Download - IT in Transportation & Logistics
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IT Developments & Business Strategy in theLogistics Space An Overview
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Indian Logistics Industry
Indias GDP @ Rs. 543.7 Bn (year 2005), growing at a
rate of 9% every year.
Average Indian GDP growth ~ 8% from year 2002 onwards
Current Indian Logistics industry is valued @ USD 90 Bn
(INR 360000 Crores)
Two main factors governing Logistics services across
Indian Business sectors are
Cost
Reliable Value-adds
Real time service information
Established Order to delivery monitoring & control
End to end information flow & transparency
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Indian Logistics Industry
Reliable Value Adds Quick Response enabled IT backbone
Intrinsic CRM capabilities bridging Supplier
Customer & Customer End User
Real time exception reporting & handlingTypical Logistics Cost are segmented into
Inventory Holding
Transportation
Warehousing Packaging
Losses &
Related Administrative Costs
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Indian Logistics Industry
Logistics Costs in India estimated @ 13 14% of GDP Comparative Logistics Costs as a percentage of GDP
across Europe & Americas is in the range of 10%
Typical Indian Logistics Cost elements are
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Indian Logistics Industry
Average Change in Logistics Cost across Major Industrysectors in India (between 2001 2006)
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Typical Logistics Growth Enablers
Adequate Infrastructure & growth Effective Information Flow
Quality & Deployable Assets
Professional Services & Approach
Relevance in Regulations & Government Policies Comprehensive IT Backbone
Standardized Logistics Service Levels
End to End Solution/ Service Spectrum
Quality Resources Intrinsic CRM capabilities
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What is IT/ Technology in Logistics??
Major IT/ Technology offerings in logistics space areconfined to
Transport Management Solutions
Warehouse & Inventory Management Solutions
RFID Online Vehicle Tracking
Logistics Sales Force Automation (SFA)
SCM
CRM Demand Forecasting Software
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IT / Technology Solution
Major IT/ Technology Solutions implemented by IndianLogistics Companies in the recent past are
Logistics e-planning tool
Electronic PoD (e-PoD)
Web/ SMS based Consignment tracking Online GPS based track & trace
Load Planning & Scheduling software
Electronic Logistics Management System (e-LMS)
Integrated Transport Management Software (iTMS) Customized ERP software's
End to End Transport/ Warehousing & Inventory
Management software
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IT/ Technology Implementation Benefits
Logistics Companies in India define their key benefits from their IT
spend as
Enables the move from centralized to decentralized management
without any loss of information at any level.
Facilitates speedy/timely delivery, reliability, cost savings and
security.
Has resulted in the empowerment of individuals and teams, with
the work environment progressively moving from a functional
organizational arrangement to a team arrangement.
Enables high-level connectivity, information sharing, and
integration, not only within a company or among companies, but
also globally.
Has made logistics work easier, less-time consuming, and more
accurate, and contributes to greater productivity.
Facilitates direct access to data banks for information on the
status of orders or accounts.
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Major Solution Providers
Some Major Logistics IT/ Technology Solutions Providersin the country include
Agility
Four Soft (4S elog, 4S I-logistics)
I2
IBM
Infreight (iTMS, IndFleet)
Logility
Manhattan Associates (Integrated logistics solutions)
JDA (acquired Manugistics in 2006)
Miebach
Oracle (G log, Transport/ Logistics Module)
SAP AG etc (Logistics Module/ Enterprise)
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Selection Implementation - Deployment
Typical Selection Implementation & Deploymentissues in IT/ Technology solutions with relevance to
Logistics space in the country are
Inadequate Domain Expertise & Experience
Standardized Functionality Mismatch Expensive Technology/ Infrastructure pricing
Network Constraints in the Indian Geography
Complex Technology Architecture resulting to
Integration issues Migration from Legacy to best of breed software
Support/ Upgradations & Maintenance factors
Software Pricing
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Process Improvement & ROI
Direct Operations Focus till Last Mile & Delivery Reduced Logistics Management Labor Hours thro
Automated Rating, Routing & Negotiation Processes
Automated ordering to delivery process including
freight bill audit & payments Efficient Order & Shipment with Track & trace
capabilities
Improved exception handling with real time decision
making Coordinated Load & Resource Planning & Optimization
Reduced Shipping errors with improved trade
compliance
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Process Improvement & ROI
Comprehensive Reports for real time analysis Increasing service level efficiencies with intrinsic client
relation capabilities
Increased Inventory Accuracies and reduced write-offs
Optimal Lead times across end to end logisticsmanagement processes
Direct increase in sales opportunities (loss sales
prevention thro on time service levels)
Real time C Level Dashboard for monitoring & control Reduced Cost of Operations (industry average in the
range of ~ 8 to 10%)
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Some Major Implementations (last 3 years)
Some Logistics Companies that have deployed/
implemented/ upgraded to Logistics Management IT/
Technology Solutions include
AFL Enterprise/ Track & Trace
FedEx Global Integrated Solutions
GATI WMS/ Online Tracking Solution
KTC Integrated Logistics Solution
TNT India Global Integrated Solutions
Patel Roadways Enterprise/ Tracking Technologies
Safex Track & Trace Different modes
TCI Tracking Technologies
TVS Logistics Enterprise/ Online Tracking
Enterprise naturally means an integrated logistics management solution
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Take Away
Indian Logistics Industry still at a nascent stage andevolving quickly. Average growth rate is pegged at 8 9%
and reach USD 125 Bn by 2010
Key focus areas today are
Improved efficiencies Transparency/ Information Flow with CRM
Reduced pricing
Key Logistics Service enablers
Efficient Information Flow Reduced Order to Delivery times
Real time track & trace
Quick Response exception handling
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Take Away
Corporate/ Shipper Focus areas Professional services
End to End service/ solution spectrum
Reduced Logistics Spend
Single Window Supplier Client, Client- End userlogistics integration
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Infreight Research & Content Team reports year 2006-07
Datamonitor/ TI reports
IAEIS - IndustryAnalysis & Economic Intelligence Service Database
Reports from SIAM,ACMA etc
Eye for Transport Research and Publications
E & Y Reports Mckinsey Quarterly Journals and Case Studies
A T Kearney Reports
KPMG White Papers and Case Studies
Selected articles from The Hindu, The Telegraph, Financial Express,
Business Standard etc
Indian Institute ofManagement - Case Studies andMarket Analysis
Reports
Brand equity foundation reports etc
Aberdeen Research reports
CII Industry reports
Source of information
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THANK YOU!