Business Process Outsourcing:
                                                    A survival tool for logistics
          ...
The Bleak State Of Logistics Industry
                                                    According to Association of Amer...
Why Business Process Outsourcing (BPO)
For Logistics Companies?

      Rapid Cost reduction
      –     Outsourcing these ...
Clearing The Decks For Success
Seven Simple Rules For Logistics Companies To
leverage BPO

1. Ensure BPO is a CEO priority...
Advantage Logistic Companies Gain By Moving
   To A BPO Model



Rapidly reduce cost by
Sourcing processes with scale     ...
Which Logistics Processes Are Ripe
For Business Process Outsourcing?
Outsourcing processes to a logistics industry-savvy s...
Case study
Rapidly Reducing The Cost Structure For A European
NVOCC
    A leading European Non-Vessel Operating Common Car...
Case study
Moving From Fixed To Variable Costs For A Global
Express And Logistics Company
    A global Top 3 express and l...
Case study
Delivering Continuous Improvement For A
Fortune 500 Logistics Company
    After reaching steady state, the U.S....
To learn more -
Listen to podcast:
http://www.wns.com/Insights/Podcasts/BPOistheliferaftforshippingandlogistics/tab
id/441...
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Logistics Survival Guide

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One option for the logistics sector to weather the economic climate is outsourcing business processes services to proven business outsourcing providers. To dimension the opportunity, reduction in the cost of business support processes can range as much as 40 to 50 percent, and, importantly, through consolidation, deliver enhanced MIS capability and process uniformity.

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Logistics Survival Guide

  1. 1. Business Process Outsourcing: A survival tool for logistics companies in uncertain times Confidential © 2009 WNS Global Services | wns.com
  2. 2. The Bleak State Of Logistics Industry According to Association of American Railroads (April 2009) – Carload traffic on U.S. railroads fell by 23 percent – Intermodal car traffic fell by 17.9 percent, as compared to April 2008 – Combined cumulative volume for the first 17 weeks of 2009 on 12 reporting U.S. and Canadian railroads was 5,573,088 carloads, down to 19.0 percent(1,308,562 carloads) from last year According to FTR Associates – Year-over-year tonnage freight is expected to bottom at -10.3 percent in 2Q09 before beginning a slow rise to a still stressful of 6.6 percent in 4Q09 Confidential © 2009 WNS Global Services | wns.com 1
  3. 3. Why Business Process Outsourcing (BPO) For Logistics Companies? Rapid Cost reduction – Outsourcing these processes to a logistics industry-savvy service provider can deliver cost saving of 40-50 percent. Process In-house, onshore cost Offshore BPO cost range range Bill of lading processing $5.00 - $8.00 per each $2.00 - $4.00 per each Airway bill manifesting $0.30 - $0.40 per each $0.10 - $0.20 per each Account payable $0.90 - $1.33 per each $0.52 - $0.83 per each Source: WNS BPO delivers benefits which extend far beyond cost savings – Moving costs from fixed to variable – Maintaining focus on the customer and retaining them in the face of operating cost reductions – Placing focus on knowledge rather than intuition to increase revenue – Consolidating delivery operations to standardize business processes – Getting even more out of shared services costs and delivering continuous improvement Confidential © 2009 WNS Global Services | wns.com 2
  4. 4. Clearing The Decks For Success Seven Simple Rules For Logistics Companies To leverage BPO 1. Ensure BPO is a CEO priority 2. Approach outsourcing with an open mind 3. Keep it simple 4. Move fast 5. Develop a realistic deployment plan 6. Insight on alignment 7. Debit budgets in advance Confidential © 2009 WNS Global Services | wns.com 3
  5. 5. Advantage Logistic Companies Gain By Moving To A BPO Model Rapidly reduce cost by Sourcing processes with scale Standardize business process 1 2 Commercialize the approach to operations Rationalize the delivery model 4 3 Confidential © 2009 WNS Global Services | wns.com 4
  6. 6. Which Logistics Processes Are Ripe For Business Process Outsourcing? Outsourcing processes to a logistics industry-savvy service provider can deliver cost saving of 40-50 percent. Sales/marketing Operations Finance Tariff updates Import/export manifest Account Payable Marketing collateral AR/credit and collections PO entry Campaign Management Disbursement accounting Rate quote Drivers logs Agent reconciliations Sales reports General ledger Fuel tickets Bank reconciliations EDI gateway exception Management reporting Customer services management Origin/destination agent Service/rate inquires Tracking status updates Export manifest Customer advisory Vendor performance reports Collect charges Pre-advice/arrival notification Cargo tracking Operations planning Invoicing Web help Cargo de-stuffing Import manifest Cargo claims Complaints Customers clearance Import charges Bookings Vessel performance Documentation Vendor contracts BL/AWB/FCR processing Billing and invoicing Freight audit Traffic/contract filing Data transmission Compliance checks Landed cost Confidential © 2009 WNS Global Services | wns.com 5
  7. 7. Case study Rapidly Reducing The Cost Structure For A European NVOCC A leading European Non-Vessel Operating Common Carrier (NVOCC) looked to reduce its mounting staff costs in Europe, Latin America and Asia. WNS' deep logistics industry knowledge contributed to a solution which standardized and migrated the NVOCC's entire import bill of lading and import manifest preparation processes among all its locations to one of WNS‘ offshore delivery centers, resulting in a 50 percent cost reduction. Further, the standardized processing environment created for them has dramatically improved information dissemination among its network of offices. The NVOCC is now experiencing minimal rework when moving shipments around the globe, and negligible to no customs delays or fines. Confidential © 2009 WNS Global Services | wns.com 6
  8. 8. Case study Moving From Fixed To Variable Costs For A Global Express And Logistics Company A global Top 3 express and logistics company had to decrease the expenses associated with its mission-critical airway bill manifesting process. With specialist operations centers serving the logistics industry, WNS was able to establish a 350-person operation for the company in less than 90 days, and is handling an annual volume of over 9 million airway bills. WNS not only reduced airway bill manifesting expenses by 60 percent, but significantly increased the accuracy of data input to 99+ percent. As the delivery is priced on a unit transaction basis, the client gained the benefit of variable cost pricing, with WNS assuming the volume risk. Confidential © 2009 WNS Global Services | wns.com 7
  9. 9. Case study Delivering Continuous Improvement For A Fortune 500 Logistics Company After reaching steady state, the U.S.-based shared services operations of a Fortune 500 logistics company hit a plateau in its ability to optimize its cost structure. By engineering a rapid transition to offshore delivery, and seeding the offshore operations team with industry and functional experts, WNS was able to attain an additional 40 percent cost savings for the company. And by applying Six Sigma and Lean principles to the client's processes, productivity gains of 10 percent were achieved within the first three years of the engagement. Pleased with the results of this partnership, the client is now tracking business outcomes, as opposed to transactional metrics, delivered by WNS, and is poised to weather this economic storm in relation to its competitors. Confidential © 2009 WNS Global Services | wns.com 8
  10. 10. To learn more - Listen to podcast: http://www.wns.com/Insights/Podcasts/BPOistheliferaftforshippingandlogistics/tab id/44175/Default.aspx Download Survival Guide: http://www.wns.com/Insights/Articles/tabid/81/Default.aspx Read the Blog: http://www.wns.com/Insights/Blogs/tabid/44163/entryid/48/default.aspx Visit website: www.wns.com Confidential © 2009 WNS Global Services | wns.com 9

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