Leveraging Real-time GPS/Sensor Data to Drive SLA Compliance7hglobal.com/PDF/7HGC_GPS...

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Leveraging Real-time GPS/Sensor Data to

Drive SLA Compliance

Helping You Derive More

Mileage from OTM Investment

7Hills Global Consulting and Savi Networks LLC, Confidential and Proprietary Information.Copyright ©2010 7Hills Global Consulting and Savi Networks LLC. All Rights Reserved.

Niranjan Umarane

Partner – Consulting Services

7Hills Global ConsultingNiranjan.Umarane@7hillsglobal.com

Nick Cova

VP, Commercial Operations

Savi Networksncova@savinetworks.com

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About 7Hills Global Consulting

Oracle Transportation Management

+ Large and experienced India based

Oracle Transportation Management

(OTM) Practice

+ Proven expertise to offer OTM services

in onsite-offshore model

+ Flexible engagement model

+ Unmatched price-performance equation

+ Excellent credibility of the team

+ v6.0 Implementation experience

7Hills – focused supply chain solutions

company, driven by a team of supply chain

experts, who spent years building and

nurturing high performing SCM consulting and

technology business

Headquarter in Pittsburgh PA, USA, with

delivery centers at Hyderabad, Mumbai and

Bangalore, India

7Hills currently has a team of 150 top notch

SCM consultants and technologists with

proven success in delivering millions of dollars

in business value to some of the leading global

corporations

Pioneering a new wave of result oriented -

innovation centric integrated supply chain

solutions company with sharp focus on client

success

Proven methodologies and pre-built solution

assets to deliver best results, with fewer

resources – in less time

Trusted by clientele of 40 global corporations

including 6 Fortune 500 customers

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About Savi Networks

Provides Solution for Visibility & Control of Global

Trade Wirelessly , Virtually Anywhere, Anytime

Affordable, easy to use wireless technologies

Monitor, manage and secure shipments by

exception

Web-hosted, on-demand supply chain execution

platform that drives financial performance

Real time intelligence that delivers tangible value

($$) and competitive advantage

All participants have a common view of the supply

chain without expensive integration

Turn-Key Services

Tags, Application software, Communications, Tag

Pool Management, Hosting, Customer Support, EDI

(optional)

Real-time…

Security Monitoring

Environmental Monitoring

Supply Chain Execution

IS&GS(division Lockheed Martin)

Global Security

and Information

Technology

The World‟s Leading

Port Investor,

Telecommunications,

Real Estate Developer

and Retail operator

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Key Take-Away

Learn how OTM users can leverage real-time GPS tracking, security and

sensor monitoring solutions to improve service and cost performance

Learn the ease with which GPS real-time solutions can be implemented

with OTM

Understand how customers are utilizing GPS solutions in the

marketplace

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Problem Statement…

Shipment Information Latency & Inaccuracies…this takes its toll on organizations ability to detect, analyze and respond on

a real-time basis to ensure customer and regulatory compliance.

Traditionally, EDI has been the means of getting shipment status updates in

OTM from carriers and service providers, which results in …

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Solution – „Real-time‟ Sensor Based Shipment Tracking

OTM Workflow

Agent

Will truck arrive on-time?

Shipment Event

from GPS Source

Service

Provider

Receive & Process

Event

OTM Notification On

Potential Delay

OTM

Initiate

Action

Service

Provider

Receive & Process

EventEvent from Temperature

& Door Sensor Mounted

on Trailer/Container

OTM

Workflow

Agent

Is temperature being maintained properly?..any incidence of tampering?

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Orchestrate Upstream and Downstream Process

BPM

Manufacturing

Planning

Inbound delay of 3

days

Re-drive Shop

Floor Plan

BPM

Order

Fulfillment

Truck is in a collision

Book

Replacement

Order with

Expedited Mode

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Imperatives:

– Inventory movements, available capacity, human actions, traffic conditions and even weather contribute to logistics operational performance

– A passive approach to managing logistics is no longer an option when performance based logistics is defining the industry

Solution Brief:

– Seamless integration between the various systems (with or without a BPM Solution)

– Deliver true operational responsiveness by correlating business-relevant events from warehouse, transportation, vehicle management systems and data from sensors

– Events become meaningful when you can define business processes & rules that determine what actions should be initiated based on specific scenarios

– Offer user-defined and dynamic dashboards for real-time visibility into events

Solution Application & Benefits:

– Track vehicle enter a geo fence and alert the unloading docks to schedule equipment

– Trigger corrective action with supplier to avoid an assembly line shutdown in case of delay in parts delivery

– Track container temperature, monitor compliance, compare with defined business rules and trigger new work assignments to drivers

Event Driven Responsive Supply Chain Management

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Highly differentiated GPS-

based Wireless Shipment

Monitoring Service

Strong OTM pedigree and

know-how , pre-built

interfaces between OTM and

Savi Networks‟ System

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More than pays for itself

Enables an unprecedented ability

to manage and control supply chain

execution

Is easy to deploy and use, can be

up and running in a couple weeks

Doesn‟t require IT involvement

Doesn‟t require a capital budgeting

process

Provides indisputable information

for making tactical and strategic

decisions

Take back the keys to your supply chain,

and begin unlocking value.

SaviTrak

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How it Works

Customs

Compliance

Messages

Commercial

Shipment

Messages

Multi-Modal

Carrier Status

Update Msgs

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Messages

Supported

“Certified”

Tags

“Un-Certified”

Tags Tag Pool

Management System

(TPMS)

Web-Based Application

Pre- Designed

Automation Agents

Pre-Built Interface

with OTM

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Mounts on dry van containers or trailers in

seconds

Multi-modal capabilities

No tools required

Monitors

‐ Location via GPS

‐ Door status

‐ Temperature

‐ Humidity

‐ Acceleration / Shock

Communicates to the external world via

the cellular phone network

Roams in 179 countries

Rechargeable battery

‐ One charge lasts 90 days

30 min. GPS, 4 hr. Backhaul

Introduction to LSE

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Operating Model

One time enablement and integration fee to 7Hills

– Value assessment consulting to determine the value proposition of „real

time‟ tracking in particular customer setting

– Pre-built interfaces between OTM and Savi Networks to reduce Total

Cost of Implementation (TCI)

– XML Messaging ..use „real time‟ shipment information to orchestrate

upstream (e.g. manufacturing planning) and downstream process (e.g.

Order Fulfillment)

– 7Hills would deploy & test interfaces, configure agents & workflow

actions

„Pay as you use‟ fee model with Savi Networks for all-in turn-key

service (tags/devices, comms, hosting, tag logistics, support, etc.)

On-going support and service would be provided by Savi Networks

– Minimum tags/shipment transactions

– Fee Per Shipment/Tag

– International Inbound

– Domestic

– Cross Border

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Scenario 1: Mexico- USA Cross Border Movement

Route: Vaqueras, MX to Fort Worth, TX

Quick and efficient way to achieve real time

shipment visibility, especially in developing

countries with no EDI legacy and primitive

GPS/GRPS infrastructure

Notification of departure and arrival

Duration of border crossing

Solution can be easily implemented with any

truck carrier

In developed economies it is useful when

truck/trailer are not GPS enabled

Manufacturing Warehouse

Manufacturing Warehouse

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Demo

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So What..?

Ability to synchronize pick-up at border, which helps …

– maximize utilization of assets in case of a dedicated/owned fleet

– better ability to execute continuous moves and co-operative routes

– Lower accessorial charges (e.g. „detention‟ ) in case of „for hire‟ fleet

Needless to mention … the ability to „proactively‟ inform customer in

case of any unforeseen event or potential delay.

Example : A truck reaching Mexico Border at 4PM…gets delayed and the

new ETA is known…automatically reschedule the pick-up of the US leg and

send an updated work assignment to the driver.

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Scenario 2: International Inbound to USA (continuing to EU)

Route: NZ, Panama Canal, Caribbean, US, EU

Global real time tracking for multi-modal shipments

Increased visibility into supply chain

- Ability to estimate time of arrival

- Ability to identify potential late shipments

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• Route: United Kingdom

to Kuwait

• Global real time tracking

for multi-modal

shipments

• Increased visibility into

supply chain

- Ability to estimate time

of arrival

- Ability to identify

potential late shipments

- Ability to identify

various environmental

alerts

Scenario 3: International Shipment with Alerts

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More Examples of Events SaviTrak can Capture

• Environmental Alerts

• Temperature

• Humidity

• Acceleration

• Process Alerts

• Begin Journey

• Arrive

• Depart

• End Journey

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So What..?

Minimize „lead time uncertainty‟ from international inbound, which in

the long term helps to …

– reduce overall supply chain inventory

– respond to „demand dynamics‟ in a more effective manner

Address regulatory requirements, like C-TPT, 10 +2 in a more

streamlined fashion

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So What..?

Maintain quality of fresh and frozen food products while it is in-transit

Ensure product security and eliminate counterfeiting while shipment is

in transit

Predict owned/dedicated fleet capacity with almost 100% accuracy

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Net Value to the Customer

Key Assumptions

• $1B revenue

• 10,000 annual containers

• $40k value of container

• 70 day avg. PO-to-Fulfillment lead-time

• 35 day avg. Transit lead-time

• 22% annual inventory carry cost

Additional Net Value Analyses

• Stanford: $462/voyage

• Bearing Point: $1,100/voyage

• AT Kearney: $1,150/voyage

• IBM: $1,400/voyage

Value Analysis

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Savi Networks Pricing Approach:

Minimize up-front Investment and Maximize ROI Delivery

All inclusive turn-key (SaaS) Model Includes:

- Hardware

- Full SaviTrak Platform

- Hosting

- Telecom

- Device Management

No up-front Capital Investment

Flexible Monthly Pricing

- Per Tag/Device Per Month Encourages Utilization

- Per Committed Shipment Volume

Fast and Easy Implementation Expedites Value Return

Solution can be implemented in as little as 3 weeks

Does not require IT resources to implement

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thank youthank you

www.7hillsglobal.com www.savinetworks.com