Central Dispatch Data integration and operations optimization

1
Central Dispatch Data integration and
operations optimization
By Colin Francis
Agenda Who we are. Problem Industry
Fragmentation Concerns Barriers to Operations
Collaboration Solution Collaborative
Dispatch Benefits
2
LINe
LINe as a Hutchison group company provides global
logistics solutions. LINe Provide
collaborative technologies Driven by the TMS -
Paris Optimisation Engine.
3
Problem Fragmentation

Internal External (Industry) Fragmentation is
a major contributor to transport
inefficiency Internally System
Process Dictate the level of fragmentation with
an organisation Lets look at a typical Shipping
Line as example
4
Internal Fragmentation
Departmentalised Organisation
Dispatch
Equipment
Sales Booking Desk
Boxes
Flats
Cost Control
Inbound
Outbound
Truck
Rail
Barge
North Atlantic
Domestic
Germany
Benelux
France
5
Cause of waste Inefficiency
Industry Fragmentation
External
Shipping Line
Forwarder
Short Sea
Deep Sea
Agents Brokers
Customs
Warehouse
Ports
Vessel
Truck
Rail Heads
Equip.Lease
Depots
Rail
Barge
Terminals
6
Solution
Industry Fragmentation
Operations collaboration Regional communities
using Central Dispatch
Suppliers Receivers
Cargo Providers Logistics
Service Providers
Equipment Static Mobility Services
Providers
Shipping Line Freight Forwarder Logistics Services
Common Planning
Shipping Line Equip.Lease Terminals Depots
Truck Rail Barge
7
Market need
Truck Existing All inland transportation suffers
from imbalances this is why 40 of transport legs
are Empty. Imbalances are caused by an inability
to balance market sales and further irritated by
fragmentation when 1000s of companies are doing
their own thing. The average Empty Truck Leg cost
is Euro 135 per move
The average Empty Repositioning cost is
Euro 250 per move
Existing
Order for LSP A
Trips
Receiver
Port
Supplier
Order for LSP B
8
Market need
Truck New situation with collaboration The
average Empty Truck Leg saving is Euro 80 per
move The
average Empty Repositioning saving is Euro 100
per move
Depot
New
Trip Sharing
Receiver
Receiver
Supplier
Loaded Repositioning
Port
Order A Order B
Depot
Equipment Exchange
Supplier
9
Market need
Multi-modal Today is a Truck Operation
Collaborating operations from truck to
multi-modal by consolidating the volumes for many
collaborative partners to enable Multi-modal.
Truck operation, Empty miles and equipment build
up at ports
Loaded Leg
Existing
Empty Leg
Port
Using Trucks
Shippers Consignees
10
Market need
Multi-modal New situation with
collaboration The average Block Train savings
are around 20 Per move
Consolidation
Rail
New Inter-modal
Port
Shippers Consignees
Barge
11
Central Dispatch
Inland collaboration
Is About

• More Matching of Truck Loads
• Establishing Block Trains
• Filling Barges
• Better smart Equip. Positioning Control
• Operations Progress Monitoring

12
Collaboration Concerns

• When asked, the general concerns on collaboration
  are
• Equipment Sharing ?
• Exposure of commercial data between competitors ?
• Which trucker will be used ?
• Who pays for the Empty Leg ?

13
Central Dispatch
Collaborative technology means

• Players control their own operations in a secure,
  closed data environment

14
Central Dispatch CentreDONUT community
Data Centre
Suppliers
Receivers
1
Move Goods Orders
6
Supply Chain Visibility
Equipment
Logistics Services
Depots Terminals
Selected Transport Orders
Progress Updates
Trucks Drivers
LSP A
A
2
Common Planning
5
Truckers
LSP B
B
3
4
Rail Cars Barges
Planning Vendor Scheduling
RB Operators
Transport Instruction
LSP C
C
15
Transport Management System (TMS) Collaborative
TechnologyPowered by PARIS engine
Data Burst
Delivering 28 Empty Savings
16
Data integrationHow access works
Internet can be used to access own dispatch in
the donut Any format of data can be used to
interface information..
17
Collaboration Concerns Re-addressed

• When asked, the general concerns on collaboration
  Are
• Equipment Sharing ?
• Exposure of commercial data between competitors ?
• Which trucker will be used ?
• Who pays for the Empty Leg ?

18
Collaboration Concerns Re-addressed

• When asked, the general concerns on collaboration
  Are
• Equipment Sharing ?

You CAN share an Inland move With OUT having
to share equipment
19
Collaboration Concerns Re-addressed

• When asked, the general concerns on collaboration
  Are
• Equipment Sharing ?
• Exposure of commercial data between competitors ?
• Which trucker will be used ?
• Who pays for the Empty Leg ?

Collaborative Optimisation requires using
Operational Data. Collaborative planning does NOT
require using Commercial Data.
20
Collaboration Concerns Re-addressed

• When asked, the general concerns on collaboration
  Are
• Equipment Sharing ?
• Exposure of commercial data between competitors ?
• Which trucker will be used ?
• Who pays for the Empty Leg ?

Players either agree online a common Truck OR
Players choose a Neutral Truck.
21
Collaboration Concerns Re-addressed

• When asked, the general concerns on collaboration
  Are
• Equipment Sharing ?
• Exposure of commercial data between competitors ?
• Which trucker will be used ?
• Who pays for the Empty Leg ?

Your cost of Empty is either TO the depot Or
Starts FROM the depot
22
Central Dispatch Advantages

• Optimisation to reduce costs
• Connectivity to gain control
• Visibility to provide value
• Access to operational markets
• Neutrality to protect business interests

23
Central Dispatch
Increased efficiency reduction of operating
costs
Benefits to Operators Logistics Service
providers

• Cost reductions in operations, Empty miles etc..
• Less reliance on skilled resources, Planners etc
• Better utilization of assets. Trucks, Rail,
  Containers etc
• Gaining control through on-line updates, Provides
  value added service to strengthen Market position
  and protect revenue levels.

24
Central Dispatch
Increased efficiency reduction of operating
costs
Benefits to Shippers Consignees

• Reduced Business Process organising shipments
• Visibility on ALL Cargo moves regardless of
  service provider
• Increased control Prior arrival at factory
  leading to pre-emptive action

25
ENDThank you
If you want to contact me, By email
Colin.Francis _at_ Line.net