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CASE STUDY

 
GvanB Logistics International Freight Forwarder, Logistics Provider
From the North Sea to the World
Leveling the Playing Field with Technology

The Netherlands is a small country, but it has a big impact on the history of shipping, medicine, electronics, and art. The Dutch logistics company GvanB Logistics continues the tradition by competing using the Internet and the Magaya Cargo System in the cargo business.

" Being an entrepreneur means putting the energy into your business every day so you can step up the game."
 
Mr. van Broekhoven, Owner and Founder, GvanB Logistics
 
At a Glance
GvanB Logistics
www.gvanblogistics.com

Industry
International Freight Forwarder, Logistics Provider

Solution
Magaya Cargo System
GvanB Logistics is an international freight forwarder and logistics provider in the city of Bergen op Zoom, The Netherlands. Services include shipping via ocean, air, and ground to Africa, Asia, and other parts of the world.
Challenges
 
Being competitive is essential in the logistics business. How can small and medium-sized freight forwarders compete with larger players? Technology is a major factor says Guido van Broekhoven, the owner of GvanB Logistics. As an entrepreneur running his own company, Mr. van Broekhoven is responsible for every aspect of his business, from arranging the shipping, earning new customers, maintaining relationships with existing customers, tracking profits, and more. “It’s not about how much you have to do but how you organize yourself. Half the job is getting the right technology working for you. That alone can buy you 50% of the time that you would lose if you were not organized correctly. I found the right technology in Magaya to keep myself organized so I can handle all the tasks of running my own business.”
 
Water and Technology Connect The Netherlands with the World

Mr. van Broekhoven started his logistics company in early 2010 in The Netherlands, land of windmills and tulips, and a country with a history of exploration that covered the world. Based in his home town of Bergen op Zoom, Mr. van Broekhoven is right in between some of the most economically significant elements of his country – two of the largest ports in Europe, Rotterdam and Antwerp.

“The advantage of being in Bergen op Zoom is that is it close to Rotterdam and Antwerp, without the expense of the higher cost of living there,” Mr. van Broekhoven said. “It gives me the flexibility of getting to either port in about 30-40 minutes.”

Rotterdam is the largest port in Europe. The second largest port, Antwerp, is only about 50 miles away. Rotterdam has been the world’s busiest port until Shanghai surpassed it recently. Rotterdam sits at the end of the Rhine River and the entrance of the North Sea.

The North Sea contains many important shipping lanes to the Atlantic, and it is a source for fishing, oil, and gas. The Rhine is one of the longest and most vital rivers in Europe, its importance dating back before Roman times. Goods are transported on an extensive network of rivers and canals that connect to the Rhine and spread throughout Europe. Barges have been used for centuries and are still a valuable way to transport goods that are too heavy for roads.

While transporting goods on rivers and barges is one of the oldest methods in the transportation industry, the newest methods of doing business include the Internet and all its capabilities. Mr. van Broekhoven recently gave a talk on entrepreneurship at the university where he earned his MBA, the University of Liverpool: “I talked about the energy that it takes every day to step up the game, and about taking advantage of the free tools on the Internet to promote your business.”

For example, Mr. van Broekhoven offers a chat window on his website and online tracking of cargo. He uses Skype to talk to people all over the world. He posts updates on his LinkedIn profile and his Wordpress blog.

He needed to be cost-conscious when opening his business, and he cites the low cost-of-entry of Magaya software as one of the reasons why he chose it. “The lower initial cost and lower ongoing cost of Magaya software enables me to be competitive with larger freight forwarders. I can compete on fees because I do not have high overhead,” Mr. van Broekhoven explained.

Before using Magaya, he had another program that was designed for couriers. In a few months, he decided he needed a software program specialized for the shipping business.

He chose Magaya software because it contains all the functionality he needs today and other features that are built in and ready for him to use as he expands his business. Future plans include many of the online features that Magaya software offers. “I plan to use the online bookings and online shipping orders soon,” he said.

Currently he uses the interactive online tracking tool, Magaya LiveTrack, to give his customers 24 hour a day access to their shipment information and inventory status. He also set up the online payments feature PayCargo, to give his customers the ability to pay online at any time. The new online cargo insurance portal enables him to offer cargo insurance to his customers and process the policies right from his Magaya system.

 
Global Reach

GvanB Logistics has customers and agents all over the world; many of the relationships were started when Mr. van Broekhoven was working in different countries. He got his start in logistics while he was in the military. His past experience includes working as a business development manager at CEVA Logistics, and handling ocean import freight and other arrangements for Panalpina in Spain. He has experience in the oil and gas logistics industry that he gained while working in Egypt, Libya, Angola, and Scotland.

He still maintains his relationships with people he worked with, and today they form part of his global network. He combines his experience of living and working abroad with the local knowledge that his agents have to ensure consistent service even in unstable regions. He speaks six languages, another factor contributing to his ability to expand globally.

In fact, he is using the Magaya Community to form more relationships with agents in countries all over the world. “I have received many invitations from others in the Magaya Community. I want to get connected to these members and work with them,” Mr. van Broekhoven said.

The Magaya Community is built into the software. It enables users of Magaya software to work together and transmit documents right from their Magaya systems, saving time and redundant data entry. “I have recommended Magaya software to my agents in Africa so we can all use the same system and transfer documents and entire transactions between us electronically, making it a closed loop,” he said.

He is also a member of the Air-Ocean Network that connects him with agents in Asia.

One of GvanB’s customers is Multi Purpose Industries (MPI). Based in The Netherlands, MPI is working on a project to transform unclean water into clean drinking water. MPI builds portable water purification systems inside 20-foot shipping containers. MPI’s website (http://www.mpi-group.eu) has a video showing the setup of one of these mini water treatment plants in Africa. The container was shipped from The Netherlands to Kenya. The company demonstrated how water from a polluted dam can be transformed into clean drinking water. They also desalinated sea water and made it drinkable. GvanB ships the containers and any needed parts. Mr. van Broekhoven coordinates with his agents in Africa to arrange the destination transport services. “MPI wants to have their complete shipment file available to them online,” Mr. van Broekhoven said. “I give them access to the information via Magaya LiveTrack.” MPI has plans to ship 20 portable water treatment plants to 15 countries.

Mr. van Broekhoven is currently negotiating a deal to ship rum from the Caribbean to The Netherlands with FairTransport Shipbrokers, a shipping company with a hybrid motor sailing vessel, the Tres Hombres. (http://www.fairtransport.eu) Mr. van Broekhoven has shown how he can track the rum shipments and inventory with the item data collected on Warehouse Receipts. “With Magaya LiveTrack, they can monitor their stock and have the option to ship one pallet or 100 pallets,” he said.

Other features in the software GvanB Logistics is using are the built-in accounting functions.

“I migrated all my data into the Magaya system, and I’m using the software for all my accounting and operations transactions. By putting the bookkeeping together with my freight, I can see the profit per shipment, which I like very much.” Mr. van Broekhoven also creates financial reports such as the “Profit & Loss by Operations” report, and he keeps track of which bills have been paid. “It gives me a good feeling to know I have my company in order. It makes audits from the tax and revenue service easier.”
 
Global Reach
 
Mr. van Broekhoven talked about the ease of processing shipments with the software: “I can make one entry in the Magaya system and get five or six documents. In comparison with the previous system, it took longer to process a shipment,” he said.

“I can send my documents electronically for consolidations or straight shipments, for air, ocean, or ground transport. I can provide a commercial invoice, packing lists, House Bills of Lading, Air Waybills and other documents directly from my Magaya system.”

Despite the hard work it takes to start and run a business, Mr. van Broekhoven likes being an entrepreneur: “I wanted to prove to myself that I could create a successful company. When you take all your education and experience and make a success, you have done something wonderful.”
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