Case Study
Gesellschaft fur Materialkreislauf
Waste Disposal Specialist Streamlines Logistics with New Wireless System
Posted: 2/1/2006
Journey times and efficient loading of vehicles determine profitability in the trucking industry. As a result, executives at waste disposal specialist Gesellschaft für Materialkreislauf und Abfallwirtschaft mbH & Co. KG (GMA) wanted to deploy new technologies to improve the company's fleet scheduling, vehicle routing, and goods loading processes. To achieve this, the company deployed a new telematics system based on enwis) software, developed by tegos gmbh, and Microsoft® Business Solutions–Navision® (now part of Microsoft Dynamics™). This solution exchanges data by radio wave between the head office and computers that are onboard vehicles. Since the solution was implemented, vehicle response times and loading capacities have improved significantly. In addition, the company has streamlined its invoicing process and improved cash flow, which ensures success in a highly-competitive industry.Situation
Waste disposal is a highly competitive industry. In recent years, the growing competition pressured established players such as Gesellschaft für Materialkreislauf und Abfallwirtschaft mbH & Co. KG (GMA). The company whose name means "society for material recycle and refuse economy," is based in Wangerland, Jever, Germany.
To increase its competitive advantage, GMA executives aim to diversify the business. As an example, one new GMA offering is maintenance for parks and green areas, producing compost and cleaning the road network. Heiko Lonkwitz, Head of Administration, GMA, explains, “Our business is not just about sales of truck hauling services. It depends on maximizing all available revenue streams. Through diversification and enhanced operational efficiency, we were able to grow by 30 percent last year.”
To cement its success, the GMA management team decided to restructure its waste disposal operations and deploy new technologies to decrease response times and streamline administrative processes. Leading technology consultant Bremer ISL Project Bureau was engaged to assess the potential benefits of the planned technology deployment and help select appropriate software.
The results of its study showed that GMA could potentially increase the efficiency of vehicle loading and reduce hauling and administration costs significantly. One option for achieving this was to deploy a specialist truck transportation software package. This, however, would require administrators to work with two separate applications. Rudolf Kramer, Head of Information Technology, GMA, comments, “Using a second software program would not have been effective in the hectic business of scheduling. Our staff would have to switch between screens constantly, and extensive training on the new user interface would have been required."
Solution
After an extensive evaluation of available technologies, Bremer ISL project bureau recommended the deployment of a new telematics solution with enwis) software from tegos, integrated with Microsoft® Business Solutions–Navision® (now part of Microsoft Dynamics™). The implementation of the new solution was supported by Microsoft Gold Certified Partner tegos.
The new system is based on a centralized Microsoft SQL Server™ 2000 database running on the Microsoft Windows® 2000 Server operating system. The SQL Server 2000 database stores information relating to fleet scheduling and vehicle loading and integrates with data relating to industrial operations and business processes. Employees access the Microsoft Navision application through 40 CITRIX terminals at the head office and additional terminals at seven regional operating units.
The Microsoft Navision modules in use include Purchasing and Creditors, Sales and Debtors, Financial Accounting, Cost Accounting, CRM, and Warehouse Management. These technologies support the integration of financial, distribution, customer relationship management, and other critical business data.
Because it is an industry-specific application, enwis) provides all necessary functions for waste management and recycling companies. It also provides a module that supports the wireless exchange of data between vehicles and head-office systems. Routing and shipping information is sent to vehicles wirelessly on the evening before waste collections take place. The route and shipping data is displayed using onboard computers from Finnish manufacturer Aplicom. These devices offer all the functionality required by GMA at a much lower cost than notebook computers.
In October 2004, 45 GMA trucks began using routes recommended by the new software system. Since then, the scheduling team has changed its working practices profoundly. Kramer reports, “Now, scheduling professionals rarely have to make calls on their mobile phones or radios. Instead, there is a complete data flow cycle which automates the waste disposal process, from the time an order is accepted right through to invoicing.”
Optimal routes are selected based on mapping software provided by leading navigation specialist map & guide. These optimal routes are then sent to vehicles’ onboard computers using the XML standard. Shipping documents and certificates of receipt are also sent to vehicles wirelessly. Drivers then print the required documents and have them signed at customer sites, ensuring that all legal requirements are fulfilled in the most effective way possible.
Using data from Microsoft Navision exported into spreadsheets created in the Microsoft Excel® spreadsheet software and Microsoft Access, GMA staff can quickly compile ad-hoc reports. At the same time, the company uses the Microsoft Visio® 2000 drawing and diagramming software to map data flow charts and operational processes that streamline IT and business management.
Benefits
Increased Responsiveness Enhances the Customer Experience
Often, the actual volume and type of waste vary greatly from original removal requests placed by customers. The new system supports increased flexibility and responsiveness, helping drivers meet customers’ rapidly-changing requirements.
Kramer observes, “When they arrive at the pick-up site, our drivers can now report on the actual weight, type, or quantity of waste that needs to be collected. This information is immediately transmitted to head office, helping us to respond quickly to changing collection scenarios and ensure the highest levels of customer service.”
As well as changing collection scenarios, increased responsiveness helps GMA meet the requirements of same-day order fulfillment. Kramer points out, “In the past, it was sometimes difficult for us to address same-day orders because of poor radio signals in rural areas. By contrast, schedulers now have constant access to key information such as vehicle locations, current trip status, and traffic hold-ups. This means they can quickly assess the use of truck loading capacity and immediately confirm the collection of waste according to customer orders.”
More Effective Staff Training and Reduced Dependence on Local Knowledge
The new telematics solution represents a reinvention of waste disposal logistics processes. Kramer advises, “Previously, we depended on the local knowledge of employees to select routes and schedule deliveries effectively. The new system helps us manage these processes more efficiently and frees us to employ personnel who have no local knowledge. It also minimizes employee training requirements and eliminates errors such as missed collections.”
Faster Invoicing Increases Cash Flow in a Highly Competitive Market
Because information on collections flows directly into the order processing system in Microsoft Navision, GMA can invoice customers much more effectively. As a result, GMA can increase its cash flow and ensure success in a highly-competitive industry.
Lonkwitz adds, “We can send invoices for our waste disposal services while vehicles are still on the road. This greatly improves cash flow, which is an important advantage in the face of ever-increasing competition.”
Plans to Extend Functionality in the Future
Due to the success of the project, GMA is fitting an additional 15 vehicles with onboard computers and navigation systems. The company is also integrating new software functionality that measures the precise weight and volume of waste collected.
Kramer notes, “The ability to calculate precise load volumes and weights will soon play a key role in invoicing for municipal waste disposal services. Most households currently pay a flat-rate fee for waste removal. However, it won’t be long before charges are introduced for actual volumes collected.”
In addition, the ability to calculate precise weights for waste collected makes it easier to estimate the capacity of raw material assembly points. Collection dates for recyclable materials will also be coordinated more effectively according to actual requirements.
Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems your company already has implemented. By automating and streamlining financial, customer relationship
and supply chain processes, Microsoft Dynamics brings together people, processes and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to:
© 2006 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Navision, Excel, Microsoft Dynamics, Visio, and Windows are either registered trademarks or trademarks of Microsoft Corporation or Microsoft Business Solutions ApS in the United States and/or other countries. Microsoft Business Solutions ApS is a subsidiary of Microsoft Corporation. All other trademarks are property of their respective owners.
Document published February 2006 / Solution Overview
Organization Profile
The German organization Gesellschaft für Materialkreislauf und Abfallwirtschaft mbH & Co. KG (GMA) is responsible for the disposal of commercial, municipal, and private waste.
Business Situation
GMA wanted to deploy new technology to improve vehicle routing, maximize load capacities, and improve cash flow.
Solution
The company deployed a new enwis application that supports the exchange of order, collection, and routing data between head office and vehicles on the road. This integrates with Microsoft® Business Solutions–Navision®.
Benefits
- Enhanced customer experience
- Reduced dependence on local knowledge
- Maximized use of vehicle capacity
- Faster invoicing and improved cash flow
- Ability to calculate actual weight and volume of waste collected
- Microsoft Dynamics
- Microsoft Business Solutions–Navision
- Microsoft Office 2000
- Microsoft Exchange Server 2003
- Microsoft Windows 2000 Server
- Microsoft Windows XP Professional
Microsoft Business Solutions Navision 3.70
Microsoft Exchange Server 2003
Microsoft Office 2000
Microsoft SQL Server 2000
Microsoft Virtual Earth
Windows Server System Engineered
Vertical Industries
Other Professional Services
Country/Region
Germany