iit mumbai – first and last leg optimization

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Title and Content

IIT Mumbai – First and Last Leg Optimization

CONFIDENTIALMay, 2012

Freight Flow -1 Pickup

Delivery

Freight Flow -2

CFS Origin Port

CFS/ DestinationWarehouse

Destination PortSeller

Customers

Freight Flow - 3

Trucking Industry Level Challenges Infrastructure Issues and Challenges

– Congestion– Operational inefficiencies– Non standard trucks– Under utilization of infrastructure available.– Supply demand mismatch

Institutional Issues– Highly Fragmented industry– Manual, non-uniform or discrete processes across the industry– Non-availability of Quality manpower

Technological Issues– Old technology– Adoption of new technologies is expensive– No clear Return on Investments for New Technologies– Manual processes leading to operational inefficiencies

Solutions and Strategies (Largely Capital intensive)

Vehicle Size and Delivery Time Regulations Load Consolidation and Load Factor Efficiency (Load

consolidation, or co-loading) Urban Distribution Centers Freight Villages - Different from urban distribution centers,

but similar in concept. Freight villages are planned unit developments specifically designed for multi-modal freight transfer within a secured perimeter.

Delivery Tunnels - In Helsinki, freight tunnels for underground trucking are planned

Dedicated freight corridors – are they really helping urban areas ?

6

Inefficiencies in the current process Pickup driver has to visit the terminal to collect the list of

pickups Planning for linehaul, cross-docking, resource requirements,

delivery plans etc are not possible till the goods reaches to the terminal

There is no update on the status of delivery till the driver reports back to the terminal.

This process is time consuming and lead to inefficiencies such as

• missed pickups and missed appointments, • excessive waiting times during pickups and deliveries resulting

in additional driver hours and under utilization of trucks• postponing pickups• additional kilometers operated by drivers thus additional fuel

consumption and choking of traffic• no clue on the traffic situation on the network – no route

guidance

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Solution Components and Business Model

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• Vehicle Tracking System - Telematics• Pickup and Delivery Management System – to plan the pickups and

deliveries• Handheld Mobile devices – Scanner, data logger etc • Route Planner to generate optimal routes• Central Server and communication systems• Transportation Management System• Platform based solution

From Trucking companies Perspective• Trucking company can register with minimum fee• Trucking companies can pay as per use • Opex and No capital investments – Transaction based• Can withdraw when not required• No technology skills required• Improved visibility of shipments, high asset utilisation, less fuel costs and customer satisfaction

From Service Provider perspective• Multiple trucking companies can be hosted on single software platform.• Other services such as reports, performance indicators can be sold as value added services

From City/Governance perspective• Less Pollution and congestion• Real time and accurate data for traffic alerts• Trustworthy and huge volume of data for / Freight Modelling/ infrastructure planning and real time

decisions

Solution Components

Benefits

Overview – An example for Auto Route Generation

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As-Is Routes

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Features considered

• Routes are planned for a region. • A truck will be assigned/reserved

for route• Static route is generated by the

route planner• Dispatcher assigns new stops to

the route manually as and when new orders are to be handled

4 Trucks Deployed

Total Truck KM 126

Parameters for comparison

To-Be Routes

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Features considered

• No region based routes• Routes will be developed as per the

order/stop locations• Algorithm based route generation• Optimises the number of trucks required

rather than the truck-km

3 Trucks Deployed

Total Truck KM 135Parameters for comparison

Data for Analysis

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Available Data for Analysis

• Driver Data • Equipment Data• Order Data • Trip Data• Stop Data (including Stop to Stop Distance Data)

Output Expected

• Optimized Route with route parameters

Business Benefits

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• Reduced P&D Costs (They represent around 30% of total cost in the case of road based movement)

• Improved Route Planning• Effective Equipment utilization• Effective Utilization of Drivers

109207246

Dark 1

255255255

Light 1

13156155

Dark 2

099190

Light 2

8516528

Accent 1

2147342

Accent 2

185175164

Accent 3

151757

Accent 4

1931870

Accent 5

25522162

Accent 6

255255255

Hyperlink

23613729

Followed Hyperlink

127175221

Tata Blue 50%

203215238

Tata Blue 25%

179149197

Purple 50 %

212195223

Purple 25 %

255242171

Yellow 50 %

255249213

Yellow 25 %

229205186

Brown 50 %

248241235

Brown 25 %

180213154

Green 50 %

214231200

Green 25 %

241240202

Light Green 50%

251251241

Light Green 25%

Title and Content

Thank You http://www.tcs.com

CONFIDENTIALMay, 2012