1 / 28

M2M in the Supply Chain Mitigating Risk, Improving Process

M2M in the Supply Chain Mitigating Risk, Improving Process. Chris McLoughlin C.H. Robinson Worldwide. Ray Flemming Flemming Cargo Securement. Nikki Cuban OnAsset Intelligence. Chris.McLoughlin@chrobinson.com. ncuban@onasset.com. rflemming@fccsflemming.com. 952-937-8500.

branscome
Télécharger la présentation

M2M in the Supply Chain Mitigating Risk, Improving Process

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. M2M in the Supply Chain Mitigating Risk, Improving Process Chris McLoughlin C.H. Robinson Worldwide Ray Flemming Flemming Cargo Securement Nikki Cuban OnAsset Intelligence Chris.McLoughlin@chrobinson.com ncuban@onasset.com rflemming@fccsflemming.com 952-937-8500 972-659-1619 x 138 877-50-CARGO

  2. Session Topics • C.H. Robinson and the growth of the 3PL Market • M2M enhancing C.H. Robinson’s solution portfolio • Mitigating risk in the supply chain by understanding the criminal process • Overcoming application development challenges

  3. C .H. Robinson: Who we are. • One of the world’s largest third party logistics (3PL) providers: • Freight and transportation logistics • Outsource solutions • Fresh produce sourcing • Information services • Publically owned and traded on NASDAQ (Symbol: CHRW) • $7.6 billion in 2009 gross revenue • 47,000 transportation providers under contract globally • 35,000 customers worldwide • 7.5 million shipments handled in 2009 *

  4. Transportation Market: Competition is increasing • U.S. transportation and logistics spend = approximately $1 trillion • U.S. for-hire truckload market = approximately $350 billion • Estimates vary but we believe approximately 10-15% goes through brokers/3PL • Industry is highly fragmented • 500,000+ registered motor carriers • 96% of motor carriers have 20 or fewer trucks • Approximately 10,000 registered brokers • 3PL market share is growing • Technology increasingly essential to competitiveness

  5. 3PL: Growth of the 3rd Party Logistics Provider • Supply chains are more competitive and a differentiator • Globalization, volatility and reduced inventories have increased need for: • Technology • Flexibility • Visibility • Strategic resources • Economic pressures to reduce overall supply chain costs • Large 3PLs can offer leveraged economies of scale

  6. Market Driver for M2M: Supply Chain Risk, Cargo Theft • U.S. Dept of Justice approximates cargo theft at $30B annually • Industry experts measure year over year increases in theft activity • FBI categorizes cargo theft as a “gateway” crime • Insurance underwriters estimate economic impact at 10X retail value • Supply Chain interruption • Vendor dissatisfaction • Branding & warranty issues • Product safety concerns

  7. M2M Applied to 3PL Market: Cargo Security Solutions In-transit Visibility Situational Awareness

  8. The M2M Application: Requirements for a solution in 3PL Market • Focus on the cargo • Intelligent warning system • Integrated Security services • Flexibility to meeting customer-specific cargo needs • Broad capability to address global presence • Must be easy to manage • Easy to implement program amongst diverse carrier network • Low training costs • Smooth procedure for reverse logistics • Must support compliment operating procedures

  9. Enhanced Solution Portfolio: Integrated Transportation Services 3PL Services Machine-to-Machine Services Transportation Industry Security

  10. Our Goal: Proactive Intervention of the Cargo Theft “Market” FLEMMING CARGO SECUREMENT Develop in-depth understanding of cargo theft activities and apply monitoring to reduce visibility gaps during the transportation process • 24 x 7 Monitoring Platform • Investigations • Claims Processing • Carrier Driver Solutions • Policy & Procedure Solutions • Legal Solutions • Recovery Services

  11. Before Applying a Solution: First, Understand the Problem • Falsification of credentials • Trailer Decoys • Trailer Theft • Off-route, unauthorized unloading of cargo Common Themes in the Criminal Process The bad guys are creative too!

  12. Bad guy scenario: Falsification of Records

  13. Bad guy scenario: Trailer Theft • The license plate on the tractor, used by the suspects, was reported stolen from Ontario on October 24, 2009. • The missing trailer has the numbers “411772” marked across the rear exterior doors. Bad boys bad boys what you going to do when they come for you bad boys bad boys

  14. Bad guy scenario: Hook and Unhook, Stealing Cargo Customer Theft Successes: 1st Load Stolen $162,356.00, 2nd Load Stolen $185,322.00 and 3rd Load Stolen $252,764.00. Total Claims Paid Out????

  15. In-Transit Visibility Process: Mitigating Risk Shipper SENTRY™ Device Packaging Staging Loading Package Open Warning Proactive Recovery Transportation Charging Theft Early Warning Charge Reminders Dwell Time Excessive Shock Warning On Time Delivery Return Reminders Monitoring Unloading Consignee Return

  16. Security and Supply Chain: M2M Should Enhance the Complete Process Step 2: Situational Awareness Step 1: Security Step 3: Continuous Improvement Business Intelligence • When did it leave? • Where is it now? • How long has it been there? • What route is it on? • Is it on the right route? • When did it arrive? • Was receiving ready for it? • Did it break? • Is it the right temperature? • Was there excessive humidity? • Is it moving? • Was it broken into? • How fast was it going? • Performance Analytics • Customs Notifications • Condition Reports • Route Optimization • Insurance Reductions • Improved Claims Processing • Invoice and Audit Savings • Chain of Custody Management

  17. Monitoring Priorities: Our expectations • Is the cargo being stolen? • What is the next stage in the supply chain?

  18. The Challenge: Detecting a Process and Optimizing a Workflow Supply Chain Visibility System User Security Monitoring User

  19. Challenge: Theft is not an event, it’s a process.

  20. Sensor Awareness: How to “process” theft • Fork lifts • Palette Jacks • Dock bumps • Hook / Unhook Events • Locations Sensors readings mean different things based on where they are and what’s going on.

  21. Shipment Diversion Rule: Processing Potential Theft And reduces time to data interpretation Increasing remote awareness and monitoring efficiencies by developing application and location specific algorithms • Shock sequence • G-force • Location • Time-based analysis

  22. Challenge:Integrity of Data Collection What is the orientation and packaging of the device? How is it being returned? Bubble Wrap ? Cardboard ? Masonite ? Reverse Logistics ?

  23. Challenge: There is a lot of cargo on the road, which means a lot of data to monitor - Tens of millions of cargo shipments daily. • 100 – 600 motion notifications per hour • 700 shock alarms per day Goal: Eliminate excessive alerting procedures to optimize monitoring process, and catch suspect situations Previous experience After the new rule: • Now only 15 notifications per trip to highlight operator awareness of possible shipment diversions

  24. Trip Events Loading Events Arrival Events Staging Events Cargo Life-Cycle Management in the Supply Chain Reverse Logistics Events Handling Events Process Monitoring Location Temperature Pressure Light Motion Shock Vibration Speed Humidity

  25. Trip Events Loading Events Arrival Events Staging Events Reverse Logistics Events Handling Events Transportation Mode Monitoring Air Land Sea Process Monitoring Location Temperature Pressure Light Motion Shock Vibration Speed Humidity

  26. Lessons Learned: Supply Chain and M2M Must Work Together • Theft is a process, not an event. • M2M isn’t everything, packaging matters too. • The time it takes to interpret data must be reduced. • Extending M2M in 3PL requires the application to understand the entire journey of the cargo. • Optimizing the application experience requires partners to work together.

  27. Thank you! Chris McLoughlin C.H. Robinson Worldwide Ray Flemming Flemming Cargo Securement Nikki Cuban OnAsset Intelligence Chris.McLoughlin@chrobinson.com ncuban@onasset.com rflemming@fccsflemming.com 952-937-8500 972-659-1619 x 138 877-50-CARGO

More Related