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IIT Mumbai – First and Last Leg Optimization. CONFIDENTIAL May, 2012. Freight Flow -1 . Pickup. Delivery. CFS/ Destination Warehouse. Destination Port. Customers. Freight Flow -2. Seller. CFS. Origin Port. Freight Flow - 3. Trucking Industry Level Challenges.

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Presentation Transcript
freight flow 1
Freight Flow -1



freight flow 2




Destination Port


Freight Flow -2



Origin Port

trucking industry level challenges
Trucking Industry Level Challenges
  • Infrastructure Issues and Challenges
        • 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
        • 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
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 ?
inefficiencies in the current process
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
        • 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
solution components and business model
Solution Components and Business Model
  • Solution Components
  • 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
  • Platform based solution
  • Benefits
  • From Trucking companies Perspective
  • 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
  • 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
  • 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
as is routes
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


to be routes
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


data for analysis
Data for Analysis
  • Available Data for Analysis
  • Driver Data
  • Equipment Data
  • Order Data
  • Trip Data
  • Stop Data (including Stop to Stop Distance Data)
  • Output Expected
  • Optimized Route with route parameters


business benefits
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


thank you

Thank You



May, 2012