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Wilhelmsen Lines Australia Pty Limited

Success Story

Wilhelmsen Uses E-Commerce To Create AGlobal Supply Chain

IiuInternational shipping companies which wish to remain globally competitive must capitalise on advances in communications technology to ensure that all parties to their supply chain benefit from fast, reliable and accurate information flows.
lc Geoff Morris General Manager - Special Projects Wilhelmsen Lines

The Organisation

Wilhelmsen Lines Australia is part of theinternational Wilhelmsen Lines shipping group.With headquarters in Oslo, Norway, Wilhelmsen Lines was founded in 1861 and has served Australia since 1896. Today it is one of the largest international shipping lines. Operations cover most parts of the world, though it is organised along independent company lines.

In the early 1970s, Wilhelmsen Lines took the then radical decision to concentrate solely on RoRo (Roll OnŒRoll Off) vessels. Today, Wilhelmsen Lines is the biggest deepsea RoRo operator in the world, and the group also operates agency, bulk/tanker, cruise and heavy cargo divisions.

In early April 1999, a major development was announced: Wilhelmsen Lines and Wallenius Lines of Sweden (a company of similar size) have agreed to form a joint venture which will operate some eighty major vessels in world-wide trades. This new company will be the largest RoRo and automotive carrier in the world.

The Project

As a major shipping contractor, Wilhelmsen Lines is a critical link in the supply chain of many of Australia™s leading exporters. Wilhelmsen™s strategic planning emphasises the development of supply chain management systems that will improve co-operation with exporters, and enhance the international competitiveness of all parties to the supply chain.

Reflecting this policy of continuous systems improvement, Wilhelmsen Lines undertook a collaborative project to improve communication flow between the company and its major client exporters. The aim of the project was to develop a methodology for direct communication between Wilhelmsen and its customers, based on electronic information technology links.

Examples of the many benefits that the new Electronic Data Interchange (EDI) communications system is expected to deliver are the ability to:

• input bookings and deliver electronic confirmation;
• receive Bill of Lading data and deliver proforma documents electronically;
• send Export Receival Advices electronically to container terminals;
• track export freight containers; and
• make arrangements to pay charges electronically.

On implementation, the system will allow Wilhelmsen Lines to interface electronically with stevedoring suppliers, transport companies, financial institutions and all other businesses involved in the company™s paper flow.

Project Methodology

Because of the global nature of Wilhelmsen Lines™ operations, the impact of a major corporate communications initiative on the company would also be global, and a commitment from Wilhelmsen™s head office to the project was required. To this end, an international team was formed that reported direct to Oslo.

The needs and expectations of shipper customers in relation to electronic commerce were a critical input to the project. To identify these needs, a survey was conducted covering Australian and international operations. The outcomes of the survey provided information in support of the project, and indicated timelines for its implementation.

The project supported by the Supply Chain Partnerships Program was undertaken by a dedicated group from Wilhelmsen Lines, assisted by a team of specialist consultants. In Australia, the team worked closely with Tradegate ECA (Australia™s peak body for users of electronic commerce) to harness industry support for the electronic standards, protocols and overall approach to electronic commerce.

Project Benefits and Outcomes

For Wilhelmsen Lines, the Supply Chain Partnership project marks the continuation of a major campaign to add value to its supply chain, through the infusion of advanced information technology to achieve a more efficient movement of goods. Major highlights of the project to date include:

• a complete re-writing of its main global cargo database system covering all aspects required for the sea transport of containers and cargo. This is the point of destination or origin of all EDI messaging covered by this project;
• introduction of electronic document transfers, covering:
• inbound/outbound manifests;
• sea cargo automation;
• export cargo clearance (Exit 2™);
• cargo manifests to stevedores and port authorities;
• a pilot trial and evaluation program with customers; and
• standardisation of electronic document formats, incorporating international harmonisation (Edifact).
• identification of the requirements of supply chain partners involved in EDI linkages, and
• an import cargo system for arrival and delivery permit advice, and electronic payments.

The adoption of electronic commerce will result in very substantial savings for both Wilhelmsen Lines and its Australian customers. Reduced interest costs, for example, arising from earlier payment for goods through the faster generation of Bills of Lading, are expected to save over $4.5 million per year. Other savings will be made through reduced re-keying of data throughout the supply chain. Overall, the project is expected to deliver savings over $40 to $50 million per year following its adoption by Australian shippers.