hon. robert g. taub postal regulatory commission (prc) · hon. robert g. taub postal regulatory...

Luncheon

Hon. Robert G. Taub

Postal Regulatory Commission (PRC)

Innovation and Invention in the Supply Chain

Mike Comstock

GrandCanal

Ursa Major Associates

Global Online Trade Solutions

Jay Emmet

OpenMarket/Amdocs

Nagesh Kadaba

ipCG

Ramesh Ratan

Bell and Howell

Predictive Supply Chain Analytics Enabling the Intelligent Supply Chain

Mike Comstock, Sr. Vice President-Customer Success&

Co-founder- Ursa Major Associates, LLC

Today’s Supply Chain Limitations

© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 4

ERPAnalytics

Fabrication Warehousing Distribution

ERP,

OMSCarrier Data WMS TMS

Supply

Chain

Systems of

Record

Carrier-specific Analysis

Supply

Chain

Data

Analysis



ERPAnalytics


ERP,


Supply

Chain

Systems of

Record


Supply

Chain

Data

Analysis

Inventory



ERPAnalytics


ERP,


Supply

Chain

Systems of

Record


Supply

Chain

Data

Analysis

UPS/FedEx

Optimize Predictive Analytics Cloud (PAC)



ERP,


Supply

Chain

Systems of

Record

Supply

Chain

Cross-

functional

Data

Analysis

Optimize™ Predictive Analytics Cloud

Remove Barriers to Optimization



ERP,


Supply

Chain

Systems of

Record

Supply

Chain

Cross-

functional

Data

Analysis


Enabling Intelligent Supply Chain



ERP,


Supply

Chain

Systems of

Record

Supply

Chain

Cross-

functional

Data

Analysis


Dynamic optimization for Supply Chain

Using Invention, Innovation and Its Resulting IP as You Develop Your Supply Chain / Logistics Solutions

Nagesh KadabaSenior AdvisoripCapital Group

March 15Prepared for Prepared by

ipCapital Group426 Industrial Avenue • Suite 150 • Williston, VT 05495

802.859.7800 • www.ipcg.com

© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.

B2Me - Game Changers

http://www.ipcg.com/


11

• Innovation• The process of taking an idea from mind to

market• A series of inventions towards a marketable

product or process

• Invention

• Solving of a specific technical problem or…• The discovery of something new – but this is

more rare

• Intellectual Property

• Exclusive rights on inventions• Granted through vehicles including patents and

trade secrets

Introduction - Detailed View of Innovation, IPthrough Invention

IP Trends in the Supply Chain& Logistics Industry Innovation and Invention in the Supply Chain - B2Me - Game Changers

• Group 1

• “The Last Mile”, Carrier agnostic delivery and returns

• Environmental sensors based routing and dynamic delivery. (Cold Chain)

• Internet of Things, IoT sensors on mobile assets

• On-demand delivery for eCommerce

• Dynamic Routing & Real-time visibility

• Cloud Computing (Information flow, communication flows and Funds flow)

• Group 2

• Millennium generation and smart phones, Mobile computing

• Human Machine Interface (HMI)

• Social networking triggered marketing

• Big data harvesting

• Group 3

• Drones, Driverless trucks, Robotic vehicles (Warehousing)

• Uber model for delivery

• Smart Kiosks, Flexible access points, Self-Sorting Collection Box


12

Inventions in Drones

Inventions in Internet of Things

IP Trends in the Supply Chain& Logistics Industry


13

Invention, Innovation and Its Resulting IP • Methodic data driven Strategic IP analysis can:

• Identify “White Spaces”

• Rapidly identify NEW application areas

• IP can serve as a catalyst and an accelerator

• Recognize the need for organizations to devise new IP development strategies that address the issues of speed, quality and relevance.

• Identify TECHNOLOGY ADVANCEMENTS

• Will your IP become obsolete with next generation technologies?

• Identify COMPLIMENTS

• Have you protected invent-on-top-ofs?

• Have you protected add-ons & interfaces?

• POTENTIAL ENTRANTS

• How well does your IP protect your core business?

• Is your 1st mover advantage protected?

• To invent-in-front of new technology trends. Investors will support innovative companies by investing in invention, not litigation


14

Business

Market

Products

Innovation & Invention

Intellectual Property

Technology

Intellectual Capital

426 Industrial Ave, Suite 150Williston, VT 05495

(802) 859-7800

www.ipcg.com

Thank You


15

A Day in the Life of a Parcel

15-March-2016

Ramesh Ratan, CEO

A Day in the Life of a Parcel

Innovations driving new value in the economics of

supply chain and logistics

Order Pick Pack Label / Encode

Sort / Encode Deliver / Track

Collect & Acknowledge ReturnEnjoy

Old Today Future

10x 3x

3x

6x 3x 15x

THANK YOU

Shaping the Future of Mail and Commerce

Questions?

[email protected]

A Division of Amdocs

March 2016

Postal Vision 2020

Proprietary & Confidential to OpenMarket20

About OpenMarket

We believe mobile has fundamentally transformed how Enterprises communicate, engage, and interact with their customers

4 of the Top 10 most respected global

brands1 work with OpenMarket

Over 40% of mobile messaging VARs rely

on OpenMarket2

1 Harris Interactive 2014

2 Forrester Mobile Messaging Vendor Overview report 2013

Managing over 1B E2P engagements

per month


Why Mobile Messaging

EngagementReach Outcome

OpenMarket provides interactive mobile messaging solutions with expert guidance to help achieve your desired business results


For more information, contact:

Jay Emmet

[email protected]

2211 Elliott Avenue, Suite 400

Seattle, Washington 98121

United States

openmarket.com | +1.877.277.2801

mailto:[email protected]

24

U.S. E-Commerce Establishments Over Time

_____________________

Sources: Forrester Research; www.ibisworld.com; www.outerboxdesign.com.

4957

67 73 7690

99113

122138

148163

176

198213

0

50

100

150

200

250

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

(Establishments in

thousands)

Online Retailers Fuel the Search for Options

• Growth in e-commerce

establishments is expected to

continue, driving increased

need for affordable and

accessible shipping solutions

• Consumer expectations of free

shipping and free returns are

forcing sellers to optimize their

shipping strategies across

shipping carriers and

technology providers

Ecommerce is growing fast with shipping innovation

More platforms… more options

• Making it easy for sellers to

use USPS across multiple

marketplaces

• Automatically imports

orders from direct

integrations to

anywhere

a seller sells

…and many more!

25

Diversified fulfillment… ship-from-store

What is it?

An integrated solution allowing retailers

around the country with multiple locations

to successfully fulfill orders from stores

using the USPS.

The benefits

• Easy to use: minimal training required with integration to POS processes

• Reduced shipment errors: built-in address validation, correct rates and

services and shipping labels with tracking all available at the push of a button

• Reduced shipping time and cost: ship from within a customer’s zone

instead of a far-away distribution center

• Increased visibility: comprehensive reporting and tracking across all

locations, as well as automated customer notifications

Source: Customer Desires Vs. Retailer Capabilities: Minding The Omni-Channel Commerce Gap, Forrester Research, 2014

The time is now: 93% of retailers report

positive revenue uplift

with ship-from-store

26

Getting creating… hybrid shipping options

Ship more quickly & easily to

all of Latin America

• Fast & predictable service

○ Consistent delivery in less than 10 days

○ Clear customs in less than 6 hours

○ Tracking and confirmation of delivery

• Easy to use

○ No customs forms

○ No tariff codes required

○ No surcharges or extra fees

• Reduced fraud potential

○ No goods declared on external label

○ Address validation and postal code lookup

○ Pay duties and taxes in advance

Best of the Best Options!

• USPS domestic

• Commercially cleared

• Private foreign courier

network

27

B2Me – Retail Front End – First Mile

Robert Reisner

PwC

Neel Murthy

SwapBox

John Reis

Canada Post

Corporation

Anthony Watson

ShipBob

The InsurgencyFirst Mile/Last Mile

Robert A. F. ReisnerDirector, PwC

Vision 2020 6.0March 15, 2016

The Traditional Certainties

From Retail to Delivery Supply Chain to the Mail Box

The Linear Delivery Model is Being Disrupted on All Sides

Proprietary

PwC

Amazon, Alibaba, Local Services, Partners with Capabilities – Disruption Everywhere

Proprietary

PwC’s 2016 Retail Survey Describes ConsumerDemand for a New Kind of Retail Experience

Proprietary

PwC

Connecting the Dots:Customer Centricity in the Digital Marketplace

• Placing tools in the hands of the empowered consumer

• Creating a power shift from shipper to consumer

• Building the consumer centric network multiple options offer new entrants the ability to redefine retail and delivery

• Is it the shipper? Or the carrier? Or the consumer who controls the future marketplace?

• In 1995 Fred Smith said that he could envision a time when the value of the information was equal to the value of the package itself

• Today we can see a time when the carrier is as important as the shipper, and then a time when the interface controls

• Sourcing the products,

• Sourcing the carriersProprietary

PwC

Some TakeawaysThe Age of the No Look Pass

You have to

1. Know where you are

2. Create capabilities

• Imagine Assymetry

• Create Agility

• Empower Collaboration

• Move Leadership to the Edge

• Manage with Anticipation

Strategic

Inflection

Innovation

Culture

Breakthrough

Reinvention

The Transformation

Imperative

Proprietary

PwC

Proprietary

© 2016 PwC. All rights reserved. “PwC”

refers to PricewaterhouseCoopers Public

Sector LLP (a Delaware limited liability

partnership) or, as the context requires, the

PricewaterhouseCoopers global network or

other member firms of the network, each of

which is a separate and independent legal

entity. Please see

DATE

Canada Post Retail

CONFIDENTIAL | Canada Post Retail Network

6,300 Outlets

Crucial to advantage in parcels & e-commerce

Critical to providing consumer convenience

Largest retail network in Canada with over 6,266 locations

Generates $1.2B revenue

124M transactions per year (selling & parcel pick up)

98% of Canadians within 15 km

88% of Canadians within 5 km

78% of Canadian within 2.5 km

6,266 locations

Retail Network is a powerful asset and critical part of the overall

channel strategy

Strategic

1,400+

370+

1,400+

3,600+

In spite of its strategic importance, the Canada Post retail network

makes a marginal profit largely due to cost-heavy corporate locations

http://en.wikipedia.org/wiki/File:Walmart_Canada_Logo.svg

http://en.wikipedia.org/wiki/File:Walmart_Canada_Logo.svg


Market changes will create further financial pressures on our

corporate stores and threaten value to dealers

Lettermail

Dealer

economics

Moratorium

Letter volumes have declined driven by

technology, with current run rate of 4 to

6% p.a. (~10% decline at retail)

Dealer network specific

The current dealer operating model

requires dedicated resources (i.e.,

labour, space) and high capex; the

market trends will make it harder for

smaller dealers to breakeven, and put the

stability of the dealer network at risk

Corporate network specific

The moratorium will limit CPC’s ability

to compete and will cost to the tune of

hundreds of millions of dollars

(including benefits), making the retail

network unviable

$

Transaction

Mix

Transaction mix will shift towards zero

value transactions which will represent

up to ~60% of all retail transactions by

2025

Retail

Revenue

Even with planned price increases,

overall retail revenue will decline by

over 10% in 5 years and 20% in 10

years

$

Competition Traditional competitors are fighting for

the Canadian market by expanding

domestic infrastructure.

Third party delivery solutions such as

parcel locker networks and Penguin Pick-

Up locations are further intensifying the

competitive dynamics


As a result of the pressures, we have concentrated our efforts in

protecting this strategic asset using the following framework

The retail network holds tremendous value, evolution is needed and this will require a multi-year effort

Leverage Canada’s largest retail network to enable best in class delivery experience

for shippers and consumers and to support the company’s position as low cost leader

We will achieve this through a customer-focused approach consistent with the CPC

brand and by offering a strong dealer value proposition

Strategic Goal

Evolve how we think about the Network

1

Evolve the Dealer Model

2

Determining the Role of Corporate Stores

3

Building a Living Model of the Future

4

Significant corporate asset … must protect advantage

+Core to e-commerce play

+Room to improve …. within existing constraints

+


To further support e-commerce, we are testing a number of

postal technologies in our concept stores

FeaturesRichmond

HillEdmonton Vancouver

Drive-Thru

Extended Hours

24-7 Area

Kiosk (Self-Serve

Shipping)

Self-Serve Induction

Vending Machine

Fitting Room

Target opening date

Already

Open

(Oct 2015)

Summer

2016

Fall

2016

EDMONTON

RICHMOND HILL

VANCOUVER


The concepts in the Richmond Hill concept store are

continuously being monitored for uptake patterns

16%

84%

Kiosk Counter

16% of total volume

Peak migration of up to

45% observed on some

days in December

5% of transactions are

after-hours

24%

76%

24% of total inductions

Peak migration of up to

52% observed on some

days in December

10% of inductions are

after-hours

KIOSKINDUCTION

STATION

Induction

Station

Counter


The concepts in the Richmond Hill concept store are

continuously being monitored for uptake patterns

8% of relevant volume

Mostly selling stamp

booklets

8%

92%

Vending Machine Counter

26%

74%

Drive-Thru Counter

26% adoption

40% of pickups are after

5 pm

Total call-for pickups of

1,519 out of possible

5,769

Ven

din

g M

ach

ine

Dri

ve

-Th

ru


Customers much happier with concept store

Customer: “I was satisfied

with the service I received,

the staff was thorough

although the line was kind of

long”

Customer: “if self serve

machine has more functions,

it will be better”

Customer: “I like the

vending machine it was

quick and efficient, better

than waiting in like.”

Customer: “LOVE LOVE

LOVE THE NEW POST

OFFICE!!!”

89%

91%

90%

88%87%

90%

88%

83%

Overall Score Facility Service GeneralExperience

Customer Satisfaction Ratings

Concept Store Stores Replaced by Concept Store


Richmond Hill Concept Store

24/7 Area



Main store



Change room



Drive-thru

PROBLEM

Ecommerce software (Shopify, Kickstarter, Etsy, Bigcommerce,

etc)

have made online selling easy but there is no easy fulfillment

solution

0%

10%

20%

30%Fulfillment takes 25% of the revenue for an e-commerce business.

PROBLEM

Innovation Lagging for SMB’s

1995 2005 2015 Future

Amazon Founded

1 Hour Delivery

AmazonNow Launches

Prime Launched

SMB’s

PROBLEM Customer communication

Order management

$50/monthShipping Platform

$30/month

Inventory

management

$200/month

Innovation and Invention in Transport & Delivery

Brian Bowers

Bell and Howell

Steve Burns

Workhorse

Keith Cornell

Starship Technologies

Robbie Diamond

Securing America’s

Future Energy (SAFE)

Disrupting the trillion-dollar last mile industry

Keith A. Cornell

PostalVision 202015 March 2016

20 billion packages

+

~130 billion shopping trips

in a year

60

“I WOULD SELL MY MOTHER FOR NOT DOING THE LAST MILE”

A delivery executive

wishing not to reveal his identity to his mother

PACKAGE DELIVERY ECONOMICS

61

0

0.5

1

1.5

2

2.5

First 1000 miles Next 10 miles (Stemmiles)

The True Last Mile

Delivery cost per mile per package

80% labor

Starship’s delivery robots

1. Robots driving on sidewalks– Blending in with pedestrians at 4 mph

2. 99% autonomous– Human operators to take care of the last 1%

3. Low-cost hardware, superior software

4. Delivery areas with maximum 2 mile radius– Completing deliveries in less than 30 minutes

5. Optimized for low-rise suburban environment– Low to medium traffic and pedestrian density

How Starship works

The robots are based either at

local businesses or specially

built Starship hubs

Robots complete delivery in 15-

30 minutes

3 parcels

pending

Customers call up deliveries

when convenient

2

3 4

1

Logistics and retail companies

deliver goods to robot stations in

bulk

Business proposition

• Dramatic last-mile cost reduction – Cost per delivery $2-3 in ‘17, $1 target

• 80% of costs are mileage-based

• Unprecedented convenience for consumers– On-demand delivery in 15-30 minutes

• Inherently safe– Low-mass, slow-speed robots

• Ecologically clean– Virtually zero CO2 emissions

A land-based robotic local delivery platform

Enabling safe, on-demand

deliveries

for less than $1

65

WORKHORSE GROUP

INC.

Presentation by: Steve Burns

Strictly Confidential. Not for Distribution.

USPS PACKAGE SERVICES FORUM RECAP

67

July 8, 2015; RARC-IB-15-003

From 2008 to 2014

package volume has

increased by

about 34% while the

remainder of mail

volume has decreased

by more than 20%


WORKHORSE CHASSIS & POWERTRAIN

68

Less Expensive to Own than Gasoline or Diesel

Improve profitabilityIncreased number of deliveries per dayStrengthened sustainability programs by achieving zero emission deliveriesImproved safety and driver experience

Reduced total cost of ownership


ATTRACTIVE ECONOMICS – LESS EXPENSIVE TO OWN THAN GASOLINE OR

DIESEL

69

Cost Comparison - Gas vs. Workhorse E-Gen Total Cost-of-Ownership: E-GEN Saves > $125,000 vs. Gas

over 15 years


OVERVIEW OF WORKHORSE’S UNMANNED AERIAL SYSTEMS

HorseFly Delivery Drone

Engineering the future of parcel delivery aviation

HorseFly™ Unmanned Aerial System (UAS) is designed for the package

delivery market and other commercial applications

• Designed to meet the existing and anticipated future FAA guidelines

• Differentiated from other UAS’s as it works in tandem with a Workhorse electric

truck

• Delivers packages, loaded en-route by the driver, to remote locations while the

driver continues on the main delivery route, saving the fleet operator much of

the fuel cost of the most expensive miles

• HorseFly rejoins the truck at its new location once its delivery is completed

• HorseFly recharges from atop the Workhorse truck

• Superior to other delivery UAV’s operating plans, where the package is loaded

at the warehouse and must return to the warehouse once the delivery is

completed

• Partnered with the University of Cincinnati’s Department of Aerospace

Engineering and Engineering Mechanics to develop HorseFly

70


WORKHORSE HORSEFLY

Specifications

71

Empty Weight:

Payload Capacity:

Configuration:

Guidance System:

9.5 lbs. (4.3 kg) [without battery] 10 lbs. (4.5kg)

8-Rotor Octo-copter

GPS and Compass (in-flight) Infrared Camera

(landing) 50 mph

30 min

Panasonic 18650 cells


OVERVIEW OF WORKHORSE’S UNMANNED AERIAL SYSTEMS (UAS)

Workhorse UAS Drone Delivery Process Illustration

72


NEW MARKET OPPORTUNITIES

73

E-Commerce fuels Last-Mile Delivery

Estimated Global E-Commerce Sales in 2016 = $1.8 Trillion

Sources: eMarketer.com, Forrester Research, Inc. & Internet Retailer

2015


E-COMMERCE DISRUPTORS

74

E-Commerce fuels Last-Mile Delivery

Disrupting Last-Mile Delivery

Mobile Engagement Platform Demo

Steve Barnett

OpenMarket

Workshop

hon. robert g. taub postal regulatory commission (prc) · hon. robert g. taub postal regulatory...

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