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DEVELOPMENT INFORMATION SYSTEMS OF FREIGHT FORWARDING WITH

AGILE SDLC

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 The 3rd International Conference on Engineering of Tarumanagara (ICET) 2017
Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

DEVELOPMENT INFORMATION SYSTEMS OF FREIGHT

FORWARDING WITH AGILE SDLC
Johanes Fernandes Andry

Bunda Mulia University, Jl. Lodan Raya No. 2 Ancol, North Jakarta 14430, Indonesia
E-mail: jandry@bundamulia.ac.id

Abstract

This paper primarily deals with the role of Transportation & Logistics in Jakarta. The following research was
conducted in the company that specialized in freight forwarding. A method of research used agile SDLC
process, follows the software development life cycle which includes requirements gathering, analysis, design,
coding, testing and delivers partially implemented software and waits for the customer feedback. This
necessitates close collaboration between consignor, freight forwarder and carrier. A forwarder works for, and
is responsible to its principals, those from whom a mandate is received and who pay for its services. Charter
cargo ships do not operate on regular routes and schedules and pick up cargo only when it is chartered from
the ship operator. When a consignment represents several thousand tons or cubic meters, scheduling scheme
is very important because it involves in terms of new orders, interference and variations in the transportation
system. It required an information system that can provide scheduling information on freight forwarding
services.

Keywords: Information Systems, Freight Forwarding, SDLC, Agile.

1. INTRODUCTION
This study discusses the role of transportation & logistics at the company in
Jakarta. Research conducted in companies engaged in the field of freight forwarding.
Freight forwarder is a company engaged in the field of agency in charge of delivery
and acceptance of export and import goods. The existence of freight forwarding is
inseparable from Supply Chain Management (SCM). SCM is increasingly being
recognized as the integration of key business processes across the network of
organizations. SCM seeks to enhance competitive performance by closely integrating
all functions within an organization and external stakeholders to be successful [1].
successful in the supply chain impact on: cycle time sequence, current status sequence,
estimated demand given, supplier's ability to deliver, and production capacity, product
quality, reliability and transportation services provided [2].
To achieve the most effective sharing, integration, allocation and optimization
of people, information, procedure, and application in enterprises. In addition, the
integration of shipping agency and freight forwarding businesses is provided with
necessity, which is in favor of unified scheduling, comprehensive management, and
data processing if considered from the perspective of enterprises business requirements
[3]. Every freight forwarder company is more varied in pricing and service because
freight forwarder has a lot of cooperation with shipping agent in the form of contract
work it is very reasonable if freight forwarder can provide variation of price and
schedule of different ship or plane to its customer. Integration of relationships, the
shipping and delivery agent into the supply chain with the information system
contributes to the interconnection in the overall business procedure [3]. For the next
word freight forwarder will be shortened to FF. Information systems (IS) have a very
important role in business process FF.
IS is basically concerned with data processing into some information. IS works
in every system, which provides information for the managerial activities in an
organization [4], [5], [6] without exception is business in FF. Forwarder holds a key
role in the shipping process. The shipping process is not only important for shipping
lines, but also plays an important part of the supply chain, Therefore, scheduling
arrangements within the container shipping line play a key role in the global supply

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 The 3rd International Conference on Engineering of Tarumanagara (ICET) 2017
Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

chain. It is evident that schedule arrangements affect the cost of transportation and
logistics to the sender of goods [7].
Transportation is a bridge between suppliers and recipients, with the aim being
to receive goods in good condition, when and where they are needed. In each shipment
required a container. Most international container traffic is carried in containers of 20
feet or 40 feet. Containerized shipments are either Full Container Load (FCL) or Less
than a Container Load (LCL). Employers by suppliers may hesitate before making a
claim against the supplier, while a forwarder designated by the buyer can do so easily.
Forwarders designated by the buyer may also perform other functions such as: keep in
touch with the supplier and send them a reminder when orders are late exceeding the
delivery schedule and consolidate orders for shipping together, thereby reducing
overall transportation costs and facilitate receipt of orders at destination by making one
instead of multiple shipments [8]. The successful delivery made by shipper to the
customer can not be separated from the role of information systems in scheduling.
Scheduling refers to the assignment of start and end times for all manufacturing
activities and deciding which tools or machines will build the parts in line with the
process plan [9]. Due dates in the scheduling process can be set either externally by the
customer or internally by the scheduling system in Information System of Freight
Forwarding (ISFF) [10].
FF also has cooperation with agents engaged in the same field at home and
abroad. So for example using the services of FF XYZ Company in Jakarta, then the
agent who will take care of cargo shipment in Malaysia is a partner agent Malaysia,
this can be done because company as FF has had cooperation with overseas agents.
Company will select the desired route and mode of transportation, book space to
shipping line company, hand over the goods with cargo owner (export), and others.

2. RESEARCH METHOD
Software engineering research is intended to help improve the practice of software
development, so research planning should make provisions for the transition. Software
engineering research includes, but is not limited to, experimental research. [9]. Software
methodologies like Waterfall method, V-Model and RUP are called traditional or
conventional software development methodologies and these are classified into the
heavyweight methodologies [11], [12]. Agile development is based on the idea of
incremental and iterative development, in which the phases within a development life
cycle are revisited over and over again. It iteratively improves software by using customer
feedback to converge on solutions [13], [14]. The SDLC aims to produce high quality
software that meets or exceeds customer expectations, reaches completion within times
and cost estimates. The software development life cycle is a framework defining tasks
performed at each step in the software development process.

Fig.1. Phases of Agile SDLC Process [13]

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Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

In this paper, author used agile SDLC processes. Step by step for this process are:
x Vision and project approval, agile starts with the vision or inception phase that deals
with the need of new system by analyzing problems in existing system. Management,
product manager, users and team members establish the scope and boundary
conditions of proposed system.
x Exploration phase is an iterative and incremental phase to reduce the uncertainty and
ambiguities in requirements by continuous meeting of stakeholders in the form of
workshops and brainstorming.
x Iteration planning is most important phase of Agile and possesses many activities of
software development required to schedule the project.
x ADCT phase, this phase is an iterative phase that deals with Analysis, Design,
Coding, and Testing (ADCT). In this phase, functionality of the system is produced
and enhanced in new increments.
x Release phase, this phase can be decomposed in two sub-phases namely; pre-release
and production as shown in Fig 1. Pre-release phase recommends extra testing and
checking of functional and nonfunctional requirements of the system to be released
[15].
This research method in accordance with customer needs as follows vision and mission
and the author discuss intensively with stakeholders to know that the information system
developed is appropriate.

3. RESULTS AND DISCUSSION

The development of a new Information Systems of Freight Forwarding requires
several phases, which have a relation on the activities. The activities include analysis,
design, coding & testing, implementation and maintenance that sometimes referred to as
phases. On the phase have elements that provide the framework for manage the project.
Agile approach was SDLC first model to be used widely in Software Engineering to ensure
success of the project. In Agile Process approach, the whole process of software
development is divided into separate phases.

3.1. Vision and Project Approval

Main function of the freight forwarder is to act as an intermediary between the
client who is hiring them and various transportation services that are involved in getting
the product overseas to the customer. The applications must be hired to get the product to
the customer by a specific date and in an undamaged state. A freight forwarder can provide
the exporter with all the necessary documentation as well as liaise with the transportation
companies required to get the items to the customer.
Stages 1: Stakeholder establishment, meeting and discuss about freight forwarding
system involves the involvement of many parties, including in some activities in each part.
Stage 2: Scope Definition, in the process of delivery of goods, the involvement of
many parties can be seen in the shipping cycle of goods ranging from Shipper until the
goods are received by Consignee. The timely delivery of goods and costs incurred in a
shipping logistics cycle is an aspect of concern to all parties; including the government
regulation. Timely delivery of goods and costs incurred not only from the Port Operator,
Customs and Other Government Agency but also involves many parties from business
actors as logistics service providers.
Stage 3: Project establishment, improvement of port logistics in order to be
efficient and effective requires a change of work culture that touches the managerial side of
governance as well as from the managerial side of Logistics Service Providers in this case
as shown in the figure 1 are: Shipping Agent, Truck Company, Warehouse Manager

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Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

(DEPO and TPS), PPJK (Customs Brokerage Company), Local Freight Forwarder and Port
Operator Company including other related sector interconnections such as: Customs,
Quarantine and so on.

3.2. Exploration phase

Some of the Agile Methods have preferred customer as team member but proposed
Agile SDLC recommends the maximum communication between team and customer to
resolve the requirement related issues by using any preferred mode of communication
between customer and team [15], [16].
Project set up, freight forwarder which arrange the goods starting from shipper
warehouse then the goods / cargo must be petrified at the location of DEPO through
stuffing activities until ready to be lifted by truck carrying into line I port of loading so as
not to be hit by closing time so that the ship can go to port of destination with timely it is
much influenced by the managerial aspects of freight forwarder with its alliances and
managerial aspects of port of load.

3.3. Iteration Planning

Iteration consists of both planning and building. Developers release working
software ISFF in successive increments that will accommodate the evolution of
requirements as outlined by the various stakeholders. The scope of the port logistics cycle
is the plot of goods starting from the docking boat, the leaning boat is ready for unloading
activities and the disassembled container / cargo is placed on the cultivation land to be
ready to be picked up by the truck carrying it to the recipient's warehouse (Consignee) by
the managerial aspect of FF port of destination with its alliances and managerial aspects of
unloading port.

3.4. ADCT Phase

Analysis is a business domain study problem to recommend improvements and
specify business requirements and priorities for solutions. System analysis is intended to
provide the project team with a more thorough understanding of the problems and needs
that trigger the project. At this stage an analysis of the needs and problems to be solved. In
conducting the needs analysis process required source of information derived from order
fulfillment.
Table 1. Syntax for Use Case Diagram
Syntax Mean Description
Use case Represents a major piece of system
functionality.
Actor Is a person or system that derives benefit from
and is external to the subject.

Then do the analysis of hardware and software that can run the application. In the
process of collecting data is done by literature study, observation and interview. Analysis
is phase to understand and to keep in all the detail of business needs and the processing
requirements of the new system. Tools and technique for analysis is UML. The Unified
Modeling Language (UML) is generally accepted as the de facto standard modeling
notation for the analysis and design of the object that oriented on software systems [17].
UML is a standardized general purpose modeling language in the field of computer
science and software engineering. The standard is managed and was created by the object
management group [18]. In this case author only provide use case diagram for the
requirement gathering. Table 1. Syntax for Use Case Diagram, represent use cases are

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 The 3rd International Conference on Engineering of Tarumanagara (ICET) 2017
Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

connected to actors through association relationships, which show with which use cases the
actors interact [19]. Base on requirements gathering, use case diagram of ISFF shown in
figure 2. Consignor is person or firm (usually the seller) who delivers a consignment to a
carrier for transporting it to a consignee (usually the buyer) named in the transportation
documents. Ownership (title) of the goods remains with the consignor until the consignee
pays for them in full. Carrier is company that transports goods and/or people by air, land,
or sea, in its own or chartered vessels or equipment, and is named as the carrier in the
contract of carriage. Condition 1, Actors: Consignor, Freight Forwarder and Carrier,
description are with receipt of an order and acknowledgement by the Supplier (Seller) that
goods are available and ready to be shipped, the Supplier (Seller) initiates transportation
arrangements. This includes booking the shipment with transportation. There are two
conditions Pre and post conditions. Pre is Order process has resulted in a purchase order
being issued, and post is Forwarding Instruction, Packing List, Bill of Lading (BL) and
Waybill have been prepared. Goods items have been transported to the delivery party and
the fulfillment process initiated. Scenario Software to be performed are logistic services
requested: consignor issues Forwarding Instruction to Freight Forwarder and consignor
issues packing list to Freight Forwarder and transport services requested: Freight
Forwarder requests transport services by passing on Forwarding instruction to carrier,
Carrier creates BL and sends it to Freight Forwarder, Carrier creates Waybill and sends it
to Freight Forwarder, Freight Forwarder passes on BL to Consignor and Freight Forwarder
passes on Waybill to Consignor. Scenario Software to be performed are Prepare Bill of
Lading: Carrier extracts data from Forwarding Instruction and otherwise collects
information regarding transportation, charges, and terms and conditions from available
resources, Carrier creates Bill of Lading message and Carrier sends Bill of Lading to
Freight Forwarder and Prepare Waybill : Carrier extracts data from Forwarding Instruction
and otherwise collects information regarding transportation, charges, and terms and
conditions from available resources, Carrier creates Waybill message, Carrier sends
Waybill to Freight Forwarder, Freight Forwarder passes on Bill of Lading to Consignor,
and Freight Forwarder passes on Waybill to Consignor.

Fig. 2. Use Cases Information Systems of Freight Forwarding

Condition 2, Actors: Consignor and Freight Forwarder, scenario software to be performed
is starts when ordered goods are ready to be collected into a shipment and transported to
Consignee: prepare forwarding Instruction by transferring info from xxx and collecting
info from xxx, consignor sends forwarding instruction message to FF, Prepare packing list
message by transferring info from xxx and collecting info from xxx and consignor sends
packing list to FF. Condition 3, Actors: Freight Forwarder and Carrier, have 2 conditions:
Pre, when FF receives packing list and post, when Consignee has received the goods.
Design, is a specification or construction of a technical and computer-based
solution to the business requirements identified in the system analysis. During the design
of the system, it will initially exploit alternative technical solutions. Once the alternative

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Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

solution is approved, the system design phase develops the blueprints and technical
specifications needed to implement the database, program, user interface and network
required for the application. Entity Relationship Diagram (ERD) is familiar diagram which
aims to present the database structure in Conceptualized form. A lot of papers talk about
ERD. One of the most basic things that must have attention English syntax to build good
ERD depends on type of word (noun, verb, adjective, and gerund) [8]. It also contributes to
build excellent schema. ERD in this case for ISFF includes too many entities, in this case
we can’t show entity because limited pages. Design Interface or user interface (UI) to
improve the development process by identifying its strengths and weaknesses of ISFF, and
to communicate progress and problems within the team. To create UI, developers and user
collaborate and other stakeholders to redesign and catch up user friendly.
Code or Programming, designs that have been made then changed its shape into a
form that can be understood by the machine, which is into the programming language
through the process of coding. This stage is an implementation of the design stage that
technically will be done by the programmer. Coding is receiving the design of the system
documents, the work done is divided in to modules/units and actual coding is started.
Since, in this phase the code is produced so it is the main focus for the developer. This is
the longest phase of the software development life cycle. In this case programming
language with Microsoft Visual Fox Pro. Visual Fox Pro originated as a member of the
class of languages commonly referred to as "xBase" languages, which have syntax based
on the dBase programming language.
Testing, after the code is developed it is tested against the requirements to make
sure that the product is actually solved the needs addressed and gathered it during the
requirements phase. It is also known as verification and validation which is a process for
checking that a software solution meets the original requirements and specifications and
that it accomplishes its intended purpose. Verification is the process of evaluating software
to determine whether the products of a given development phase satisfy the conditions
imposed at the start of that phase; while, validation is the process of evaluating software
during or at the end of the development process to determine whether it satisfies specified
requirements [20], [21]. Black-box testing, also called behavioral testing, focuses on the
functional requirements of the software. Black-box testing enables the software engineer to
derive sets of input conditions that will fully exercise all functional requirements for a
program [22], [23]. Testing done after the application is completed, with User Acceptance
Testing (UAT) and Coding Phase Defect, where the output of this stage is UAT and
Coding Phase Defect. During this phase all types of functional testing like unit testing,
integration testing, system testing, acceptance testing are done as well as non-functional
testing are also done. Developer and Quality Assurance are done short time frames which
typically last from one to four weeks. Each iteration is worked on by a team through a full
software development cycle, including planning, requirements analysis, design, coding,
unit testing, and acceptance testing when a working product is demonstrated to
stakeholders, they are a routine and formal daily face-to-face communication among team
members. Duty in week 1: Test planning and Test Case development, Test Data
requirements definition, Test Scripts documentation in collaboration with Business
Analysis (BA) and Developers, Test cases reviewed by BA. Duty in week 2: Additional
test cases written, Initial Builds are reviewed and defects reported, Regression tests
conducted on prior features and Sprint test execution begins in full force at the end of
week. Duty in week 3: Sprint test execution conducted in full force, Defects reported and
daily defect review meeting conducted.

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 The 3rd International Conference on Engineering of Tarumanagara (ICET) 2017
Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

3.5. Release Phase

Table 2. Structure File of Information Systems of Freight Forwarding.

No. Tool Bar Sub Tool Bar

1 File 1.1 Type container, Services

1.2 Stuffing location
1.3 Port of destination, Loading
1.4 Trucking & Shipping company
1.5 Agent company
1.6 Warehouse
1.7 Exporter/shipper/consignee
1.8 Consignee/notify
1.9 Consignee import
1.10 Shipper import
1.11 Airline, Sales
1.12 Operational officer, User
2 Price list export 2.1 Selling price export
2.2 Incentive from agent
2.3 Rebate from co-loader
2.4 Heavy weight surcharges
2.5 Searching selling rate
2.6 Quotation to agent
Price list cost 2.7 Feeder rate & Price agent, Trucking
2.8 Warehouse & Operational
Price list Import 2.9 Mechanic charges
2.10 Do charges (standard) & Special
3 Transaction 3.1 Staffing plan & Job Order
3.3 Request pick up B/L & Arrival notice
4 Finance 4.1 Invoice to shipper & Credit note
4.2 Finance process & Refund Voucher
4.3 Proof of cash expenditures
4.4 Discount voucher
5 Report 5.1 Job sheet book
5.2 LCL / Shipper & LCL Sales
5.3 Recap job sheet & Rebate Warehouse
5.4 Listing approval job
5.5 Listing refund not yet paid off
5.6 Listing job not crate invoice
5.7 Report per department
5.8Report booking via xxx
5.9Report profit / agent
5.10Report sales commission
6 Utility 6.1 Search file from B/L number
6.2 Search file from container number
6.3 Search file from consignee / notify
6.4 Search invoice number
6.5 Agenda invoice & CN
6.6 Status data process early year

Implementation is the construction, installation, testing and delivery of the system

into production (meaning daily operations). Implementation of the system implementations
new information system and put it into operation, Implementation is a stage to realize the
design of the design that has been done so that the results in accordance with the goals of
system requirements. At this stage the rough framework that has been mapped at the
design stage is implemented into the real design using the programming language. When
the vessel is tied (rope) at the local harbor dock then the container / cargo must be handled
immediately by the work unit of the container and freight forwarder terminal so that it does
not experience dwelling time too long in line I port loading. To show all structure file, in
more detail see Table 2. Structure File of Information Systems of Freight Forwarding.

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 The 3rd International Conference on Engineering of Tarumanagara (ICET) 2017
Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

3.6. Delivery of Partially Incremented

The phase that provides users with the documentation and training requirement to
use the system effectively. Data Conversion will only occur once, but user documentation
will be required. Deployment of the product will be carried out, on the hardware that is
going to be used in production (on live systems). Deployment itself requires careful
planning. Once the product is deployed, initial data will be populated, user training will
happen.

Fig. 3. Screen Shoot Information Systems of Freight Forwarding

The most important stakeholders that must be identified during this stage are
steering committee, project team from vendor, customer, and team support and exploration
group. The customer group is established using a dedicated task pattern within the
Stakeholder establishment stage, and has three main goals: identifying participative
customers, gaining their commitment to the project, and defining their tasks, roles and
responsibilities, as well as their location (on-site or off-site). According to the
specification, the representation of the customer changes according to the project type: if
the team is developing a product for a specific customer organization, identification is
straightforward, and the customer is treated. The new task pattern is concerned with
identifying customers and defining the sources of requirements generated by end-users.
Depending on project parameters, identification may be more or less in-depth. If enough
resources are available, focus groups or questionnaires might be used as a source of
requirements. In more detail, the overall ISFF can be shown graphically, as depicted in
Figure 3. Screen Shoot Information Systems of Freight Forwarding.

6. CONCLUSIONS
Information System of Freight Forwarding (ISFF) is a precious technology that
organizations use to measure the efficiency of their business operations as well as
performance of their employees. ISFF in the observed company was achieved in the
following: (a) Monitoring of scheduled delivery of the goods, the fulfillment of the supply
chain can be met and to support the overall business process in real time. (b) Reduction of

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 The 3rd International Conference on Engineering of Tarumanagara (ICET) 2017
Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

the data acquisition processing time and order processes automation. (c) Increasing the
quality of information.
The limitation of ISFF are (a) all the important as well as the secret data are
there stored in an IS and which is not supposed to seen by anyone outside the company or
anyone who is not authorized to do so (b) In some cases, it has been seen that the account
of employees are active in IS site even after they got out from there, sometimes, these
accounts can be used for some negative purposes and (c) While the employees of any
organization use this system, they should make sure that their operating device or
computer is virus free, if the device has dangerous viruses then these can be a concern for
the security of the IS.

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Faculty of Engineering, Tarumanagara University, Jakarta-Indonesia, October 4-5th, 2017
ISBN: 978-602-71459-8-6

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