Logistics Control Tower

MONITOR | CONTROL | RESPOND

Several issues plague logistics in India...

1 Poor transit times and service levels

2 Non availability of trucks

3 Lack of end to end visibility

4 Poor maintenance of assets

5 High idle time of assets

…Which have significant implications on organizations

1 Poor transit times High inventory cost and poor planning

Missed deliveries (cut-off times/poor

2 Non availability of trucks
service level)

No performance management,
3 Lack of end to end visibility
pilferage/theft, inefficient planning

Frequent breakdown, increase in

4 Poor maintenance of assets
maintenance cost

5 High idle time of assets Low utilization leading to higher cost

Across industries, organizations are facing issues in logistics management

Metals and mining Cement/Chemical Auto Express

▪Pilferage of material ▪Issues with “change in ▪High transit times ▪Low asset utilization
undetected by standard destination” resulting in ▪Assembly line shutdown ▪Poor service levels
weigh bridges revenue loss in due to unavailability of ▪Fuel theft
▪High TAT and transit geographic pricing RM ▪Higher wear and tear of
time scenario e.g., bag drops
▪Lost sales assets
limiting plant
throughput
A digital logistics control tower provides real-time visibility and ability to respond faster to events while
driving down costs

What is a control tower? Distinguished capabilities

Enables real-time operational adjustments to reduce
•The Control Tower is the 1 costs and meet customer
digital nerve center of the service levels
logistics operations that
Provides visibility to enable mid to
integrates all tech solutions 2
long-term network planning and optimization
for road logistics and
provides the organization
3 Enables continuous feedback and optimization to
ability to monitor, plan make supply chain more efficient and responsive
and take exception
decisions 4 Drives faster customer response times

Integration of data and performance management

5 systems allows organization to operate as an
orchestrated unit
6 modules of control tower can be built across 3 time
horizons
Digital control
tower Advanced control tower Smart control tower

1 Track
Trackand
andtrace
trace 3 Asset management 5 Auto scheduler

Ability to track truck movement based Bolt on devices to optimize operation Planning and dispatch placement
▪ GPS linked tracking on transit costs ▪ Integrated ITMS solution for indent
▪ In-plant monitoring based on geo-fencing ▪ Fuel sensors planning
▪ Digital locks ▪ Auto-scheduling based on truck
▪ Mileage guidance systems location and indents

2 Track
Performance
and trace
management 4 Smart alerts 6 Network optimisation
Realtime dashboard of operating Mechanisms to track deviations and alert Machine learning algorithms to
performance on risks ▪ Optimise truck mix and space utilisation
▪ PIGO/GIGO dashboards ▪ Route/stoppage deviation to deter pilferage ▪ Optimise network run to maximise run time
▪ Transporter scorecards ▪ Alert escalation to driver, transporter and
▪ Transit time monitoring security
▪ Advanced analytics based MIS
Most of the modules are applicable across
sectors
Metals & Cement/
mining chemicals Pharma/FMCG Auto
Express/3PL

1 Track and trace

Digital Performance
2
management

Asset
3
management

Advanced
4 Deviation control

5 Auto scheduler

Smart
Network
6
optimisation
Control tower modules can help achieve significant impact across key logistics
KPIs
Logistics elements Key KPIs/ Metrics Unit of Measure Typical improvement
Vehicle utilization Percentage ~30%
Track and
trace On-time delivery Percentage ~30%

Fleet utilization Percentage ~30%

Asset
management
Downtime cost Rs./ annum ~12%

Customer Satisfaction Score Number ~15%

Alerts
Issue resolution TAT Time (Minutes/ Hours/ Days) ~70%

Auto OTIF % (On-Time in Full Delivery) Percentage ~30%

scheduler

Network cost Rs. / handling unit (e.g. Rs/ kg) ~15%

Network
optimization
Technology architecture of the control tower
Central Ops Center Leadership dashboards Other stakeholders

VISUALIZATION LAYER

KPI Alert &

Workflow MIS
BUSINESS LAYER calculation exception Rules engine
reporting
Analytics
and tracking management
manager

DATA LAYER Automated alerts to

process owner

INTEGRATION LAYER
Action taken by the
exception owner

GPS SYSTEM ERP/ Data lake

▪ Location data with timestamp ▪ Process TATs
▪ Speed, acceleration ▪ Master data – Driver, Vehicle, Route
▪ Device health ▪ Alerts and exceptions
▪ Beat Plan

GPS/IOT Sensors RFIDSensors

Case example: A large metals and mining player embarked on the journey of building a logistics
control tower

Context Challenges

Meta. and mining player with multiple plants High logistics turn around time compared to
other players in the market

10+ different raw materials and end products Lack of transparency on logistics leading
in circulation to poor service levels

3000+ trucks supporting the logistics Pilferage not getting detected leading to
amounting to 23000+ trips per month losses due to theft

$5 bn+ worth of goods moved annually Lack of data for performance management
of vendors
Control Tower modules

1 2 3

Modules
Proactive alerts and
Track & trace inside automated exception Real-time reports and
plant and in-transit resolution dashboards

Enables

▪Helps ensure service ▪Proactive pilferage ▪Real-time visibility

levels detection – Performance/ SLA
▪Increases safety of ▪Faster turn-around time – Cost levers
asset of trucks ▪On-the-go performance
Benefits
▪ML driven automated review trigger for
exception resolution senior management
▪Simplified workflow to through mobile
resolve exception platforms
Vision: Future state workflow for inter-plant movement leveraging an integrated Digital Control Tower

5 Detect pilferage
 Driver gets ETA of plant entry to the parking lot
during transit 6
4 Alert in case of route deviation  Logistics lead made aware of vehicles with alerts
approaching parking lot to ensure quick resolution

 Automated Call/SMS devices at entry time slot

Track and trace in truck 7
3 Parking-in  Visual board of call-in list
movement on map via
GPS
Transit 8  Auto gate-in for registered trucks (auto pass)
ETA at unloading plant so Gate-in
2
driver can plan transit time
Gate out
Control
tower
9  Real-time tracking of trucks across
station (geo-fence)
Plant 1
(Loading)
Plant 2
(Unloading)
1 Accurate indent planning: defined time 10 Real-time status of TAT performance
slot when trucks are required at station boards

 Cost savings from trip
optimization Transit
 Minimize parking lot congestion
11 All “paperwork” done digitally with integrated ITMS
Gate-out Weekly/
12
monthly AA
based MIS
Performance reports
review
Common myths that prevent organizations from setting up a
LCT

1
a
st
M
o

Establishing a control tower is a long drawn process

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iei f
d
7
/1
2
/2
0
1
9

2 Entire technology stack needs to be revisited to implement the LCT

3 Adding more manpower is more cost effective than to automate

using technology

4 First version of the control tower must be AI/ML

enabled

5 Simple track and trace is enough to get full control of the operations
Key success factors in setting up the Logistics Control Tower

1 Think through value proposition - Invest time and effort in diagnostic

to identify holistic use case

Design the solution fit-for-purpose – Create wireframes

2 and design suited for need and not plug-and play only

3 Take a holistic and long term view – Create a wave of roll-out of

different phases across time horizon

4 Tech is just 30% of answer - Collaborate across functions and

stakeholders to design, implement and sustain
THANK YOU
ANY QUESTIONS