Om Logistics : Back to the Future

Being an ISO 9001:2000 certified company, Om Logistics is known for its value

added services with real-time online information. The company has its presence

across the country, covering over 450 satellite locations. And what has made Om

Logistics special is its ability to update online data on real-time basis even

from its remotest branches. This has been made possible through its home-grown

ERP system developed on Micro Focus COBOL platform. Deployed in 2001, the

application has helped the company to improve its overall business productivity.

The company has grown from sixty to 450 branches and achieved a turnover of Rs

500 crore in 2008, from that of Rs 35 crore in 2001.

At present, the company has over thousand delivery locations spread across

the length and breadth of the country, and a fleet size of 4,000 dedicated

vehicles. All these are managed effectively by the in-house application deployed

centrally to provide seamless services to its customers.

Logistical Conundrum



Prior to the adoption of the present infrastructure, Om Logistics had to

face major challenges related to IT. The company had a scattered network in more

than sixty locations across the country. Lack of centralized connectivity, led

to the problem of information flow within the organization. Hence, data had to

be couriered to the head office which was then manually fed into the system.

Therefore, there was no real-time data available, which led to a delay in

reporting, and hence, delays in bill generation. Many clients refused to pay due

to the delays in their bills being generated, and this often resulted in revenue

loss for the company.

The company was unable to provide its customers online value added services.

In addition, Om Logistics needed information on the movement of outbound

materials, status of its fleet and manpower resources in order to plan a

schedule. It was also important to know in real-time if any problem had occurred

during transportation liketraffic blockades, disasters, accidents, or thefts.

The business required faster decision-making, quicker response time, and

transparency in operations. In its quest to achieve greater customer and

employee satisfaction, Om Logistics decided to improve its IT infrastructure and

implement a core enterprise solution. Before we integrated and implemented this

solution, we had some other program installed. But it did not provide us the

expected results. We wanted our customers to get real-time online information on

their consignments. But the previous solution did not provide it. Also, we were

unable to maintain transparency within the overall operations and that was a

hindrance for our business process and growth, says SK Goel, vice president, Om

Logistics.

The COBOL Touch



Realizing the need for a centralized system, the company made a thorough

research on the available solutions and finally went on to deploy the present

one. The integration of the GPS system with Micro Focus COBOL application

allowed real-time data from the vehicle consignments location. It could be

accessed within five minutes, and thus helps in avoiding the uncertainty of

solely depending on the manual feedback of the driver. This helped in providing

valuable information which enabled better resource utilization, explains Goel.

	All kinds of new-age applications can be developed on COBOL and the cost is much lower Ashish Masand, country manager, Micro Focus India
	The application that we developed on the COBOL platform allowed us to run it even under poor connectivity conditions SK Goel, VP, Om Logistics

There was some initial skepticism while opting for COBOL due to the perceived

notions of it being obsolete. However, after a user acceptance test for a month,

Om Logistics discovered that the solution required low bandwidth, is stable, low

on maintenance and cost. We required a solution that would run even in low

bandwidth or even through dial-up or a mobile phone connection. COBOL has this

unique feature that runs in minimum bandwidth. The application that we developed

on the COBOL platform allowed us to run it even under poor connectivity

conditions, says Goel.

The new system allowed all the branch offices to be directly connected to the

head office through a central server. All data now resides on the central server

which can be accessed and updated online through Telnet anytime, anywhere. It

also removed the need for regular data synchronization. With improved

infrastructure and data quality, we are able to maintain a good work-life

balance. Real-time access to data and standardizing technology processes has

helped us provide excellent service to our customers, he says.

The application also saved Om Logistics from expenses on storage and server

requirements, and security solutions. We have installed firewall in our server

that automatically identifies threats and blocks them at the entry level. The

system is working fine for the last eight years, and so far we havent faced any

security outbreaks, informs Goel.

Tracking IT Now



Through the above mentioned solution, IT has proved to be a key enabler for

Om Logistics in terms of expanding its business rapidly and minimizing business

challenges related to this industry in general. It has reduced operational

costs, maximized business efficiencies and increased profits as well. Through

improved billing cycles, it has reduced the number of outstanding receivables,

enhanced real-time tracking system, and improved customer service. Therefore, it

has enhanced the operational, financial, and customer support system.

Speaking on the effectiveness of the COBOL platform Ashish Masand, country

manager, Micro Focus India says, Its a misconception that COBOL is not the

right platform on which one can build high involvement online applications. All

kinds of new-age applications can be developed on COBOL and the cost is much

lower. Elaborating further on the desired results achieved by Om Logistics, he

says, Unlike Java or ASP based solutions, COBOL requires less complexity in

overall infrastructure. The formers is more network and resource hungry in terms

of computing requirements. COBOL provides equally effective online solutions to

its users at a much lower cost. Om Logistics is a typical example of it.

Today, Om Logistics has seen a significant improvement in its communications

and data transfer ratios and have been able to achieve an increase in output,

improved productivity and reduced costs. With data being directly entered into

the central server, the company has achieved accelerated turnaround time and

optimized workflow. This led to a reduction in errors and reliable and accurate

data flow with fast, real-time exchange of information.

In addition to the implementation of a self-service system, customers can

track and keep a record of their respective consignments. This service has

resulted in enhanced customer service and improved quality control, which has

increased customer satisfaction. Apart from the transactional and business

benefits achieved, our manpower requirement also reduced considerably. We could

expand our business without any additional spend on IT infrastructure, informs

Goel. The company has further plans to market this in-house application to other

players in the industry. However, we would prefer to do it outside India

through some partnership, he signs off.

Piyali Guha



piyalig@cybermedia.co.in