Sofie Tolk, Business Manager Agrofood, Port of Rotterdam.
Risks to Sharing
“In general, the main challenge to getting more transparency within a supply chain is that not all parties benefit from transparency at the same time,” said Sophie Tolk, Business Manager Agrofood, Port of Rotterdam, during the PMA Fresh Connections held in Rotterdam last week. “Shipping lines are not always happy to share more information because that information could show where things go wrong.” The risks of sharing too much are not exclusively borne by shipping companies. Importers, exporters, wholesalers and retailers can all benefit, and can all lose something, with greater transparency.
“There is a risk of having too much information,” said Travis Harris, of Harris Farm Markets. Harris is co-CEO of a family company that is comprised of 23 stores, a fresh produce import and export arm, and a wholesale business. In dealing with customers, transparency builds trust and can provide an edge over competitors. But sharing information also opens one to competitors who can leverage the information one provides to their benefit.
“If you're transparent, others will be forced into being as transparent as you,” said Harris. “You are at risk being the first, but I think the risk is worth taking.”
Panelist Tristan Harris, CEO, Harris Farm Markets during the "From Port to Table" presentation.
A Model for Cooperation
Sophie Tolk knows from experience how challenging it can be to get all parties to work more closely together, but she also knows the benefits of doing so. The Port of Rotterdam is the largest port in Europe and often the first port of call for cargo coming from big fresh produce exporters like South America or South Africa. Port operators are experts at receiving containers, but the next challenge is to make sure those refrigerated containers, which now carry 95 percent of the perishable goods that go through the port, can quickly travel into Europe and along its coasts. To do that, the port collaborated with over 70 inland terminals to build a website where buyers and shippers can find a wealth of information on those terminals. The aim was to give the people who can take advantage of those inland links better information on those terminals.
“The site was developed in close cooperation with the terminals,” said Sophie, “but it came from the Port of Rotterdam to prove how easy it is to move goods from one port to other terminals.” In a situation where not everyone benefits equally from sharing more information, she noted that it often takes a neutral party, like the port, to provide the space in which collaboration can take place.
“When importers understand the problems of shipping lines, and vice versa, you get more cooperation,” said Sophie. “But the day to day operations of these companies aren't focused on improving supply chain communication all of the time. So this is a big opportunity for industry organizations to offer neutral platforms to start conversations.” As an example, she pointed to how the Port of Rotterdam has helped smaller importers join forces to raise issues that, otherwise, shipping companies would not listen to.
Richard Owen from PMA introducing Tristan Harris, Harris Farm Markets and Sofie Tolk, Port of Rotterdam for the presentation "From Port to Table: Smart Ways to Bring Fresh Produce to EU Shoppers".
Biggest Hurdle
Looking ahead, Ms. Tolk explained that the port is working on an app that will bring many information sources into one place. It would allow an importer to enter a container number and get push notifications on the different stages of its journey – things like when it reached port, how long it would take to get off the ship and when it reached customs. The app is due out this year, but, in addition to the technological and logistical challenges, getting everyone to contribute accurate information is still a significant hurdle.
“There's already quite a lot of information out there, but it's not always accurate,” said Sophie. “If it's garbage in, then you'll get garbage out. We need to work on the quality of information before we can see new technology on this.” Getting accurate information goes back to ensuring that everyone is comfortable sharing accurate information. A terminal operator, for instance, may not want to give an importer a window of time when that importer can expect a shipment to be ready because if the terminal operator, for some reason, can't deliver on the initial promise, then the importer could hold him liable for that. There are terminal operators who have informal aggrements with importers where they share information with the understanding that no one will be on the hook if that information changes. But to scale out that level of understanding to a wider network requires a greater degree of trust among everyone, and that will require an industry-wide effort.
“Communication is crucial,” said Ms. Tolk, “but sometimes it needs a kick-start.”