Logistics 4.0 Realizing Value Beyond Hypothesis with IoT/M (OTM+IoT+Mobility)

Transcription

1 A fail-safe, integrated and comprehensive logistics solution Logistics 4.0 Realizing Value Beyond Hypothesis with IoT/M (OTM+IoT+Mobility) Singapore 1

2 Accelalpha Asia-Pacific Journey Asia Inception JAN 2018 Vietnam Vietnam Indonesia Indonesia Success Stories NOV 2018 Bac Ky Logistics A Success Story Global Customers Session : Logistics Realizing value beyond hypothesis with Oracle Transportation Management & Oracle IoT Fleet Monitoring PRODUCT BUSINESS SOLUTION APAC Go-Live Customers Gaurav Bhardwaj Oracle 2 Trung Đức Lê Bac Ky Logistics Ashlesh Garate Accelalpha

3 Session Agenda Introduction Customer Use Case Solution Synopsis 5 MINS 5 MINS 10 MINS 10 MINS 10 MINS OTM + IoT Product Framework Solution Blueprint 3

4 4 OTM+ IoT : Product Framework and Use Cases

5 Value Proposition : OTM and IoT Product Framework Oracle Logistics Cloud Plan, Manage shipments, Fleet & drivers Act, Mitigate & Optimize Financial settlement OUT OF BOX INTEGRATION IoT FM Cloud Track & monitor shipment in real time Automatic analysis of real time data for anomalies & predictions Summary reports to evaluate performance 5

6 OTM + IoT : Key features & Capabilities Connect Track & Trace Real time shipment in OTM 2018 Accelalpha Inc. All Rights Reserved.

7 OTM + IoT : Key features & Capabilities cont Geofence KPI s & Dashboard Mobile App 2018 Accelalpha Inc. All Rights Reserved.

8 Industry Wide : IoT FM Use cases 8

9 Customer Use Case

10 About Customer Bac Ky Logistics A leading logistics service provider in north Vietnam operating an ICD, River port & Barges with a focus on containerized movement for Import, Export and Domestic distribution 100 P-Us 160 trailers Top 3 largest fleet in N. Vietnam 25,000 m 2 of river port 4 container barges ICD license and onsite customs 1 of only 5 in N. Vietnam 72,000 m 2 (normal, bonded, CFS, cold) 25,000m 2 of container yard Team of +300 Mission statement: To economically connect the world s producers, logistics companies and buyers through our all-inclusive logistics hubs and with our creative logistics solutions. Bac Ky Logistics begins digital journey with world's first OTM+ IoT Integrated Cloud solution 10

11 Bac Ky Logistics Clients 3PL Companies Shipping Lines FDI MNCs

12 VND BK fleet size Impact : Empty Container Movement on Trucking Industry Reduce the trucking price for the HP Port Hanoi lane from the industry highs of VND 4,500,000 to VND 3,300,000 /shipment 5,000,000 AVERAGE TRUCKING PRICES VIS-A-VIS DIRECT COSTS (HP-HN) 120 Equivalent to +26% cost savings for shippers and consignees 4,500,000 4,000, ,500,000 3,000, Does SERVICE QUALITY suffer as a result? Smaller vendors compete by cutting costs 2,500, ,000, ,500,000 1,000, , (staffing, M&R, tolls) Year BK competes by increasing % container matching Trucking prices Direct costs BK fleet size

13 Optimization of Container Movement Reduction of Empty Container Movement by Container Matching Reusability of Containers based on free days Opportunity of additional revenue stream Traditional ways of operation Empty Container Movement Match- Back Optimization Empty Container Movement Laden Container Movement Laden Container Movement Factory A HP Port Factory A HP Port ICD Factory B Transport plan in Silos High Empty Container Movement High dead Mile Movement Low Shipment Visibility Factory B Consolidated Planning Rule based container matching Optimal fleet utilization Proactive Exception Management Sub optimal fleet utilization Real time visibility

14 SWAP Orders (sharing economy) Applying the matching model and reshaping the trucking industry Job Collaboration with subcontractors based on real time visibility of movement Lost opportunity conversion based on vendor collaboration Reduction of industry carbon footprint, noise pollution and congestion Customer retention and loyalty Swap Orders BK Truck Vendor partner fleet Factory A HP Port ICD Consolidated Planning Swap Orders Factory B Rationalize Fleet utilization Proactive Exception Management Real time visibility

15 Third Party Vendor Vehicle Visibility Realtime tracking of third party & own fleet Automatic notification based on Geo Fencing High fleet visibility for effective container matching & SWAP assignment Enables timely container matching & improves Customer SLA

16 Next Gen Capability : Integrated OTM + IoT Cloud Solution Disjoint between Import, Export & Domestic operations Identify the opportunity for reuse of empty containers Execution challenges to make operational Import Export matching viable Container quality compliance check & remediation in case of exceptions Real time visibility of owned / 3 rd party trucks to meet the unfulfilled demand Consolidated visibility of container /trucks / cargo

17 Value Proposition & ROI - Bac Ky TRUCK OPTIMIZATION CUSTOMER SATISFACTION INCREMENTAL REVENUE CARBON FOOTPRINT Next steps (phase 2) - Onboarding of customers - Container barge matching - Truck to barge conversion 30% annual reduction in dead mileage KPI = 117,510 KM x $0.4/KM = $47,004 Maximize matching: Convert non-revenue segment into revenue stream = 2 additional matching orders / day with $140 / order = $86,800 annually SLA compliant delivery of compliant container on time improves the customer satisfaction Environmental impact would be reduced, i.e. traffic, congestion, noise, and emissions

18 Key Challenges & 18 Solution Blueprint

19 Empty Container Repositioning Global Statistics $15-20 Bn Empty Repositioning Cost 8-10% Shipping Line Operating Cost 33% Operational Inefficiencies 20% Unaccounted Containers 56% Idle Span of Containers 19

20 Collaboration Accelerates - Industry 4.0 Customer Consignee Street-run approach Shipper Direct-depot approach Trucking Companies Inland container depot IMPORT EXPORT Carriers Shipping Liner Port

21 Key Functionalities Solution Enablement Collaborative constraint based planning for Imports/Exports/Domestic operations Multitier planning across Imports/Exports/Domestic for potential matching possibilities Assignment of Fleet/Driver by considering real time availability/feasibility Re-routing fleet/driver and container movement inline with match back strategy Customer order fulfillment under constraints assets using SWAP with other 3PL Capability extension by collaborating with third party vendor during scare resources Real time insights on fleet availability /real time movements and exceptions Vertical collaboration with liner/ LSP s & Customers through integrated platform

22 Integrated Architecture Smart Logistics Order Management Shipment planning Fleet planning Vendor collaboration Execution Track & Trace Finance cc c c c c c Transaction data template cc iaccel -Technology agnostic platform enables System connectivity across distributed network with continuous performance monitoring Heuristic Approach of container match-back c Master data template IoT iaccel - Integrator Device & Sensors Utilities cc ERP/OM/FIN/WMS 2018 Accelalpha Inc. All Rights Reserved.

23 OTM IoT Flow OTM IoT CS IoT Driver App Transport Order Management Shipment Planning Fleet Assignment Own Fleet Tracking Link to Driver Shipment Execution Subcontracted Fleet - Tender Vendor Accepts Booking Tracking Link to Vendor Real time Tracking Console Events Completion, Settlement 23

24 24 What's Next

25 Next Steps Growth Story Predictive Maintenance Capabilities Track condition of vehicles Detect driving behavior anomalies Predict maintenance needs Predict fuel costs Detect vehicle fault conditions

26 Questions? USA UK India Singapore