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OnTimeCargo: A Smart Transportation System Development in Logistics

Management by a Design Thinking Approach

Conference Paper · June 2016

DOI: 10.13140/RG.2.1.2439.3204

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 OnTimeCargo: A SMART TRANSPORTATION SYSTEM
DEVELOPMENT IN LOGISTICS MANAGEMENT BY A DESIGN
THINKING APPROACH

Ahmed Azab, Department of Industrial Engineering and Systems Management, Egypt-Japan

University of Science and Technology (E-JUST), Alexandria, Egypt,
ahmed.azab@ejust.edu.eg
Noha Mostafa, Department of Industrial Engineering and Systems Management, Egypt-Japan
University of Science and Technology (E-JUST), Alexandria, Egypt, noha.ali@ejust.edu.eg
(Corresponding author)
Jaehyun Park, Department of Industrial Engineering and Management, Tokyo Institute of
Technology, Tokyo, Japan, park.j.ai@m.titech.ac.jp

Abstract
In this paper, we synthesize an effective communication prototype that deals with some challenges in the
container-trucking sector in Egypt, mainly multiple stakeholders’ communication problems associated
with waiting time. Container-trucking is one of the most important activities in logistics management.
However, Information and Communication Technology (ICT)-based methods are very limited to identify
the latent communication issues in this sector in Egypt. To address these issues, we conducted a design
thinking methodology in order to understand multiple stakeholders’ requirements, using qualitative
research techniques. As the results, we found that the main problems faced by customers are trucking
company selection, miscommunication, and the lack in the information flow, while the main problem faced
by trucking companies is the fluctuations in resource utilization. Based on this, we developed a web-based
prototype to represent the core features and functions to improve communication in both Business-to-
Business (B2B) and Business-to-Customer (B2C). Consequently, this paper has two main contributions.
First, it applies design thinking approach to a logistics problem and presents an IT-based solution for it
that will reduce processing time. Second it increases customer satisfaction and improves resource
utilization in the trucking companies.

Keywords: Supply Chain Management, Logistics, Information and Communication Technology,

Container-trucking, design thinking.
1 INTRODUCTION
Supply chain is a system of suppliers, manufacturers, distributors, retailers and customers where the
participants are connected by the flows of materials, resources and information (Fiala, 2005). Nowadays,
the community of Supply Chain Management (SCM) has argued that multiple stakeholders’
communication has become a critical issue in the supply chain, because it has big impact on efficiency and
competency. However, in reality, many supply chains still suffer from miscommunication and the
inefficient exchange of information. According to Grabara et al. (2014), a piece of information is no more
just abstract data moving between some entities, it is rather a product that has a manufacturer and a
recipient, as a products, many operations can be performed on it such as transmission, processing, storage,
exchange, purchase or sale. From the background of the authors who are specialized in supply chain
activities, they can see that miscommunication in supply chains has become phenomenal in Egypt that has
a big effect on the economy and business. Several problems were observed but to converge, two main
research and practical problems were highlighted:
 Problem1: the importance of multiple stakeholders’ communication to enhance efficiency and
competency in SCM
Due to the increasing competition between companies, information management has become one of
the most important factors in management in general (Dima et al., 2010). The dynamic nature of the
business and the huge advances in Information and Communications Technologies (ICT) put
increasing pressure on companies to increase their flexibility and responsiveness to keep customer
satisfaction and manage their resources efficiently. In this context, Information Technology (IT) can
serve as the nervous system that enables sharing information along the supply chain.

 Problem 2: lack of methodologies and applications that improves customer satisfaction and manage
resources efficiently

Transportation is the most important operation in logistics management accounting for more than one-
fourth of the overall logistics costs (Grabara et al., 2014). Freight transportation is a crucial part in our
daily lives, among many modes of transportation, containerized sea-freight transportation has become
one of the most used international transportation mode. The total global containerized trade has grown
by 9% between 2007 and 2014 (UNCTAD, 2015). Trucks are the most common transportation mode
used to move containers from or to a sea port. These trucks are usually owned by trucking companies
or customers, they move through sea port container terminals to pick up or deliver containers. The
growth in the freight volume requires more efficient methods of management and scheduling to
improve the performance of the whole system. IT tools have been used for this endeavor; however, the
use of ICT-based platforms in that context is still very limited in Egypt.
To deal with these problems, therefore, this study focuses on the use of IT to enhance the communication
in container-trucking sector in Egypt with the following research questions:
1. How can IT be used to redesign boundary-crossing customer-driven processes in trucking
companies to reduce time and increase customer satisfaction through the whole process?
2. How can IT be used to develop a collaborative tool for trucking companies to share their
resources?
3. What information is needed to be shared among the users?
To address these questions, a design thinking approach (Buchanan 1992; Brown 2008; Martin 2009) is
used with applying User-Centred Design (UCD) techniques (Narman& Draper 1986; Doblin 1987; Kumar
2012) in order to identify the most severe problems that would form main features and functions as a
smart transportation system in Egypt. From the design thinking approach, we elucidated two main issues.
The first one is by customers who needs supporting tools to select the trucking company and track their
cargos, and the other is by trucking companies who want to increase customer satisfaction while managing
their resources in the best and most profitable way. With this insight, we synthesized series of prototypes:
conceptual, procedural, behavioural, and appearance (Poggenpohl 2002). As a final solution, we decided
OnTimeCargo as the design outcome by the design thinking approach.
This paper makes two contributions; first, it presents a study on an important logistics problem by using
new approaches that were not applied to this problem previously as far as we know. Second, it proposes a
novel IT-based solution for both Business-to-Business (B2B) and Business-to-Customer (B2C) situations
for trucking companies in Egypt.
The paper is organized as follows; in section 2, a literature review is given about the use of IT method in
logistics and the expected effects on the overall supply chain performance. Section 3 describes the
problem under consideration and section 4 illustrates the methodology that was followed in our research.
Section 5 illustrates the web-based prototype developed by the research team, and finally we draw
conclusions and future work in section 6.

2 LITERATURE REVIEW
Using IT in supply chain and logistics activity has been receiving increased interest academically and
practically. Since the 2000s many works targeted the potential of using IT to improve the supply chain
management performance in logistics (Closs and Xu, 2000) and reverse logistics (Olorunniwo and Li,
2010). Barratt (2004) identified information exchange between different partners in the supply chain as a
significant element in supply chain collaboration level. Barut et al. (2002) proposed a measure for the
degree of integration in a supply chain structure from an information flow system perspective. They
emphasized the importance of such integration in both directions; suppliers and customers. However, there
are several factors that influence the success of IT implementation; social and organizational complexity
are very important factors that sometimes lead to failure in IT implementation; Sahin and Robinson (2002)
argued that identifying the magnitude of the anticipated benefits and the used channels is very important
to establish relationships through IT. Russell and Hoag (2004) addressed this issue by applying a diffusion
of innovation theoretical framework in two big firms; they listed the types of communication channels as
one of the most effective factors. Choy et al. (2014) studied the current state of the use of IT for logistics
service in Hong Kong and the Pearl River Delta region from a market-based view and a resource-based
view for three technologies, ICT, logistics information system, and business intelligence. One of the most
important findings by Choy et al. was that more money should be invested in having and managing new
ICT infrastructure to deploy ICT solutions in a collaborative way along the supply chain.
Relationship with customers is a very important topic in SCM; Payne and Frow (2005) identified five key
cross-functional processes for Customer Relationship Management (CRM); one of them was the
information management process. They argued that data and information should be used to understand the
customers, to co-create value with them, and to build a consistent customer experience, they suggested
using means of IT to achieve these goals with highlighting front office applications that involve direct
interface with customers. Grawe et al. (2012) collected data from logistics service providers and their
customers, their findings showed that that organizational implantation can lead to higher levels of
responsiveness and commitment. Ye and Wang (2013) made a study on 141 Chinese manufacturers to
study the relationship between IT alignment, information sharing, and operational performance. They
found that IT alignment is more useful for customer responsiveness, while information sharing is more
useful for cost efficiency. Alzoubi and Gill (2014) believed that having a proper software for
communication with customers will lead to save time and effort, reduce documentation and increase
customer satisfaction. They think that more attention should be paid to this issue.
Yu et al. (2001) showed that increasing the level of information sharing among different partners in a
decentralized supply chain has many benefits such as cost reduction, better inventory policy and improved
supply chain performance. Li and Lin (2006) made multiple regression analyses for data collected from
196 organizations to explore which factors influence information sharing and information quality in
supply chain management, they found that the most important factors supplier uncertainty, shared vision
between supply chain partners, and commitment of supply chain partners. This shows how it is important
to have proper channels to deal with business partners. Zhou and Benton Jr. (2007) collected data from
125 firms in North America; they found that effective information sharing and effective supply chain
practice are critical in improving supply chain performance. Rashed et al. (2010) made a questionnaire-
based survey in Bangladeshi to measure the effect of information and knowledge sharing on supplier’s
operational performance; they found that information sharing is a prerequisite for knowledge sharing and
that having good supplier-buyer relationships will improve the overall supplier’s performance. Prajogo
and Olhager (2012) showed that both information and material flow integration have significant effects on
supply chain performance, they described two aspects of information exchange; hard (i.e. information
infrastructure) and soft (i.e. building good communication and trust). Baihaqi and Sohal (2013) showed
that integrated information technologies have positive effect on the intensity of information sharing, they
argued that information sharing is essential but insufficient to improve the overall supply chain
performance. Jonsson and Mattsson (2013) studied the effect of information sharing about customer
demand and orders; they argued that in distribution networks, the value of information sharing will be
higher. Gonzalvez-Gallego et al. (2014) made a hierarchical multiple regression analysis to test the effects
of using ICT and Information Systems (IS) integration along the supply chain. They collected date from
102 firms in Spain and Portugal. Based on their results, they suggested that firm should invest in ICTs to
improve their external and internal performance, also they found that information sharing is very with
suppliers and customers is very important and will lead to stronger relationships and hence stringer
performance and competitiveness.
Research on using web-based systems in supply chain is limited; Lambert and Cooper (2000) highlighted
the role of internet that provides rapid communication mechanism that can reduce time and cost in the
supply chain, mainly the purchasing function. Stefansson (2002) highlighted the role of using the Internet
in supply chains especially in Small and Medium Enterprises (SMEs); they stated that the advantages are
reliability, low cost, and accessibility while the disadvantages are concerns about security and
authentication. However, these concerns are highly decreased now with advanced IT techniques. Helo and
Szekely (2005) selected Enterprise Application Integration (EAI) as the key function in using software
applications in supply chains that can be web-based. EAI is the sharing of data and business processes
through the networked applications in an organization. Helo et al. (2006) presented a web-based logistics
management software that supports modeling and analysis of supply demand networks, they argued that
such systems can increase the responsiveness and competitiveness of the supply chain. They also stated
that the baseness environment is transforming from being production-centric to be information and
customer centric.
Service provider selection in logistics has recently received attention in academic research. Aguezzoul
(2014) identified eleven criteria for Third-Party Logistics (3PL) selection, information systems (IS) is one
of these criteria; IS corresponds to facilitating communication with customers, information sharing,
information security, information accessibility, and computer networking. Less works target using IT in
resource allocation among suppliers; Sanders (2008) identified two patterns of IT use; exploitation
(improve current methods) and exploration (find new methods), they found that exploitation affects
operational coordination while exploration affects strategic coordination; they suggested that suppliers
should use both patterns to maximize the benefits of using IT in the supply chain.

3 PROBLEM DESCRIPTION
Containerized cargos are transported mainly through the sea all over the world. Once the vessels arrive to
the seaports, which are considered as the first node in the inland supply chain, customers use trucking
companies to deliver/pick up their cargos in minimal time and cost. Figure 1 shows the supply chain main
nodes and the direction of the cargos flow.

Figure 1. Inland supply chain nodes for containerized cargo transportation

Due to the interaction of activities and operations among the stakeholders in this chain, many problems
arise. As a result, the management of logistics received increasing interest on both academic and practical
sides. One of the main problems is the delay problems in delivery operations. In this paper, the problem of
delay is studied along this chain (fig.1). Practically, the delay problem is found in both nodes; as the
interaction between the seaport and trucking companies’ contributes to the delay and similarly, the delay
can occur due to the customers’ interaction with trucking companies. Both sources of delay are to be
studied to specify which one has the higher influence.

4 METHODOLOGY
In this paper, we invited a design thinking approach in order to identify problems and the related solutions
(Buchanan 1992; Brown 2008; Martin 2009). Design thinking is a strategy that enables deriving the right
hypothesis and generating ideas and solutions. Moreover, it is used by designers to solve complex
problems, and create preferable solutions for customers (Doblin 1987).
We hypothesize that customers experience long waiting times to receive/deliver their containers form/to
seaport or to transport it through the hinterland. This hypothesis is from our observations and contacts
with many customers. On the other hand, trucking companies find difficulties in utilizing their resources
like trucks and drivers. Moreover, coping with the increasing demand forces companies to increase their
resources continuously, it leads to higher costs. In this paper, we aim to provide an innovative solution to
increase both customer and trucking company satisfaction. A design thinking approach begins with
defining the problem from an academic and practical experience. After defining the problem, a new
analysis technique is used to specify the main features and root causes for this problem. Then, an ideation
process is adopted to generate the solution for the problem, and finally, a prototype for a smart
transportation system is created in three consecutive phases.
4.1 Problem Analysis

A brain storming process was conducted to discover the factors that affect the cargo delays and resources
utilization problems. A 3D model that represents various stakeholders in the container trucking industry
was built to visualize and understand the interactions among various stakeholders (Figure 2). Many causes
and effects resulted from the ideation which leaded to deeper understanding for the problem nature. The
relations between these causes are very important to be identified and evaluated. Moreover, the strength of
these relations will help in navigating to the significant issues of the problem. To do this, insight matrix
(Kumar, 2012) was used to analyze and visualize the strengths/weaknesses of the correlation between the
various causes and factors (Figure 3). Insight Matrix is a tool that finds patterns in research data by
clustering similar items into groups. The research team scored the relationship between the items on the
list base on their background and problem study. Each cell in the matrix is then populated with a value
expressing the relationship between the row and column items. By sorting problem items according to the
strength of its correlation, the information flow and information sharing between customers and trucking
companies exhibited the most significant factors.

Figure 2. 3D Model and Brain Storming sessions

Figure 3. Insight Matrix

4.2 Synthesis stage

After analyzing the problem, the synthesis of a customer oriented solution was developed. The customer
voice in this stage of the design thinking approach can be obtained by many ways. In this paper, we used
the persona from both stakeholders (Cooper & Reimann 2003; Garrett 2010). On the customer side, the
chosen persons exhibited their real need to control their cargos. The customer personas showed that the
communication among the stakeholders in container trucking sectors in Egypt needs to be more organized.
On the other hand, the trucking company persona complained form the excessive demand during some
months of year and the idle the resources in other months. The companies’ needs to coop with the
increasing demand and utilizing the resources in better ways is very crucial; the voice of stakeholders is
considered during the prototyping phase. The team work provided a list of the stakeholders needs, and
each need is converted to a tool that users can benefit from in the proposed information system. Two
representative personas are given below; Persona 1 is for a customer and Persona 2 is for a trucking
company employee:
 Persona 1
“I want to feel in control with my cargos”
My name is Ahmed Mostafa, I am 61 years old, married with two daughters, I am the owner of toy
store and I import toys from China to distribute them in Egypt. I do not have owned trucks, so when
my containers arrive in the sea port, I hire a trucking company to pick up the containers from the port
and deliver them to my store. I always have the dilemma of selecting the trucking company; I had
many problems previously due to delays, bad communication, and handling problems.
 Persona 2
“I am always stressed due to the continuous dealing with customers’ complaints”
My name is Heba Ali, 28 years, Married and I work as a customer service representative in a trucking
company. I have been working for 3 years in a company for logistics services; I am responsible of
responding to customers who have hired trucks from the company. I complain from the repetitive calls
by customers checking the status of their cargos, also when there are any delays, customers
sometimes shout at me. My salary is small, but I depend on the monthly profit share that varies
according to the fleet utilization.

5 PROTOTYPES
5.1 Conceptual Prototype

The conceptual prototype (Poggenpohl 2002) is the first phase of the design development. As our target is
to reduce the cargo delays, the name of the application is selected to be “OnTimeCargo”. For customers,
the satisfaction is increased by reducing the delivery time of their cargos. On the other hand, trucking
companies need to increase the service quality for customers besides reducing the transportation cost. One
of the main reasons of reducing the transportation cost is increasing the resources utilization. To achieve
all of these goals, a website is proposed to gather information about customers, cargos, and trucking
companies. Both customers and trucking companies can use the website and interact through it. The
concept of “sharing economy” is considered during building the prototype to enhance the ability of
trucking companies to utilize their resources smartly. The conceptual prototype is shown in Table 1.

Application Name : OnTime Cargo

What is it?
It is a website to gather and share information between customers and trucking companies.
How does it work?
 A data base of trucking companies will be built.
 Customers can access the data base through the website to select a service provider
among many alternatives.
 Customers are able to make orders and track their order.
 Trucking companies are able to share information about their resources with other
trucking companies.
Who are the users?
Customers & trucking companies.
What are the targeted benefits?
Reducing the cargo delays.
Increasing the customer satisfaction.
Increasing the recourse utilization for the trucking companies.
Providing information for both stakeholders.

Table 1. Conceptual prototype

5.2 Procedural and Behavioral prototypes

IS architecture needs to be designed for SCM in a customized way that could be different from an
organization to another (Gunasekaran, Ngai, 2004). After developing the conceptual prototype, the need
for a procedure to organize the information flow inside the system is introduced in the second and third
phases of the prototype: procedural and behavior prototypes (Poggenpohl 2002). In this stage, a
questionnaire was designed and a survey was made in a large Egyptian logistics company to put our hands
on their actual needs and include their voice in our solution. After that, we developed information
architecture of the system. In Figure 4 the information architecture is illustrated. Customers can search for
companies to transport their containers from a data base for many trucking companies. All information
about the company will be provided such as location, contact information, available trucks and drivers,
etc. Once the customer selects the desired company, he/she can make a reservation. The trucking company
will receive this reservation and begin to make an order to the truckers. The cargo status can be monitored
by the customer from the moment the company had confirmed the reservation to the delivery to the final
destination. Trucking companies can manage their resources using this service. Also, trucking companies
can offer their resources; trucks and/or drivers, for other companies if they are idle. Other trucking
companies can search for trucks or drivers to compensate lack in their resources.

Figure 4. Information Architecture (IA)

5.3 Appearance prototype

The appearance prototype (Poggenpohl 2002) is the final phase of the design. To build the appearance
prototype, Axure platform was used. Axure is a wireframing and rapid prototyping software for web
applications (Axure 2016). The users can access the system easily using an account. The main services
provided by the website are customer service and trucking service. In the customer service, customer can
receive the service in three levels (fig. 4); customers will be able to search for trucking companies, make a
transportation order and track their orders. The website uses a search engine to provide the suitable results
for users. The users will be asked to provide some key information before the search process. This key
information will be the input for the data processor to find the most suitable choices for the users. The data
processor uses information like location of the user, cargo type, number of trucks required, cargo final
destination, etc.
The website provides a trucking service for the trucking companies as solution for the resources utilization
problems. Trucking companies can use this service to share their idle resources with other companies.
Trucking companies are able to specify in details all resources that they want to share such as trucks and
drivers. Moreover, the costs of hiring trucks or drivers are included to provide a chance for comparison
among alternatives. If a trucking company has some limitations in its resources, this company can order
resources from the shared ones. Both customer service and trucking service are developed to enhance the
communication and provide a reliable way for interaction among stakeholders.
“Axure” platform was used to develop this prototype as a real website and to be easy-to-use by customers.
Figure 5 gives some real photos from the developed website.

(a) The home page (b) Customer service manu

(c) Trucking service menu

Figure 5. Web-based Appearance Prototype

6 CONCLUSIONS AND FUTURE WORK

Information technology is used extensively in services to fulfill the rapid growth of customer demands.
Companies try to maximize the customer satisfaction and increase its competitiveness. In Egypt, the
container trucking sector faces many communication problems. This results in delay problems in cargo
deliveries and ineffective use of resources. In this paper, a design thinking approach is followed to solve
these problems. The output is a web-based prototype for both customers and trucking companies. We
expect that using this ICT-based website will increase customer satisfaction and provide more
communication to the stakeholders. Moreover, the trucking companies are expected to decrease the
transportation cost and hence increase their revenues by utilizing more resources. In addition, the lost
demands which the trucking companies may not be able to satisfy due to lack of resources are expected to
be minimized. The proposed future work is to extend this website to connect not only the customers and
trucking companies, but also study involving seaports in this system.
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