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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 [email protected]
Nick Cova
VP, Commercial Operations
Savi [email protected]
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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
