NetDespatch - The Interview
Web based IT Solutions on demand for express delivery
NetDespatch cuts the cost of automating supply chain transactions, and catalyses evolution in the marketplace through comprehensive web services provision.
 The Internet has a massive impact on society and will continue to change the way we do business, from the highest echelons of industry right down to the private individual. One day we shall take this for granted as we get more familiar with so-called 'web services', because as with all technology it tends to disappear into the application. For now though, what the Internet can do for business remains a very hot topic. Some of the most important developments are emerging within the supply chain. This is where the creative use of the Internet as a medium for many kinds of transactions - buying, shipping, tracking, communicating and even purchasing products and services on a pay-as-you-go basis - is driving an evolution in the way transport companies are running their businesses. In the middle of this is one of the UK's most exciting organisations: NetDespatch. This software company not only provides innovative products to the parcel logistics, express courier and now postal markets via the Internet, it is also enabling the evolution of their businesses, giving them a significant lead over their competitors. The company's list of customers and end users is impressive and includes carriers such as Amtrak, APC Overnight and TNT Post and shippers ranging from speciality food e-retailers Cook Foods, to catalogue mail order giants N. Brown (J D Williams). Iestyn Armstrong-Smith, supply chain journalist, talks to Becky Clark, the organisation's Chief Executive Officer, to find out more.
Warehouse & Logistics News - NetDespatch has been in existence for several years now, and from all accounts you are having much success. Tell me a little about who NetDespatch is, and what is the foundation of the company?
NetDespatch is both the name of the company and the title of our product family, with NetDespatch Velocity being our core web shipping application. The company was set up in June 1999; we believed that the Internet could not only provide a cost-effective means for transport companies to communicate with their customers, replacing expensive PC-based 'implant' systems, but that it would also eventually provide the backbone for all of their business transactions and processes.
Having previously owned and sold a more traditional software company, we had a vision of being able to offer software available through any web browser, and with our customers only paying for usage of the system at minimal cost per item. Today this is referred to as 'software-as-a-service' or 'on demand' software; we did not fully realise then that it would represent such a huge step forward in the way technology is provided to supply chain companies.
Over the past seven years, NetDespatch has developed software designed from the ground up to be delivered from hosted web servers. Today these include leading-edge systems integration with end users and suppliers, booking, tracking, pricing, network routing, hub and depot operations, management information and even mobile systems for delivery drivers. All of these transactions are processed on our web servers so there are no data or security related headaches for our customers. In very simple terms, imagine a central computer that you don't have to buy, that contains all the software you wish to use, but you don't have to purchase, and which also stores all the information you want share with others. You connect to it via the web using a PC or handheld device, and only pay for the number of items you wish to process. Magic!
WLN - There are numerous software companies involved in the supply chain sector; what makes NetDespatch different?
The things that set us apart are our continuing commitment to innovation, a reputation for excellent service and our pay-as-you-go no-capex business model. We make it simple for our customers to use highly technical software solutions to support their businesses and communicate with their customers without any up-front costs or in-house IT knowledge. The NetDespatch software is designed to be used by any type of company, whether it is a franchise model, co-operative or wholly-owned organisation. We manage the hardware, software, configuration, upgrades and customization, so that our customers don't even need to think about who's running their IT systems. Training requirements are minimal because our products are designed from user feed-back. This takes away the headache of implementation and gives our customers access to solutions that they can use today; not following weeks or months of testing.
WLN - I think the pay-as-you-go approach is extremely interesting, particularly in today's highly competitive environment where cost management is so important; can you explain how some of your customers use NetDespatch products and how they are benefiting?
In 2002, Amtrak was the first express parcel company to use NetDespatch web services. Today, over 8,000 Amtrak customers use Velocity for transmitting, importing or booking collections and deliveries, to destinations both in the UK and around the world. More recently, TNT Post Packets and Parcels division decided to utilise Velocity to run its entire packet and parcel home delivery operation - from high technology systems integration with major customers, to depot and hub operations.
WLN - What about the other products you offer, which we'll talk about in a bit more detail later on: Connector, Xpedite, Agility and PODXchangeª, do customers buy these in the same way?
No, each of these is priced according to the way they are used. So Connector and Xpedite have a minimal per-PC annual licence, whereas our Agility mobile solution is charged on a per-user-per-month basis. PODXchange is dependent on the number of POD events submitted. This on-demand approach makes each of them a very attractive proposition to any company that needs to automate its processes or perhaps try out a new business idea. The traditional fixed-costs business model does not work in a seasonally variable market, and parcel companies cannot expend the necessary budget to stay in line with current technology. Our pricing model allows companies of all sizes to take on the best solutions, without costs hampering their opportunity to grow their business; in today's market it makes perfect sense.
WLN - Let's take a look at the complete product range now; just talk us through why they were developed and what each one does.
All of our products fully integrate with Velocity. We have advanced shipper integration products with Connector, Xpedite, and an XML API, and mobile integration products in PODXchangeª and Agility.
With Connector a shipper can automatically import data direct from their own systems - in batch or live mode, as well as print barcode labels in real time at any local or remote location. Our customers find that it's a huge step forward allowing reliable, seamless and sometimes highly innovative supply chain links for their shippers. For example, a flower order entered at a call centre in Bristol can automatically output the parcel label at the grower's location in Jersey.
Xpedite extends the use of Connector back into the warehouse. In this world where we value the accuracy of the information we act on, did you know that the traditional route to get order information from e-commerce web sites into parcel carrier systems was by re-keying the data? Xpedite does away with this by linking with shopping cart systems, automatically printing the shipping labels and transferring the data to the NetDespatch web servers. Xpedite works with Actinic, Sage and Jshop.
Unlike most mobile systems Agility is integrated seamlessly from central server to delivery driver and back again, and it can be set up for a trial in a matter of days. Mobile capture of signatures provides an immediate pay-back, in increased efficiency for delivery drivers, and real-time delivery information for customers. We will shortly be announcing a ground-breaking arrangement whereby contracts for large fleets of drivers will include airtime, support, handheld terminals and all the NetDespatch products for a single monthly charge.
Finally, I should like to mention PODXchangeª. This innovative service will receive and transform electronic scan and delivery event data and Proof of Delivery (POD) signatures transmitted from any hand held device, sent by file transfer or even input on the web, into a single standard format. It will allow a central view for authorised users of parcel and driver progress, as well as forwarding the data to a list of chosen carriers (for subcontractors), or to a central server (for a major retail shipper).
I'd encourage readers to look at our website www.netdespatch.com where they can request a 30-day free trial of the basic Velocity system. I think they will be amazed at the benefits that can be gained in just a few days.
WLN - Clearly you have a winning formula for developing and selling your products; how has this enabled you to grow the company?
We have a reputation for providing a service which is 'always there', cost effective, and subject to continuing innovation; this means that we not only must provide best-in-class products, we also must employ excellent people who provide maximum value to both the company and to our customers. This year we have substantially increased our senior management team, adding industry experts from both postal and parcels sectors, as well as leading experts in Internet infrastructure and applications design.
We currently process in excess of 3 million items per month, for in excess of 50,000 end users, with this peaking 2 to 3 times due to seasonality. Existing business grows at a steady 5% month-on-month, as shippers transfer from more traditional shipping methods. With new business this year we expect turnover to again increase by at least 300%.
WLN - You've recently moved to new premises; what's the story?
Yes, we have created a purpose-designed facility in Marlow, Buckinghamshire, which provides enough space for our expanding team for the next three years. Of course our servers are maintained elsewhere in a secure Internet facility, but even so our new office is equipped with CCTV and zoned-access areas, as we are progressing towards the international security and information assurance standard ISO27001. The new offices house the entire business and provide the resources we need to assist our customers, as well as an amazing working environment for our staff. Although the office opens onto the High Street, it also boasts a car park and a roof top garden!
WLN - You're heavily involved in the parcel logistics and express courier markets, but I believe that with deregulation you are now also serving the postal market; can you talk us through your main areas of activity in this sector?
With deregulation, the postal market in Europe is of particular interest. Last August we provided TNT Post Parcels and Packets division with a ground-breaking home delivery management system. It is the first end-to-end web-based solution for doorstep deliveries, allowing for the processing and tracking of high volumes of sacks, parcels, packets, collections and returns through a national network of depots and 'life style' couriers. With our Agility mobile platform and the recent addition of our new wholly web-based Integrity Management Information System this is a major advance for home delivery operations.
WLN - Where does it all stop?
It doesn't! Our marketplace is expanding into Europe as we network our customers together into a seamless international supply chain. With our unique blend of technology and industry experience, the opportunities for both us and our customers increase. We are living in a world that depends on logistics and an integrated supply chain - the key to this is accurate, efficient processing of information, and continuing innovation in operational methods. That's why we have such a key part to play in the market.
WLN - Can we conclude the interview with where you think NetDespatch will be in five year's time and how reflective that will be with where you are seeing the market going?
We believe that NetDespatch is part of a paradigm change in both supply chain logistics and IT provision. We are gradually developing a community of seamlessly integrated shippers and carriers that will expand virally worldwide of its own accord, through the major carriers, their customers and their subcontractors. If you want to pin me down on exactly where we'll be in five year's time, I'd say that we believe that utilising on-demand wholly-hosted and managed IT solutions will be part and parcel of the way the majority of express and postal logistics service providers - large and small - will run their businesses and we shall enjoy helping to shape that future.
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For further information about this company's activities in the warehouse and logistics industry please contact:
NetDespatch
Tel: 01628 471047
www.netdespatch.com |
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