Siginon Freight switches to online cargo tracking and clearing system

It could also challenge local parcel delivery services companies whose use of IT to reduce operation costs and improve customer service is wanting.

For example, sending a parcel within Nairobi city may take 24 hours and some courier companies do not care to inform the sender or receiver of the delay despite availability of cheap SMS solutions.

Siginon Freight Managing Director Meshack Kipturgo said the new software known as CargoSpot will be operated from Siginon Cargo Centre based at the Jomo Kenyatta International Airport (JKIA).

The software automates cargo operations for the Siginon offices in Nairobi and Eldoret branches.

“The intention is to improve efficiency and reduce paper transactions,” he said.

Cargospot is expected to improve the speed and accuracy in cargo clearance through interfacing with KRA and other third party business systems to allow sharing of data with the operating airline carriers.

“The platform will enable real time tracking and electronic clearance of cargo. The system will also improve generation of invoices and management reporting,” said Mr Kipturgo.

Last year, Russian freight airline Aeroflot Cargo installed the same software to enable it manage its network that comprises numerous destinations, routes and connections, said the company then.

The software enables real time electronic transmission of cargo manifests and attendant details from source to final destination upon aircraft take-off.

Using Cargospot, Siginon Cargo Centre is able to capture cargo details and makes preparations to receive the consignment even before the arrival of the flight at its final destination. In this case, JKIA or Eldoret Airport.

On capturing the Cargo details, Siginon then transmits the details to KRA SIMBA online system electronically to facilitate calculation and payment of duty making it easier and faster for the clearing agents to clear the cargo.

Cargospot eliminates the need for lengthy manual operations, improves accuracy in invoicing, enhances speed in cargo handling and clearance as well as facilitate real time business sales and revenue reporting.

The installation of the software is part of the trends in the cargo sector over the last five years aimed at among others, moving towards a paperless industry.

The cargo sector has also been moving towards information sharing as shippers and consignees try to reduce lead times and costs.

There are also many players involved in cargo logistics, starting from customers, freighters, customs, shippers and customers on the other end among others that can cause delay in delivery of cargo if information is not shared electronically.

Because of competition, logistic companies have become more customer conscious and are implementing strategies that improve the quality of their services while reducing their operational costs.

But logistics companies face the challenge of financing the new IT systems that can help them match with the competition.

A study conducted among Finland’s cargo logistics companies found scarce financial resources are among the major impediment to use of IT systems.

Other challenges included the costs associated with management of process changes, lack of IT capabilities of other stakeholders – which means that the Siginon system may not have connected to customs if KRA did not have the Simba system.

But the study also found that business process re-engineering skills is one of the major advantages in using IT to support business process.