Title and Content 109 255 131 0 85 214 207 255 56 99 165 73 246 255 155 190 28 42 Dark 1 Light 1 Dark 2 Light 2 Accent 1 Accent 2 185 151 193 255 255 236 175 75 187 221 255 137 164 7 0 62 255 29 Accent 3 Accent 4 Accent 5 Accent 6 Hyperlink Followed Hyperlink IIT Mumbai – First and Last Leg Optimization 127 203 179 212 255 255 175 215 149 195 242 249 221 238 197 223 171 213 Tata Blue 50% Tata Blue 25% Purple 50 % Purple 25 % Yellow 50 % Yellow 25 % 229 248 180 214 241 251 205 241 213 231 240 251 186 235 154 200 202 241 CONFIDENTIAL Brown 50 % Brown 25 % Green 50 % Green 25 % Light Green 50% Light Green 25% May, 2012
Freight Flow -1 Pickup Delivery
Freight Flow -2 Destination Seller CFS Origin Port Port CFS/ Destination Warehouse Customers
Freight Flow - 3
Trucking Industry Level Challenges Infrastructure Issues and Challenges – Congestion – Operational inefficiencies – Non standard trucks – Under utilization of infrastructure available. – Supply demand mismatch Institutional Issues – Highly Fragmented industry – Manual, non-uniform or discrete processes across the industry – Non-availability of Quality manpower Technological Issues – Old technology – Adoption of new technologies is expensive – No clear Return on Investments for New Technologies – Manual processes leading to operational inefficiencies
Solutions and Strategies (Largely Capital intensive) Vehicle Size and Delivery Time Regulations Load Consolidation and Load Factor Efficiency (Load consolidation, or co-loading) Urban Distribution Centers Freight Villages - Different from urban distribution centers, but similar in concept. Freight villages are planned unit developments specifically designed for multi-modal freight transfer within a secured perimeter. Delivery Tunnels - In Helsinki, freight tunnels for underground trucking are planned Dedicated freight corridors – are they really helping urban areas ? 6
Inefficiencies in the current process Pickup driver has to visit the terminal to collect the list of pickups Planning for linehaul, cross-docking, resource requirements, delivery plans etc are not possible till the goods reaches to the terminal There is no update on the status of delivery till the driver reports back to the terminal. This process is time consuming and lead to inefficiencies such as • missed pickups and missed appointments, • excessive waiting times during pickups and deliveries resulting in additional driver hours and under utilization of trucks • postponing pickups • additional kilometers operated by drivers thus additional fuel consumption and choking of traffic • no clue on the traffic situation on the network – no route guidance 7
Solution Components and Business Model Solution Components • Vehicle Tracking System - Telematics • Pickup and Delivery Management System – to plan the pickups and deliveries • Handheld Mobile devices – Scanner, data logger etc • Route Planner to generate optimal routes • Central Server and communication systems • Transportation Management System • Platform based solution Benefits From Trucking companies Perspective • Trucking company can register with minimum fee • Trucking companies can pay as per use • Opex and No capital investments – Transaction based • Can withdraw when not required • No technology skills required • Improved visibility of shipments, high asset utilisation, less fuel costs and customer satisfaction From Service Provider perspective • Multiple trucking companies can be hosted on single software platform. • Other services such as reports, performance indicators can be sold as value added services From City/Governance perspective • Less Pollution and congestion • Real time and accurate data for traffic alerts • Trustworthy and huge volume of data for / Freight Modelling/ infrastructure planning and real time decisions 8
Overview – An example for Auto Route Generation 9
As-Is Routes Features considered • Routes are planned for a region. • A truck will be assigned/reserved for route • Static route is generated by the route planner • Dispatcher assigns new stops to the route manually as and when new orders are to be handled Parameters for comparison 4 Trucks Total Truck KM 126 Deployed 10
To-Be Routes Features considered • No region based routes • Routes will be developed as per the order/stop locations • Algorithm based route generation • Optimises the number of trucks required rather than the truck-km Parameters for comparison 3 Trucks Total Truck KM 135 Deployed 11
Data for Analysis Available Data for Analysis • Driver Data • Equipment Data • Order Data • Trip Data • Stop Data (including Stop to Stop Distance Data) Output Expected • Optimized Route with route parameters 12
Business Benefits • Reduced P&D Costs (They represent around 30% of total cost in the case of road based movement) • Improved Route Planning • Effective Equipment utilization • Effective Utilization of Drivers 13
Title and Content 109 255 131 0 85 214 207 255 56 99 165 73 246 255 155 190 28 42 Dark 1 Light 1 Dark 2 Light 2 Accent 1 Accent 2 185 151 193 255 255 236 175 75 187 221 255 137 164 7 0 62 255 29 Accent 3 Accent 4 Accent 5 Accent 6 Hyperlink Followed Hyperlink Thank You 127 203 179 212 255 255 175 215 149 195 242 249 221 238 197 223 171 213 http://www.tcs.com Tata Blue 50% Tata Blue 25% Purple 50 % Purple 25 % Yellow 50 % Yellow 25 % 229 248 180 214 241 251 205 241 213 231 240 251 186 235 154 200 202 241 CONFIDENTIAL Brown 50 % Brown 25 % Green 50 % Green 25 % Light Green 50% Light Green 25% May, 2012
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