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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