Yard Management is a dynamic part of the supply
chain resulting in broad positive impacts on the balance sheet
and customer service.
Yard Management is the ability to track trailers
and containers pertinent data including who brought it in, who
owns it, where it is, what’s on it, how long it’s been there and
where it’s supposed to be when, might be the most expensive mile
in transportation.
Yard Management Software (“YMS”) is gaining
attention as companies see benefits from their investments in
transportation and warehouse management software systems and now
see yard management as the next bottleneck to remove. Manual and
less than ideal yard management increase cost, hinder productivity
and cripple supply chain visibility. Selecting the right solution
starts with what problems need to be solved, where improvements
can be made, and what software can accommodate the answers to
these questions. Let’s look at some of the problems, solutions,
features & benefits of yard management and Yard Management Software.
Problems and Challenges of Yard Management
You may be surprised that large sophisticated companies use legal
pads, grease boards, card racks and Lotus or Excel spreadsheets
to manage hundreds of inbound and outbound trailers. Once a day
physical inventories that become obsolete moments after completion
make it difficult to manage a busy and dynamic environment. Problems
created by poor yard management include stories of “lost” loads
of Christmas trees “found” two days before Christmas where retail
values are cut in half. Or lost time and money searching paper
records for historical loads information, and detention charges
on empty containers that get forgotten are other consequences
of manual yard management. Efficient yard management becomes an
even greater challenge with the growing use of outside logistics
providers (3PL’s). The people moving the equipment around the
yard (yard hostlers aka jockeys, switchers, shuttlers) often work
for the owner of the goods in the warehouse, but get their work
orders from two outside vendors, a 3PL warehouse operator, and
3PL transportation provider.
Yard Management Software Can Improve Supply Chain Communication
and Visibility
It’s often a challenge knock down functional silo’s and gain
visibility, cooperation and better communication between purchasing,
warehousing, sales, operations and accounting in any company.
The hostler often has to satisfy the owner while working through
and reacting to two outside vendors who are trying their best
to stay on top of everything. Yard Management Software helps the
supply chain make better decisions. Pre-planned movements communicated
to all parties and browser viewed confirmation of received loads
are two examples where operations become more efficient.
Who pays?
Another challenge in removing yard management bottlenecks is
deciding who takes responsibility and who pays for it. One attitude
is the hostler should be responsible because they should just
be efficient. But, many hostler contracts are written either by
the hour per driver or truck, or by movement. If efficiency problems
are caused by lack of visibility and planning coming from the
3PL’s and the owner, why would the hostler spend his money to
solve the other guy’s problems and end up with less revenue? This
challenge is worth solving because better yard management results
in improved warehouse and transportation efficiency, lower costs
and better customer service.
Yard Management Software Solutions
Yard management software systems today have a great deal of potential
to help remove bottlenecks, provide upstream and downstream visibility
and planning tools, aid in measuring warehouse, transportation
and hostler productivity while reducing cost. YMS can even help
negotiate favorable transportation rates.
Features and Benefits of Yard Management Software
Let’s look at an example using yard management software that
continually updates online available reports with current status
for all of a carrier’s equipment on the yard. Entering a user
name and password gives access to the online report generated
from the YMS. The carrier sees 45 trailers, 23 ready to go with
bills of lading and 2 have flat tires. Available 24 hours a day,
phone calls and faxes are significantly reduced. Another example
is a purchasing department which buys various grades of raw materials.
Due to a functional silo or two, information on what has been
consumed by manufacturing does’t always get to purchasing in a
timely manner. With yard management software, purchasing logs
on to see pre-configured views or custom sorts of trailers by
raw material type, grade, vendor or any combination of fields,
and immediately is aware of ordering needs and inventory overstocks.
Customer service improves when information is quickly available
to communicate on time departures or allow proactive delay notifications.
Warehouses can measure dwell time by individual or groups of dock
doors and review dock-in/dock-out averages to see where productivity
can be improved. Transportation can show carriers reductions in
the average number of “tied-up” trailers and maybe suggest the
carrier forgo the rate increase until next year.
Yard Management Software can even provide automatic pager notification
of high temperature or low fuel conditions on refrigerated equipment,
and warn you of accruing detention charges on late container returns.
Automatic tracking of Key Performance Indicators through automated
daily reports and automatic notification to carriers who are short
on empty commitments are other examples of time saving benefits.
Summary
The number of features and functions that can be incorporated
in YMS is as large as your imagination. Wireless networks for
in truck database updates, radio frequency identification tags
(“RFID”), gate readers and expanding .Net technology provide a
wonderful foundation to incorporate your specific needs and requirements.
There are a wide variety of yard management software products
available from large warehouse management system vendors or companies
who specialize in yard management. Prices range from a couple
thousand dollars for spreadsheet alternatives, to a couple of
hundred thousand dollars and more for applications using RFID
devices, and customized to interface with warehouse, transportation
and other programs and systems.
Yard Management is a busy and dynamic part of the supply chain
where logistics improvements can have a broad positive impact
on the balance sheet and in customer service.
By Jim Harris of Cypress
Inland Corporation. Cypress has a YMS solution named "Yardview".
IDII thanks Cypress for sharing this informative
article with us.
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