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P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Transport Management VisionApril 2019
Dan Hellström
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Where’s the Chicken?
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Where’s the Chicken?
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Internet Usage
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Cross Border Parcels EU
Source: Verband
österreichischer
Handelsunternehmen
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Transportation Is Hitting Mainstream News
A Shortage of Trucks Is Forcing Companies to Cut Shipments or Pay Up
Corporate America’s new dilemma: raising prices to cover higher transport costs
UPS dives into blockchain
technology as trucking
companies seek to evolve
Per Strömberg, VD, kommenterar kvartalsresultatet 16/08/2018 i
SR P1 Morgon:
”…….höga transportkostnader, bland annat på grund av
brist på förare.”
Source: PWC
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Broad Array of Logistics Management Solutions
Routing, Mobile & Telematics
TransportationManagement
Customs & Regulatory Compliance
Broker & Forwarder Enterprise Systems
GlobalTrade
Content
Descartes Global
LogisticsNetwork™
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Transportation
Management
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Descartes Transportation Management
Traditionally, transportation management solutions have focused on a standard set of processes:
• Contract Management• Load Planning & Optimization• Execution• Freight Audit• Visibility & Performance Management
Descartes transportation management provides advanced capabilities, creating even greater value:
• Private/Dedicated Fleet• Dock/Yard Management• Pool Distribution• Parcel• Global Logistics NetworkDescartes
Global Logistics Network™
Private/Dedicated
Fleet
YardManagement
DockScheduling
PoolDistribution
Parcel
Planning/Optimization
ContractManagement
TenderBooking
Track/Trace
FreightAudit
Visibility
DescartesGlobal Logistics
Network™
Private/Dedicated
Fleet
YardManagement
DockScheduling
PoolDistribution
Parcel
Planning/Optimization
ContractManagement
TenderBooking
Track/Trace
FreightAudit
Visibility
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Functionality & Process Flow
Final Customer
Shipment Details
Line Item Details
Invoice ApprovalTransport Booking
Status Information/Notifications
Status Information/Notifications
G.I./Delivery Confirmation
Delivery
Status Update Purchase Order
Transport Booking/Confirmation
Shipment Details Shipment Status Updates
Carrier Invoice Data for non pre-bill carriers
Descartes TMS
POD, Transport Cost Calculation, Pre-Billing, Invoice Verification, Tracking & Tracing, Reports and
Alerts, Transport Booking, Status Updates, Reporting, Simulations, Dock Planning, Yard Management
N.S.O.
Carriers
WMS D.C.
ERP System Sales Order National
Sales Office
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Market trends on
Global TMS
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Descartes Survey - 162 Overall Respondents
► LOCATION OF OPERATIONS
► INDUSTRY BREAKDOWN ► TRANSPORTATION MODES
20%EU
30%USA
25%CA
10%AUS
10%LA
5%ROW
70%Shippers
30%LSPs
35%TL: 35%LTL: 30%
Private: 25%Parcel: 10%
25%Air
20%Ocean
15%Rail
5%Other
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
The top most-needed TMS capabilities
► TOP 6 TM CAPABILITIES
EDI: 55%
Visibility
Rating / Carrier Selection
Order Management
Execution
Carrier Bid
Business Intelligence Dashboards
1
2
3
4
5
6
75%
HaveVisibility
25%No
Visibility
► THE STATE OF VISIBILITY
GPS: 47%
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Sustainability
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
What’s Driving Transportation Management Expansion?
• For companies that understood transportation strategic value more focused on: Improved Customer
Service, Business Growth and even the fourth highest choice, New Channels
0%
20%
40%
60%
80%
100%
Improved customer service Busness growth Cost reduction pressure
Business Drivers Resulting in Expanded/Initial
Use of a TMS
Competitive Weapon Leading Basic/necessary evis Mid & belowBasic/necessary evil
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Key Survey Takeaways
There is a definite correlation between management’s strategic value of transportation and a company’s performance, with higher strategic value resulting in better financial performance.
Carrier capacity is the dominant issue significantly influencing the strategies, tactics and use of transportation technology.
Technology investment is still the leading choice to address industry trends, but the search for new carriers and a change in transportation strategy are gaining ground.
Visibility emerged as the top capability and technology requirement for all respondents.
Understanding transportation value is still a significant issue for many organizations, especially for lower-performing companies, and a key inhibitor to increased TMS adoption.
Transportation IT spend will increase over the next 2 years, with the greatest investment expected in visibility and optimised planning.
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
eCommerce – elevating carrier and rate shopping
MORE
LESS
eCommerce
Available Capacity
• Leading retailers are integrating
carrier and rate shopping into their
e-Commerce websites
• Use TMS to fulfill committed order
at least cost
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Maximise equipment utilisation with
improved load planning
Increase use of own fleet whenever
possible – particularly with backhauls
Utilise private load board for spot quoting
with existing carriers
Leverage brokers strategically (capacity
matching)
Strengthen carrier relationships by
removing bottlenecks in processes or
operations that slow them down
Helping users circumnavigate the capacity crunch
MORE
LESS
eCommerce
Available Capacity
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Extending visibility with real-time updates
• Going direct to the source – pull
locations from asset or driver
• Supplement with traditional,
carrier-pushed updates (EDI,
web portals)
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Philips optimizes global Supply Chain
• Headquarter in the Netherlands
• EUR 24.2 Billion annual sales (2015)
• 118’000 employees
• In more than 100 countries
• End to End Visibility
• Time slot management
• Pre-billing
• Cost allocation at SKU level
• KPI Measurement
• Accurate lead times
→ lower inventory costs
• Total transport overview
including transport spend
Solution:
Philips is a Descartes customer since 2003. They use DSG TM solutions for Global Transportation (European distribution and Worldwide intercontinental). ➢ All Modes of Transport (Express, Parcel, LTL, FTL,
FCL, LCL, Air) ➢ >1 Million shipments per year. ➢ 115 mainly OEM web bookers➢ 4 different message types from 3 different Philips
SAP kernels➢ 3 different WMS systems in 10 DC’s➢ 75+ carriers connected
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Automating processes and bringing visibility
• $131B Retail and health care company, largest pharmacy chain in the US
• 18 mega DC’s• 7,500 stores• 9,600 delivery locations• Inbound and outbound fulfillment
• Manual management (prepaid & collect)
• Excess safety stock• Disconnected from global trading partners
• Poor service compliance from vendors/carriers
Challenges
• Inbound and Outbound Planning & Optimization
• Own fleet and LSPs• Advanced SC Visibility• Dock Appointment• Yard management
Solution
• Reduced lead time(-$120M safety stock)
• Freight collect (Inbound) up to 10% = +$13M margin
• +150% planner productivity• Yearly store fulfillment cost reduced by $3M
Results
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Reducing Freight Spend by $800,000
• $15B food distributor, 8 DCs• 1200 suppliers• Weekly customer deliveries• Supplier to customer
transport management• 50 carriers, TL, LTL• Dedicated fleet
• Fragmented transportation
• Over-utilized fleet• Too much time balancing across fleet and carriers: refer, freezer, dryvan
Challenges
• Planning & Optimization across fleet & carrier
• Carrier portal• Freight audit• Integration with Descartes GLN
Solution
• 4%-6% in freight savings
• Increased flexibility across fleet
• Leverage backhaul capability
Results
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
That the Competition is Using of Greatest Concern
Faster deliveries (e.g. same day delivery)Low cost/free shippingProvide value-added servicesDon’t knowProviding shipment visibilityDisruptive technologies (e.g. drones, driverless vehicles)
0%
10%
20%
30%
40%
50%
All Respondents (select two)
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Visibility
Schenker
TNT
DHL
DSV
K-Line
GLN
Dachser
Maersk
Local Carrier
Panalpina
Uniform Track & Trace& Shipment Details
WMS ManualERP Supplier
DPD
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
TMS ROI - Erfarenheter
• Vi har sett kunder göra signifikanta besparingar med vårt TMS
• 3-4% genom automatiserad exekvering
• 3-7% genom transportörsuppföljning och pre-billing
• 10-20% genom optimerad planering och transportörsval
• 2-5% genom fakturakontroll
P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .
Questions?
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