Logistics Companies Are Going Digital Anthony Hawkins - FourPL APIdays Conference, Melbourne March 1st 2nd 2016
2 Digitisation of Logistics Companies Who is FourPL? What is the logistics industry and what are it s ICT challenges? I will walk through a couple of scenarios of what Australian logistics companies are doing/planning to do. the physical steps, the digital steps who is using this information? what are they using the information for? Technology trends we are seeing Our rules for digitising logistics Questions
About FourPL FourPL is a leading Australian owned supply chain solutions provider with offices in Melbourne, Sydney and Brisbane. We define and enable ICT strategies, agnostic of the technology provider, in our domain specialities. Our domain specialities are the logistics service provider industry, transportation management systems, warehouse management systems, procurement systems, and ERP systems. Our customers include 6 major logistics service providers, and many blue chip Australian companies with large logistics functions. We have proven project success and have received industry recognition awards across our areas of specialty. As a leading ICT advisor in the Australian LSP Industry, we provide an opportunity channel for your solutions/services
Logistics Industry Transport & Logistics underpin the functioning of the physical goods market and support broader services Making something disappear from one place and appear in the other, while looking after it inbetween Commercially its about safety, cost, service level and visibility Australian freight movements, 2011 12 Overall Trade, Transport & Logistics forms a significant portion of the Australian economy, with output of $86.2 Billion (5.3 per cent of GDP) in 2014-15. The following table shows a snapshot of the group s performance Key Statistics Value All-Industry Share % Output, 2014-15 ($ billions) $86.2 6.3% Employment 2014-15 ( 000 s employed) 771.4 6.6% Source: BITRE (2014) Freightline I Australian freight transport overview, p. 3 Source: Australian Industry Report 2015, Department of Industry, Innovation and Science, Office of the Chief Economist, P 70
5 Driving a truck Old World Hop in truck, drive from point A to point B Record what you did in your log book Digital World Before you leave Fit for Duty app Vehicle Safety Check app Load Restraint Checks app Trip Assignments (load, vehicle, driver, route) app Trip and Fatigue Break Planning app Maintenance and Repair Requests app Driver Log Book Time Clock for work hours GPS vehicle depart Door sensors Weighbridge GVM and Net Weight On the road Dynamic Routing Navigation Traffic Patterns GPS Tracking Truck Phone/Two Way Dash Cam, Driver Cam Speed Alerting Driving Feedback (breaking, g-force, gear shifts) Engine Management Systems data Work Diary Fatigue Breaks Trip Milestone Recording for Freight On Arrival Safety Alerts Proof of Delivery Milestone Recording Trip Confirmation Digital Forms Recording Activities and Reasons Weighbridge Demurrage/Wait times
What is the Digital Footprint used for? Reduce Paperwork, Auto Data Collection Vehicle, Trailer, Equipment safety checks. Incident Management. Fatigue Management Driver Behaviour Training and Capability Development Electronic Work Diary (future) Driver Messaging Navigation, Traffic incidents Payroll Where is my driver / job How well are we doing our job Reduction of admin staff on data entry Data for optimisation systems (door close, weight, route, idle, geo-fence, arrive, depart, load, unload, break) Actual Vs Plan for optimisation systems Driver assistance in remote areas Driver Hours Inventory (i.e. Fuel) Cost to Serve Demurrage, trailer tracking Driver Performance Maintenance Compliance, Vehicle Health Carbon footprint / fuel Driver Operations OEE Vehicle Utilization Empty Running Fleet/asset sharing Fleet Management Vehicle Telematics and Driver Mobility Compliance Customers Accounts Harsh Breaking Engine Telemetry Damage / Fix Request Fleet replacement planning Where is my load, Track and Trace Dynamic ETA for long haul Accounts Reconciliation Proof of Delivery / pickup In-Transit re-tasking Activity based billing Reconciliation Activity based costing / cost to serve Faster close (reduction in post activity data entry) Sub-contractor payment Accident and Near Miss (G Force) Validation for claims Driver Behaviour Speed Compliance Driver Hours, Breaks, Incident Management Mass Management
Systems Scope for Driving a Truck Control Tower Finance and Billing Business Cost Planning GPS Satellite Network Communications Telematics Platform Services Transport Management Fleet Management Fleet and Site Planning Network and Territory Planning Telematics Aggregation Platform Integration Services Customer Relationship Management Capability and Supply Planning Application Service Providers People and Culture Workforce Planning In Field Data Collection Device / SIM Mgmt. & Dev Warehouse Management
Driving Operational Effectiveness Control Tower provides operations a view of the digital footprint. This concept is taken from defence command, control and information centre. These systems were designed to remove the Fog of War. Convert sensor awareness to a dominant understanding of the battle space. Convert that understanding to missions and assignments designed to alter control and dominate that battle space. A control tower is a single command centre for visibility, decision-making, and action, based on real-time data. Functions of the control tower to drive agility, resilience, reliability, responsiveness. Functions of Control Tower Visibility Planning and Routing Auditing and Reporting Forecasting Event Management Decision Making Providing customer visibility Process visibility Resource visibility (fleet, drivers, network) Dynamic scheduling Provides GPS tracking Safety and compliance Regulatory visibility Mass management, DG routes, Make predictions at a daily operational level about ETA s Forecast supply chain demand Provides event management at all stages within supply chain Weighbridge, billing and invoicing Operational performance dashboards Cost, quality and performance reporting
Additional Considerations Regulatory & Government Transport Certification Australia Stakeholder Outcomes Transport Company Intelligent Transport Systems Road Safety Community Driver Legislation Safe Vehicles Lead to Safe Roads Government Customer Safe People Safe Speeds
Digitisation Journey in a Transit Warehouse Current State:- Do the work and then record the results Allocation:- Plan what should happen, Do the work, Confirm the Results Visibility:- Others can see what is going to happen, what is happening, what has happened Optimisation:- Gather the work, Run through the Optimiser, Do the work, Confirm the Results Dynamic Optimisation:- Make changes on the fly
11 Trends we are Seeing in Logistics IT Their customers becoming more independent and tech savvy More collaboration. Increased visibility. Continual rise in mobile use Workflow automation Smarter technology Event management Big data and sharing insights Sustainability Australian logistics companies using technology for competitive advantage
Rules for Digitisation in Logistics Data is like water. There is no life without water, there is no visibility without data. Take no excuses from your partners (OnForwarders, Subcontractors) Have tool kits of integration options, have a defined company API s. Scorecard data quality (timeliness and completeness). Design in the right clock speed For visibility to be actionable, it has to have data refreshed faster than the end-to-end processes its monitoring (Nyquist frequency). Share the data Opportunities are lost if the information is just kept inside the department creating the visibility. Ensure accuracy and completeness Nothing kills the success of visibility initiatives faster than when users do not trust the answer or there are too many gaps in the data. Insight is only valuable if it leads to effective action Visibility plus context builds insight, insight delivers value through actions. "In God we trust; all others must bring data. William Edwards Deming (1900-1993)
14 Contact Information Anthony.hawkins@fourpl.com.au +61 411 476 999 Fourpl.com.au