Supply Chain and TCI

Customers- Key Expectations from Logistics Service Provider

What the are the Strategic and Operational benefits of using the 3PLs ?

To address the need for On Time In Full Delivery of Goods within TAT ( Turn Around Time)
To address the need of end to end Supply Chain Visibility of key stakeholders

To address the need of Supply Chain Security

To achieve the goal of Incremental Freight Savings across multiple modes and geographies
To Get rid of Collaborating with multiple disparate systems of 3PLs
To improve Accounting accuracy and reduce discrepancies related to Freight Bills and related
accessorial charges

Whether 3PLs can provide incremental increase in cash flow in terms of reduced COGS by
reducing, overall transportation & logistics cost, contrary to Year on Year increase in Contract
Rates, citing, increase in their operating cost ?

Imperatives for Logistics Service Provider

Increase and Retain the Profitable Clients
How can I drive effective lead generation , sales campaigns and contract renewal campaigns to
increase customer acquisitions, and renewal success rates for Profitable Clients ?

Introduce New Services to Market Quickly

How can I quickly introduce, New and Innovative Supply Chain and Logistics services to meet
increasingly complex and integrated customer requirements ?

Improve Operational Efficiencies

How can I become more competitive by streamlining processes and automate the flow of
Information across the Organization and related eco-system ?

Adhere to Compliance and Security requirements

Drive Continuous Improvement across the Extended logistics network

Achieve Operational Excellence and Improve Key

Supply Chain Metrics through Digital Supply
Chain Transformation

Value Proposition of Digital Supply Chain Solution

Need for Imagining and Deploying a Scalable Sustainable Leading-edge Global Logistics Eco-System

What is Needed?
A Comprehensive Digital Supply Chain Solution Set that Links:
Strategic and Operational Decision Making with Key Digital Enablers
Design/Development of the Supply Chain with
Process Oriented & Metrics Driven
Transformation Programs , that will help to focus
XXX, the following leading Industry Metrics

Improved Freight Demand Forecast Accuracy

On-Time In Full Shipments > 97%
Reduction in % of Expedited Shipments
Total Transportation Cost
Warehousing Cost
Reduction in % of Shipments Manually touched

XXX Digital Transformation Initiatives and related Value Realization Model

Key Changes
XXX Rs / Yr.

Increase Revenue

XXX Rs / Yr.

XXX Rs / Yr.

Improve Customer
Experience

2
Free Cash Flows

Improvement in On-time in
Full rate to Customer
through better Freight
Demand Forecasting

Big Data
Predicative
Analysis

Improvement Service level to

Customer through better
Demand Driven Supply
Chain Planning and
Execution

Big data ,
Analytics, Mobility
and Cloud
Services

Time definite delivery and

End to end Shipment
Visibility through Advanced
TMS logistics system

Mobility

Reduce Total Supply

Chain Costs

Analytics
Collaborative
portal with Carriers
on Cloud

Sensors & Geolocation

XXX Rs / Yr.

Reduce
Operating
Expense

Digital Enablers

Better Network Modelling,

Vehicle routing &
Optimization

XXX Rs / Yr.

Process
Standardization
Mode Shift &
Optimized routing
Advanced ERP
TMS

Reduce Working
Capital

Analytics
Warehouse automation &
reduce facility handling cost

XXX Rs / Yr.

Automatic Sorter

Reduce Capex

XXX Rs / Yr.

3
Lower Overhead
Costs

Logistics Demand visibility

to Carriers resulting in better
capacity planning and
reduction in supply Chain
disruption

Collaborative
optimization portal
App based
tendering

Exception Driven Supply Chain

Execution Process

Analytics

Benefits of Digitization on Supply Chain Processes for XXX

Dependencies

Existing IT System for

Supply Chain
Management
Freight Demand
Forecasting and
Planning

Impact
System

Build risk mitigation strategies in terms

of Facility Planning, Capacity
Expansion and related Investments
Significant reduction in latency

Warehouse Automation

Will help in reducing Pick-Up and

Sorting cost significantly , that
accounts for 13-15% total WH
operating cost (WH operations usually
20% of total Logistics cost)
Reduction Facility handling cost
Improved TAT

Process

Partner

Benefits of Digitization on Supply Chain Processes for XXX

Existing IT System for
Supply Chain
Management
Network Modelling and
routing optimization

Dependencies

Impact of Digitization
Will reduce the risk of long-term
infrastructure investments and contracted
external capacities

Real time rout optimization will help in cutting

Freight bills

Advanced Transportation
Management

It will help to save 15-20% of total Freight

spend for XXX
Process Standardization
Carrier Rate Management
Execution & Tendering

Optimization , Consolidation & Routing

Supply Chain Visibility
Freight Bill Audit & Pay
Transportation Analytics

Freight document handling

and archiving

Significant improvement in productivity and

reduction in discrepancies in Freight
settlement and Billing processes

System

Process

Partner

Benefits of Digitization on Supply Chain Processes for XXX

Existing IT
System for
Supply Chain
Management
Logistics
Service
Procurement

Areas Digital Supply Chain

Transformation
Collaborative optimization with
logistics partners on real time
basis
App based spot market
tendering to Listed Carriers
Seamless interfacing with TMS
systems

Supply Chain
Visibility

Advanced Supply Chain

Visibility portal
Proactive Exception
Management, in end to end
Supply Chain Event
Management

Predicative
Maintenance

(Access historical data of

equipment at Customers
sits and take real-time
action to improve reduce
downtime )

Machine & Sensor data and

Cloud Services

Impact of
Digitization

Dependencies
System

Significant reduction
in overall
transportation &
logistics cost
More predictability in
overall Freight Pickup and Delivery
process
Significant
improvement in
Customer satisfaction
level

Significant reduction
in Mean time
between failure for
equipment and
customer satisfaction
level

Process

Partner

THANK YOU