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Advantages of using a cloud logistics solution built on GS1 standards

Jan Tore Pedersen | 06. Jul 2018
3 minutes read

Stakeholders in the transport and logistics sector are on a constant hunt for ways to stop wasting fuel and time. A CO³ (Collaboration Concept for Co-Modality) study funded by the European Commission showed that one out of five trucks on the road in Europe is completely empty.

Even for trucks that aren’t empty, the average load factor (in terms of weight) is only 56%. That means trucks are generally only half full!

The data is even worse for trucks inside of cities, where load factors are abysmally low. For example, in 2012, Transport for London reported that 39% of delivery vans in London were less than one-quarter full.

Using a cloud logistics solution built on GS1 standards can help eliminate this type of waste.

But what is GS1, exactly?

 

The global language of business

GS1 is a standardisation organisation concentrating on these industries:

  • Retail
  • Healthcare
  • Transportation and logistics
  • Foodservices

GS1 also serves technical industries and humanitarian logistics.

 

Being able to identify, capture and share information across supply chain stakeholders is vital to achieving logistics success.

The GS1 offers a complete set of standards ranging from Serial Shipping Container Code (SSCC) used to identify a logistics unit via messages for booking and status reporting in transportation and logistics to complete networks for capturing and exchanging information.

Parties are identified by a Global Location Number (GLN), which allowsfor easy and error-free optimisation across multiple shippers – and even multiple ‘ship-from’ locations for a single shipper.

The shipments and consignments themselves are identified by a Global Shipment Identification Number (GSIN), allowing the same ID to be used across multiple LSPs. And GS1 XML business messaging standards are used for transport instruction messages, transport status notifications and invoices.

 

What are the advantages of GS1?

 

Ample business opportunities

GS1 standards drive supply chain efficiency.

Cloud solutions for transport and logistics using GS1 standards have the advantage that they easily support electronic information exchange between transport and logistics operators, and between these and clients in all the industries that are also using GS1 standards.

The cost of connecting ICT systems across industries is typically high. Using and staying within the GS1 standards domain offers low cost for digital logistics and brings ample business opportunities.

In deployments around the world, GS1 standards have shown again and again how they can help manufacturers, retailers and logistics service providers stop wasting fuel, time or space.

A cloud logistics solution built upon GS1 standards can be used by any LSC or LSP, as a complement (not a replacement) to transport or warehouse management systems already in place.

 

Conclusion

Business is easier when you speak the same language as your customers, suppliers and partners. The GS1 system provides a solid base for cooperation in the supply chain.

GS1 standards deliver value to all transport and logistics processes, including shipping and receiving, warehouse management, transport management, border procedure management (customs) and asset management.

 

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