Simplified VBS

Type of innovation: Technical

Company Name:  DP World Southampton (Formerly Southampton Container Terminals (SCT))

Company function: Southampton Container Terminals Ltd (SCT) was formed in 1988 as a joint venture between P & O Containers Limited and Associated British Ports. The company, trading as Solent Container Services Limited, has been handling container ships trading to and from the Far East since 1972

Function of Innovation: A vehicle booking system that significantly improves the truck turn around time at the terminal.

First system to operate at any port in the UK

Reason for Development: From 2001 – 2004 SCT experienced double digit growth in throughput. As a consequence there was a significant increase in the trucks arriving at the terminal to collect or drop off containers. This unprecedented level of demand resulted in congestion at Dock Gate 20 and landside gate entry points. Truck turnaround times from the point of arrival to the time of departure were excessive and unacceptable from a customer and business point of view. The impact of this congestion was felt by the terminal itself, the direct customers of the terminal and also local community through increased congestion on local roads.

For the proposed system to work, it required each and every trucking company to change a small part of their operational process.  SCT deals with nearly 350 haulage firms from the individual owner-operator to the large national firms whose names are familiar to those who drive on the UK’s motorways.  In December 2004, a five-month consultation programme commenced with the haulage community, their trade association, shipping lines and freight forwarders with an aim to develop and design a system which met the needs of the customers but also maintained a set of parameters within which SCT could deliver an enhanced level of service.

The VBS which celebrated its 1st birthday on 6th June 2006 has received widespread acclaim from the UK haulage industry, major retail businesses and international shipping lines.
 
The original ‘raison d’etre’ for introducing the vehicle booking system was to significantly improve the truck turn around time at the terminal. The graph below illustrates the turnaround times on weekdays from January 2004, right up until May 2006. The graph clearly shows the significant reduction in average turnaround time and an improved consistency in the level of service.

Simplified VBS has also been successful in reducing the peaks in truck arrival profile by limiting the number of trucks arriving in a given hour to 120, as indicated in the graph below.

External praise from industry users for the system has been extensive, the system has given users a better ability to manage their business through enhanced utilisation of their trucks through the improved consistency in performance level, i.e. a haulier now knows how long it will take to send their truck to SCT and therefore does not have to build in a buffer period in case of delays.

One user has seen ‘on time’ deliveries to distribution centres improve from approximately 65% 12 months ago to between 95%-100% now. Another user estimated that due to the improved level of service they operate 20% fewer trucks and are handling more containers, and that this is a direct consequence of the improved level of service at SCT.

The local community has also benefited from the reduced congestion as the average time that a truck is now in the area has been significantly reduced, thereby lowering air pollution and congestion on local roads.

Awards received: Simplified VBS has also attracted interest from international container terminal operators. The system was the subject of a presentation at the recent internationally-acclaimed Terminal Operators Conference (TOC) in Hamburg.

Most recently, the success of Simplified VBS was listed as a contributory factor for the largest single new contract win by SCT in over 20 years which will result in an additional six large ships calling in Southampton every week from September 2006. The Simplified VBS was a runner up in the Hampshire Business Awards 2006 for most innovative product.

Website address: http://www.dpworldsouthampton.com/

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