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IIT Mumbai – First and Last Leg Optimization. CONFIDENTIAL May, 2012. Freight Flow -1 . Pickup. Delivery. CFS/ Destination Warehouse. Destination Port. Customers. Freight Flow -2. Seller. CFS. Origin Port. Freight Flow - 3. Trucking Industry Level Challenges. - PowerPoint PPT Presentation
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Title and Content
IIT Mumbai – First and Last Leg Optimization
CONFIDENTIALMay, 2012
Freight Flow -1 Pickup
Delivery
Freight Flow -2
CFS Origin Port
CFS/ DestinationWarehouse
Destination PortSeller
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
8
• 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
9
As-Is Routes
10
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
order/stop locations• Algorithm based route generation• Optimises the number of trucks required
rather than the truck-km
3 Trucks Deployed
Total Truck KM 135Parameters for comparison
Data for Analysis
12
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
109207246
Dark 1
255255255
Light 1
13156155
Dark 2
099190
Light 2
8516528
Accent 1
2147342
Accent 2
185175164
Accent 3
151757
Accent 4
1931870
Accent 5
25522162
Accent 6
255255255
Hyperlink
23613729
Followed Hyperlink
127175221
Tata Blue 50%
203215238
Tata Blue 25%
179149197
Purple 50 %
212195223
Purple 25 %
255242171
Yellow 50 %
255249213
Yellow 25 %
229205186
Brown 50 %
248241235
Brown 25 %
180213154
Green 50 %
214231200
Green 25 %
241240202
Light Green 50%
251251241
Light Green 25%
Title and Content
Thank You http://www.tcs.com
CONFIDENTIALMay, 2012