Presentation at IIT3 Raju

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IIT Mumbai
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First
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Leg
Optimization
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Freight Flow -1
Pickup
Delivery
Freight Flow -2
Seller
CFS
Customers
Origin Port
Destination
Port
CFS/
Destination
Warehouse
Freight Flow - 3
Trucking Industry Level Challenges
 Infrastructure Issues and Challenges
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Congestion
Operational inefficiencies
Non standard trucks
Under utilization of infrastructure available.
Supply demand mismatch
 Institutional Issues
– Highly Fragmented industry
– Manual, non-uniform or discrete processes across the industry
– Non-availability of Quality manpower
 Technological Issues
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Old technology
Adoption of new technologies is expensive
No clear Return on Investments for New Technologies
Manual processes leading to operational inefficiencies
Solutions and Strategies (Largely Capital intensive)
 Vehicle Size and Delivery Time Regulations
 Load Consolidation and Load Factor Efficiency (Load consolidation, or
co-loading)
 Urban Distribution Centers
 Freight Villages - Different from urban distribution centers, but similar
in concept. Freight villages are planned unit developments specifically
designed for multi-modal freight transfer within a secured perimeter.
 Delivery Tunnels - In Helsinki, freight tunnels for underground
trucking are planned
 Dedicated freight corridors – are they really helping urban areas ?
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Inefficiencies in the current process
 Pickup driver has to visit the terminal to collect the list of pickups
 Planning for linehaul, cross-docking, resource requirements, delivery
plans etc are not possible till the goods reaches to the terminal
 There is no update on the status of delivery till the driver reports back
to the terminal.
 This process is time consuming and lead to inefficiencies such as
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missed pickups and missed appointments,
excessive waiting times during pickups and deliveries
resulting in additional driver hours and under utilization of
trucks
postponing pickups
additional kilometers operated by drivers thus additional fuel
consumption and choking of traffic
no clue on the traffic situation on the network – no route
guidance
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Solution Components and Business Model
Solution Components
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Vehicle Tracking System - Telematics
Pickup and Delivery Management System – to plan the pickups and
deliveries
Handheld Mobile devices – Scanner, data logger etc
Route Planner to generate optimal routes
Central Server and communication systems
Transportation Management System
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Platform based solution
Benefits
From Trucking companies Perspective
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Trucking company can register with minimum fee
Trucking companies can pay as per use
Opex and No capital investments – Transaction based
Can withdraw when not required
No technology skills required
Improved visibility of shipments, high asset utilisation, less fuel costs and customer satisfaction
From Service Provider perspective
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Multiple trucking companies can be hosted on single software platform.
Other services such as reports, performance indicators can be sold as value added services
From City/Governance perspective
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Less Pollution and congestion
Real time and accurate data for traffic alerts
Trustworthy and huge volume of data for / Freight Modelling/ infrastructure planning and real time
decisions
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Overview – An example for Auto Route Generation
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As-Is Routes
Features considered
• Routes are planned for a region.
• A truck will be assigned/reserved
for route
• Static route is generated by the
route planner
• Dispatcher assigns new stops to
the route manually as and when
new orders are to be handled
Parameters for comparison
4 Trucks
Deployed
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Total Truck KM 126
To-Be Routes
Features considered
• No region based routes
• Routes will be developed as per the
order/stop locations
• Algorithm based route generation
• Optimises the number of trucks required
rather than the truck-km
Parameters for comparison
3 Trucks
Deployed
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Total Truck KM 135
Data for Analysis
Available Data for Analysis
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Driver Data
Equipment Data
Order Data
Trip Data
Stop Data (including Stop to Stop Distance Data)
Output Expected
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Optimized Route with route parameters
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Business Benefits
• Reduced P&D Costs (They represent around 30% of total cost in the case of
road based movement)
• Improved Route Planning
• Effective Equipment utilization
• Effective Utilization of Drivers
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Thank127
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