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OnAsset Intelligence www.onasset.com 972-659-1619. Leveraging Technology in Transportation. Why Add Technology to Your Supply Chain?. BENEFITS. Visibility. Real Time Information Risk Management Proactive Response Speed and Accuracy Uninterrupted Service Customer Retention
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OnAsset Intelligence www.onasset.com 972-659-1619 Leveraging Technology in Transportation
Why Add Technology to Your Supply Chain? BENEFITS Visibility • Real Time Information • Risk Management • Proactive Response • Speed and Accuracy • Uninterrupted Service • Customer Retention • Best Practices • In Transit Security and Package Integrity • New Service Levels From This . . . Security Differentiation New Revenue Streams Operational Efficiency
So You Have a Need – What Now? Plenty of options – but be careful to understand your motivations before you jump in! Forward & Reverse Logistics? Packaging? Regulatory & Compliance? Software? End-to-End Services? Integration & Flexibility? Hardware? You don’t have to shoulder the whole load yourself – the right provider will help you work through all these issues and position you well for the future.
Needs Vary Across Products Monitoring in-transit conditions of perishable food versus high value electronics can be accomplished using the same tools, but the devil is in the details and you need to understand the experience of your provider to make sure you’re deploying the right solution. “The right tool used in the wrong way isn’t a solution”
Needs Also Vary Across Users Departments and individuals within the organization view technology through different lenses. One of the most common and costly mistakes in a technology implementation isnot taking time to understand the needs and benefits of all the stakeholders involved.
Technology Evolution Process Stage 3 • Clockwork processes • Widespread organizational benefits • Championed by sales as a competitive advantage • Influences the way decisions are made • Influences the way new services are launched Stage 2 Stage 1 • Becomes part of everyday life • Generates revenue & attracts new customers • Gains enterprise acceptance • True operational integration begins • Delivers on value proposition • Get comfortable with the information • Collect some data • Get customers excited • Get the organization interested • See first operational benefits Enterprise Value Driver Enterprise Integration and Acceptance Initial Trial & Deployment Time
Today’s Technology = Flexibility SENTRY Device Solutions for All Modes of Freight – Land, Sea, and Air
Today’s Technology = More Than Just Location SENTRY ContainerSafe™ Know the environment inside using a temperature probe: Temperature Achieve global communications: Cellular and Satellite Know the proper travel route is in play: Route Management Know if container is cut open using Light Detection Multiple methods of location: GPS + Cellular & Satellite Triangulation Stay at sea for long periods with battery packs for long life: Long Battery Life Install it in less than one minute by sliding onto the door: No Tools Needed Know if container is slammed during transport: Shock Know if the door has been opened since loading at the warehouse: Breach Detection
Today’s Technology = Product Level Visibility Know the proper travel route is in play: Route Management SENTRY FlightSafe™ Vibration Know the conditions in flight: 24x7 monitoring during air freight conditions Humidity Know if a temperature excursion occurs: Temperature Know if someone opened the box: Light Complete Chain of Custody Get peace of mind in the air: Unit automatically turns off radios during flight with no human intervention. Distinguish between handling events and transport events: Shock Slip it in the box: No Install Required
Software Capabilities = Contextual Awareness Your Business Data SENTRY Feeds Airline Feeds Crime Feeds Repair Shops Weather Rest Areas Weigh Stations Today’s Software Solutions are about much more than just “dots on the map” – they deliver context around your data and enable deeper supply chain views combining internal and external information sources in highly visual fashions. Many offer cloud-based access models to drastically reduce the cost of entry and integration burdens.
Often Overlooked – Forward/Reverse Logistics • Most Equipment is not throw-away – so achieving maximum utilization is key • Logistics planning and equipment circulation can make or break the ROI • Well executed logistics is a selling feature – poorly executed logistics is a program killer • Address this problem up front with your provider – good vendors will already have several options for you.
Case Studies – Technology in Action Recovery of Stolen Product 6 FTL thefts of flat screen TVs in a 6 month window prompted customer to deploy technology (typical commercial load value from $750,000 to $1,200,000) Analyzed the theft cases and developed proprietary “Theft Algorithm” to alert on situations that closely matched signatures of previous theft events On 9th monitored shipment the Theft Algorithm triggered and alerted monitoring agents Stolen goods tracked to warehouse in downtown L.A. Police surveillance commences. Search warrant issued for warehouse due to live tracking evidence. Over $4,500,000 worth of stolen product recovered ranging from electronics to liquor – 5 arrests made and mafia theft ring link uncovered
Case Studies – Technology in Action Product saved in transit Refrigerated container full of temperature controlled pharmaceuticals shipped via ocean freight Generator not plugged in at destination port facility Container goes out of temperature compliance and real time alert issued to shipment owner Shipment owner in Germany contacts local logistics provider representative in South America Generator is plugged in and product is saved – total time from initial notification to resolution less than 2 hours. Load valued at $600,000 is saved – product spoilage averted due to real time monitoring
Case Studies – Technology in Action Insurance reduction through the use of proven risk mitigation technology 80% reduction in Liability Expense (from $500K to $100K) 60% reduction in Deductible (from $250K to $100K) Pass-through savings to customer base brings more business Use of Differentiated Service increases Brand Equity Highly quantifiable data creates path toward Future Insurance Discounts
Case Studies – Technology in Action Faster path to cash via real time goods delivery notification 90% reduction in Invoicing Time (from maximum of 10 days to immediate) 20% reduction in accounts receivable cycle (from average of 55 days to 45 days) Direct integration with SAP billing engine virtually eliminated manual billing tasks Real time receipt of goods event enables better customer service (proactive versus reactive shipment confirmation) Combination of cash flow benefits and billing automation projected to save over $600K annually
Future Trends The future of leveraging technology in transportation: More capability being built into the hardware (location is old news, today’s solutions offer deep sensory knowledge of the environment that adds real context and value) More capability being built into the software (dots on the map is old news, today’s solutions are delivering a global “control tower” experience with turnkey usability, out-of-the box integration options and innovative pricing models) More meaning is being derived from the data (event signatures being created from layers of information – your information is telling you a story, you just need to listen) Historical and real time information being blended together to actually predict problems in the supply chain before they occur (moving from reactive action to proactive intervention) Single product platforms and services that offer global capability, work across all modes of transportation and offer flexible features for different types of product Tired and true implementation strategies exist – real time supply chain technology is not just a science project anymore – it’s a competitive advantage.
Attributes of the Right Solution Global Operability • Don’t arbitrarily limit your regions of use • Don’t get caught with niche providers (If your vendor can’t support you globally then can they scale effectively with your business?) • Where do you want to be 3-5 years from now? (Make sure the technology solution you choose today still works for you tomorrow) Think Multi-Modal • What is your primary mode (Truck, Rail, Ocean, Air – all of the above?) Do you have customers that use other modes in addition to the one you provide? Opportunity for service extension? • Choose technology that works for your core competency, but that can also be used across your customer need spectrum (does your technology allow you to work seamlessly with all of your customer’s supply chain?) • Global Solution • Satellite, GPRS, and CDMA • Transportation Independent • Ground, Ocean, Air Freight • Focus on Business Intelligence • Data Mash-ups • Web Service Integration • Off-the-shelf hardware and customized development options • Modular Architecture • Comprehensive sensor options • Customer and Process Driven • Reverse Logistics, Monitoring, & Recovery • Flexible Pricing • Professional Services • Packaging Solutions Security Differentiation
Attributes of the Right Solution Choose a solution that delivers value immediately but positions you strategically for the future • Ask your vendor how they intend to deliver continuous value. The right vendor will surprise you with ways of leveraging technology that you haven’t thought of – the wrong vendor will just reiterate an immediate tactical value without thinking strategically or long term. • Talk with your technology vendor about what you need today and can envision for tomorrow. Don’t start a technology implementation without having a 1, 3 and 5 year plan in mind. • Ask your provider how they intend to keep you current (don’t fall into the trap of accepting the fact that “technology moves quickly” and “you’ll just have to buy something new when it comes out”) – your provider should be able to offer cost effective programs to make sure you stay current.
Attributes of the Right Solution Focus on the Business Intelligence • Don’t get caught in the trap of just solving your immediate problem! Take time to really understand your motivations – If you are going to invest in technology you need to make sure you’ve positioned yourself for all the benefits. • True real time supply chain intelligence is game changing. The right solution can impact your business in ways that may not be readily apparent. • Don’t underestimate the need to make small changes to your processes to make the technology as effective as possible. The right vendor will work with you to minimize the impacts - the wrong vendor will tell you that you won’t have any impacts to manage. • Put your work in up front – the effort you put into establishing the foundation of your program the at the beginning will pay huge dividends as you move forward.
Author: Adam Crossno Title: President & CEO Contact: acrossno@onasset.com Phone: 972-659-1619 x137