Infosys Portland - Simon Coates & Ingilby Dickson

Transcription

1 Transport & Logistics 2016 Transport Management Capability Survey & Implications for Chain of Responsibility Infosys Portland - Simon Coates & Ingilby Dickson

2 Infosys Portland is an Australian based management consulting firm that specialises in delivering end to end solutions within supply chain and procurement functions Fully owned subsidiary of.. Who is Infosys Portland? Founded in 1999, Infosys Portland is the largest specialist supply chain and procurement services firm in the Asia Pacific region now also servicing clients Europe and USA Focused on making our clients successful by increasing their efficiency and profitability Combine strategy consulting rigour with specialist operational excellence Addressed $65B+ external costs and realised more than $5B+ in benefits Comprehensive coverage of strategic, tactical and transactional supply chain and procurement services Project-based or Managed Service support Offices in Melbourne, Sydney, Brisbane, Perth, Singapore, Chicago, Auckland and Pune Infosys products and services are delivered to 50+ countries, through 70 development centres. Over 200,000 employees from 98 nationalities with US$9.2 billion in revenues

3 Introduction Portland has partnered with the Supply Chain & Logistics Association of Australia (SCLAA) to conduct an assessment of transport management capability in Australia ICT & Telco 3% Health Care 5% Food & Beverage Consumer Packaged Goods 15% 6% $1bn + $0 to $250m 35% Electricity, Gas, Water 34% 6% Retail 13% Construction 8% Logistics 13% Chemical & Pharma 9% Wholesale 7% Resources 7% Manufacturing 8% A large pool of industries responded the survey $500m to $1bn 14% $250m to $500m 17% with diverse revenues

4 Approach We will assess current Australian transport management capability and highlight some of the capabilities that will be increasingly required in the future Capability Factors Today Survey Results by Industry Capability Tomorrow Technology Average maturity Score 3.5 Routing 3.0 Big Data Procurement 2.5 Ø 2.4 Transportation 2.0 Delivery Operating Model CoR Logistics Manufacturing Chem & Pharm Food & Bev Retail ICT, Telco Cons. Pack Goods Construction Resources Elec, Gas, Water Wholesale Healthcare Control Tower 4 PL Social Responsibility

5 Maturity & Capability Overview All industry sectors have opportunities to improve service, compliance and costs, those with typically lower profit margins have greater maturity and capability Average maturity Score 3.5 Observations companies participated 2.5 Ø 2.4 Greater capability within FMCG where margins are low Logistics Manufacturing Chem & Pharm Food & Bev Retail ICT, Telco Cons. Pack Goods Construction Resources Elec, Gas, Water Wholesale Healthcare Increasing focus following commodity price drops in resource sector Construction often project driven but lower margins encouraging centralisation Logistics influenced strongly by forwarders, brokers & 4PL

6 Technology Technology costs are coming down as SaaS development and uptake gathers pace, survey results again demonstrate a strong link between technology & competition What does Good look like Integration Suppliers Customers Internal Average maturity Score Survey results 1 Visibility Real time track & trace Exception reporting Global access Ø Performance Reporting Service Cost Compliance Planning & Optimisation Mode Route Predictive analytics Big data Logistics Manufacturing Construction Chem & Pharm Retail Food & Bev ICT, Telco Cons. Pack Goods Resources Elec, Gas, Water Healthcare Wholesale

7 Technology Trends Effective capture, interpretation and operationalisation of large quantities of data underpin many of the trends identified Dynamic Routing Optimization Real time information Re-optimisation capabilities Vehicle tracking Big Data Optimise routing and timing using real time traffic information Predictive maintenance sensors Changing human behaviour real time toll pricing Crowdsourced Delivery Cheaper available option sourcing Tracking & Electronic POD Rating Feedback Autonomous Transportation Driverless trucks, trains & cars Drones (Pilot stage) Delivery robots for gated communities or closed campuses

8 Procurement remains a key value driver in managing costs, service & compliance Procurement What does Good look like Average maturity Score Survey results Sourcing Data rich baseline Supply market assessment Sourcing strategy Ø Category Management Focus on transport as a category Compliance (internal & external) Alignment between procurement and operations Supplier Relationship Management Open & collaborative Strategic with key suppliers Structured meeting cadence & Performance reporting Contracting 100% contracted Continuous improvement mechanisms Pricing & fuel review mechanisms linked to indices Manufacturing Logistics Chem & Pharma Food & Bev Retail Resources ICT, Telco Cons. Pack Goods Construction Elec, Gas, Water Wholesale Healthcare

9 Procurement Trends Finance and Value delivery remain top focus in the near future but Managing Supplier Relationships and Use of Technology will also see significant growth Procurement function top priorities 100% 92% 82% Last year Next three years 80% 60% 40% 37% 52% 48% 60% 48% 46% 44% 41% 15% 35% 20% 0% Finance & Value Delivery Managing Supplier Relationships Procurement Capability Stakeholder Engagement Risk Management Use of Technology Source Infosys Portland The Changing Face of Procurement Survey 2016

10 Operating Model Operating model and governance tend to be a characteristic of long established supply chain organisations within the logistics, manufacturing & ICT industries What does Good look like Average maturity Score Survey results 1 2 Strategy Business Supply Chain Transport Safety culture Governance S&OP Across stakeholder groups BAU & projects Alignment & Integration People Processes Technology Logistics Manufacturing ICT, Telco Chem & Pharma Retail Food & Bev Cons. Pack Goods Elec, Gas, Water Resources Construction Wholesale Healthcare Ø 2.2

11 Operating Model Trends Consumer and customer commercial and environmental expectations will influence future supply chain operating models which will impact directly on transportation Social Responsibility Carbon footprint reduction Noise reduction Waste reduction Chain of Responsibility Control Tower Used by leading global organisations (e.g. Unilever) Combines technology, process & organisation BPO services can be used to provide low cost support 4 PL One stop shop for service and increasingly product Transport a key element Multiple operating models including JV Commoditisation of freight

12 Challenges for the future Cost improvement and overall operational performance remain the main challenges for the future # Respondents Reducing total freight cost Improving performance Improving SRM/SPM Reducing manual intervention Improving visibility of total costs Influencing internal stakeholders to Understanding COR Improving tactical planning Reducing damages Achieving the control tower Understanding leading safety Developing internal capability Reducing the number of carriers Understanding reporting Improving freight recovery Making the business case for change Better understanding rate cards Getting signed quality contracts Knowing freight mgmt is not core Understanding insurance Operational Financial Risk Relationship # Respondents

13 Moving in the right direction but a lot of work still to be done Chain of Responsibility What does Good look like CoR Legislation Mass management Fatigue Load restraint Average maturity Score Survey results Industry Codes of Practice Risk management process (ISO 31000) Industry sector incident sharing Alignment with NHVR regulations Contracting & Supplier Management Regular safety incident review Independent audit process Consequences for poor behaviour Joint corrective action process Manufacturing Wholesale Logistics Other Food & Bev Elec, Gas, Water Construction Chem & Pharma Cons. Pack Goods Retail ICT, Telco Resources Healthcare Ø 2.3

14 Currently: 5 Codes, 125 members doing 280 audits pa Industry Codes of Practice Retail 84 Members (70 Carriers) 145 audits pa Steel 30 Members 45 audits pa Coal Seam Gas 3 Members 90 audits pa Electrical Cable 8 Members

15 Codes of Practice National Heavy Vehicle Regulator (NHVR)

16 Mobile apps now used by supply chains to meet CoR Safety Technology (1:3) Site Location Details

17 Mobile apps now used by supply chains to meet CoR Safety Technology (2:3) Load Restraint Guidelines Load Capture

18 Possibilities of the future for the app Safety Technology (3:3) Training and Induction Records. Load Restraint Audit. Load Restraint Training. Customer Site Details. Pre-start Checks.

19 Questions?