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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


Where’s the Chicken?


Internet Usage


Cross Border Parcels EU

Source: Verband

österreichischer

Handelsunternehmen


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


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


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


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


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


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%


Sustainability


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


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.


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


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


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)


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


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


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


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)


Visibility

Schenker

TNT

DHL

DSV

K-Line

GLN

Dachser

Maersk

Local Carrier

Panalpina

Uniform Track & Trace& Shipment Details

WMS ManualERP Supplier

DPD


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


Questions?

transport management vision - descartesdescartes.com/desca… · especially for lower-performing...

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