it in transportation & logistics

8/3/2019 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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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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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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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!

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