Connected Shipping: Riding the Wave of E-Commerce As shipping companies increase their reliance on e-commerce, they face several barriers. According to our latest research study, many of these businesses are undertaking progressive digital initiatives to overcome operational challenges and meet customers’ growing expectations.

2 KEEP CHALLENGING September 20162 KEEP CHALLENGING December 2016

Executive SummaryDigital platforms, applications and processes are rapidly changing how

shipping and transportation companies operate. In addition to the

effect on their internal operations, there is the impact on customers

and partners. Evolving regulatory standards, as well as geopolitical

implications, must also be considered in an increasingly complex,

digitally-driven world.

Digital technologies and operating models are already pushing shipping

companies to collaborate with digital data providers (e.g., cloud services)

and the business community at large to broaden their capabilities

and knowledge beyond the traditional, insular four-walls view of the

marketplace. New digital tools can extend and enhance shipping services

by affording direct, near-instant access to end customers, all with

negligible transaction costs that can be passed on to shippers as well as

their customers.

In late 2015, we conducted primary research to explore the priorities and

challenges of shipping-industry professionals — shippers, carriers and

freight forwarders — and deepen insight into how shipping companies

view e-commerce. The study involved in-depth interviews with 30 global

CXOs at shipping liners, shipping agents and global freight forwarders

across geographies; technology providers (those that serve shipping

companies); and industry analysts. (See methodology, page 15).

Our research reveals that most companies recognize the significance

of “connected shipping“ (e.g., end-to-end visibility across the value

chain of ocean transport) and have already started to explore

and adopt e-commerce with the goal of fully automating shipping

processes such as shipment booking, vessel schedules, rate shopping,

documentation and freight payments. While acknowledging the

BEYOND QA: BUSINESS PROCESS ASSURANCE FOR THE DIGITAL AGE 3

importance of a Web-based business model, many shipping companies

are proceeding cautiously. A key challenge is balancing the conflicting

priorities of managing ongoing business while keeping a sharp eye

on new and innovative technologies. Concerns over building the

necessary IT infrastructure, as well as shipping regulations, also

inhibit the investigation of emerging technologies. External support

from technology providers/consultants, collaborative workgroups and

forums, or seminars and training sessions, are seen as critical to staying

connected and being successful in digital commerce.

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 3

4 KEEP CHALLENGING December 2016

Key Findings Our study revealed some key considerations that companies should keep in mind when planning, developing and implementing initiatives for digital transformation:

• Digital is the buzzword: Almost every shipping company is facing the pressure to become digitally enabled and improve how they interact and transact with customers, competitors and shareholders. Turning a potential threat into an opportunity to achieve true digital transformation will require shipping businesses to develop a strategy that aligns with their value proposition and the promise of their brand, and creates sustainable value.

• Staying connected: Shipping is an asset-intensive industry that has required equally heavy investments to sustain traditional business practices. Today, e-commerce is an industry priority, and an opportunity to streamline internal and external processes, as well the entire supply chain. More than 65% of our study respondents had either implemented or are in the process of going live with e-commerce platforms; 25% were still gathering information. Interestingly, only 10% were in the R&D stage.

• It’s all about collaboration: While there is no “one size fits all” solution in shipping, the industry can reap many benefits from an automated, collaborative e-commerce platform that allows businesses to access and share accessible, high-quality and timely information.

• Focus on customer benefits: Customer experiences in terms of visibility (55%) and making sure they can access information on-the-go (48%) are key market differentiators. This is precisely what most companies in the fast-paced digital world are working toward.

• Automate every stage of the value chain: Currently, most aspects of the order-to-cash cycle are semi-automated. This is an opportunity for shipping businesses to leverage existing technology platforms, and adopt applications that plug gaps and enable more seamless processes.

Developing E-Commerce Roadmaps Increasing competition compels shipping lines to continuously innovate to reduce operating costs, improve quality and accelerate delivery. Emerging technologies such as the SMAC Stack (social, mobile, analytics, and cloud) have made it possible to meet these challenges head-on and take shipping to the next level.

Nearly all of our study respondents indicated they plan to adopt e-commerce to stay ahead of the competition and meet ever-changing consumer demands for end-to-end visibility across the value chain. (More than 65% revealed they have already embarked on this journey). Approximately 25% of respondents revealed they were still gathering information; only 10% are still at the research stage. Interestingly, among those that remained in the “information-gathering” stage, some had actually begun implementation in select areas. (See Figure 1).

“One critical aspect we are working on is to have backward integration with suppliers to manage the supply chain right from the point of order generation until the shipment is dispatched from the factory.” — Director of Operations for a shipping line headquartered in Singapore

In Their Own Words“

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 5

When implementing e-commerce solutions, most companies prefer to adapt and customize packaged software. Others develop their applications in-house. (See Figure 2). A good example is a $2 billion roll-on, roll-off (RoRo) shipping company we studied. It developed its voyage scheduling system from scratch to provide the flexibility to choose multiple schedules based on sequence or parallel voyage route planning.

Shipping lines are under increasing pressure as customers worldwide demand more visibility into shipment details and service reliability.

To stay afloat, carriers must continuously innovate and realign their services to ensure optimum service, reduce operating costs, streamline processes and provide access to accurate and timely information.

Given the pace of change and competitive pressure they face, all of our respondents made it clear they cannot remain indifferent to e-commerce. While 17% agreed that e-commerce is now critical to their business, that percentage rose to 73% when viewed over a three-to-five-year timeline.

How Companies are Pursuing E-Commerce

Full Steam Ahead Build or Buy?

38%

24%

10%

28%

Live/Functional

Implementation

Research & Development

Information Gathering

3%

40%

57%

In-house Development

Customized Product

Others

Figure 1 Response base: 30

Figure 2 Response base: 30

The Growing Importance of E-commerce

How important do you consider e-commerce to be to your organization?

Figure 3 Response base: 30

Two Years

23%

17%13%

7%

40%

One Year

23%

40%

37%

Three to Five Years

73%

23%

4%

Business Critical

Very Important

Important

Not So Important

Unimportant

6 KEEP CHALLENGING December 2016

Barriers to E-commerce AdoptionWhile most companies acknowledge the criticality of e-commerce over time, many are proceeding cautiously. This is because investment decisions are largely driven by ROI considerations — making it hard to justify e-commerce in 2016 in terms of required investments and expected returns. Additionally, most shipping companies have competing priorities such as procuring assets; namely, vessels, containers, material-handling equipment and other capital-intensive purchases.

Balancing these concerns is clearly an imperative. In our view, companies need to develop an information management strategy and business plan for building long-term capabilities, backed by a separate budget and performance measures in areas such as customer retention, operational efficiency, trade lane development and cost leadership. This will help ensure that short-term priorities and current business challenges do not mask factors that are critical to survival and growth. Two areas that most study respondents cited was the need for an adequate IT infra-structure and implementation skills. (See Figure 4).

Flattening demand and business volatility are common issues. Overcapacities continue to drive down freight and charter rates across container, dry-bulk, and tanker segments. Terminal operators in many locations face increasing competi-tion and operational challenges related to ever-larger vessel sizes, particularly in container shipping.

Nearly 60% of study respondents acknowledged that a lack of standardized processes had led to manual, inefficient processes across the value chain. Quality of data was a concern for 17% of respondents, while 13% cited personnel training and development as an issue. (See Figure 5, next page).

Respondents rely on in-house innovations to leverage new technology solutions and minimize the movement, translation and storage of data required by multiple parties across the value chain. Many use a single e-commerce platform that enables all shipment participants to share and view information from platforms such as Inttra and GT Nexus. (See Figure 6, next page). This spares them from having to retransmit, convert, load and store data; they need only to reconcile differences that will undoubtedly exist among various systems.

Weighing the Challenges

What barriers do you see impeding the adoption of e-commerce in your organization?

Competing Priorities

Lack of Management Understanding

Lack of Adequate IT Infrastructure

Lack of Implementation Skills

No Strong Business Case

Security

40%

20%

17%

13%

7%

3%

Figure 4Response base: 30

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 7

Operational Barriers

What operational challenges has your organization faced when adopting an e-commerce platform?

37%

13%

23%

10% 17%

Training and Development of Personnel

Lack of Standardized Process

Lack of Timely Information

Quality of Data

Inefficient Manual Process

Figure 5Response base: 30

E-Commerce Accelerants

What platforms are accelerating service innovation and development?

In-house Innovation

Intrra

GT Nexus

Others

7%

16%

17%

6%

Figure 6Response base: 25

“The shipping network in some countries is still executed by local agents and hence adoption of a standard e-commerce platform is quite challenging.” — CIO, leading shipping company, Germany

In Their Own Words“

8 KEEP CHALLENGING December 2016

Understanding Customer Expectations Innovation in products, processes and business models is critical to thriving in a highly competitive business environment. Likewise, collaboration and customer experience management are key to driving innovation. Every study respondent said that their company had earmarked specific budgets for building collaboration tools and advancing digital transformation. Nearly 60% of the respondents told us that their IT spend on understanding customer expectations consumed from 1% to 5% of their overall IT budgets. Only 20% of the respondents spent between 5% to 10%. (See Figure 7).

Roughly 70% of respondents indicated they use social media channels and employee/customer touch points to better understand customer expectations. (See Figure 8).

Furthermore, 70% believe that data gathered from social media will significantly improve their operations in areas such as procurement, scheduling and customer service.

Getting Social

How important is social media for understanding customer expectations?

33%

37%

23%

4% 3%

A Great Deal

Somewhat

Not Very Much

Not At All

Don’t Know

Figure 8Response base: 26

Investing in Customer Insights

What is your company’s IT spend on understanding customer expectations?

3% 3%

20%

60%

14% >15%

10%–15%

5%–10%

1%–5%

0%

Figure 7Response base: 18

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 9

Many respondents told us that the immediate adoption of e-commerce will sig-nificantly benefit their customers by increasing visibility and shortening response times. (See Figure 9, below). Some said they are working to ensure that customers can access information from virtually anywhere, at any time, which they believe is a key competitive differentiator. This kind of agility allows supply chains to respond faster to volatile conditions, with the ability to:

• Reroute inventory at will.

• Consolidate shipments efficiently.

• Accelerate profitable returns.

• Configure and change orders — even in the middle of production.

• Aggregate data across regions to accurately predict future demand.

Achieving these capabilities depends first and foremost on visibility. It is impossible to coordinate operations when there is no complete picture of what is happening within the business and across the supply chain. Connected shipping will provide end-to-end visibility to the volumes of data it generates.

Meeting Customers’ Expectations

What benefits do customers expect through e-commerce service offerings?

30

25

20

15

10

5

0

100%

80%

60%

40%

20%

0%Visibility On-the-Go

AccessFaster

Response TimeUser

FriendlinessCompetitive

Rates

28%

31%

59%

80%

91%100%

25%

19%

10%8%

Figure 9Response base: 30

“The need to automate our operations is underway at most of our offices except those in Africa due to the lack of IT infrastructure.” — Trade Lane Head, global freight forwarder, Singapore

In Their Own Words“

10 KEEP CHALLENGING December 2016

The Dependency on IT Capability & Infrastructure Today’s shipping lines face several obstacles in what is now a hyper-competitive envi-ronment. High fuel costs and low freight rates; customers’ demands for highly reliable shipments at a reduced cost; loosely connected systems that are unable to deliver a single version of the truth. Typically, there is a gap between the demand for shipping services and the capacity to handle cargo. If shipping companies cannot meet narrow schedules, they incur huge costs. Automated, real-time event reporting can help resolve these issues by tracking the movement of cargo and containers, and assuring that supply and demand are in sync.

Surprisingly, only a few respondents had taken the necessary steps to assure the secure transport of documents (bill of lading, delivery order, manifests, etc.). For example, some said their companies use a unique encrypted code that can generate a QR Code, which can then be printed on the original bill of lading. A QR code reader scans the code to check the authenticity of the document. This allows stakeholders across the supply chain to quickly verify the document — minimizing the chances of wrongful delivery of cargo or unauthorized financial transactions.

Freight payment ranks as high as ensuring that cargo is safely transported from its origin to its destination on time. Timely and accurate invoices are crucial; the sooner companies bill their clients the sooner revenue can be used as working capital. Inaccurate invoices exact high costs for shipping lines, carriers, and shippers alike.

We asked respondents about the level of automation their systems offered for critical functions. (See Figure 10).

The rapid response times of e-booking emerged as a differentiator in shippers’ selection of carriers, and a key factor in further automating ocean shipping. Most of our study respondents indicated that their EDI booking systems have a high degree of automation.

Seamless integration with existing host systems and technologies is essential to automating, simplifying and reducing costs across the supply chain. Vessel scheduling, freight payment and documentation among respondents are primarily semi-automated. (See Figure 11, next page).

Automating Processes

What is the level of automation for your critical functions?

100%

80%

60%

40%

20%

0%Documentation

(BOL, notice of arrival, etc.)

EDI BookingTransaction

RateShopping

VesselSchedules

FreightPayment

Fully Automated

Semi-Automated

Manual Process Only

5%

16%

9%

19% 20%

7% 6%

11%

11%

18%

5%

5%

12% 6%

Figure 10

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 11

For most respondents, shopping for rates is a highly manual process that typically depends on chosen carriers’ service levels and their ability to provide real-time freight rates around the clock. Most respondents emphasized that they manage freight rates internally, and would not share terms across a platform given the potential to ignite a price war among shipping lines. Freight rates are also dynamic, and fluctuate due in part to changing fuel costs, over capacity and demand.

One area of concern highlighted by respondents was the need to build an IT infra-structure with the support of external technology companies. (See Figure 12, next page). Most companies we studied are putting infrastructure and applications in place to enhance collaboration among various stakeholders.

Automation Levels Across the Order-to-Cash Cycle

Fully Automated Semi-Automated Manual Process

Documentation (Bill of Lading (BOL), Notice of Arrival (NOA), etc.)

eBOL, shipping instructions updated via EDI, portal updates, electronic notifications and receipts.

Customers can fill out BOL forms through desktops, mobile devices and tablets.

BOL: Paper-based process.

NOA via telephone, fax, e-mail, etc.

Rate Shopping Quotations can be obtained online and later converted to orders.

Quotations can be obtained online with standard products/services.

Quotations are provided manually upon request by customers.

Vessel Schedules Utilizes schedule consolidation engine to plan efficiently and accurately.

Manual planning of electronically received schedules from multiple carriers.

Manual process of gathering and aggregating schedule data.

Freight Payment Freight bills are automatically validated and approved for payment. Automatic deduction of payment from customer’s payment card, account or credit facility.

Ability to view the freight bills for shipments executed.

Manual pre-audits. Manual calculation of fuel surcharge and stop charges. Freight bills received through e-mail.

EDI Booking Instant booking for qualifying transactions. Automatic notification of changes in booking status to third parties, including a confirmation message. Complete history for each booking, including a summary of critical changes.

Instant booking upon receiving file from customer. Confirmation sent to customer.

Manual creation of bookings. Modifications, amendments and confirmation manually prepared.

Figure 11

“Pricing maintenance of freight and other charges is challenging. In the case of DOOR to DOOR it is more challenging due to various destinations and the local parties involved. Outsourcing tariff maintenance can be one of the solutions.” — CFO, leading global freight forwarder, Germany

In Their Own Words“

12 KEEP CHALLENGING December 2016

How Shipping Companies Can Stay ConnectedNew digital technologies open markets that either complement or replace existing structures. Instant customer reach, direct access to end customers and minimal transaction costs are inherent benefits that can be leveraged by shipping and logistics players, as well as their customers.

Based on our analysis of the e-commerce market and the approaches that some companies are taking, we have defined a maturity framework to help shippers better assess their current capabilities and plan ahead.

Our framework defines the key functions for staying connected:

• Capacity planning and forecasting.

• Order management.

• Shipment planning and scheduling.

• Supply chain visibility

• Freight invoicing management and analytics.

For each function, we have identified four levels of maturity — from a basic stage (defined) to transformation, which is indicative of a fully mature process. Based on our study, we have observed that most shipping organizations operate between Levels 2 and 3, namely managed and optimized, which suggests they have attained competency in key functional areas. (See Quick Take, next page).

Assessing Current Capabilities & Developing a Roadmap

The maturity framework can be used as a guideline for companies to assess their current capabilities and decide where they stand in each strategic area. They can then create a clear, simple strategy and roadmap for reaching the desired state.

As companies build an automated e-commerce model, a strong maturity framework can serve as a checkpoint at every stage to confirm that the necessary level of maturity has been reached before making additional investments along the defined roadmap.

Gauging the Need for New Technology Platforms

How much support is required to build and manage e-commerce transformation initiatives?

Build IT Infrastructure

Industry Best Practice & Benchmark

Seminars/Industry Forums

Vision & Roadmap for E-commerce

Support from IT Companies

44%

26%

19%

11%

7%

Figure 12

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 13

Quick Take

Connected Shipping: A Maturity Framework to Assess Current Capabilities

Defined Managed Optimized Transformed

Capacity Planning & Forecasting

Organization does not perform any systematic planning and forecasting activity.

Capability to analyze historical trends but does not possess any capability to perform effective assets forecasting.

Capability to perform assets forecasting based on historical trends, but no scenario-based planning.

Capability to run “simulated” full-stream supply/demand balancing for “what-if” scenarios.

Order Management

Completely manual documentation, quote generation and review; e-mail based RFQ response.

RFQ and quote generation process supported by broad response templates; requires significant review by managers prior to finalization.

RFQ response generation, quote generation supported by internal knowledge portals and extensive, ready-to use templates; limited review and quick turnaround.

RFQ process linked to the document management process reduces cycle time. Quotes generated automatically regarding contracts maintained for customers.

Shipment Planning & Scheduling

Manual process for planning shipments.

Stand-alone planning software.

Planning tool used to support manual process. Plan to meet delivery scheduled date/time.

Automated planning tool provides optimal cost and service solution when dynamically processing all shipments.

Supply Chain Visibility

No event management mechanism in place; carrier informs the base location only in cases of exceptions.

Carrier updates are done periodically, based on milestones covered in a particular shipment.

Maintains a portal where carrier can enter delivery details that can also be used to track carrier performance.

Carrier and lane status are regularly updated.

Online coordination of routing/scheduling. End-to-end visibility of cargo by providing BOL, cargo ID, container #, order #.

Freight Invoicing Management

Invoices are generated manually and consume significant time and effort. There are discrepancies in estimated invoices due to customer calculations.

No direct capability for electronically generating invoices; however, templates are used to aid in estimating and generating invoices.

Capability for electronically generating invoices exists; however, this is not extensively used due to lack of verification features.

Invoices are usually generated electronically; supported by features for invoice verification.

Shipment costs are automatically calculated at time of optimization and are transmitted to financial systems to be used in invoice matching and settlement.

Analytics Only ready-made reports from various systems are available.

Capability to configure reports based on business requirements.

Interactive reports with drill-down ability is built, but capability restricted to the IT admin. users.

Business users can build interactive business-level reports (tables, charts) that provide status along transportation KPIs and support drill-downs into more report detail to determine root cause.

Source: Cognizant Technology Solutions

14 KEEP CHALLENGING December 2016

Looking Forward Our interactions with CXOs confirmed our hypothesis that connected shipping —an approach made possible via new digital technologies embedded in e-commerce transformation projects — is a priority for many shipping companies. These encounters also confirmed that emerging technology trends — proactive mainte-nance and risk management, digital twins, big data-driven decision making and a focus on assets and the supply chain — are key investments that supply chain managers should consider to ensure they stay connected.

Given these findings, we recommend the following:

• Assess current capabilities and business priorities: Establish basic capabili-ties in process standardization, data integrity and visibility before expanding fur-ther. Fully leverage technologies to automate all operations and critical business processes.

• Develop an e-commerce roadmap using a digital maturity framework: Our framework can act as a guideline for charting a meaningful and contextual road-map. Respondents’ experiences and feedback provide valuable insights on the level of importance shipping companies assign to staying connected and becom-ing digital in the coming years.

• Define business process changes for effectively integrating with partners: Enable collaborative business processes to support the exchange of data, events and documents. Facilitate true partnering through timely, accurate information-sharing and visibility.

• Develop an ROI-based approach to identify and prioritize initiatives: Companies can benchmark their business KPIs to focus on an action plan for mov-ing towards a fully matured business process stage. They can evaluate ROI from various implementation options and finalize the approach for executing their ac-tion plan.

• Gain consulting and implementation support from a trusted partner: Companies can also seek the expertise of third-party/IT service providers to gauge the business potential and chalk out a roadmap for implementing digital solutions to meet or exceed industry expectations. Third-party/IT service provid-ers come with a wide-range of services and experience across different geog-raphies and diverse clientele — giving them a broad view and vast knowledge of domains for developing business processes and solutions that can ensure ship-ping companies remain future-ready.

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 15

Appendix 1: The Methodology

Thought Process Behind the Connected Shipping StudyShipping is considered the lifeblood of the global economy, which is highly dependent on specialty shipping companies. In fact, they meet approximately 85% of the global demand for transport. Over time, changes in global growth are expected to lead to changes in the world’s seaborne trade center of gravity. The impending changes, as well as ongoing structural alterations in the industry landscape, is causing a dramatic shift in manufacturing and trading.

The market and marketplaces are now global, with production located in virtually every geography. China is the world manufacturer; India and other Asian countries are following the same economic model. The major shipping lines, many which were originally concentrated on the East–West routes that linked the main three poles of the global economy (Europe, Asia, North America), are now serving the North–South routes following the liberalization of maritime regulations worldwide (e.g., the relaxation of government regulations on trading with certain countries, economic policies, free zones, opening up new trade routes that allow shipping lines to develop new trade lanes) — thereby increasing commerce among countries. Mega carriers with multi-ocean networks are the common pattern.

The shipping business environment is increasingly unpredictable; competition is heating up; profit margins are declining, and expected service levels are rising while demand fluctuates. In this context, shipping lines need to formulate and implement winning strategies to grow revenue, improve margins and achieve profitable growth.

Because of these dynamics, shipping companies must meet higher expectations and increased scrutiny brought about by a highly networked, social media-savvy world. That has pushed investors, shipping customers and, in turn, ports and shipping lines, to embrace e-commerce transformation.

The study sought to analyze and understand organizations’ stand on three themes:

OBJECTIVES of Cognizant’s

Connected Shipping Study

Examine the uses, motivations and barriers associated

with adoption of e-commerce in the shipping industry

Bring out the strategic relevance/importance of e-commerce to shipping in today’s age

Develop a framework toassess and gauge

e-commerce transformationin shipping

1. Shipping organizations have a clear roadmap for adoption of e-commerce to offer enhanced services to their end customers.

2. Shipping organizations have a good understanding of customer expectations as they relate to e-commerce.

3. Shipping organizations have adequate IT capability to implement e-commerce.

16 KEEP CHALLENGING December 2016

Appendix 2: The Study OverviewThis study was conducted from August to November, 2015, and involved in-depth primary interviews with 30 participants. The interviews were carried out face-to-face whenever possible, and via phone in other cases.

Respondents answered 20 questions — ranging from technology priorities to challenges in the marketplace. The questions were grouped in three sections pertaining to the hypothesis noted in Appendix 1. The study comprised participants from APAC (61% respondents), North America (21%) and Europe (18%). A majority (53%) of respondents represented liner shipping businesses. The companies that participated in the study ranged in size from small (<US$100 million in revenue), medium (US$100 million to $1 billion) and large (US$1 billion to US$10 billion) to very large (>US$10 billion). The participant profile extended across executive-office, IT and functional/business heads.

Interviews by Revenue

Less than $100 Million

$100 – $500 Million

$500 – $1 Billion

$1 – $10 Billion

More than $10 Billion

50%

6%

20%

7%

17%

Less than 1,000

1000 – 5000

5,000 – 10,000

10,000 – 100,000

46%

17%

10%

27%

Interview by Number of Employees

Less than $100 Million

$100 – $500 Million

$500 – $1 Billion

$1 – $10 Billion

More than $10 Billion

50%

6%

20%

7%

17%

Less than 1,000

1000 – 5000

5,000 – 10,000

10,000 – 100,000

46%

17%

10%

27%

Respondent Profile

Finance

Sales & Marketing

Commerce Management

Information Technology

Shipping & Logistics Operations

11%

17%

60%9%3%

Global Freight Forwarder

Ro-Ro Shipping

Terminal Operator

3PL

Liner Shipping

7%

23%

7%53%

10%

Interview by Line of Business

Finance

Sales & Marketing

Commerce Management

Information Technology

Shipping & Logistics Operations

11%

17%

60%9%3%

Global Freight Forwarder

Ro-Ro Shipping

Terminal Operator

3PL

Liner Shipping

7%

23%

7%53%

10%

Footnotes1 “Delivering large-scale IT projects on time, on budget, and on value.” McKinsey & Co., October

2012. http://www.mckinsey.com/business-functions/business-technology/our-insights/delivering-large-scale-it-projects-on-time-on-budget-and-on-value.

About the AuthorsBadrinath Setlur leads Cognizant Enterprise Application Services (EAS) consulting. He has more than 23 years of global experience as a management consultant, manufacturing industry specialist and business consultant in IT services. He can be reached at Badrinath.Setlur@cognizant.com | https://in.linkedin.com/in/badrisetlur

Navin Rajendran is Manager of Consulting in Cognizant Business Consulting’s Manufacturing & Logistics Practice. He has 12-plus years of experience in business consulting, process re-engineering and product development, and has led multiple business consulting engagements in the transportation and logistics space. His areas of interest include the impact of IoT in logistics, digital, and supply chain management. He can be reached at Navin.Rajendran@cognizant.com | https://in.linkedin.com/in/navin-rajendran-8a45ba1

Kartik Ravi is a Consultant in Cognizant Business Consulting’s Manufacturing & Logistics Practice. He has over four years of cross-domain experience across refinery/manufacturing, logistics, food and beverages, and consulting industries and has led end-to-end solution development in the transportation and logistics space. He can be reached at Kartik.Ravi@cognizant.com | https://in.linkedin.com/in/kartik-ravi-cscp-cpim-b2b54221

Acknowledgments The authors would like to thank and acknowledge the support and guidance of the following Cognizant leaders in helping shape this report. Rajaram Radhakrishnan, Business Unit Head, Manufacturing, Logistics, Energy and Utilities (MLEU); Vikash Gaur, Vice President, Manufacturing & Logistics; Sathishkumar Soundararajan, Senior Director, Manufacturing & Logistics; Ramesh Krishnamurthy, Director, Manufacturing & Logistics; and Alan Alper, Assistant Vice President, Corporate Marketing.

CONNECTED SHIPPING: RIDING THE WAVE OF E-COMMERCE 17

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Cognizant’s Manufacturing & Logistics Business Unit Cognizant’s Manufacturing & Logistics Business Unit operates as a trusted partner to global manufacturing leaders, helping them accelerate business performance in the digital world. The unit is recognized for its forward-looking approach by industry gurus, such as IDC MarketScape, which bestowed on it a “Leader” rating for service lifecycle management. Our business consulting professionals ensure that manufacturing and logistics clients receive exceptional business results from their technology investments and sourcing programs. Our domain solutions leverage digital technologies to build smart products, connect with digital consumers, provide real-time visibility into manufacturing operations, and automate knowledge work with cognitive computing. Learn more at www.cognizant.com/manufacturing.

About Cognizant Business ConsultingWith over 5,500 consultants worldwide, Cognizant Business Consulting offers high-value digital business and IT consulting services that improve business performance and operational productivity while lowering operational costs. Clients leverage our deep industry experience, strategy and transformation capabilities and analytical insights to help improve productivity, drive business transformation and increase shareholder value across the enterprise. To learn more, please visit www.cognizant.com/consulting or e-mail us at inquiry@cognizant.com.

About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process services, dedicated to helping the world’s leading companies build stronger busi-nesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innova-tion, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 100 development and delivery centers worldwide and approximately 255,800 employees as of September 30, 2016, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

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