2018 CLDA Annual Meeting

www.clda.org

Friday, May 11, 2018

1004: Making the Most of Technology-Led Disruptions 1

Making The Most OfTechnology-Led Disruptions

Customized Logistics Delivery Association

Agenda1. Mega Trends

2. Customer Experience

3. Order Management

4. New products / services and differentiation

5. How do you go about? Design thinking approach

According to Noel Perry…….

Final-mile delivery is a market that could grow to about $12 billion over the next decade, from about $3.7 billion today, thanks in large part to a growing appetite from younger consumers to buy everything from BBQ grills and mattresses to dining room tables online.

Mega Trends in the US Economy and Society

1. Baby Boomers Move Out, Next Generations Move In

2. Amazon Affect on Society- Supply Chain, Retail, CPG, Manufacturing, ….etc.

3. Customer Experience is Above Everything

4. Data, Data, Data

5. Flexibility and New Products/Services

Over 30 Years Ago….

“Information about the package is as important as the package

itself…”

Frederick W. Smith, Chairman and CEO

Logistics in the Coming Decade

“The next ten years will be all about mobile communication’s and real time data.”

Noel Perry

American Trucking Association

ITLC 2010 Conference

2018 CLDA Annual Meeting

www.clda.org

Friday, May 11, 2018

1004: Making the Most of Technology-Led Disruptions 2

Customer Experience…..Who’s Your Customer ?

• Who’s Your Customer• Lowe’s, Home Depot, Macy’s….etc.• Or Their Customers, who you are delivering to?• You must know your customers customer

• XPO Takes an Immediate Customer Satisfaction Rating• Customer Rating following delivery• Delivery Team and Last Mile Company Paid by

these Results• Brad Jacobs, XPO CEO, says this is why they grew so

Fast• XPO is Number One in US today.

Traditionally Customer Experience has meant

1. Website

2. Customer collaboration with EDI

3. One or few Visibility Portals

4. Account team & Customer Service Representatives

Moving from Website to Customer Experience Platform

“Tell me, I will forget. Teach me, I will remember. Involve me, I will Learn”

How to…

Learn about Billing Options

Manage Your Bills

Create Billing Reports

Billing Analysis Tool

Seamless experience across Channels & Devices

EDI / APIs

Contact

Center

• Engage / Involve

• with Integrated view for customer

• covering the quote to cash lifecycle

Self Service

Supply Chains Becoming Completely Connected

Block Chain for Contract

Management

Machine

Learning & AI

Track & Trace

Carrier

CollaborationSupplier & Customer

Collaboration

Bench Marking

Alerts & Next Best Action

Item Level Visibility

Customer Collaboration Suite

• EDI

• Needed to do business today with large customers

• High cost & difficult to maintain

• API

• Lack of standards, security

• Data accuracy is not proven

• Mobile app

• Proliferation of apps for driver

• Motivation for Driver

• ELDs / Aggregators

• Different ELD manufacturers

• ETA still not available

• Portal

Predict & Orchestrate Supply Chain with Real-time data

Robust Order Management as foundation to CX

• Don’t tie yourself to one technology• TMS• EDI• API• FAX……other?

• Check Data• Involve Customer if you can• If data is wrong, will permeate entire system

• Customer Satisfaction is dependent on Data Accuracy

Moving from Static Information to

Personalize, Predict, Prescribe and Automate Experience

Robotic Process Automation

Machine Learning

1.Predict &

Prescribe

2.Personalize

3PL

Hello, I am your virtual

assistant. How can I help you?

Chatbot

2018 CLDA Annual Meeting

www.clda.org

Friday, May 11, 2018

1004: Making the Most of Technology-Led Disruptions 3

Transform Services with Products & PlatformsGlobal Optimization

More digitization

R&D Adjustments

Process Innovatio

n

New distribution channels

Shorter lead times

Smart Data gathering

Automation of inbound

logistics

Energy efficiency

Greater customer focus

New Services

Preventive Maintenanc

e

Miniaturization

Efficiency increases

Even more customer-specific

adaptation

grow by driving new services better value to customers

Start with Customer at

Center

Leverage Insights from Data

New Products & Services

Quick to Deploy Solutions

Flexibility for Personalization

Optimizing Mobile Interactions for User Journey and form factor

End state: Integrated solutions for Supply Chain Orchestration

to drive operational efficiency & differentiation

Block Chain for Contract

Management

Machine

Learning & AI

Track & Trace

Carrier

CollaborationSupplier & Customer

Collaboration

Bench Marking

Alerts & Next Best Action

Item Level Visibility

1. Productivity

2. Personalization

3. Prediction

4. Prevention/Prevent

5. Perfection

6. Possibilities

COTS TMS in SaaS Model

Air & Ocean First

and last Mile

Load

Brokerage

Contract

LogisticsTransborder Intermodal

Overland Transportation

Host

Systems

Orders

Buy Shipments

Tender to Carrier

Sell Shipments

Invoices

Bills

Legacy

Financial System

Air Ocean WMS 2

Customer Specific

rules

Order Constraints, Weight / Volume /

Deliv ery Window / equipmentCarrier

Constraints

Internal

Sell

External

Customer Sell

EDI - Auto Match & Auto

Approv e

WMS 1

OTM

Inv oices

Standalone

Bill

Consolidated Bill

Inter-

Country

XML EDI Email Fax

Direct

Business Benefits

• Time to market on New Services

• Process Automation – Zero click Freight Audit

• Cost Optimization from advanced algorithms

Different Business Units

Order Management is

Configured separately for each

BU

Cross-BU consolidation (if

allowed)

Common and Automated

execution, visibility & event

management and Freight Audit

Billing is Configured by BU

Where do you start? - with Design Thinking Summing It Up

• Forward thinking Last Mile service providers understand that Technology is strategic and will make technology a central pillar in their organizations strategy.

• Data needs to be accurate, seamless, and near real-time. One version of the truth is critical. Customer Experience is Everything.

• Flexibility and Constant Process Innovation are critical for survival and growth.

CostsRevenues

2018 CLDA Annual Meeting

www.clda.org

Friday, May 11, 2018

1004: Making the Most of Technology-Led Disruptions 4

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