implementing
a sound plan to enhance security procedures. These
are general recommendations that should be followed
on a case by case basis depending on the company's
size and structure and may not be applicable to
all.
The manufacturer
is expected to have a written security procedure
plan in place that addresses the following:
Physical
Security: All buildings should be constructed
of materials, which resist unlawful entry and
protect against outside intrusion. Physical security
should include:
- Adequate locking devices
for external and internal doors, windows,
gates, and fences.
- Segregation and marking of
international, domestic, high-value, and dangerous
goods cargo within the warehouse by a safe,
caged, or otherwise fenced-in area.
- Adequate lighting provided
inside and outside the facility to include
parking areas.
- Separate parking area for
private vehicles separate from the shipping,
loading dock, and cargo areas.
- Having internal/external
communications systems in place to contact
internal security personnel or local law enforcement
police.
Access
Controls: Unauthorized access to the shipping,
loading dock and cargo areas should be prohibited.
Controls should include:
- The positive
identification of all employees, visitors
and vendors.
- Procedures for
challenging unauthorized/unidentified persons.
Procedural
Security: Measures for the handling of incoming
and outgoing goods should include the protection
against the introduction, exchange, or loss of
any legal or illegal material. Security controls
should include:
- Having a designated
security officer to supervise the introduction/removal
of cargo.
- Properly marked,
weighed, counted, and documented products.
- Procedures
for verifying seals on containers, trailers,
and railcars.
- Procedures
for detecting and reporting shortages and
overages.
- Procedures
for tracking the timely movement of incoming
and outgoing goods.
- Proper storage
of empty and full containers to prevent unauthorized
access.
- Procedures
to notify Customs and other law enforcement
agencies in cases where anomalies or illegal
activities are detected or suspected by the
company.
Personnel Security:
Companies should conduct employment screening
of prospective employees to include periodic background
checks and application verifications.
Education and
Training Awareness: A security awareness program
should be provided to employees including recognizing
internal conspiracies, maintaining product integrity,
and determining and addressing unauthorized
access. These programs should encourage active
employee participation in security controls.
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Gaining
Further Appreciation of Cargo Security (August
4, 2003)
Everyone in the
freight and transport business is familiar with
the buzzwords on cargo security - Customs-Trade
Partnership Against Terrorism (C-TPAT), Container
Security Initiative (CSI), 24-Hour Advanced Manifest
Rule.
For today's column,
we shall take a glimpse on rationalizations made
last year on the need for new cargo security measures.
As early as April
2002 the International Maritime Organization (IMO)
through its Maritime Safety Committee discussed
a comprehensive set of proposals submitted by
the US to improve container security. These included
sealing of containers, non-intrusive detection
and inspection, trusted agents and shippers, shipper
identification numbers and cargo information in
electronic format.
Sealing of Containers:
Container seals are widely used as a form of control
to indicate that the cargo consigned is untouched
en route. Maritime containers conforming to ISO
standards have two interlocking rear doors with
a hasp capable of accepting a security seal. While
a vast majority of containers are affixed with
some type of seal, there is no universal standard
or requirement for container seals, either mechanically
or electronically. Fundamental to container security
is ensuring that once a container is loaded and
offered for shipment, it is secure from illegal
intrusion for the purpose of smuggling contraband,
especially that which threatens maritime security.
The US recognized
that the ultimate end state for container seals
are active electronic seals capable of storing
and transmitting sufficient amounts of data for
all shipping needs. All container seals must provide
the necessary level of security while allowing
for smooth facilitation of commerce.
Non-intrusive
detection and inspection: Non-Intrusive Inspection
(NII) technology, such as the type used by US
Customs, has been deployed and used to conduct
thousands of inbound and outbound examinations
resulting in hundreds of contraband seizures.
These systems, in many cases, provide the capability
to perform thorough examinations of cargo without
having to resort to the costly, time consuming
process of unloading cargo for manual searches,
or intrusive examinations of conveyances by drilling
or dismantling.
A mix of technologies
designed to complement one another and present
a layered defense to smuggling attempts is the
most effective method of inspection. Deployment
of NII technologies allows for augmentation of
staff in an attempt to maintain an alert posture
while efficiently processing legitimate passengers
and trade.
The US recommended that the issue of non-intrusive
detection and inspection of containers be a subject
of discussion with recommendations referred to
the World Customs Organization (WCO) for further
development and implementation by WCOs.
Trusted agents
and shippers: In order to create an efficient
and secure processing of cross-border trade, world
customs organizations, nation-states and the trade
community need to redefine the way cargo and conveyances
transit the globe. The US, through the C-TPAT,
provides a forum in which the business community
and the US can exchange anti-terrorism ideas,
concepts and information. The program increases
security of the entire commercial process from
manufacture through transportation and importation
to ultimate distribution.
Through C-TPAT,
trade partners will make a commitment to both
trade security and trade compliance, which are
rooted in the same business practices, to work
closely with companies whose good business practices
ensure supply chain security and compliance with
trade laws. This program summarizes the United
States' efforts to develop trusted agents and
shippers in the trade environment.
Shipper Identification
Numbers: The use of a standardized number to identify
all shippers of merchandise is considered an important
element in the data collection portion of US cargo
security initiatives, which are implemented in
the US by the US Customs Service. The standardized
number should provide information identifying
the shipper (consignor, seller, exporter, manufacturer
and even the factory of production) in a standardized
format such as the Dun & Bradstreet Data Universal
Numbering System (DUNS) number.
The shipper identification
number should be provided in an electronic format
prior to lading. This would allow for important
edits for validation of data and greater reliability
in the targeting of illegally imported merchandise.
Those goods improperly identified or unidentified
as to shipper would be subject to more stringent
controls and inspection. Conversely, shipper identification
could be used as a key factor for expediting low
risk merchandise from proven shippers.
Cargo Information
in Electronic Format: Electronic reporting of
shipment identifying data prior to the container
being laden for shipment is key to securing the
supply chain. The primary focus of this data is
verifiable, identifying information on all of
the participants in the transaction (manufacturers,
shippers, carriers, importers, consignees) tied
to an accurate description of the merchandise.
Standardizing
of Customs and other regulatory reporting data
and transmission prior to lading allows for evaluation
of the data by Customs in order to validate it
and make examination decisions prior to the placement
of the container onboard a vessel. This reduces
the risk that non-legitimate interests could use
the supply chain as a weapon by providing information
about the shipment.
The author has
20 years experience in the development, project
management and implementation of IT projects in
Philippine ports, transport and logistics. He
is presently an independent consultant for IT
projects and initiatives in Philippine ports and
transport industries. For comments or inquiries,
email him at leo@morada.name.
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Discovering
Useful Technology Innovation in a Foreign Country
(July 21, 2003)
HYDERABAD, INDIA
- Today's column is written in the city of Hyderabad
in the state of Andra Pradesh, India where this
columnist is currently on a 10-day business visit.
It is interesting to note that India is considered
the primary competitor of the Philippines in terms
of IT software development expertise.
Just like any
first-time visitor to a foreign city, one of the
first things this writer did was to try and experience
local attractions in terms of food and shopping.
After a flurry of visits to all the pearl shops
I could find (all selling white, pink and black
pearls) and realizing that all the cooked food
I tasted was always flavored with curry and other
spices, I am happy to learn about two (2) useful
technology innovations which I hope could find
its way to the Philippines.
Tracking Truck
Movements & Location By Telephone
A new telephone tracking system for long-haul
trucks and other vehicles by means of telephone
has been developed by a Hyderabad-based company
called Aasia-onwheels Network Limited.
The unique tracking
system ensures constant contact between the truck
driver on the move hundreds of miles away and
the owner of the vehicle through "voice mail".
It likewise provides information about truck location.
The system works
in this manner. Two (2) sets of cards are provided
- one for the driver to carry along with the vehicle
and the other one retained by the truck owner.
All that the driver
or owner has to do is make a local telephone call
to a designated number inscribed on the card issued
to them and leave the message. If the driver dials
the number from any telephone location, he hears
the owner's voice and the message.
Similarly, if
the driver wants to send a message to the owner,
he has to dial the allotted number and leave the
message, which can be picked up by the owner from
anywhere in the city. A local call is sufficient
to send and hear the message (in seven Indian
languages and English).
Aasia-onwheels
Network Limited invested its own virtual private
network with computer servers in numerous locations
equipped with Interactive Voice response System.
The company claims
this system is the most economical and dependable
way of communication for transport owners with
vehicles deployed for long distances.
DVD Video
Jukebox
An Indian firm called i3 has developed what is
considered the world's first and only video jukebox.
It is found in some outlets of a coffee chain
called Caf? Coffee Day and the owners are reported
to have already filed a global product patent
in the US to protect it.
The video jukebox
stores 4,476 songs in DVD format in 14 hard discs
of 120 gigabytes each. The operating system is
Windows XP which everyone with computers at home
and in the office are very familiar.
The result is
evident when one watches the jukebox in action.
Obviously it has a very fast microprocessor and
lots of computer memory because even when the
songs queue up there is no loss of speed on response
time on the screen.
The most visible
component of the product is the screen where customers
watch the performance of DVD music album. It is
a plasma screen where video resolution is simply
excellent. Local newspapers also report that the
launch of the video jukebox has in effect created
a new marketing medium.
Brands like Nike, Reebok and Samsung have already
made arrangements with i3 owners. While the music
video plays, the logo of the advertiser is prominently
displayed on the top left side of the large plasma
screen.
i3 also claims
to have developed a new technology for picture
conversion. This enables the video jukebox to
display the music album with no bars from the
DVD.
Right now, it
is reported that the revenue model of i3 and its
video jukebox is completely advertisement based.
A nominal expenditure is incurred when the company
pays per video, per play to the music companies
which provide the song. This hardly makes up for
the cost of the installation.
Therefore, the
money at the end of the day comes from advertisers
who want to reach the customers of hotels, restaurant
and fast food chains in major Indian cities.
The author has
20 years experience in the development, project
management and implementation of IT projects in
Philippine ports, transport and logistics. He
is presently an independent consultant for IT
projects and initiatives in Philippine ports and
transport industries. For comments or inquiries,
email him at leo@morada.name.
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A
Positive Technology Outlook for July (July 3,
2003)
In today's column
I will write about recent and ongoing IT developments
as of this month which I sincerely believe should
make port users feel happy. These events provide
a highly positive outlook for our industry in
terms of distinct and tangible benefits that shall
continue to be derived from extensive application
of information and communications technology to
meet business needs of various port user groups.
Reason #1:
Initial Roll-Out Of PPA Computerized Systems
The PPA MIS Computerization
Project is scheduled to commence within this month
the initial roll-out of its port operations system
for domestic terminal operations in a pilot site
at North Harbor. This is really the start of what
is envisioned as a nationwide implementation in
all PPA-managed ports throughout the country.
Functionalities
include a vessel information management module,
cargo and container monitoring, and computerized
invoicing of port dues and cargo charges. The
system includes a facility for electronic submission
of vessel's notice of arrival, application for
berth, and inward manifest.
This constitutes
the first tangible and extensive computerization
initiative by PPA. The choice of its initial pilot
site implementation is highly significant considering
that North Harbor operations handle the main bulk
of domestic terminal cargo and passenger volume
in the entire country.
The real challenge
is how PPA can effectively manage the smooth transition
from a generally manual operations to an automated
environment. The system's successful implementation
is expected to make it easier for port users to
transact with PPA when availing of port services.
For this reason
alone, all port users should welcome the initial
implementation of PPA's computerization project.
Reason #2:
Operations Of EDI Gateway at BOC Back To Normal
For several weeks
last month the system operations of EDI Gateway
at the Bureau of Customs suffered severe and prolonged
disruptions due to technical problems. This gateway
facility is the sole data communication channel
through which electronic import declarations filed
by importers/consignees using the services of
BOC-accredited value-added networks are coursed
through. At the same time all ACOS import release
instructions for outside CY/CFS operators (known
as On-Line Release System II or OLRS II) are also
sent through the EDI Gateway.
The operations
of this facility are now back to normal, thanks
to the concerted efforts of BOC and private sector
stakeholders.
It is significant
to note, however, that its existing technical
configuration originally set up during the mid-1990s
will soon have to be upgraded since the risk of
technology obsolescence has already overtaken
the system. This situation is also true for other
ACOS components such PC hardware. A lifespan of
five years is normally considered as the IT benchmark
in determining the "useful life" of
hardware and software systems in a business environment.
Hence, a system is said to have reached the end
of its useful life after five years and thus should
either be upgraded, enhanced or even replaced
by a new configuration.
Fortunately for BOC and all port users, a number
of private sector entities are currently extending
valuable technology assistance in terms of the
latest hardware and software solutions so that
customs can sustain its level of automation.
Reason #3:
ATI WebTrack SMS Gaining Widespread Interest
The WebTrack SMS
module launched by ATI last May appears to be
gaining widespread interest within the ranks of
various port user groups. This is a pioneering
technology initiative in the Philippine ports
industry and makes electronic inquiry on real-time
vessel/container/cargo movement information easily
accessible through text messaging.
The Port Users
Confederation (PUC) and its top leadership are
spearheading efforts to further disseminate information
on the functionalities of WebTrack SMS and its
benefits through seminars being conducted for
its various members. It is also interesting to
note that before it was launched to the general
public, the refinement of this system was undertaken
based on active inputs from port user groups such
as screen design formats and the type of information
that should be made available.
We can look forward
to further enhancements of WebTrack SMS in the
immediate future as more port user groups give
positive feedback on its ease of use and tangible
benefits.
Reason #4:
New Software Offering For Freight Forwarders
A new technology
provider is expected to make its entry in the
Philippine market within this month through a
software offering focused on the business requirements
of freight forwarding companies.
The technology
solution called e-Freight is developed by a software
firm based in Bangalore, India and will be marketed
jointly with a local Filipino partner. Initial
information obtained by this column reveals that
e-Freight addresses the logistics functions of
the freight forwarding industry domain involving
Air and Sea Freight. It encompasses all business
entities of this domain like workflow, tracking,
inventory, receivables and human resource management.
Its main functionalities
are: Customer, Carrier and Agent Contracts (quotation
management), Reservation Card (Cargo Booking)
Maintenance, Credit Approval, Weight and Measurement
Recording, Master Bills Maintenance, House Bill
Maintenance, Customer Invoices/Agent Invoices
Profit & Loss, Cargo Status Update, and Consolidation
Planning.
Its core modules
are airfreight operations, sea freight operations,
HRD, Finance, and sales force automation.
It will be very
interesting to know how the local freight forwarding
industry will react to the entry of this new packaged
software. For now, let us consider this a positive
development and let its own merits and promised
benefits be the ultimate gauge of how it will
be accepted by its target clients.
The author has
20 years experience in the development, project
management and implementation of IT projects in
Philippine ports, transport and logistics. He
is presently an independent consultant for IT
projects and initiatives in Philippine ports and
transport industries. For comments or inquiries,
email him at leo@morada.name. |