Drive strategic valueEnhance your freight, logistics, and rail supply chain

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Global, dynamic, and demanding supply chains bring significant challenges. It’s more than delivering transportation; it’s also providing information and insight across a complex supply chain.

Meet global demands Always a daunting business environment, transportation remains a tough but promising sector. Despite continued economic uncertainty, the globalization of trade creates opportunities and challenges for shippers and transportation companies. And emerging markets and new alliances add complexity to most operating models.

Supply chains that respond nimbly to the marketplace require seamless, real-time collaboration with partners—wherever they are and whatever their role. Information is the key to adding value, and technology is the foundation of this emerging integrated supply chain.

With trading partners scattered around the world, end-to-end visibility and traceability of inventory in transit are vital for early notice of supply chain disruptions, changes in demand, and exceptions. Real-time event management is fundamental: capturing events, monitoring progress, and communicating critical information instantly so the supply chain can promptly address these disruptions.

Obtaining real-time information increasingly dictates computing “on the edge”—using technologies such as bar codes, passive and active GPS-enabled radio frequency identification (RFID) tags, biometric devices, and real-time location systems to track assets, people, orders, products, and shipments. These technologies enable monitoring and electronic document exchange for visibility up and down the supply chain. But there are significant costs to deploying such devices and associated networks, and connecting them to enterprise systems.

Industry consolidation compounds these challenges: The “Walmart effect” is driving new levels of standardization and efficiency while attempting to purge all avoidable costs. Transportation companies now offer end-to-end services. And fast-growing third-party logistics providers (3PLs) contend with obsolete homegrown applications and an inherited patchwork of disparate systems. They also must deal with a myriad of regional databases, lack of standard practices, and inconsistent ways of handling freight and billing for the same customer.

To secure their place at the supply chain table, these companies need agile platforms that support visibility systems and integrated, real-time communication and information sharing among all partners.

Transportation-oriented firms operate in an environment defined by growing numbers of trading partners, shippers, and carriers, mixed worldwide fleets, more stringent safety and packaging regulations, and customers who expect and demand on-time, affordable, and value-driven service. This requires greater collaboration and communication, and an IT transformation that drives efficiency, security, and productivity.

Focus on strategic priorities “… the greatest challenge according to three-quarters of best-in-class and industry norm respondents is the lack of visibility and metrics for managing overseas vendors and service providers …”1

“More than one out of ten international shipments are late, incomplete, or have to be expedited. Worse, 13% of large enterprises report that more than one out of five of their international shipments are out of compliance with order or routing instructions.”2

“Best-in-class companies are seeking consistency of processes and consolidation of global trade activities across their divisions. Best-in-class companies look to improve their manual processes and then automate, automate, automate. … 44% of the best-in-class have automated processes across the company and across functions, operating with the same goals, systems, and data, including cross functional work flow and alerts.”3

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1 “Best Practices in Global Trade Management Stress Speed and Flexibility,” World Trade 100 Magazine, January 2010

2 Ibid.

3 Ibid.

Use innovative solutions Transport-oriented companies now recognize that demand-driven supply chains require new levels of collaboration, standardization, and communication. The good news: Innovative technologies have emerged to meet those needs.

Automation—Forward-looking freight and logistics firms can now leverage automated systems to better work with customers, suppliers, and partners. To do that, however, many companies must first reengineer manual processes, establish electronic links, and modernize their environments. Manual intervention adds time and cost, and introduces opportunities for errors.

Sourcing—To improve communications and supply chain performance, savvy manufacturers and retailers are searching for more efficient and cost-effective logistics solutions. For many, outsourced logistics is the answer. Shippers that seek one bill of lading for multiple moves are turning to 3PL companies that provide end-to-end services. Logistics providers may contract with a set of preselected carriers and interlink their IT systems to capture information like a single company.

Track-and-trace systems—Transportation organizations provide customers with shipment details, often online. For example, when their freight leaves the origin facility or connects through a transshipment facility, the shipper largely still depends on hand-typed information. Machine-read systems, which handle bar-code-sensor or RFID-based data, are key to the agile enterprise of tomorrow.

Real-time over-the-road communications—In-cab push-to-talk phones and other edge communications now enable real-time written and verbal communications with truck drivers, train engineers, and others involved in shipping. Yet 3PLs often lack the communications backbone necessary to collect that data.

Back-end integration—Efforts to transcend business silos and share information internally are just now under way at best-practice companies. However, few 3PLs today have systems that are integrated across the enterprise, connecting business systems and automatically sharing critical information with designated partners or customers. Many 3PLs that grew regionally or through mergers and acquisitions are looking to consolidate multiple IT systems and standardize their IT platforms.

Get these benefits Transportation-oriented organizations of all kinds can realize significant and measurable benefits from rationalizing and modernizing key applications. You can leverage them to:

• Reduce time-to-market for products, services, and innovation

• Gain visibility into logistics operations and service offerings

• Mitigate business risks

• Deploy more flexible and efficient service-oriented architectures (SOAs)and services

• Reduce supply chain complexity by streamlining applications and platforms

“Most companies continue to focus on the speed and costs of their supply chains without realizing that they pay a big price for disregarding agility.”4

4 “The Triple-A Supply Chain,” Hau L. Lee, Harvard Business Review, October 2010

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• Cut IT and operating costs

• Improve return on investment for current applications

• Future-proof your business with next-generation applications and infrastructure

Standardize, optimize, synchronize An SOA and enterprise-wide standards are key to gaining a global view of customers, tracking performance, and using information to optimal advantage. It enables seamless sharing of information in real time across the supply and distribution chain.

This layered architecture provides a global foundation for your enterprise. It scales up and down readily, provides a solid layer of security, and uses common interfaces and connectors to easily “plug in” and disconnect the most complex systems. All SOAs have certain elements in common—with greater similarities within the same industry—but must also be customized to fit the individual organization. Achieving it requires these steps:

Create a common data model—It’s essential to have a common nomenclature that specifies what to call the same customer, supplier, product, or other entity across multiple enterprise databases. Once standardized, this nomenclature needs to be applied to each database. After the common data model is created, all of the definitions can go into a single database, providing consistency from country to country, and easing compliance with governmental imperatives such as Sarbanes-Oxley.

Rationalize and modernize applications—Before applications can operate in agile infrastructures, they need to be consolidated and updated. An application portfolio analysis of your software—custom and packaged—identifies problem areas, redundancies, unused capacity, and more. The next step is to renew, replace, or retire applications—or combine them with others—without disrupting daily operations. Rationalized applications are then moved into modern languages, so they can be leveraged across diverse platforms and functions.

Choose new platforms aligned with business priorities—After you have defined your future-state architecture, and know the size and functionality of your optimized applications portfolio, you can address the IT and communications platforms needed to support the business. First, you must synchronize your business objectives and technology to ensure these platforms reflect where your business is headed. DXC Technology maps your IT strategy and platforms to your business model using a proven business transformation framework.

Build your agile enterprise platform—Based on SOA, an agile enterprise platform will connect your customers, vendors, and partners, collect data from edge computing devices, and support your integrated IT information and communications infrastructure.

5 “In Support of SOA,” Logistics Management Magazine, February 2010

“Service-oriented architecture (SOA) reduces the cost and time of integration by standardizing the way all applications and data sources ask for and retrieve information. SOA provides the flexibility of applications. Rather than have software dictate how we design business processes, SOA allows users to use the functionality and data of many different applications at the same time—meeting the exact business need.”5

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Gain returns through transformation Building a fully integrated SOA can be a multiyear undertaking. The DXC market-proven approach defines the steps and processes throughout this journey and includes measurable deliverables each quarter. Further, you will see long-term advantage and immediate, incremental returns along the way. Depending on the degree of complexity, applications rationalization and modernization are often completed in less than a year, rapidly reducing outages and applications operating, maintenance, and training costs.

DXC developed a dedicated reference framework that supports applications rationalization and modernization projects in the 3PL industry. It incorporates industry-specific processes and key business workflows. By coupling the reference framework with its manufacturing and retail industries frameworks, DXC optimizes the enterprise applications and infrastructure architecture for logistics enterprises within the end-to-end supply chain.

DXC is ideally positioned to help you evolve into an agile enterprise. Our long-standing leadership in such interrelated domains as manufacturing, transportation, retail, healthcare, high technology, communications, security, and finance gives us unique end-to-end capabilities for IT outsourcing, business process outsourcing, and applications services.

Get real-world results DXC works with enterprises spanning the supply chain to streamline technology and processes, incorporate information from the edge, and maximize collaboration and visibility. Following are a few real-world examples of how information can drive value across the supply chain.

Optimize driver routing After reviewing its air cargo container management at key airport hubs, this major air cargo carrier hoped to improve container assignments and driver route planning. The carrier had used a manual, paper-based system to assign container pick-up and deliveries, but that obsolete approach provided poor visibility, delays for inbound and outbound containers, and breakdowns during peak workloads and when flight schedules changed. DXC helped drive the solution with an air logistics decision support system that included client/server software, bar code scanners, PDAs, wireless, and cellular networks. Now operational 24x7 at several major airports, the solution supports real-time container assignment, driver load assignments, and manpower planning. This major air cargo carrier achieved:

• Improved throughput from enhanced driver management and load assignments

• Smoother cargo flow at air cargo terminals

• Fewer shipment failures through proactive management of cargo flow

• Fewer misconnects and better on-time performance—yielding enhanced customerservice and satisfaction

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Integrate information management How do you improve performance across land, sea, and air services? For this global transport and logistics company, the answer was a robust information management platform capable of delivering real-time information and integrated decision support. DXC worked with this company to transition using a master business intelligence plan that included evaluating processes, data flows, and technologies across multiple regions and business units. The solution also included a redesign of the analytics architecture and creation of a multiyear data and business intelligence roadmap. This company achieved many benefits, including:

• More than $30 million in annualized business benefits from enhanced shipmentvisibility and status reporting to operational performance and profitabilityanalysis, carrier transport and performance reporting, and international tradelane analysis

• Transformation from a fragmented data, organizational, and IT landscape to astrategic outcome-based business intelligence environment

• A multitrack development model that can be tailored to meet changingbusiness needs

Modernize applications development This successful less-than-truckload (LTL) carrier saw the need for more productive and cost-efficient dock and yard activities. Yet, after a multiyear internal effort to update and modernize the software systems used to support those critical processes, the organization wanted a faster, more agile method for developing those applications. DXC responded with a comprehensive approach to applications transformation that included a flexible managed work model, tools, processes, and delivery methods. This agile development model enabled the rapid, cost-effective creation of mobile, back-office, and other applications that needed to support efficient dock and yard operations. This LTL achieved many benefits, including:

• A 29% reduction in application development time

• A demonstrated business value after more than six years of internal work

• The ability to handle agile development on its own

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Review SOA advantages Freight and logistics organizations can leverage SOA to drive true business agility. You can use it to:

• Streamline, consolidate, and improve supply chain operations

• Drive speed and flexibility

• Open secure, real-time communications with customers and trading partners

• Modernize legacy systems and leverage next-generation solutions, withoutdisrupting operations

• Reduce capital requirements and operating costs

• More quickly onboard and off-board suppliers

• Realize immediate and measurable return on investment

Beat the challenges We offer these solutions and others to help you simply and strategically position your enterprise for the global trade environment of tomorrow:

IT Outsourcing—DXC provides resources, technology, and integration to transform your enterprise into a more efficient, agile, and cost-effective operation.

Business Process Outsourcing—You can outsource and improve processes, increase business productivity, and enhance agility and value for your company.

Big Data and Analytics—DXC provides you with comprehensive data and analytic solutions, including information strategy, management, and architecture solutions, social intelligence, and the ability to handle structured and unstructured data.

Enterprise Application Implementation Services—We deliver business transformation through process redesign, change management, and implementation services. In delivering our services, we use enterprise application software from SAP, Oracle, Microsoft, and Workday.

Application Modernization and Migration Services—You can quickly move legacy applications to modern platforms and optimized architectures while preserving the value in these applications with our services. Respond nimbly to market changes with a renewed set of applications that offer lower total cost of ownership.

Applications Rationalization Services–Software Consolidation—Your organization can reduce the costs and complexity of its application portfolio by aligning technology with its business needs to increase performance, efficiency, and usability.

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Accelerate transformation for sustainable advantage Transforming today’s logistics IT foundation to meet tomorrow’s challenges is no simple task. With the right partner, however, that journey can be taken in small, manageable steps with minimal risk and disruption. For transport-oriented companies to thrive—and even survive— now is the time to start.

Freight and logistics companies can best pursue the collaborative, demand-driven supply chain model by partnering with allies that offer deep industry expertise, transformative capabilities, and the unique value of synergistic engagements. DXC can be that partner.

We work with government agencies and leading companies to help reduce costs, streamline systems, and align information and communication platforms with new business models, and also offer insights from our own transformation and modernization successes.

Through end-to-end capabilities, scalable solutions, and innovative use of technology, DXC can help you evolve your enterprise; expand market share; and collaborate with customers, vendors, and partners, wherever they are. In tomorrow’s global supply chain, information is replacing inventory, a shift that saves money but also requires strategic investments.

Let us help you create agile information systems—to securely collaborate and communicate across global supply chains.

Work with us DXC is a leading global technology services provider, delivering business solutions to its clients. We have over 50 years of history in the information technology outsourcing industry. Today, we deliver a broad portfolio of information technology, applications, and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries, and to governments around the world.

Learn more at www.dxc.com/travel_and_transportation

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www.dxc.technology

About DXC DXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, helping clients harness the power of innovation to thrive on change. Created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise, DXC Technology serves nearly 6,000 private and public sector clients across 70 countries. The company’s technology independence, global talent and extensive partner network combine to deliver powerful next-generation IT services and solutions. DXC Technology is recognized among the best corporate citizens globally. For more information, visit www.dxc.technology.

© 2017 DXC Technology Company. All rights reserved. DXC_4AA5-0600ENW. July 2016