MNG Cargo CTO Gökhan Yoluaçık stated that there is a massive operation behind in the cargo and logistics sector, adding, “E-commerce sites need to improve their infrastructure to better collaborate with us.” “The planning phase should begin with them,” he suggests.
Gökhan Yoluaçık graduated in 1995 from Middle East Technical University, one of Turkey’s most prestigious educational institutions. He likes the Computer Engineering department, as do many other IT specialists, and he is notable for being one of the employees in one of Turkey’s first three SAP projects. This ‘first’ opens up a job opportunity for him at SAP, and he begins working there shortly after SAP’s arrival in Turkey.
After a fast-paced career, Gökhan Yoluaçık returns to professional life with Siemens, 5 years after launching his own consulting firm. Yoluaçık has a continued retail career with Coca Cola, Ülker, and Domino’s beyond this point. Following that, the most intriguing transition comes with MNG Cargo, where technology is now in charge. We spoke with MNG Kargo’s successful CTO, Gökhan Yoluaçık, about the digitization process and MNG Kargo’s future ambitions, which he arrived at on his career worthy of his surname.
We would like to hear from you about your MNG Cargo adventure…
I have a lot of experience in production and retail. I am in the logistics industry for the first time, expectations are different of course; However, I came to meet all these expectations 20 months ago, and we made progress in many areas in the first 1-1.5 years. The logistics sector is a sector that has not received investment in technology. Yes, there are very basic investments; but these investments are for the continuity of the business. For this reason, it is very important to work on getting to know the customer. While MNG Cargo continues to grow, of course, it knows its B2B customers very well. Data is very dense, and I continue to work on processing that data, then extracting insight and reintegrating it into the business process. We need to do this especially in an environment where e-commerce is on the rise. We are building a foundation right now, and we will continue it quickly.
In digital transformation, 70% is invested in technology, 20% in people and 10% in other processes. The technology side of MNG Kargo had not received any investment for a long time. In the first year I came, we gathered IT intensively. For example; There are 18 thousand technology equipment and 10 thousand employees here. These equipments start from servers, extend to hand terminals, printers, barcode printers in the hands of couriers. As the first target, we renewed the 8-year-old investments, renewed 180 servers, blended the old team with the new people, and created a dynamic team. We are currently monitoring and monitoring everything. Thanks to the screens, I learn what’s going on on the field right now, before the ones on the field. We outsourced the maintenance of the equipment in a manageable way. Because we have 5 thousand couriers in the field, and usually the couriers are far away from us. When this person sees that the device he has taken is not working, he does not operate it again. For example; the delivery of the cargo needs to be reduced after delivery; however, when the courier does not pull the line at the point where the courier is located, the deliveries drop when the courier arrives in front of the branch in the evening. The SMS to the customer is delayed, this is a negative situation in terms of customer experience. This means investing in technology.
“IT is not often seen as a business partner”
What do you think is the main reason for the delay in technology investments in the logistics sector?
IT is generally not seen as a business partner or is positioned only as a supporting unit. This is a common approach. Unless this gap is filled, a mechanism that does not work above is set up. We act very quickly at MNG Cargo to prevent this from happening. We changed whatever needed to be changed in the equipment track in a year and made them manageable. We are at the point of digitizing your cargo experience. This has become a necessity because, with e-commerce, there is now one sender and 200 thousand receivers. Now only the cargo buyer needs to be happy, and this is where the logistics are at their weakest. We are trying to change this place. Can we create a new business model or create a delivery point? We focused on options such as Even establishing a system where buyers can receive their cargo after 7 pm means making a serious change in this business model. In order to do this, we update and develop all applications and systems used by customers.
Isn’t it still a work in progress?
Projects have begun. We did not bring it to life, but we did start their development. We run a company that redesigns the buyer experience. There is a customer experience team as well as an IT team here. We have updated all of our internet channels. We are considering an alternative in which we collaborate with the sharing economy, such as Uber. We are developing business models by comparing them to the brands that use them. The industry is attempting to manage a massive volume. The volume is also expanding at a rate of roughly 40% every year. Changes to the customer experience are presently being tested by us. We conduct pilot studies with gas stations and cargo parks. Our efforts in this area will continue.
“The courier will interact with the customer.”
Well, on the other hand, you are a player in an industry that benefits from the power of data. How do you make use of data within the operation?
MNG Cargo had a sloppy data environment last year. We had 25 hubs, each with a system room and a database. We deduplicated the data and placed it in the middle. These transfer centers are also being centralized. The information is now available. The IoT project adds to the data. We intend to make the map available to the courier and the customer. When you open the map, you’ll see the shipment with the courier. However, the data must be both healthy and quick. We are altering the application in the couriers’ hands. There will be real-time data, and the courier will engage with the customer.
Do you have any other projects in which you utilize next-generation technologies?
We have two or three initiatives in which we apply artificial intelligence. Our chatbot project is one of them. We will make available to the chatbot services such as price information, shipment tracking, and the location of the nearest branch. In some ways, it’s an NLP effort. It is set to conclude at the conclusion of the first quarter. When you call the call center, a bot will appear in front of you and provide the answers it is capable of providing. If he is unable to, he will transfer you. This was an area where we had contact with the customer.
In addition, we digitized the papers. Those papers we digitized are now generated by BPM technologies. We created a portal called “Digital automation” here. In the backend, it handles both workflows and document management. However, people are always in charge of the stages. We have two points of contact. We’re investigating which of those stages robots can perform. As a result, because it is a very large work, the more robots we can convert, the better.
In addition, we have an online project. MNG Cargo has developed an application to help all of its commercial, SME, and individual customers with their cargo operations. The Online Branch enables customers to manage their cargo procedures and conduct all cargo-related transactions on a single platform without the requirement for installation. The system is accessible from any location with an internet connection. Cargo shipments can be prepared using bulk shipment data (Excel), which can be supplied to the system. Continuous shipments can be saved and made without inputting the same information again thanks to the Online Branch. As a result, shipping processes can be significantly accelerated. All cargo shipping reports are available in summary and detail. Distinct users can have different user names and passwords, and their authorizations can be decided in the system. During shipment, it is possible to easily send to registered addresses in the system, where an address book can be built. E-commerce site shipments and data from the online service can be sent out through the Online Branch, which can function in conjunction with other integration systems. Current accounts can also be accessed and paid for online in the Online Branch.
With ID scanning, we can stop asking for ID all the time!
Returning to the sector as a whole, there has been a tremendous surge in e-commerce volume. End users are already noticing a difference. What has changed for you as an industry participant?
November, I believe, is a lesson learned for this sector. We discover new things during this age of increased e-commerce shopping. In recent years, the industry that began with B2B has begun to shift toward B2C. E-commerce is expanding and will continue to expand. However, with the current business model, meeting this increase will be extremely challenging. Even with technological support, what we can achieve in a country where “freight is delivered to the home and delivery is free” is restricted. That is why we must alter technology to enable for flexible capacity use and support for various business models.
This industry has a massive operation behind it. It should be noted that this is a business collaboration. E-commerce sites must also upgrade their infrastructure in order to better collaborate with us. The planning step should begin with them. This is essentially an area that needs to be thoroughly studied and improved together. For example, I believe the e-commerce site should inquire about the delivery location. We can ship his cargo to anywhere the buyer wishes to pick up, and we can structure our operation in this manner.
Do you believe a collaboration in this area can be formed in Turkey?
I see hope since the company will grow. We also deal with online retailers. They want to do it as well. However, we must undergo a restructure in order to implement the relevant requirements. We have now begun to monitor what the customer is doing on a screen in the branch. While seated, we monitor the duration of the transaction in front of the customer service officer. Furthermore, with our new application, we read your identity and do not acquire any additional identity information from you. You use your finger to digitally sign your signature. Identity scanning will be fully opened in April, and we plan to implement digital signature at the end of June.
It is vital to move processes away from human dependence and into culture!
Gökhan Yoluaçık: “I see digital transformation as a business model transformation.” It doesn’t matter if you have great software or a great process if there is no transformation where people are. Our main issue is the application of completed work… People object to the work that has been done. They don’t use it and instead manufacture excuses. Companies skip this step in transformation programs. It is critical to move processes away from human dependence and into the realm of culture. This entails overseeing the change management of a massive shift.
If you would like to run a great operation, your CIO and CTO must work together.
“I believe that the demand for CIO, CTO, and CDO ideas is tied to the growth of the organization,” said Gökhan Yoluaçık. Many Turkish businesses are too tiny to have a CDO and CTO at the same time. Although most CIOs are very technical, there are some who will implement the transformation. However, a CTO is chosen if a transformational individual is required. If there are two persons involved, the operation must be successful.
