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Economics in cargo tracking technologies
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© Savi Technology 2012 1
Economic & Operational Benefits of Cargo Tracking Technology BILL GOSS Senior Vice President, Global Sales, Services & Support
Common Cargo Concerns
• Security: Curb theft and unplanned diversion of cargo; reduce the need for physical escorts
• Reliability: Uninterrupted movement of cargo
• Visibility: Live location updates on all journeys and assets
• Efficiency: Improve transit times, least cost routing, establish audit trails
• Profitability: Reduce costs for fuel; Improve revenue streams; lower insurance premiums
© Savi Technology 2011 2
How does technology address these needs?
© Savi Technology 2011 3
4
PM J-AIT Radio Frequency Identification Network
Contract brief: " Sole source provider
from 1990 through 2008 " Developed the largest
active RFID network " Leader in developing the
technology compatible with ISO 18000-7 & other AIT
" Valued and recognized partner with DoD
Customer Challenges Solution
" Deploy a wired and wireless active RFID network along routes that containers travel
Savi installed a wired and wireless RFID network to track U.S. DoD and Allied containers moving from CONUS ports to the areas of responsibility, including Pakistan, Afghanistan, Haiti, Europe
" Track location & condition of containers moving through critical supply chain nodes
" Maintain security of containers in transit
" Reduced costs associated with tracking containers
" Identification of container pilferers
" Improved readiness of troops
Benefits
“The RFID network… has improved visibility and delivery of supplies needed by troops…”
Lt. Col. Pat Burdon, PM J-AIT
" Ensure warfighters have the right parts at the right time
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NATO
Savi products enabled eight NATO nations to achieve interoperability in the tracking of NATO consignments
Project brief: " 22,000 reads per month " Containers transported
from Pakistani ports into Afghanistan
" Technology compatible with ISO 18000-7 & other AIT
" DoD pays “by the drink” for data on containers
Customer Challenges Solution
" Savi SmartChain Consignment Management Application to track military consignments
" Comply w/ NATO Standardization agreements (STANAGs) for interoperability
" Gain better visibility of joint NATO operations
" Compliance w/ STANAGS
" Command-level visibility of joint NATO operations
" Interoperability between NATO nations
Benefits
“NATO has concluded that this type of system can greatly contribute to the Commander’s situational awareness in the logistics arena.”
- Brent Bingham, NC3A Project Manager
6
Benefits Customer Challenges Solution Project brief: " Worldwide tracking of
consignments " Fixed and mobile
installations " Active RFID " Integration with legacy
systems
Australian Defence Force Savi Consignment Management Application (CMA) solution
ADF deployed SmartChain® CMA for increased visibility of operational assets deployed globally in support of Allied Operations
Customer Challenges Solution Benefits " Near real-time visibility
of consignments
" Nested visibility of assets and consignments
" Interoperability with coalition partners, e.g. NATO, US DoD
" Integration with Legacy Systems
" Implemented SmartChain® CMA with active RFID to track consignments and contents of containers both across its National Support base and Deployed Operations.
" Lack of visibility of consignments locations
" Unknown contents of containers
" Fixed infrastructure and deployed operations
" Multiple Legacy ERP and Logistics Systems
7
Army Joint Munitions Command
JMC deployed a material management system to gain visibility and distribute, receive, move, count, and classify its CONUS ammunition inventory
Customer Challenges Solution
" SmartChain® FM Web with Extended Business Logic
" Conversion to SAP-based ERP system missing key AIT functionality
" Short delivery time-frame to provide existing functionality in new ERP environment
" Reduced change management; retained legacy look and feel
" Seamless interface to ERP
" Interfaces with other Army systems
" Maximizes AIT initiatives in place in DoD
Benefits Project brief: " 8 ammunition depots
CONUS " 12,000+ zones enterprise
wide " 2 million+ inventory lines " Barcode & active RFID " SAP & SmartChain®
“Right ammo, right place, right time”
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Benefits Customer Challenges Solution Project brief: " 5M Pallets and Crates
under management " Ordering and tracking for
commodity assets only " 1000s of DC, store, and
supplier sites " Interface with EAO
systems
Coles – Australia
Coles has adapted Savi’s SmartChain® Asset Management Application (AMA) to manage their five million returnable assets
Customer Challenges Solution Benefits " Provide accurate billing
of suppliers for RPCs and hence increase revenue
" Provide accurate inventory tracking of pallets and hence substantially reduce rental costs
" Customized SmartChain® AMA Solution to track commodity (non serialized) assets between Coles, their suppliers, carriers, and EAOs.
" Need for accurate records of RPC inventory (3.5M Crates) to manage the issue , return and invoicing of suppliers.
" Need for accurate records of pallet inventory to reconcile External Asset Owner (EAO) accounts
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Benefits Customer Challenges Solution Project brief: " Custom HW & SW " Worldwide Opportunity " Significant business for
SGS and Savi " Live in Kenya and Ghana
SGS Electronic Cargo Tracking Solution (OMNISTM)
Exclusive, worldwide technology supplier to SGS OMNIS™ Electronic Cargo Tracking Service for monitoring, tracking, and security of shipments in developing countries
Customer Challenges Solution Benefits
" Reduced cost of protection and enforcement
" Increased customs revenue
" Vehicle security and trip efficiency
" Savi SMTSTM integrated hardware and software solution
" In-transit cargo losses currently exceed 40%
" Track bonded shipments as they move across the country
" Haulier monitoring of vehicle location and activity
“SGS conducted an exhaustive review to determine the best technology for the SGS OMNIS™ offering. The Savi solution is far superior to any solution in the market and provides the most complete range of coverage for customers’ tracking needs.”
- Roger Kamgaing, VP , Government & Institution division of SGS
Case Study: Kenya
Challenge: • Improve reliability and security of cross-border consignments • Increase visibility of goods-in-transit • Increase profitability Solution: • Journey tracking software
from Savi • Rugged electronic seals for
trucks, containers and assets • Defined routes
© Savi Technology 2011 10
Case Study: Kenya
© Savi Technology 2011 11
Result: • Real-time visibility of trucks • Automatics alerts when trucks are diverted • Customizable Alarms and notifications • Reliability, Visibility. Profitability improved.
Case Study: Ghana
Challenge: • Cargo theft affecting revenue • Hired guards a temporary solution • 800 kilometer corridor within 250
square kilometer area
Solution: • Asset tracking software
from Savi • Active tracking devices for trucks • Live online mapping show
consignment status
© Savi Technology 2011 12
Case Study: Ghana
© Savi Technology 2011 13
Result: • 2500-3000 trucks under management • Real-time visibility for all journeys • Losses from theft reduced • Certificate of Merit from the World
Customs Organization (WCO)
© Savi Technology 2012 14
About Savi Mobile Tracking SystemTM (SMTS)
What Happens
Presentation Title © Savi Technology 2011 15
From Here….. ……..to Here?
? Where is it?
Is it safe?
Stop Loss!
The Value of Knowing
16
With SMTS …. You KNOW.
Presentation Title © Savi Technology 2012
17 Presentation Title © Savi Technology 2012
SMTS – it’s all about communication
Simple Workflow with Powerful Information
• Step 1. Attach tracking and security tags to cargo. • Step 2. Establish cargo journey on predetermined routes
• User-defined origin/destination • User-defined corridors/routes of travel • Alerts for dwell times, deviations, departure and arrival
• Step 3. Supervise journey activity • Monitor all active journeys or assets • Drill down to individual journeys • View movement activity • Manage security alerts
• Step 4. Manage suspect journeys and cargo statuses in all phases • Dispatch intervention and security teams!
Presentation Title © Savi Technology 2011 18
Begin Journey
Presentation Title © Savi Technology 2011 19
Comprehensive Real-Time Alerts
Presentation Title © Savi Technology 2011 20
Common System Alerts
Tag Security alerts • Tag Tamper • Missing reads • Tag armed • Tag armed outside
origin • Authorized for unlock • Tag disarmed • Tag not deactivated
Presentation Title © Savi Technology 2011 21
Route alerts • Origin departure • Excessive dwell time • Deviation from route • Change direction • Destination arrival
Tag Power alerts • Low battery • Vehicle moving
with engine off • In-Vehicle
Master (IVM) is disconnected
Geo-fencing
• Establishes a virtual “safe zone” for your assets
• If your asset leaves the “safe zone” , a real-time alert is triggered • unexpected stop • assets being diverted, • movement outside of the
zone
Presentation Title © Savi Technology 2011 22
Total Visibility
Presentation Title © Savi Technology 2011 23
• Playback of cargo movement
• Truck color shows your cargo status
• Significant events displayed
• At-a-glance dashboard overview of all active assets and journeys.
Drill down to a cargo
Presentation Title © Savi Technology 2011 24
Manage the alert
Presentation Title © Savi Technology 2011 25
User Controls for Application Security
Presentation Title © Savi Technology 2011 26
Journey Management
• Single dashboard to monitor multiple assets in one simple view
• Monitor condition or status
• See route deviations or progress and related alerts.
• Drill down on individual shipments for details
Presentation Title © Savi Technology 2011 27
Review Journey History
Presentation Title © Savi Technology 2011 28
The Value of Knowing!
• Curb theft and unplanned diversion of cargo
• Improve revenue streams
• Improve transit times, least cost routing, and save fuel
• Reduce administrative costs of physical escorts
• Uninterrupted movement of Cargo
• Audit trails
• Live location updates on all journeys and assets
• Lower insurance premiums
Presentation Title © Savi Technology 2011 29
Software Products and Engineering © Savi Technology 2012 30
About Savi
About Savi
Presentation Title © Savi Technology 2011 31
Ghana
Kenya
• Provides the leading active asset tracking platform
• Industry pioneer: Helped to invent active tracking in early 1990s
• Developer: Created standard-setting software and hardware
• Innovator: Over 40 patents protect Savi-invented technology and business processes
• Customer Driven: Clients include Commercial Companies, Governments, Logistics and Freight Service Providers, Military Agencies
32
Our Heritage
Savi has a proud past in the evolution of asset tracking technology usage by the U.S. and allied military, worldwide
Lockheed Martin/Savi Technology Proprietary and Confidential
• Put to test in 1990 and 1991 in Desert Shield and
Desert Storm • Our solutions helped track supplies, spare parts, and
shipments • Savi solutions worked in the harshest conditions • We gained a reputation for innovation and reliability • RFID technology was mandated by US DoD in mid
2000’s • DoD has standardized on our technology • Products are the backbone of the world’s largest RFID
network
Management Presentation
33 Management Presentation Lockheed Martin/Savi Technology Proprietary and Confidential
PACOM CENTCOM
EUCOM
SOUTHCOM
229R / 157W Sites
12R / 20W Sites
206R / 150W Sites
218R / 693W Sites
NORTHCOM 697R / 1,042W Sites
AFRICOM 6R / 8W Sites
1 Week Activity: Tags Written –
16,139 Tags Read – 142,345
World’s largest active RFID network (52 countries) Critical enabler for In-Transit Visibility (ITV) – “no more iron mountains of supplies”
Data integration between automated information systems – fewer stovepipes
Currently Over 3,400 Read and Write Sites with
over 13,000 Satellite-Based
Tracking Systems United Kingdom 83R / 52W Sites
Australia 108R/ 2W Sites
NATO 21R Sites
Success Continues in DoD Environments
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Solutions that Solve Real Problems
• Asset Visibility Challenges § Misplaced assets § Asset status § Asset environmental condition
• Inventory Management Challenges § Inventory counts cost (time & efforts) § Up-to-date inventory on-hand
• Asset Optimization Challenges § Asset request & scheduling § Asset dwell, availability, trending
• Cargo In-Transit § Optimal routing § Shipment and vehicle security § Real-time transport decision making
Smart Chain: Enterprise Asset Management
• Enterprise-class software/ hardware platform
• Enables intelligent management of shipments, inventory, sites, and asset coding
• Supports RFID, UID, ANSI or GPS
• Helps customers reliably locate assets and know their status.
• Provides real-time operational data, detail reports, and alerts
• Reduce logistics costs, eliminate loss, cut shrinkage • Enables stronger performance guarantees.
Presentation Title © Savi Technology 2011 35
Software Products and Engineering © Savi Technology 2012 36
Questions?
Presentation Title © Savi Technology 2011 37