Wasteandrecycle.com



Case Study

Gesellschaft fur Materialkreislauf

Waste Disposal Specialist Streamlines Logistics with New Wireless System

Posted: 2/1/2006

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|Journey times and efficient loading of vehicles determine profitability in the |  |Solution Overview |

|trucking industry. As a result, executives at waste disposal specialist | |Organization Profile |

|Gesellschaft für Materialkreislauf und Abfallwirtschaft mbH & Co. KG (GMA) | |The German organization Gesellschaft für |

|wanted to deploy new technologies to improve the company's fleet scheduling, | |Materialkreislauf und Abfallwirtschaft mbH & Co. KG |

|vehicle routing, and goods loading processes. To achieve this, the company | |(GMA) is responsible for the disposal of commercial, |

|deployed a new telematics system based on enwis) software, developed by tegos | |municipal, and private waste. |

|gmbh, and Microsoft® Business Solutions–Navision® (now part of Microsoft | |Business Situation |

|Dynamics™). This solution exchanges data by radio wave between the head office | |GMA wanted to deploy new technology to improve vehicle |

|and computers that are onboard vehicles. Since the solution was implemented, | |routing, maximize load capacities, and improve cash |

|vehicle response times and loading capacities have improved significantly. In | |flow. |

|addition, the company has streamlined its invoicing process and improved cash | |Solution |

|flow, which ensures success in a highly-competitive industry. | |The company deployed a new enwis application that |

|Situation | |supports the exchange of order, collection, and routing|

|Waste disposal is a highly competitive industry. In recent years, the growing | |data between head office and vehicles on the road. This|

|competition pressured established players such as Gesellschaft für | |integrates with Microsoft® Business |

|Materialkreislauf und Abfallwirtschaft mbH & Co. KG (GMA). The company whose | |Solutions–Navision®. |

|name means "society for material recycle and refuse economy," is based in | |Benefits |

|Wangerland, Jever, Germany. | |Enhanced customer experience |

|  | |Reduced dependence on local knowledge |

|To increase its competitive advantage, GMA executives aim to diversify the | |Maximized use of vehicle capacity |

|business. As an example, one new GMA offering is maintenance for parks and | |Faster invoicing and improved cash flow |

|green areas, producing compost and cleaning the road network. Heiko Lonkwitz, | |Ability to calculate actual weight and volume of waste |

|Head of Administration, GMA, explains, “Our business is not just about sales of| |collected |

|truck hauling services. It depends on maximizing all available revenue streams.| |Third Party Software |

|Through diversification and enhanced operational efficiency, we were able to | |Microsoft Dynamics |

|grow by 30 percent last year.” | |Microsoft Business Solutions–Navision  |

|  | |Microsoft Office 2000 |

|To cement its success, the GMA management team decided to restructure its waste| |Microsoft Exchange Server 2003 |

|disposal operations and deploy new technologies to decrease response times and | |Microsoft Windows 2000 Server  |

|streamline administrative processes. Leading technology consultant Bremer ISL | |Microsoft Windows XP Professional |

|Project Bureau was engaged to assess the potential benefits of the planned | |Software and Services |

|technology deployment and help select appropriate software. | |Microsoft Business Solutions Navision 3.70 |

|  | |Microsoft Exchange Server 2003 |

|The results of its study showed that GMA could potentially increase the | |Microsoft Office 2000 |

|efficiency of vehicle loading and reduce hauling and administration costs | |Microsoft SQL Server 2000 |

|significantly. One option for achieving this was to deploy a specialist truck | |Microsoft Virtual Earth |

|transportation software package. This, however, would require administrators to| |Windows Server System Engineered |

|work with two separate applications. Rudolf Kramer, Head of Information | |Vertical Industries |

|Technology, GMA, comments, “Using a second software program would not have been| |Other Professional Services |

|effective in the hectic business of scheduling. Our staff would have to switch | |Country/Region |

|between screens constantly, and extensive training on the new user interface | |Germany |

|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: | | |

|dynamics | | |

|  | | |

|© 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 | | |

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