Five things you should know aboutauto and logistics software

Q&A with Aaron Korff, president, Vazkor Technologies, Inc.

Cargo Business News caught up with Aaron Korff, president of Vazkor Technologies, Inc., (www.vazkor.com), a custom software solutions company that primarily targets the inland automotive transportation market.

Korff cut his teeth working for the utility group of American Express as a project manager, handling seven software developers during the Internet boom.

Having worked on high-profile projects such as executive information systems, Korff decided to parlay his experience at American Express into his own custom software development business when he founded Vazkor Technologies.

His first client was a local auto transport company in Florida’s West Palm Beach area. Korff said he found there was a niche for this type of market, devoid of as many competitors found in other software markets. Korff said his current, primary customer base includes regional inland transportation companies.

How far has logistics software come almost a decade into the 21st century?
AK: It certainly has become more automated. GPS systems are easier to integrate into software packages, and workflow systems have matured a great deal over the last decade. Software is one of those things where each generation becomes exponentially more powerful than the last, but almost more importantly, software users have become savvier. Truckers now feel more comfortable with PDAs like Blackberries and IPhones, and the dispatchers back at the office are more capable of handling complex software packages without a great deal of training. This phenomenon has only started in the last decade. 

Software used to be all about functionality and speed, but GPS is so cheap and accessible; something like $15 per unit per month, and what you get from that is incredible. So much mobile technology is out there. It used to be only big companies like UPS; now it’s on your Blackberry.

And then there’s Web 2.0. No application installs onto the desktop, centralized information, all offices can see the same data easier. You do need to segment workers into different logins and permissions. Microsoft is trying to make Web applications that look like desktop applications.

What sets auto transport software systems apart from other cargo/logistics software solutions?
AK: That’s one of those questions I could answer in a paragraph, or a 20-page article, but I would say what sets it apart more than any other factor is that cars are a high-priced widget with a unique, well-entrenched product chain. While a small percentage of auto transporters work directly with the manufacturers, almost all move vehicles from and to the large car auctions that are a linchpin of the used car industry. Another large sub-set of auto transporters do towing, repos, and individual “snow bird” transports. When developing auto transport software, it’s very cost-effective to cater to these process flows because they will be used by almost everyone. 
 
The automotive market has, so far this year, gone the way of the global economic downturn. Where do users of auto software find cost efficiencies?
AK: While it’s true that the auto industry is hitting a rough patch, there are still IT breakthroughs that are a big value to any software buyer. Web applications have become easier to develop, and are very popular among our clients because they offer a cost-effective way to centralize their data among all their lots, as well as the trucks they have in the field.  

It has also become a lot easier to save productivity costs and avoid double-entry errors by integrating a lower-cost auto-transport system with the more common accounting packages such as QuickBooks, Peachtree, MAS, or Great Plains. That sort of integration reduces the need to spend extra dollars on embedding accounting elements in your auto-transport software.

Application Programming Interface (API): More software companies are opening up to this, but it requires them to put in the development; they need to customize for you and it will cost more money.

What are a few common questions you get from prospective customers?  
AK: It takes some courage to entrust your business to a new software system, and they want to feel reassured by seeing lots of samples of how we’ve done it for others. As for specific questions, there are usually a few centered around building loads and dispatching loads to drivers, where a company needs to be careful which cars go on which truck loads are manually built. 
The more efficient those processes are, the more time they save, which all adds up to more dollars in their pocket. Often, they just want to get rid of their paperwork and need to hear that it’s possible.  

Looking ahead over the next decade, where do you see the next breakthroughs in auto logistics software?
AK: I see GPS and scanning technology becoming very common. I see every driver having a PDA, and a scanner for VINs, which can be instantly decoded to a car’s year, make, and model. Costs for a GPS system are almost negligible now and my belief is that VIN decoding will also become very cheap. 

Currently, access to reliable VIN data is expensive, or you have to pay for each use. In my opinion, within ten years this data will be available for free. All this means is that automation will increase for the industry as a whole. A lot of the dispatch and billing will move away from the central office and out to the trucks. Instead of a billing manager manually deciding when a bill or proof of delivery is sent, the process will be triggered automatically from the truckers’ handheld units. This technology has been available for several years, but was always cost prohibitive for smaller companies. Auto transporters should take heart that those days are numbered. 

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New Items

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Supply Chain
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Five things you should know about auto and logistics software

Distorted Web Sites

Supply Chain product review
Security Software Solutions

Features
Gateway at a Glance Gulf Coast

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Ports & infrastructure
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Port Product Review
Security Equipment

Commentary
Security Issues Impacting the Supply Chain

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Final Say