ignite 2015 na logistics breakout session - "what do millions of shipments tell us?"

What Do Millions of Shipment Tell Us?

Cindi Perdue Hane September 2015

ElemicaConfiden.al

Discussion Points

•  Elemica‘sSCONforLogis4cs

•  Analy4csinaSCON

•  ShipmentAnaly4cs–  NetworkStrength–  ShipmentProfiles–  CarrierPerformance–  Shipment4mes–  Costs–  Events

Logistics Management in a SCON

Transforming Commerce

Elemica is a Supply Chain Operating Network An Ecosystem bringing all the Dynamic Interactions across your Supply

Chain to your Enterprise

IntegrationQuickLink Network 2.0

ApplicationsSmartLink Apps

AnalyticsSmartLink Analytics

3rd Party

Your Enterprise

Logistics Management at Elemica

Large&Growing

3,800,000Peryear

141Large,globalmanufacturers

1556Acrossallregions

250Acrossallregions

55%-70%OftotalElemicamessagevolumes

ShipperConnec4ons CarrierConnec4ons Terminal/WarehouseLoca4ons

Shipments Logis4csRelatedMessages

ElemicaConfiden.al

Connect and collaborate with all of your land-based transportation providers for shipment booking, execution, and visibility

Elemica Logistics Management Solutions

Road Transport Execution

Connect and collaborate with all of your ocean transportation providers for shipment booking, execution, and visibility

Ocean Transport Execution

Schedule and manage carrier appointments to optimize site and carrier resources

Time Slot Management

Eliminate post-audits of freight invoices & accrual discrepancies thru carrier collaboration on freight costs & invoices.

Freight Cost Management

Speed order-to-cash cycle and reduce admin costs by synchronizing fulfillment data across your 3PL network.

Terminal & Warehouse Visibility

Connect and triangulate multiple sources of data for your global shipments to provide complete visibility and enable accurate exception management.

Global Shipment Visibility

Elemica Logistics Outlook

Solu.onThemes

Non-tradi.onalconnec.vity

Content-orientedsolu.ons

SCONcollabora.onsolu.ons

BeCerUI/Mobile

Solu.onsforLSPs

Analytics in a Supply Chain Operating Network

How can we use the data?

ShipmentETA/ETDUpdates

SCRiskMgmt

TargetedImprovementOpportuni.es

Benchmarking

ETA/ETD Alerts/Updates

Averagelead.mesonthislaneatthis.meofyearwiththisforwarder&

carrierindicateanETAatdes.na.onthatis2daysgreaterthantheone

specifiedonyourshipment

SC Risk Management

•  Usepubliccontenttoiden.fyriskfactors–  Newsfeeds

•  Port strike. We get information including location(s), dates, scope •  We determine that this news signals a disruption and we evaluate the severity •  We post the notification on the wall for anyone who has subscribed based on key

words

– Weather

•  Combinewithtransac.onaldatatoenhanceriskpredic.ons–  Weminepartnershipmenttransac.onsforthesameloca.on–thisletsus

determinewhichpartnersaremorelikelytobeaffectedbythisriskofdisrup.on–  Forthesepartners.Wefindallopentransac.onsthatmightbeaffectedandsend

emailalertorgraphicallydisplaydisrup.on.–  Wecanalsolocateotherroutes

Targeted Improvement Opportunities

•  Suggestimplementa.onimprovements–  “OthercarriersprovidebeCerservice”,“Youcarriercan

offerbeCerstatusinforma.onthanyouarecurrentlysubscribedto”

•  ShipmentOp.miza.on–  Findcon.nuousmoveopportuni.estoreducefreight

costs•  Strategically–analyzeshipmentflowsacrossSCONtofind

synergies•  Tac.cally-Matchin-transitvehiclestoopenshipments

•  AssetManagement–  Iden.fypriorsfortankcleaningcompliance–  Showvehiclehistory,maintenance,safetyrecords

•  Offernetworkop.miza.onsugges.ons–  “Here’salistofthird-partyterminalsthatarecloserto

yourdemandthanyourexis.ngloca.ons”–  “STOshipmentsareexceedingthresholds–re-evaluate

DRP,inventoryplanning”

IamyourSCONBot.

Iseethatyouarereceivingreal-timePODinformationfor30%of

yourshipments.

Someofyourcarriersareprovidingreal-timePODinformationfor

otherSCONshippersatratesof60%.

Wouldyouliketoseea

reportofourtopcarrierperformersfor

real-timePOD?

SC Benchmarking

•  In any of our applications, for many of the data elements, we could offer this:

•  What it requires: –  Critical mass –  Statistical components –  Clear party line to community –  Components must know when a data element is benchmark-able against

Elemica’s SCON •  Data from at least 3 different shippers •  No one shipper can constitute more than 40% of each lane

Benchmarkthisvalue

Lead.me Yournetwork20days4hours

Elemica’sSCON

18days6hours

19days8hours

Shipment Analytics

Methodology

•  5 Million shipments analyzed

•  Country-to-country lanes included in data

•  Limited statistical analysis –  %ages, not averages

•  Protected partner-pair volumes –  Relative comparisons, not absolute

values

Network Strength

•  Europe carriers are most connected: 27%, 3.1

•  NA: 12%, 2.8 •  Only 3% cross regions

LSPsconnectedtomul4pleShippersinElemica’sSCON

21%

3 AverageShipperConnec4onsfornetworkedLSPs

BertschiBRAIDLOGISTICSBULKHAULFEDEXHoyerINTERMODALTANKTRANSPORTKARLSCHMIDTSpedi.onLindenLiquidTransportMenloLogis.csQualityCarriersSARSchneiderNa.onal

LSPsthatCrossRegions

ElemicaConfiden.al

Volume Growth

Oct2011 Apr2015

3.5years–34%growthinshipmentvolumes

13%growthover15months,drivenbynewprojectsinAsia,modestgrowthinEU,NA

ElemicaConfiden.al

Geographic Distribution

54%NorthAmerica

3%SouthAmerica

43%Europe

1%AsiaPacific

Germany–GermanyNetherlands–GermanyBelgium–GermanyNetherlands–Netherlands

TopLanes

ElemicaConfiden.al

Top Carriers

BertschiHoyerDenHartoghRinnenAlfredTalkeINTERBULKGROUPLehnkeringDERIJKELKWWALTERIntlTransportVERBRUGGEBVVOSLOGISTICSDSVRoadGmbh

TopNetworkLSPs

MenloSchneiderTrimacHighwayTransportLangerTransportServicesSuperiorCarriersQualityCarriers

TopNetworkLSPs

ElemicaConfiden.al

Road Shipment Profiles

99%SinglePickup,SingleDelivery

Bulkvs.PackedGoods

80%20%

Mul4-ProductShipments

1 2 3 >3#Products

86%

7% 2% 5%ComplexShipmentStructure

ElemicaConfiden.al

Shipment Time Data: To the Minute

Requested

Es.matedActual

Requested

Es.matedActual

Pickup Delivery

ShipmentLeadTime

PerformancetoEs.mated

PerformancetoRequested Performanceto

Es.mated

PerformancetoRequested

PerformancetoRequested

PerformancetoEs4mated

PerformancetoEs4mated

PerformancetoRequested

ElemicaConfiden.al

Shipment Time Data

Requested

Es.matedActual

Requested

Es.matedActual

Pickup Delivery

ShipmentLeadTime

PerformancetoEs.mated

PerformancetoRequested Performanceto

Es.mated

PerformancetoRequested

PerformancetoRequested

ElemicaConfiden.al

PerformancetoEs4mated

PerformancetoEs4mated

PerformancetoRequested

Late Pickup

Late Delivery

Availability of Time Data

21%ActualDelivery–ActualPickup

ShipmentLeadTime

PerformancetoRequestedTimes

8%ActualPickup–RequestedPickup

12%ActualDelivery–RequestedDelivery

PerformancetoEs4matedTimes

18%ActualPickup–Es4matedPickup

7%ActualDelivery–Es4matedDelivery

ElemicaConfiden.al

Shipment Costs

TotalCostsLedbyheattrea.ng,cleaning,demurrage

AverageCostsLedbylayovers,baserate,cancella.ons

TotalCosts

AverageCostperItem

ElemicaConfiden.al

Date&TimeEvents

Shipment Events

WhatistheEventLinkedTo? WhatistheReasonfortheEvent?

ElemicaConfiden.al

Status Latency

LatencyisdifferencebetweenStatusDateandStatusMessageDate

HowLateisit?

Lessons Learned

DataQuality

Computa.onalPower

Opportunityforop.mizingcurrentimplementa.on

Opportuni.esfornewdata

CindiPerdueHaneVicePresident,Logis.cs

cindi.hane@elemica.comPhone:+14044775286

@CindiHane

cindi.hane@elemica.com

www.elemica.com