Logistics Viewpoints

A complete analysis of logistics trends, technologies, and services

Facebook Graph Search, Through a Supply Chain Lens

Business Intelligence | By •

There were plenty of rumors about what Facebook was going to announce yesterday, everything from the launch of a Facebook phone to the introduction of a “Dislike” button. But the big announcement was about Graph Search, “a new way for you to find people, photos, places and interests that are most relevant to you on Facebook.” While traditional search tools were designed to search the Web, Graph Search was designed to search a social network — specifically, the immense quantity and wealth of content contained in Facebook’s 1 billion profiles, 24 billion pictures, and 1 trillion connections. According to the press release:

Graph Search and web search are very different. Web search is designed to take a set of keywords (for example: “hip hop”) and provide the best possible results that match those keywords. With Graph Search you combine phrases (for example: “my friends in New York who like Jay-Z”) to get that set of people, places, photos or other content that’s been shared on Facebook. We believe they have very different uses.

Graph Search, which is still in beta, allows users to enter natural language queries, such as “People who like tennis and live nearby,” “Photos of my friends in New York,” and “Sushi restaurants in Palo Alto my friends have liked” (as well as some funny search ideas people are already posting on Twitter under #FacebookSearchIdeas).

So, is Graph Search a big deal or not?

At first glance, the capabilities of Graph Search don’t seem much different than what you can do with “advance search” filters using traditional search tools. The big difference, however, is the user interface. According to a posting on Facebook’s engineering blog, the company had “discussed and debated, and built several simple prototypes of graphical UIs that allowed users — click-by-click — to build up structured, database-like queries. But they all seemed too complex and not quite up for the full scope of Zuck’s [Facebook CEO Mark Zuckerberg] challenge to us…If a person simply entered the title of the content they were looking for, could we then build a system that would understand the searcher’s input [emphasis mine] and find the content for them?”

The ability to use natural language queries is one reason I believe Graph Search is a big deal, mainly because it’s a step toward something even bigger: user interfaces driven by spoken commands, specifically for enterprise apps (see “Siri” Comes to Enterprise Apps, one of my predictions for 2013).

Graph Search is also a big deal when you think about applying this technology to existing and emerging Supply Chain Operating Networks, like those managed by Descartes, LeanLogistics, GT Nexus/TradeCard, E2open, Ariba, C.H. Robinson, and others that are the Facebook equivalents in the supply chain and logistics realm. “Graph Search takes us back to our roots and allows people to use the graph to make new connections,” says Facebook in its press release. And the same opportunity to make new connections exists in the supply chain realm, if you were part of a Supply Chain Operating Network and could use Graph Search to conduct queries such as:

  • Battery suppliers in China my industry peers have liked
  • 3PLs with warehouses in Nevada and Tennessee with Automotive connections
  • Professionals with S&OP experience in retail who speak Spanish and live in Canada
  • Trucking companies in Utah with more than 10 refrigerated trucks with the most likes
  • Companies my Tier 1 suppliers are connected to in China, India, and Brazil
  • TMS and WMS software applications my connections like

Simply put, the ability to discover and establish new business connections, either company-to-company or person-to-person, is a key value proposition of network-based solutions. Providers are starting to explore ways to enable this capability (see, for example, Descartes Community), and Graph Search would greatly aid that effort. Of course, the value is ultimately dependent on the accuracy and completeness of the information in the network, especially information contained in business profiles (see “The Problem with Big Data”).

So, that’s my view of Facebook Graph Search through my supply chain lens. What do you think? And what supply chain queries would conduct on Graph Search? Post your ideas below or on Twitter using the hashtag #SupplyChainSearchIdeas

UPDATE: Watch Adrian discuss the Rise of Supply Chain Operating Networks on Talking Logistics.

(Note: C.H. Robinson, Descartes, and LeanLogistics are Logistics Viewpoints sponsors).

Takeaways from Descartes Evolution 2012 Global User Conference

Cloud/Software-as-a-Service | By •

I attended the Descartes Evolution 2012 Global User & Partner Conference a couple of weeks ago. When Art Mesher took over as CEO of Descartes Systems Group eight years ago, I wasn’t sure the company was going to survive. Today, it is a thriving company. What are the secrets of its turnaround?

Descartes (a Logistics Viewpoints sponsor) was one of the first enterprise software companies to move to the software-as-a-service (SaaS) model. Moving from upfront license fees to recurring subscription fees hurts revenues for the first few years, but then revenues become much more dependable and predictable.

The SaaS model can also be very good for clients. At the conference, a Director of Logistics at a retail company spoke about the results his company achieved after implementing Descartes’ SaaS routing and mobile resource management (MRM) solution. The solution was inexpensive enough that he could pay for it out of his operating budget. The solution was also implemented fairly quickly. The savings in the first year were 20 times larger than what the retailer spent on the product! Three quarters of the savings came from better routing of the company’s private fleet, the other quarter from reduced driver idling. I thought, “Where else have I heard of such an impressive ROI?” And then I remembered: at a Descartes conference a couple of years ago.

The second key to Descartes’ turnaround is its Global Logistics Network (GLN), an electronic communication network with 63,000 connected parties. About 4.5 billion messages are exchanged annually on the network, which is focused largely on logistics documents. At the core of Descartes’ strategy is what the company calls the “Federated Network,” which is similar to our Supply Chain Operating Network model. The idea is that applications that run on a network can achieve synergies that are just not possible with standalone applications. The difference is that by speaking of a “federated” network, Descartes makes the point that it connects to about 50 other EDI networks.

Descartes’ IES warehouse management system (WMS) is a good example. This solution is used by freight forwarders and 3PLs with port (air and ocean) facilities, and it is particularly well suited for facilitating shipment consolidation and deconsolidation. While the core WMS does not support advanced labor saving activities like directed put-away, the electronic communication component has rich functionality for coordinating seller, carrier, and buyer interactions to facilitate the consolidation process. This is where Descartes seems to excel, finding the white spaces and inefficiencies in logistics processes that involve more than two parties. Other examples include the company’s DC Bypass and Logistics Flow Control solutions.

At the conference, Descartes announced its intention to leverage its network to build what it calls the Descartes Community. The solution, which was demonstrated at the conference, looks similar to LinkedIn, although it’s much more specific to people interested in logistics, and with more in-depth profiles of logistics companies. Ultimately, this solution could help shippers find new carriers to do business with.

This brings me to the third thing that has aided Descartes’ turnaround. For the company, acquisitions are a core competency. IES, the source of its IES WMS solution, is just one of many examples. Descartes likes to buy small, profitable companies that are focused on logistics processes most other supply chain software companies seem to ignore; companies that offer SaaS solutions that will drive new traffic to its GLN, and are strong in particular geographic regions where it has a limited presence. Descartes’ acquisitions fall into the three product categories it supports – global trade compliance, mobile resource management, and supply chain execution. The company’s most recent acquisition, Exentra, is an example of this acquisition strategy in action. Exentra is UK based, a SaaS solution, and falls into the MRM product category.

In conclusion, there is a lot to be said for consistency. When I go to other supply chain vendor conferences, there seems to be a new vision every few years. At Descartes, the vision has remained consistent ever since Art Mesher took the helm.

This Week in Logistics News (November 12-16, 2012)

Cloud/Software-as-a-Service | By •

Get your Twinkies and Wonder Bread while they last. Hostess Brands is going out of business.

In more important news…

Routing and scheduling, mobile, and telematics solutions continue to converge, as evidenced by Descartes’ announced acquisition this week of Exentra, a UK-based provider of software-as-a-service (SaaS) driver compliance solutions for the European Union, for about $17 million in cash. Here are some details from the press release:

In the EU, every vehicle over 3.5 tons is required to have a tachograph. A tachograph is a device fitted to a vehicle that automatically records its speed and distance, together with the driver’s activity. Exentra’s cloud-based compliance management platform, Smartanalysis, helps customers leverage the data from a vehicle’s tachograph to comply with EU-wide legislation governing driver compliance, such as the EU working-time directive.

 

“The EU driver compliance legislation has been in place longer than comparable regulations in North America. In the EU, not only is every vehicle required to have tachograph hardware, but the hardware is standardized and fitted during vehicle production,” said Steve Fisher, CEO of Exentra and Director of Compliance at Descartes.

Descartes also made some other product-related announcements at its annual Descartes Evolution Global User and Partner Conference, including the unveiling of Descartes Community, a cloud-based service that allows Descartes customers “to more deeply interact in their daily business within their industry and find new ways to grow.” Some additional details from the press release:

Descartes is making its industry leading Standard Messaging Format (SMF) communication protocol publicly available for use, free of charge, to those wishing to connect to Descartes Global Logistics Network (GLN). Designed to help build communities and enable industries to improve their productivity and performance, the Descartes Community service offers members the ability to connect with Descartes GLN members through collaboration tools and automate multiparty processes by utilizing the SMF business document definitions [emphasis mine].

In many ways, Descartes Community is aiming to provide the same type of communication and collaboration capabilities that GE is enabling with its GE Colab social network platform, except Descartes’ network extends across different companies. What started out as B2B connectivity is now morphing into a social network platform for supply chain and logistics, with apps to execute processes. Other software-as-a-service providers with built-in trading partner networks, as well as 3PLs, have the same opportunity, and I know of at least two other providers that are moving in this direction too.

Speaking of B2B networks, E2open announced the availability of the newest version of E2 Cloud Connectivity that brings “industry-first productized maps that speeds data transformation across industry standards such as X12, EDIFACT, OAGIS and others.” Lorenzo Martinelli, Senior Vice President, Corporate Strategy, at E2open says the following in the press release:

“One of the biggest challenges to rapid and cost-effective trading partner connectivity is the traditional practice of one-off, custom, point-to-point maps for transactions and data. Working with some of the most complex supply chains, and hundreds of customer deployments, we have created a next-generation model that enriches our network content using open canonicals and cross-standard maps.”

B2B connectivity is not a sexy topic, and the technical details are lost on most people, but it’s a critical piece of the IT puzzle. Without it, most supply chain applications would be worthless, like a Web browser without Internet connectivity. Many companies still build and maintain their own connectivity networks, but I believe B2B connectivity should be accessed as a service, like electricity or any other utility. And by plugging in to an existing multi-party network, you gain access to the collaboration and social networking opportunities mentioned above. Just my two cents.

In other technology news, LeanLogistics announced the release of On-Demand TMS® version 12.3.0 that “enables shippers to enact compliance, risk management, governance and control specific to global logistics.” Part of this new functionality is enabled via partnerships with INTTRA and Amber Road. Here are some additional details from the press release:

LeanGlobal enhancements in version 12.3.0 include connectivity with leading ocean carriers and NVOCCs to facilitate booking management. In addition, version 12.3.0 provides global trade compliance that includes product classification, import and export control checks, documentation determination, restricted party screening, ocean freight settlement and global business intelligence all within the On-Demand TMS.

Finally, UPS introduced UPS Order Watch, “a cloud-based technology platform that allows customers to more efficiently collaborate with international suppliers and better manage their inbound supply chains.” According to the press release:

Enhancements to the service include added capabilities to enable greater accuracy and timeliness of overseas vendor bookings; improved processing and management of suppliers; automated exception management; near real-time shipment status and detailed line-level visibility of in-transit inventory; improved internal operational processes; and facilitation of purchase order (PO) consolidation and optimized shipping plans.

This is yet another example of how the business models of software vendors, 3PLs, and consultants continue to merge. Simply put, if you are looking for supply chain and logistics technology, you have many options besides the “usual suspects” of software vendors. 3PLs and consultants might have the solution you’re looking for.

Also, did you notice that all the solutions highlighted above are cloud-based? Are there any other kind these days?

Have a great weekend! Gonna grab me a Wonder Bread and mayonnaise sandwich.

Song of the Week: “Feel Again” by OneRepublic.

(Note: Descartes, LeanLogistics, and Ryder are Logistics Viewpoints sponsors)

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