HCL inFreight & Logistics Transforming Freight & Logistics by Driving Business through Technology

Recovery from the recession has been elusive and more prolonged than any other in history, with uncertain economic conditions presenting several challenges for the industry

• Supplychainorganizationswillbeforcedtoadjustfromproliferationtooptimizationofinternationalflowsduetoadownward trend in global trade as a percentage of global GDP

• CapacitytighteningandleaneroperationsforLogisticsServiceProviders(LSPs)-poisedtoimposerateincreases

• Industryconsolidationwillbedrivenbyneedtoenter/establishnewmarketsandgainmarketshare

• ConsolidationofLSPsutilizedbyshipperswillenableleadingserviceprovidersgainhigherwalletsharefromexistingcustomers

• Sustainabilitymeasureswillhaveasignificantimpactonshippingandtransportcompaniesservicesandcosts

HCL – Here to help• 15+years’experiencedeliveringsuccessfulglobaltransformationinitiativesforleadingindustryplayers

including8ofthetop15LSPsand5Nationalmailcompanies

• Extensiveexpertiseacross5functionalbusinessareasofLSPs-contractlogistics,freightforwarding,freightmanagement,customsmanagement,andtrucking&fleetoperators

• Helpingcustomersachieveoptimumvaluefromtechnologyinvestments;maximizingROIthroughintegratedservicedeliveryacrossapplications,infrastructureandBPO

• Helping‘alignITtobusiness’bymappingprocessestoapplications,infrastructureanddatabases,therebyeliminatingredundanciesandcostoverruns

• ROIbased,provenApplicationManagementmethodology-alleviatesthecentralissuesofvalueaddition,businessalignmentandcostreduction,deliveringpredictableservicesatpredictablecosts;Guaranteedsavingsaccruedfromreducedcostofoperationsfrom“Runthebusiness”areploughedbackintotransformationalinitiativesfocusedon“ChangetheBusiness”

• Industry-specificprocessrepositories,frameworksandaccelerators,tohelpexpeditetherealizationoftransformationgoalsandprovidepredictableoutcomes

UNDERSTANDING THE INDUSTRY

Uncertain Economics

Resource Management

Risk & Compliance

Aligning IT to Objectives

FREIGHT & LOGISTICS VALUE+ SOLUTIONS

• 2011’stotallogisticsspendof$1.28trillion(up6.6%over2010)is17%abovethe2009bottom,butisstillbelowthe2007peakof$1.39trillion

• Theindustryreportedgradualrecoveryin2011andisexpectedtocontinuein2012,albeitatavery slow pace

• Effectiveassetutilizationandcautiouscapacityexpansion

• Intermodalgainingprominenceoverairandroad,spikingdemandforintermodalchassisandtrailers

• Inabilitytoattractandretaintalent.Challengesincreatingthefutureworkforce

• Needtobuildmorefuelefficientfleetstooffsetrising fuel prices and manage carbon footprint

• Increasingregulationstomeetsustainability,security and safety requirements

• Growingfocusoneffectiveriskmanagement

• New‘HoursofService’rulesareduetogointoeffectinJuly2013-estimatedtoimpactdriverproductivityby3-8%negatively

• ShippersareincreasinglyfocusingonevaluatingtheITcapabilitiesofLSPs

• Inabilitytosynchronizeend-to-endbusinessprocessesisdrivingincreaseddemandforSCMapplication convergence

• LeveragingITtooptimize/automateprocesses,increasefleetefficiencies,andtodifferentiate

• Inabilitytoeffectivelyleveragenewtechnologieslikemobility,complexeventprocessing,etc.

Business Challenges

HCL Offering

Customer On-boarding

Freight and Transport Optimization

Report Factory

eFleet Management

Advanced Control Tower

Green Logistics Terminal

CataLOG

• CatalogbasedservicesforEDIonboarding.LeverageHCLunderstandingandexperienceacross40+EDITransactionsandcategoriesforLogisticsindustry

• Frameworktocreateaself-serviceorganizationallowingpartnerstotestEDIdocuments

• EliminatesEDI/B2bintegrationproblemsbyautomatinglargesetoffunctions

• 50%reductionincustomeron-boardingtimeresultingin~10%additionalrevenue• 75%reductioninEDIoperationscostduetoautomationofprocesses• Abilitytoon-boardtwiceasmanycustomerswithsamesetup

• CompleteAssessmentFrameworkandMethodologytohelptransformcoreOperationssystems

• Pre-definedKPI’stohelpCIOsbenchmarkthecurrentstateofoperations,thereby,providingabaselineandroadmapformovingontoastandardized,“globalfreightforwardingandtransportationplatform”builtonascalable,flexibleapplicationsarchitecture

• Productivityimprovementwithgoaltoachieveindustrybenchmarkof5Files/FTE.• Enhancedvisibilityleadingtobetterutilizationofassets.• Unifiedcustomerinformationforimprovedrevenuerealizationpercustomer.

• Aholisticviewoftheenterprisethroughcataloguebasedreportingandanalyticsservices.

• TrackandimproveperformanceofLOBsagainstpredefinedKPIs.

• Centralizeandstandardizedisparatereportingpracticeinorganization.

• Deploymentoflowcostautomationsolutionsusingin-housedevelopedtoolset.

• 99.9%qualityandaccuracyinreportingwithstandardizationacrossorganization• 30%reductioninemployeeengagedinmundanereporting

• TelematicssolutionofferingFleet/DrivermonitoringandGeo-Fencing

• PaperlessfleetmanagementandRealtimejobdispatchandremotereporting

• ReduceTCOofmobileassets&improvefleetutilizationthroughoptimizationandbundling.• Maximizeresource/vehicleavailabilityandsafety• Reducefuelcostsandcarbonfootprintthroughefficiencyofoperations

• Proactivedecision-makingbasedonComplexEventProcessing

• Real-time/automatictriggerofapplicationsbasedonbusinesseventsandpatterns

• Flexiblebusinessrulesforexceptionmonitoring

• Correlateinformationinrealtimeandderiveinsightsbasedonuserdefinedpatterns• Increasedprocessautomationforbettercustomersatisfactionandoptimizedoperations• Fasterandaccuratepredictionsofoperationalirregularitiesandexceptionaloccurrences

• AnEmissionsmanagementframeworktomeasureandtrackcarbonfootprint

• Optimizeresourceconsumption–energy,fossilfuel,paper,waterandtravel

• Pre-configuredKPIsforemissionmanagementandreporting

• Monitorgoalparametersandtrackemissionoffsets

• ComplywithUSandEuropeangovernmentlaws

• Monitorandreportsavingsfromgreeninitiatives/projects

• Aunified,one-stop-shopportalforallsupplychainrequirements

• SaaSenabledframeworkforserviceproviderswithsubscriptionbased“Pay-per-use”concept

• Automatic provisioning of customers, metering and billing

• Timelyorderfulfillmentduetoautomatedordercaptureprocess• Enhanceefficiencyinwarehouseandcomplexdistribution,yardanddockoperations• End-to-endvisibilityofmaterialandinformation

Solution Overview & Value Proposition with Realized Benefits

HCLengageswithleadingFreight&Logisticscompaniesglobally,helpingtransformIT–rightfromsupportingbusinessoperations to building sustainable competitive advantages

Domain-led Delivery

• Understandingbusinessprocessespertinenttotheindustryandapplyingtechnologytoenhancecustomerexperience

• DedicatedLogisticsCenterofExcellence(CoE)andindividualcustomeracademies-expeditingresourceon-boarding and enhancing productivity

• Recognizedbyleadinganalystfirm,Gartner:“HCLhelpslogisticscompaniesunifytheirtechnology-enabledservices”

• Partneredwithaleadinglogisticsprovidertodeveloptheworld’sfirstsingleinstancebusinessoperatingplatform

• Recognizedastheonlyserviceprovidertohavesuccessfullydeliveredonacoresystemtransformationinitiativeinanonsite-offshoremodel

PEOPLE IN ACTION THE LOGISTICS TEAM

Industry Focus

Domain Expertise

• Over15years’experience

• 2000+domain&technology professionals

• 25+customersinNorthAmerica,EMEA&APAC

• Servingleadingindustryplayers-8oftop15LSPsand5nationalmailcompanies

• 400+applicationssupported globally for logistics clients including65+incontractlogistics,180+infreightforwarding,220+custom built and custom brokerageapplications,and25+TMS&WMSapplications

• 100,000+applicationusers supported in 70+countriesand65000+ticketshandledeverymonth for logistics clients

Leveragingstrategicalliances with Fortune 1000firms

• SAP

• Oracle

• Microsoft

• TIBCO

• RedPrairie

• eBiznet

• Daon

• AvFinity

• EMC

• HP

• CA

• Misys

• Informatica

• EnterpriseTransformation

• ProductEngineering&Development

• SystemIntegration

• ITServicesManagement&Operations

• BPO

• InfrastructureServices

• CustomApplication Development

• LegacyModernization

• MasterDataManagement

• EDI/B2BServices

• CollaborativeCo-SourcingModel(providesflexibility&scalability as a customer can retain control over all the strategic aspects ofITwhileleveraging our capabilities for operational executionandexcellence)

• Risk-RewardSharing

• OutputBasedPricing

• JVs

To enhance Operational Efficiency

• Coresystemsintegration

• Electronic Data Interchange(EDI)basedcustomeron-boarding

• Maintenancerepair&overhaul

• Assetmanagement

• Crewplanning

• Sustainabilitysolutiontomanage carbon footprint

• SaaSenablementframeworkfortransportation service providers

• SubscriptionbasedSCMPortals

• Mobility

For supply chain visibility

• Reportfactory–catalogue based analytics

• e-fleetmanagement

• Advancedcontroltowerfordecisionmakingbasedonrealtimeevent/data correlation

• RFIDbasedtrackandtrace

Transformation Solutions

Partnerships & Industry Alliances

Unique Business & Engagement Models

Comprehensive services across the ecosystem

25+ Global Customers

Transportation&Logistics-FreightForwarding,ContractLogistics,CustomsBrokerage,Trucking&FleetOperators,WarehouseManagement,Distribution,Shipping,ExpressAirFreight&Mail

Global transformation of a freight forwarding system

A global freight forwarder with a wide range of clients was looking for a partner to help it transform its freightforwarding system globally, within a stipulated budget, timelineand resources.HCL tookownershipof theend-to-end reengineering of its business processes anddevelopedover165customapplicationswhiledeliveringa single global freight forwarding system with unifiedprocesses, data and measurement metrics. This was afixedprice,managedservicesmodel thatwas rolledoutinphasesacrossgeographies.Results:Releaseda24%FTE bandwidth for core business activities; reducedcustomeron-boardingtimeby60%;fasterdeploymentby30%;100%decommissioningoflegacyapplications;2%assuredvaluecreationonTCV.

Contributing to operating margins by empowering Business Operations & IT

Forthelastfouryears,HCLhasbeensupportingtheglobalBPOand IT Landscape (Applications& Infrastructure) oftheworld’s5thlargest3PLserviceprovider,with28%fewerresourcesforthesamescopeofworkanda20%quickercallresolutionrate.HCLisnowtheonlyservicepartnerfordelivering global business transformation initiatives to this customer.Results:Over€4Mnannualsavingsand1.47%EBITAimpactwithinthreequarters;50%reductioninDSObyadoptingaSLA-ledapproach;enabling100%visibilityacross channels; created a platform for service deliveryenabledbyIT.

Online Shipment Booking System

A leading global freight forwarder with a wide range of manufacturing, industrial, retail, and government customers approached us to help create an OnlineBooking system with features that enable requests forquotes,quotecreation,submission&retrieval,alongwitha graphical user interface for customer logins, and for creating, retrieving and tracking bookings. The solutionwasintegratedwiththeDocumentManagementsystemtoretrieveshipmentdocuments.Results:Shipmentbookingdataquality improvedfrom36%to83%;westreamlinedthebookingprocessfor85%oftheshipments,andinvoiceaccuracyimprovedto78%duetoareductioninshipmentdetail errors which led to a 30% improvement in therealizationofinvoices.

SUCCESS STORIES

CaseStudies

“HCL has built a solid reputation of providing industry-leading IT application and infrastructure services. Given their commitment to the transportation and logistics industry, willingness to invest in our success, and unwavering commitment to excellence, HCL was the right choice”

Senior Vice President and CIO, a leading 3PL company

Testimonials

• Experience-15+years

• Customers-25+globalcustomersinNorthAmerica,EMEAandAPAC

• Team-2000+technology&domainconsultants

• Services-EnterpriseTransformation,ProductEngineering&Development,SystemIntegration,ITServicesManagement&Operations,BPO,InfrastructureServices,CustomApplicationDevelopment,LegacyModernization,MasterDataManagement,EDI/B2BServices

• IPs & Frameworks–Freight&TransportOptimization,ReportFactory,SCORPPlatform,AssetManagement&Mobility,eFleetManagement,Cross-DockingIT,CataLOGTM,eFMS,CustomerOnboarding,AdvancedControlTower,GreenLogisticsTerminal

• Partnerships-Oracle,SAP,Microsoft,TIBCO,RedPrairie,EMC,HP,Misys,Informatica,eBiznet,Daon, AvFinity

HCL’S LOGISTICS TEAM IMPACTING THE WORLD

| 90000 people | 31 countriesHcl tecHnologies: $6.2bn

THE WORLd IS nOTICInG SOMETHInG UnIqUE ABOUT HCL

The‘EmployeesFirst’philosophyatHCL,thefirstsucharticulationintheITIndustry,isatthecore of our efforts to provide our employees withaworkenvironmentandculturethattheycantakepridein.

IT IS EMPLOYEES FIRST

Employees First.

Whenyouchannelizetheenergiesof90,000employeesandpouritintoafunnel,yougetapotentconcoctiongushingoutoftheotherendthatwillsendyourcompany’senginesracing.

WecallthistheEmployeesFirsteffect.

www.hcltech.com

HCL’sEmployeesFirstisanewandradical management philosophy which will catch on with the world sooner or later

HonoredwiththeForresterGroundswellAward2011inthe‘Management–InnovativeSystems’categoryfor‘ValuePortal’–anemployeeideaexchangeplatformwhereemployeescollaborate,innovate and lead the implementation of their ideastodelivervaluetoHCL’scustomers

DardenSchoolofBusinesshasdoneacasestudyontheimpactcreatedbyHCLthroughits“EmployeesFirstCustomersSecond”practice

HarvardBusinessSchoolteachesaboutHCLasacasestudyonbusinesstransformationhighlightingtheEmployeesFirst initiative

HCL’sEmployeesFirstand‘democratization’ofmanagementconceptcould‘bringaboutacorporaterenaissance’

ExclusivereportonEFCSrecognizesthatthisphilosophyempowersHCL’sfrontlineemployeestomakedecisionsandtakeactionsforthebenefitofcustomers

Gartner

Rankedastheworld’sMostInnovativeCompanyinitsworkforcepractices

PublishedbyHarvardPress,Employees First, Customers Second is admired by global thought leaders-TomPeters,TonyHsieh,GaryHamel,JudyMcGrath,RamCharanandVictorK.Fung;Ranked

No.17ontheBestSellerlistin800-CEO-READ;Listedamongstthe‘BestBusinessBooksof2010’bytheLibraryJournalofAmerica;RankedNo.7onAmazonUK’slistingof‘BestBusinessBooksof2010’.

PublishesaCaseStudyrecognizingthebusinessvalueofHCL’sEmployeesFirst-“ForHCLcustomers,improvedengagementand employee passion translates into greaterflexibility,proactiveinnovation,andadesire to do the right thing for the customer, regardless of what the rules might say”, itsays.

WinstheAsianHumanCapitalAward2011forinnovativeandimpactfulpeoplepracticescenteredontheEmployeesFirst,CustomersSecondphilosophy

Forthefourthtimeinarow,WorldBlulistsHCLasoneoftheMostDemocraticWorkplacesintheWorld

AcknowledgesHCLTechnologiesastheworld’smostmodernmanagement

HCLisalsotheonlyAsiancompanywhoseCEOfeaturedonFortune’s‘DreamTeam’

HCLisintheElite“Thinkers50”List

OneofBritain’sTopEmployersforthe 5thConsecutiveYear