Modernized shipping increased revenue and CSAT for Dicom
Dicom partners with Lumenalta to modernize its shipping platform and creates a new revenue stream with cross-border shipping.
About
Dicom Transportation Group, now part of General Logistics Systems (GLS), is a global leader in international shipping with ground-based transportation networks spanning 40 countries. Over the years, they’ve dominated the freight management space in Canada by expanding from parcels to cargo to logistics services. Through the acquisition, Dicom gained access to the entire GLS network to offer its services worldwide.
“The battle for transportation would be lost and won in the field of technology… People are going to want a certain level of service, and technology [drives] cost savings that can be passed back to the customer,” Dicom’s former CIO Kirk Serjeantson said in a company report.
Before the acquisition, they partnered with Lumenalta to completely modernize their shipping system to create more customer visibility into deliveries and enhance tracking. As a result of compliance efficiencies from their new system, they also introduced cross-border shipments for the first time, creating a brand new revenue stream.
100%
Overhaul of dated systems to modern smart shipping platform
200%
Efficiency increased for deployment time from 8 hrs to 5 mins
$425
Saved per driver as the hardware set dropped from $500 to $75
Challenge
Customers expected to be able to track and manage their deliveries in real time, which wasn’t possible due to outdated and unmodifiable software.
Internal hardware for warehouses, point-of-sale, and drivers were costly and inefficient. And outdated shipping operations, such as a complex back-office billing system for its contractors, routinely resulted in expensive delays, which posed a blocker since the company had its eye on growth.
“Over 18 months, we purchased eight companies in the U.S. and we expected to start delivering packages both ways across the border,” says Serjeantson.
But they realized they were missing some key technical capabilities as they tried to integrate the new smart shipping system with their existing tech stack. Instead of losing time in building a net-new ERP, they decided to build around their existing IBM AS/400.
“Logistics is an extremely specific industry. Certain carriers only support certain protocols, FTP servers, or scanners. Devices ranged from a smart TV to a computer that could barely run the Internet. It’s very deep,” says Lumenalta’s tech lead on the project.
Custom Solution
Dicom partnered with Lumenalta to develop a patented, cutting-edge technology suite, consisting of smart shipping and tracking; smart operations; and smart device integration, the integration platform that connects everything together, including customers to their parcels.
“It had to be better than our competitors. We focused on getting our customers in the room to build what they wanted right the first time.”
Kirk Serjeantson, former CIO at Dicom
The solution introduced a self-service portal with tools for end-to-end shipment management. All the data was integrated as teams executed on warehouse operations, fleet, and route management. Complex shipping documentation was automated. Smart devices were introduced and alleviated the need for costly industrial equipment. And reporting and analytics became readily available so Dicom could make true data-driven decisions.
One highlight of the modernized tech build was the track and trace feature, which was used to improve accuracy for delivery estimates. Drivers would scan a barcode at every checkpoint to update the package with the new current location.
None of this would have been possible without the deep technological transformation at Dicom.
Results
The completely modernized smart shipping platform made reaching compliance a whole lot easier, making way for a new revenue stream with cross-border shipping, and revolutionizing the way shipping happens from Canada to the U.S.
Customers were able to track and manage their deliveries in real time, and receive proactive communications in case of delays. In severe weather conditions, Dicom could predict those delays and proactively automate delivery estimate notifications to be sent to their customers. Drivers could self-report and flag any unexpected delays on the road as well, ensuring constant communication with their customers. As a result, Dicom saw improved CSAT (customer satisfaction scores).
Dicom saved time and reduced operational costs managing its many contractors on the road. The system even helped the company auto-ingest and approve invoices with incredible accuracy.
“We grew fairly exponentially, just on the quality of service and the innovation we are providing,” said Serjeantson to SupplyChain Magazine.