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This CSCMP 2014 topic, presented by Ryder and LogFire, compared traditional, hosted, and cloud-based WMS solution alternatives and dispelled the myths and TCO differences.
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Traditional Verses Cloud-based WMS Solutions
What Is The Right Operating Platform
and Total Cost of Ownership Differences
Introduction / Speaker Bio
Andrew Cree• Senior Director of IT
– Ryder • Senior IT Manager
– Loblaw Companies Limited• Consultant
– AT&T Capital• Business Analyst
– Municipal Financial Leasing
About Ryder• Since 1933• Leading Provider of Integrated
Logistics Solutions• Outstanding Functional
Execution and Proactive Solutions
• Deep Expertise in Key Industry Verticals:– Retail– Industrial– Automotive– Hi-Tech
Proprietary and Confidential |
Corporate Overview
3
2013 Total Revenue $6.42 Billion
Supply Chain Solutions (SCS) $2.38 Billion (37%)
Fleet Management Solutions
(FMS)$4.04 Billion (63%)
2013 Net Earning $238 Million
Employees 28,900
Fortune 500 Rank [NYSE : R] 404
DC’s Managed / Sq Ft 235 DCs/35+M sq ft
SCS Customer Accounts 671
Fleet Equipment 172,100
Headquarters Miami
Canada Toronto
Asia Shanghai
Mexico Mexico City
Other London
Freight Under Management $4.6 Billion
Cross Border Shipments Managed 9,700 / Month
Since its founding in 1933, Ryder has become a leading provider of integrated logistics and transportation solutions. We deliver outstanding functional execution and proactive solutions built from deep expertise in key industry verticals, including retail, industrial, automotive, and hi-tech.
30%
SCS Product Offering
Proprietary and Confidential |
Proud to Serve Industry Leading Consumer / Retail Customers
44
Proprietary and Confidential |
Ryder SCS Canada Overview
55
Fleet Management DivisionSupply Chain Division
Ryder Supply Chain Solutions began operations in Canada in 1986. Since this time, we have developed an
impressive client base that spans across industries and a comprehensive portfolio of supply chain services. Our
Canadian headquarters is located in Toronto and we have facilities and operations coast-to-coast.
Logistics Locations 45
Total Square Feet 1.3 Million
Freight Under Management $450 Million
Fleet (Ryder Dedicated power + trailers) 700
Drivers (Ryder Dedicated) 475
Annual Miles (Ryder Dedicated) 34 Million
Total Employees 1000
Introduction / Speaker Bio
Larry Ferrere• 30+ Year Software / Technology
Executive• Executive Vice President - LogFire• Cross-functional and customer-facing
growth leader for enterprise and supply chain solution providers:
– Andersen Software/Andersen Consulting, now Accenture
– JDEdwards, acquired by Peoplesoft, now Oracle
– Vastera, acquired by JPMorgan, now Livingston
– InterimONE – CxO strategy & advisor – Yantra, acquired by Sterling Commerce, now
IBM– Manhattan Associates, including
Logistics.com TMS and Evant SCP– JDA, including i2, Manugistics, E3, Intactix,
and Arthur, and now Red Prairie– LogFire – cloud-based SC provider
About LogFire• Since 2007• Leading Multi-Tenant Cloud-Based
SaaS Fulfillment Solutions and Managed Services Provider
– Multi-Channel Warehouse Management– Store Inventory & Fulfillment– Workforce Management
• Serving customers of all sizes and geographies
– Retailers– Wholesalers– 3PLs– Manufacturers – eCommerce
Definition: Traditional vs Cloud Source: Gartner
Source: Gartner
TRADITIONAL: HOSTED & HYBRID: “TRUE” CLOUD-BASED:
CLOUD: “where you run solutions”
“Multi-Tenant” Cloud: Secure, shared solution, sometimes also referred to as a “Public Cloud”
BUSINESS PROCESS OUTSOURCING (BPO) & MANAGED SERVICES: “who runs it & who maintains/upgrades it”
“Private” or “Dedicated” Cloud: Any hosted solution, run in a third party data center
“On-Premise” hosted / installed and maintained solution
SOFTWARE AS A SERVICE (SaaS): “how you buy”normally an all-inclusive monthly usage charge based on transactions, named users, or concurrent users
Up Front License & Annual Maintenance Fees
Definition: Traditional vs Cloud
TRADITIONAL ON PREMISE “TRUE” CLOUD-BASED
$$$$$
100 / 0
AcquiredCost
Costs: Traditional vs Cloud
TRADITIONAL ON PREMISEHOSTED SOLUTIONS
$$$
80 / 20
DedicatedCost
$
20 / 80
Shared Cost
“TRUE” CLOUD-BASED
Myths: Traditional Systems
MYTH
- Traditional Solutions are more mature, thus functionally complete solutions
- Traditional vendors have better support resources
- Traditional vendors have more innovation ability
REALITY
Business model based on large up front license cost, annual maintenance, and custom modifications which are costly, time consuming, and risky
Customized solution are difficult to support
Customized solutions are difficult to upgrade (without re-installation) -- thus, new innovation is not easily leveraged
Cloud BenefitsOver Traditional & Hosted Solutions
Benefits• Superior/No Cost Infrastructure• Reduced IT Burden/Lower Overhead Cost• Rapidly Installed• No Cost Scalability• Elasticity to Flex with Business Changes• Network Connectivity & Big Data Leverage• On-Demand User Access – Anywhere Anytime• Faster/Immediate ROI• No Cost/Continuous Upgrades• Lower TCO
DrawbacksIf you want static, proprietary, custom system
– cloud solutions may not be for you!
Network Security
Network Speed
Network Reliability
Network Scalability
Solution Innovation
lndustry PerspectiveBenefits of Cloud Solutions
Services Industry / Logistics Service Provider (3PL/4PL)• Current Version Importance
– Vendor Support– Version Knowledge – Product Quality & Performance
• Reduced Internal IT & Support Requirements• Ongoing Best Practice & Innovation Leverage• Eliminate HW & SW Cost
– “Off the Books” After End of Client Contract
Total Cost of Ownership:Traditional vs Cloud
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
True Cloud-Based Solutions
Traditional Solutions
Total Cost of Ownership:Traditional vs Cloud
HARDWARE & RELATED
IT OVERHEAD
SOFTWARE
IMPLEMENTATION
SUPPORT
ON PREMISESOLUTIONS
HOSTEDSOLUTIONS
“TRUE” CLOUDSOLUTIONS
$$$$$
$$$$$
$$$$$
$$$$$
$$$$$
$$$
$$
$$$
$$$$$
$$$$$$$
Included
$
$
$$
Included
Total Cost of Ownership:Traditional vs Cloud
HARDWARE & RELATED
ON PREMISESOLUTIONS
HOSTEDSOLUTIONS
“TRUE” CLOUDSOLUTIONS
$$$$$ $$$ Included Server Hardware (Acquisition Cost) Development Environment Test Environment Production Environment Online Archive Environment
Server Hardware (Upgrades)
Hot Backup DR Environment Network & WiFi Infrastructure Maintenance Cost Servers Infrastructure
Peripheral Hardware Workstations Network Printers Bar Code Printers RF-Devices & Related Equipment Peripheral Maintenance & Spares
Cost neutral Cost neutral Cost neutral
Total Cost of Ownership:Traditional vs Cloud
IT OVERHEAD Internal IT Resources (fully loaded)
Shared IT Services Outsourced IT Resources Security & Infrastructure Monitoring & Tuning
ON PREMISESOLUTIONS
HOSTEDSOLUTIONS
“TRUE” CLOUDSOLUTIONS
$$$$$ $$ $
Total Cost of Ownership:Traditional vs Cloud
SOFTWARE Up Front License Costs Application Software User Licenses DB Licenses Operating System Licenses Infrastructure / Middleware Licenses
Annual Costs Licensed Applications User Licenses DB Licenses Operating System Licenses Infrastructure / Middleware Licenses
ON PREMISESOLUTIONS
HOSTEDSOLUTIONS
“TRUE” CLOUDSOLUTIONS
$$$$$ $$$ NA
$ $$ $$
Total Cost of Ownership:Traditional vs Cloud
IMPLEMENTATION Pilot Cost (Resources*Days*Rate)
Internal Costs External Costs
Rollout Cost (Resources*Days*Rate) Internal Costs External Costs
Upgrade Cost (Resources*Days*Rate) Internal Costs External Costs
ON PREMISESOLUTIONS
HOSTEDSOLUTIONS
“TRUE” CLOUDSOLUTIONS
$$$$$ $$$$$ $$
Total Cost of Ownership:Traditional vs Cloud
SUPPORT 24x7x365 Support Dedicated Managed Services Modification Support
ON PREMISESOLUTIONS
HOSTEDSOLUTIONS
“TRUE” CLOUDSOLUTIONS
$$$$$ $$$$$$$ Included
Summary: Traditional vs Cloud
TRADITIONAL ON PREMISE “TRUE” CLOUD-BASED
Newer, More Nimble, Vendors No Cost Infrastructure Reduced IT Burden Lower Overhead Cost Rapidly Installed No Cost Scalability Flex with Business Changes On-Demand User Access Network/Big Data Leverage Faster/Immediate ROI No Cost/Continuous Upgrades Lower TCO
Long Standing Mature Vendors Large Up Front Cost Model Not Always Best Functional Fit Large Install Base Cloud = “Hosted” Version Ecosystem of Partners Longer, Costly Installations Costly Annual Maintenance Past-Release Support Issues
Difficult, Costly Upgrades
Questions?
More Details
• Visit Us During CSCMP– Cloud Alliance for SCM – Booth 529
• Contact Us– www.LogFire.com
678.261.9000– www.GoCloudLogistics.com 561.800.1212– www.Solvoyo.com
617.642.1338
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