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

Title and Content 109 255 131 0 85 214 207 255 56 99 165 73 246 255 155 190 28 42 Dark 1 Light 1 Dark 2 Light 2 Accent 1 Accent 2 185 151 193 255 255 236 175 75 187 221 255 137 164 7 0 62 255 29 Accent 3 Accent 4 Accent 5 Accent 6 Hyperlink Followed Hyperlink IIT Mumbai – First and Last Leg Optimization 127 203 179 212 255 255 175 215 149 195 242 249 221 238 197 223 171 213 Tata Blue 50% Tata Blue 25% Purple 50 % Purple 25 % Yellow 50 % Yellow 25 % 229 248 180 214 241 251 205 241 213 231 240 251 186 235 154 200 202 241 CONFIDENTIAL Brown 50 % Brown 25 % Green 50 % Green 25 % Light Green 50% Light Green 25% May, 2012

Freight Flow -1 Pickup Delivery

Freight Flow -2 Destination Seller CFS Origin Port Port CFS/ Destination Warehouse 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 7

Solution Components and Business Model Solution Components • 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 Benefits 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 8

Overview – An example for Auto Route Generation 9

As-Is Routes 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 Parameters for comparison 4 Trucks Total Truck KM 126 Deployed 10

To-Be Routes Features considered • No region based routes • Routes will be developed as per the order/stop locations • Algorithm based route generation • Optimises the number of trucks required rather than the truck-km Parameters for comparison 3 Trucks Total Truck KM 135 Deployed 11

Data for Analysis 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 12

Business Benefits • 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 13

Title and Content 109 255 131 0 85 214 207 255 56 99 165 73 246 255 155 190 28 42 Dark 1 Light 1 Dark 2 Light 2 Accent 1 Accent 2 185 151 193 255 255 236 175 75 187 221 255 137 164 7 0 62 255 29 Accent 3 Accent 4 Accent 5 Accent 6 Hyperlink Followed Hyperlink Thank You 127 203 179 212 255 255 175 215 149 195 242 249 221 238 197 223 171 213 http://www.tcs.com Tata Blue 50% Tata Blue 25% Purple 50 % Purple 25 % Yellow 50 % Yellow 25 % 229 248 180 214 241 251 205 241 213 231 240 251 186 235 154 200 202 241 CONFIDENTIAL Brown 50 % Brown 25 % Green 50 % Green 25 % Light Green 50% Light Green 25% May, 2012