Redefining Logistics
Leveraging Technology To Aid
Next Gen Logistics Business
Models
Timeline 1900- Shipping & Logistics
Dockers, Shipment & Packaging
Time Line 1960- Revolution
(Shipping Yard) (Manifests Blue Print) (Shipping
Containers)
Transforming Future of Logistics &
Transportation
Digital Supply Chain Framework
Areas of Digitalization and Supply Chain Management
Levers and Challenges
Areas for Digital Supply Chain Management (SCM) Levers & Challenges
Digitalization of the
business Model
1.Connected -New SCM requirements for smart products for e.g.: Chips and
Products Textile
--Shorter Lead time and Price variations for electronic comp.
2.Embedded -New Spare parts and service req.
Service -Setup of online monitoring and second or third level support
-- New failure analytics due to more possible reasons outside of
own products
3.Product as a -Disposition and capacity management of the rented products
service - Products, its parts monitoring replacement planning
-- Logistics for relocation and maintenance, refurbishing and
repair
4. Omni Channel -Direct Sales(bypassing the whole seller via online), -Cross
Distribution border selling partially with own custom solutions
-- To users and consumers with smaller lot sizes and different
central and regional storage requirement
Areas of Digitalization and Supply Chain Management
Levers and Challenges
Areas for Digitization of Digital Supply Chain Management(SCM) Levers &
the Supply Chain Challenges
Management
A. Supply Chain -IT Integration with SCM Partners & org functions
Integration - Paperless Freight Documents
B. Supply Chain -Smart Packaging
Automation -Radio and GSM Tagging
- Smart Labels communicating with each other creating
de-centralized optimization Intelligence
C. Supply Chain Re- -3D Printing and Additive manufacturing
Configuration - E-Platform for direct carrier selection and transaction
- Use of app based e–platforms for express and partial
deliveries
D. Supply chain Analytics - Big Data Analytics for SCM improvement
Areas of Digitalization and Supply Chain Management
Levers and Challenges
Classic IT Systems for Degree of Examples of Digital Supply Chain Transformation
the supply Changes Caused
Management By Digital
Demand Forecasting & -Very High Integration of big data and predictive analytics
Planning
Inventory Planning and -Very High -Integration of big data and predictive
Management -Analytics based dynamic supply chain segmentation
Warehouse Management -High -Fitness for augmented reality
--Better integration of manual and robotic processes and self
coordinating robots handling, packaging beyond RFID
Network & Routing -Very High -Integration of big data and predictive
Optimization -External Interfacing for automated updating of capacities and schedules
- Integration with advanced procurement systems
Transport Management -Very High -Integration with advanced procurement systems
- Seamless interfacing with e-platform for booking and reservations as a
part of standard configuration
Tracking and Event -High -Implementation of more sophisticated machine judgement
Management -Advanced scenario planning , Process integrated risk management
Freight Document -Very High -End to end digital document handling
Handling and Archiving -- Interfacing and integration of all documents and document handling
system
Transport & Logistics -High -Collaborative optimization, - Seamless interfacing with TMS system
Procurement -App based spot market tendering to truck brokers and truckers
Delivering change – the transformation of
commercial transport
Players Hardware Fleet Operation Dispatching Customer
Manufacturer Data/Demand
Vehicles, Connectivity Delivery Execution Management of Point of Sale to End
Devices Logistics Process Consumer
Manufacturers and Interface
LCV and Truck
OEM’s Capacity as a
Service
Logistics
Operators
Freight
Forwarders DHL Street Scooter
Customers
Amazon Freight
Operations
New ( Digital Self-Driving Kits for Trucks Crowd sourced Digitization of
Players) Delivery Dispatching Processes
Core Business Potential Extensions
Automated Order Management System
Up to 30 % savings on processing costs
Close to 100% Increase in dispatching capacity
More time for optimum transport planning and troubleshooting
Ability to accept the most advantageous contract
Carriers adhere to all quotes and effective turn around time
Audit-proof documentation
Automated Freight-Matching Information Model
1. Sensor based
automated tracking of
4. Truck and Driver are
available load area. Truck
notified of new freight
recognizes loading status
pickup and delivery
and truck assesses
Schedule
current loading weight
and available capacity
How it works
3. Fleet management is
notified if available
2.Truck Communicates
freight-sharing
information to digital
opportunities.
freight matching
Agreement is stuck
platform
between freight owner
and fleet management.
Spot Sourcing Model - Daily Auction/Price
Clearing/Discovery System
The benefits of same-day shipment
execution on the spot market
Reduction of empty miles by up to 13 %
Transportation cost savings of up to 10 %
Optimal freight prices with less effort
Improved delivery
Effective route planning
Rapid response to transportation market
fluctuations
Hub-and-Spoke delivery Model & Industry
transformation
The benefits of Hub and spoke delivery models
The use of large distribution hubs will become
much more common
Will raise the utilization rates of trucks
Increase highway capacity by as much as 50
percent
Just-in-time delivery planning along the entire
supply chain
At the local level, actual drivers will make
deliveries from the hubs in smaller hybrid and
fully electric trucks
In smart cities, incorporating sensors and
communication technologies into their roads
and infrastructure, will lead to more intelligent
routing, decreased traffic, and easier delivery
processes for the local trucks
A Technology-Driven On-Demand Collaborative
Freight Network
Transportation Forwarding &
Transportation
Operational Brokerage
Management
Planning Operations
Transportation
Transportation Fleet
Cooperative
Sourcing Management
Routing
Freight
Logistics
Payment, Transportation
Inventory
Billing & Intelligence
Visibility
Claims
Thanks.
Apollo Sharma
Email: [email protected]
Mobile: 9810988903
Quantifiable Gains from Next Gen Tech Integration
Trickle down of Cost
Reduction Based on
10-12%
Increased Efficiency Increased Efficiency
on Carriers end. with Control Tower
Freight Centralized Model
10-15% Allocation
Management
Freight Activity
Management
implementation
Upto 25%
Commission
Sharing
Contract &
Transit Doc ~5%
Management Reduction in costs
Reduction in incurred from
unwarranted overheads mismanagement of
by cutting down on docs and/or
involvement of misinformation on
intermediaries transit documentation
