IIT Mumbai First and Last Leg Optimization 127 203 179 212 255 - - PowerPoint PPT Presentation

109 207 246 Dark 1 255 255 255 Light 1 131 56 155 Dark 2 99 190 Light 2 85 165 28 Accent 1 214 73 42 Accent 2 185 175 164 Accent 3 151 75 7 Accent 4 193 187 Accent 5 255 221 62 Accent 6 255 255 255 Hyperlink 236 137 29 Followed Hyperlink 127 175 221 Tata Blue 50% 203 215 238 Tata Blue 25% 179 149 197 Purple 50 % 212 195 223 Purple 25 % 255 242 171 Yellow 50 % 255 249 213 Yellow 25 % 229 205 186 Brown 50 % 248 241 235 Brown 25 % 180 213 154 Green 50 % 214 231 200 Green 25 % 241 240 202 Light Green 50% 251 251 241 Light Green 25%

Title and Content

IIT Mumbai – First and Last Leg Optimization

CONFIDENTIAL May, 2012

Freight Flow -1

Pickup Delivery

Freight Flow -2

CFS Origin Port CFS/ Destination Warehouse Destination Port Seller Customers

Freight Flow - 3

Trucking Industry Level Challenges

• Infrastructure Issues and Challenges

– Congestion – Operational inefficiencies – Non standard trucks – Under utilization of infrastructure available. – Supply demand mismatch

• Institutional Issues

– Highly Fragmented industry – Manual, non-uniform or discrete processes across the industry – Non-availability of Quality manpower

• Technological Issues

– Old technology – Adoption of new technologies is expensive – No clear Return on Investments for New Technologies – Manual processes leading to operational inefficiencies

Solutions and Strategies (Largely Capital intensive)

• Vehicle Size and Delivery Time Regulations
• Load Consolidation and Load Factor Efficiency (Load consolidation, or

co-loading)

• Urban Distribution Centers
• Freight Villages - Different from urban distribution centers, but similar

in concept. Freight villages are planned unit developments specifically designed for multi-modal freight transfer within a secured perimeter.

• Delivery Tunnels - In Helsinki, freight tunnels for underground trucking

are planned

• Dedicated freight corridors – are they really helping urban areas ?

6

Inefficiencies in the current process

• Pickup driver has to visit the terminal to collect the list of pickups
• Planning for linehaul, cross-docking, resource requirements, delivery

plans etc are not possible till the goods reaches to the terminal

• There is no update on the status of delivery till the driver reports back

to the terminal.

• This process is time consuming and lead to inefficiencies such as
• missed pickups and missed appointments,
• excessive waiting times during pickups and deliveries

resulting in additional driver hours and under utilization of trucks

• postponing pickups
• additional kilometers operated by drivers thus additional fuel

consumption and choking of traffic

• no clue on the traffic situation on the network – no route

guidance

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Solution Components and Business Model

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• Vehicle Tracking System - Telematics
• Pickup and Delivery Management System – to plan the pickups and

deliveries

• Handheld Mobile devices – Scanner, data logger etc
• Route Planner to generate optimal routes
• Central Server and communication systems
• Transportation Management System
• Platform based solution

From Trucking companies Perspective

• Trucking company can register with minimum fee
• Trucking companies can pay as per use
• Opex and No capital investments – Transaction based
• Can withdraw when not required
• No technology skills required
• Improved visibility of shipments, high asset utilisation, less fuel costs and customer satisfaction

From Service Provider perspective

• Multiple trucking companies can be hosted on single software platform.
• Other services such as reports, performance indicators can be sold as value added services

From City/Governance perspective

• Less Pollution and congestion
• Real time and accurate data for traffic alerts
• Trustworthy and huge volume of data for / Freight Modelling/ infrastructure planning and real time

decisions

Solution Components Benefits

Overview – An example for Auto Route Generation

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As-Is Routes

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Features considered

• Routes are planned for a region.
• A truck will be assigned/reserved

for route

• Static route is generated by the

route planner

• Dispatcher assigns new stops to

the route manually as and when new orders are to be handled 4 Trucks Deployed Total Truck KM 126 Parameters for comparison

To-Be Routes

11

Features considered

• No region based routes
• Routes will be developed as per the
• rder/stop locations
• Algorithm based route generation
• Optimises the number of trucks required

rather than the truck-km

3 Trucks Deployed Total Truck KM 135 Parameters for comparison

Data for Analysis

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Available Data for Analysis

• Driver Data
• Equipment Data
• Order Data
• Trip Data
• Stop Data (including Stop to Stop Distance Data)

Output Expected

• Optimized Route with route parameters

Business Benefits

13

• Reduced P&D Costs (They represent around 30% of total cost in the case of

road based movement)

• Improved Route Planning
• Effective Equipment utilization
• Effective Utilization of Drivers

109 207 246 Dark 1 255 255 255 Light 1 131 56 155 Dark 2 99 190 Light 2 85 165 28 Accent 1 214 73 42 Accent 2 185 175 164 Accent 3 151 75 7 Accent 4 193 187 Accent 5 255 221 62 Accent 6 255 255 255 Hyperlink 236 137 29 Followed Hyperlink 127 175 221 Tata Blue 50% 203 215 238 Tata Blue 25% 179 149 197 Purple 50 % 212 195 223 Purple 25 % 255 242 171 Yellow 50 % 255 249 213 Yellow 25 % 229 205 186 Brown 50 % 248 241 235 Brown 25 % 180 213 154 Green 50 % 214 231 200 Green 25 % 241 240 202 Light Green 50% 251 251 241 Light Green 25%

Title and Content

Thank You http://www.tcs.com

CONFIDENTIAL May, 2012