IT Developments & Business Strategy in the Logistics Space – An Overview
Indian Logistics Industry <ul><li>India’s GDP @ Rs. 543.7 Bn (year 2005), growing at a  </li></ul><ul><li>rate of 9% every...
Indian Logistics Industry <ul><li>Reliable Value Adds… </li></ul><ul><ul><ul><li>“ Quick Response” enabled IT backbone </l...
Indian Logistics Industry <ul><li>Logistics Costs in India estimated @ 13 – 14% of GDP </li></ul><ul><li>Comparative Logis...
Indian Logistics Industry <ul><li>Average Change in Logistics Cost across Major Industry  </li></ul><ul><li>sectors in Ind...
Typical Logistics Growth Enablers <ul><li>Adequate Infrastructure & growth </li></ul><ul><li>Effective Information Flow </...
What is IT/ Technology in Logistics?? <ul><li>Major IT/ Technology offerings in logistics space are  </li></ul><ul><li>con...
IT / Technology Solution <ul><li>Major IT/ Technology Solutions implemented by Indian  </li></ul><ul><li>Logistics Compani...
IT/ Technology Implementation Benefits <ul><li>Logistics Companies in India define their key benefits from their IT  </li>...
Major Solution Providers <ul><li>Some Major Logistics IT/ Technology Solutions Providers  </li></ul><ul><li>in the country...
Selection – Implementation - Deployment <ul><li>Typical Selection – Implementation & Deployment  </li></ul><ul><li>issues ...
Process Improvement & ROI <ul><li>Direct Operations Focus till “ Last Mile” & Delivery </li></ul><ul><li>Reduced Logistics...
Process Improvement & ROI <ul><li>Comprehensive Reports for real time analysis </li></ul><ul><li>Increasing service level ...
Some Major Implementations (last 3 years) <ul><li>Some Logistics Companies that have deployed/  </li></ul><ul><li>implemen...
Take Away <ul><li>Indian Logistics Industry still at a nascent stage and  </li></ul><ul><li>evolving quickly. Average grow...
Take Away <ul><li>Corporate/ Shipper Focus areas </li></ul><ul><ul><li>Professional services </li></ul></ul><ul><ul><li>En...
<ul><li>Infreight Research & Content Team reports year 2006-07 </li></ul><ul><li>Datamonitor/ TI reports </li></ul><ul><li...
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It In Transportation &amp; Logistics Global Summit Presentation

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  • ***** Should we not mention EYT here considering it is their conference?*****
  • It In Transportation &amp; Logistics Global Summit Presentation

    1. 1. IT Developments & Business Strategy in the Logistics Space – An Overview
    2. 2. Indian Logistics Industry <ul><li>India’s GDP @ Rs. 543.7 Bn (year 2005), growing at a </li></ul><ul><li>rate of 9% every year. </li></ul><ul><li>Average Indian GDP growth ~ 8% from year 2002 onwards </li></ul><ul><li>Current Indian Logistics industry is valued @ USD 90 Bn </li></ul><ul><li>(INR 360000 Crores) </li></ul><ul><li>Two main factors governing Logistics services across </li></ul><ul><li>Indian Business sectors are </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Reliable Value-adds </li></ul></ul><ul><ul><ul><li>Real time service information </li></ul></ul></ul><ul><ul><ul><li>Established Order to delivery monitoring & control </li></ul></ul></ul><ul><ul><ul><li>End to end information flow & transparency </li></ul></ul></ul>
    3. 3. Indian Logistics Industry <ul><li>Reliable Value Adds… </li></ul><ul><ul><ul><li>“ Quick Response” enabled IT backbone </li></ul></ul></ul><ul><ul><ul><li>Intrinsic CRM capabilities bridging Supplier – Customer & Customer – End User </li></ul></ul></ul><ul><ul><ul><li>Real time exception reporting & handling </li></ul></ul></ul><ul><li>Typical Logistics Cost are segmented into </li></ul><ul><ul><li>Inventory Holding </li></ul></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>Warehousing </li></ul></ul><ul><ul><li>Packaging </li></ul></ul><ul><ul><li>Losses & </li></ul></ul><ul><ul><li>Related Administrative Costs </li></ul></ul>
    4. 4. Indian Logistics Industry <ul><li>Logistics Costs in India estimated @ 13 – 14% of GDP </li></ul><ul><li>Comparative Logistics Costs as a percentage of GDP </li></ul><ul><li>across Europe & Americas is in the range of 10% </li></ul><ul><li>Typical Indian Logistics Cost elements are </li></ul>
    5. 5. Indian Logistics Industry <ul><li>Average Change in Logistics Cost across Major Industry </li></ul><ul><li>sectors in India (between 2001 – 2006) </li></ul>
    6. 6. Typical Logistics Growth Enablers <ul><li>Adequate Infrastructure & growth </li></ul><ul><li>Effective Information Flow </li></ul><ul><li>Quality & Deployable Assets </li></ul><ul><li>Professional Services & Approach </li></ul><ul><li>Relevance in Regulations & Government Policies </li></ul><ul><li>Comprehensive IT Backbone </li></ul><ul><li>Standardized Logistics Service Levels </li></ul><ul><li>End to End Solution/ Service Spectrum </li></ul><ul><li>Quality Resources </li></ul><ul><li>Intrinsic CRM capabilities </li></ul>
    7. 7. What is IT/ Technology in Logistics?? <ul><li>Major IT/ Technology offerings in logistics space are </li></ul><ul><li>confined to </li></ul><ul><ul><li>Transport Management Solutions </li></ul></ul><ul><ul><li>Warehouse & Inventory Management Solutions </li></ul></ul><ul><ul><li>RFID </li></ul></ul><ul><ul><li>Online Vehicle Tracking </li></ul></ul><ul><ul><li>Logistics Sales Force Automation (SFA) </li></ul></ul><ul><ul><li>SCM </li></ul></ul><ul><ul><li>CRM </li></ul></ul><ul><ul><li>Demand Forecasting Software </li></ul></ul>
    8. 8. IT / Technology Solution <ul><li>Major IT/ Technology Solutions implemented by Indian </li></ul><ul><li>Logistics Companies in the recent past are </li></ul><ul><ul><li>Logistics e-planning tool </li></ul></ul><ul><ul><li>Electronic PoD (e-PoD) </li></ul></ul><ul><ul><li>Web/ SMS based Consignment tracking </li></ul></ul><ul><ul><li>Online GPS based track & trace </li></ul></ul><ul><ul><li>Load Planning & Scheduling software </li></ul></ul><ul><ul><li>Electronic Logistics Management System (e-LMS) </li></ul></ul><ul><ul><li>Integrated Transport Management Software (iTMS) </li></ul></ul><ul><ul><li>Customized ERP software's </li></ul></ul><ul><ul><li>End to End Transport/ Warehousing & Inventory </li></ul></ul><ul><ul><li>Management software </li></ul></ul>
    9. 9. IT/ Technology Implementation Benefits <ul><li>Logistics Companies in India define their key benefits from their IT </li></ul><ul><li>spend as </li></ul><ul><ul><li>Enables the move from centralized to decentralized management </li></ul></ul><ul><ul><li>without any loss of information at any level. </li></ul></ul><ul><ul><li>Facilitates speedy/timely delivery, reliability, cost savings and </li></ul></ul><ul><ul><li>security. </li></ul></ul><ul><ul><li>Has resulted in the empowerment of individuals and teams, with </li></ul></ul><ul><ul><li>the work environment progressively moving from a functional </li></ul></ul><ul><ul><li>organizational arrangement to a team arrangement. </li></ul></ul><ul><ul><li>Enables high-level connectivity, information sharing, and </li></ul></ul><ul><ul><li>integration, not only within a company or among companies, but </li></ul></ul><ul><ul><li>also globally. </li></ul></ul><ul><ul><li>Has made logistics work easier, less-time consuming, and more </li></ul></ul><ul><ul><li>accurate, and contributes to greater productivity. </li></ul></ul><ul><ul><li>Facilitates direct access to data banks for information on the </li></ul></ul><ul><ul><li>status of orders or accounts. </li></ul></ul>
    10. 10. Major Solution Providers <ul><li>Some Major Logistics IT/ Technology Solutions Providers </li></ul><ul><li>in the country include </li></ul><ul><ul><li>Agility </li></ul></ul><ul><ul><li>Four Soft (4S elog, 4S I-logistics) </li></ul></ul><ul><ul><li>I2 </li></ul></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Infreight (iTMS, IndFleet) </li></ul></ul><ul><ul><li>Logility </li></ul></ul><ul><ul><li>Manhattan Associates (Integrated logistics solutions) </li></ul></ul><ul><ul><li>JDA (acquired Manugistics in 2006) </li></ul></ul><ul><ul><li>Miebach </li></ul></ul><ul><ul><li>Oracle (G log, Transport/ Logistics Module) </li></ul></ul><ul><ul><li>SAP AG etc (Logistics Module/ Enterprise) </li></ul></ul>
    11. 11. Selection – Implementation - Deployment <ul><li>Typical Selection – Implementation & Deployment </li></ul><ul><li>issues in IT/ Technology solutions with relevance to </li></ul><ul><li>Logistics space in the country are </li></ul><ul><ul><li>Inadequate Domain Expertise & Experience </li></ul></ul><ul><ul><li>Standardized Functionality Mismatch </li></ul></ul><ul><ul><li>Expensive Technology/ Infrastructure pricing </li></ul></ul><ul><ul><li>Network Constraints in the Indian Geography </li></ul></ul><ul><ul><li>Complex Technology Architecture resulting to </li></ul></ul><ul><ul><li>Integration issues </li></ul></ul><ul><ul><li>Migration from Legacy to best of breed software </li></ul></ul><ul><ul><li>Support/ Upgradations & Maintenance factors </li></ul></ul><ul><ul><li>Software Pricing </li></ul></ul>
    12. 12. Process Improvement & ROI <ul><li>Direct Operations Focus till “ Last Mile” & Delivery </li></ul><ul><li>Reduced Logistics Management Labor Hours thro </li></ul><ul><ul><li>Automated Rating, Routing & Negotiation Processes </li></ul></ul><ul><ul><li>Automated ordering to delivery process including </li></ul></ul><ul><ul><li>freight bill audit & payments </li></ul></ul><ul><ul><li>Efficient Order & Shipment with Track & trace </li></ul></ul><ul><ul><li>capabilities </li></ul></ul><ul><ul><li>Improved exception handling with real time decision </li></ul></ul><ul><ul><li>making </li></ul></ul><ul><li>Coordinated Load & Resource – Planning & Optimization </li></ul><ul><li>Reduced Shipping errors with improved trade </li></ul><ul><li>compliance </li></ul>
    13. 13. Process Improvement & ROI <ul><li>Comprehensive Reports for real time analysis </li></ul><ul><li>Increasing service level efficiencies with intrinsic client </li></ul><ul><li>relation capabilities </li></ul><ul><li>Increased Inventory Accuracies and reduced write-offs </li></ul><ul><li>Optimal Lead times across end to end logistics </li></ul><ul><li>management processes </li></ul><ul><li>Direct increase in sales opportunities (loss sales </li></ul><ul><li>prevention thro on time service levels) </li></ul><ul><li>Real time C Level Dashboard for monitoring & control </li></ul><ul><li>Reduced Cost of Operations (industry average in the </li></ul><ul><li>range of ~ 8 to 10%) </li></ul>
    14. 14. Some Major Implementations (last 3 years) <ul><li>Some Logistics Companies that have deployed/ </li></ul><ul><li>implemented/ upgraded to Logistics Management – IT/ </li></ul><ul><li>Technology Solutions include </li></ul><ul><ul><li>AFL Enterprise/ Track & Trace </li></ul></ul><ul><ul><li>FedEx Global Integrated Solutions </li></ul></ul><ul><ul><li>GATI WMS/ Online Tracking Solution </li></ul></ul><ul><ul><li>KTC Integrated Logistics Solution </li></ul></ul><ul><ul><li>TNT India Global Integrated Solutions </li></ul></ul><ul><ul><li>Patel Roadways Enterprise/ Tracking Technologies </li></ul></ul><ul><ul><li>Safex Track & Trace – Different modes </li></ul></ul><ul><ul><li>TCI Tracking Technologies </li></ul></ul><ul><ul><li>TVS Logistics Enterprise/ Online Tracking </li></ul></ul><ul><ul><li>Enterprise naturally means an integrated logistics management solution </li></ul></ul>
    15. 15. Take Away <ul><li>Indian Logistics Industry still at a nascent stage and </li></ul><ul><li>evolving quickly. Average growth rate is pegged at 8 –9% </li></ul><ul><li>and reach USD 125 Bn by 2010 </li></ul><ul><li>Key focus areas today are </li></ul><ul><ul><li>Improved efficiencies </li></ul></ul><ul><ul><li>Transparency/ Information Flow with CRM </li></ul></ul><ul><ul><li>Reduced pricing </li></ul></ul><ul><li>Key Logistics Service enablers </li></ul><ul><ul><li>Efficient Information Flow </li></ul></ul><ul><ul><li>Reduced Order to Delivery times </li></ul></ul><ul><ul><li>Real time track & trace </li></ul></ul><ul><ul><li>“ Quick Response” exception handling </li></ul></ul>
    16. 16. Take Away <ul><li>Corporate/ Shipper Focus areas </li></ul><ul><ul><li>Professional services </li></ul></ul><ul><ul><li>End to End service/ solution spectrum </li></ul></ul><ul><ul><li>Reduced Logistics Spend </li></ul></ul><ul><ul><li>Single Window Supplier – Client, Client- End user </li></ul></ul><ul><ul><li>logistics integration </li></ul></ul>
    17. 17. <ul><li>Infreight Research & Content Team reports year 2006-07 </li></ul><ul><li>Datamonitor/ TI reports </li></ul><ul><li>IAEIS - Industry Analysis & Economic Intelligence Service Database </li></ul><ul><li>Reports from SIAM, ACMA etc </li></ul><ul><li>Eye for Transport – Research and Publications </li></ul><ul><li>E & Y Reports Mckinsey Quarterly Journals and Case Studies </li></ul><ul><li>A T Kearney Reports </li></ul><ul><li>KPMG White Papers and Case Studies </li></ul><ul><li>Selected articles from The Hindu, The Telegraph, Financial Express, </li></ul><ul><li>Business Standard etc </li></ul><ul><li>Indian Institute of Management - Case Studies and Market Analysis </li></ul><ul><li>Reports </li></ul><ul><li>Brand equity foundation reports etc </li></ul><ul><li>Aberdeen Research reports </li></ul><ul><li>CII – Industry reports </li></ul>Source of information
    18. 18. THANK YOU!
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