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Logistics organizations including 3PL’s, freight forwarders, Contract logistics, Fleet operators, Customs management and other Supply chain management companies are grappling with eroding margins driven by volatile demand, rising fuel costs, acute labor & capacity crunch, security and regulatory constraints. Lack of standardization and presence of legacy systems further dampens the agility of the organization to respond in real time. HCL, led by its domain led approach partners with leading logistics organizations to achieve better productivity and efficiency, gain deeper insight/ visibility into supply chains, increase flexibility, standardize processes and become proactive in the way they deliver their services.
HCL has extensive expertise across 5 functional business areas of LSPs, including contract logistics, freight forwarding, freight management, customs management, trucking and fleet operators. We partner with customers to help them achieve optimum value from their technology investments and maximize ROI by providing true integrated service delivery across applications, infrastructure and BPO.
Download our Services Brochure for the Logistics Industry to understand how HCL is partnering with Logistics organizations including 8 of the top 15 logistics organizations and 5 National Mail companies globally to help build sustainable competitive advantages and transform business through technology.
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HCLT Brochure: HCL in Freight Logistics
1. HCL in
Freight & Logistics
Transforming Freight & Logistics by Driving Business through Technology
2. UNDERSTANDING FREIGHT & LOGISTICS
THE INDUSTRY VALUE+ SOLUTIONS
Recovery from the recession has been elusive and more prolonged than any other in history, with uncertain economic HCL Offering Solution Overview & Value Proposition with Realized Benefits
conditions presenting several challenges for the industry
• Supply chain organizations will be forced to adjust from proliferation to optimization of international flows due to a Customer • Catalog based services for EDI onboarding. Leverage HCL understanding and experience
On-boarding across 40+ EDI Transactions and categories for Logistics industry
downward trend in global trade as a percentage of global GDP
• Framework to create a self-service organization allowing partners to test EDI documents
• Capacity tightening and leaner operations for Logistics Service Providers (LSPs) - poised to impose rate increases
• Eliminates EDI/B2b integration problems by automating large set of functions
• Industry consolidation will be driven by need to enter/establish new markets and gain market share
• 50% reduction in customer on-boarding time resulting in ~10% additional revenue
• Consolidation of LSPs utilized by shippers will enable leading service providers gain higher wallet share from existing • 75% reduction in EDI operations cost due to automation of processes
customers • Ability to on-board twice as many customers with same setup
• Sustainability measures will have a significant impact on shipping and transport companies services and costs
Freight and • Complete Assessment Framework and Methodology to help transform core Operations
Transport systems
Business Challenges Optimization • Pre-defined KPI’s to help CIOs benchmark the current state of operations, thereby, providing
a baseline and roadmap for moving on to a standardized, “global freight forwarding and
Uncertain Economics Risk & Compliance transportation platform” built on a scalable, flexible applications architecture
• Productivity improvement with goal to achieve industry benchmark of 5 Files/FTE.
• 2011’s total logistics spend of $1.28 trillion (up • Increasing regulations to meet sustainability, • Enhanced visibility leading to better utilization of assets.
6.6% over 2010) is 17% above the 2009 bottom, security and safety requirements • Unified customer information for improved revenue realization per customer.
but is still below the 2007 peak of $1.39 trillion • Growing focus on effective risk management
• The industry reported gradual recovery in 2011 Report Factory • A holistic view of the enterprise through catalogue based reporting and analytics services.
• New ‘Hours of Service’ rules are due to go into • Track and improve performance of LOBs against predefined KPIs.
and is expected to continue in 2012, albeit at a effect in July 2013 - estimated to impact driver
very slow pace • Centralize and standardize disparate reporting practice in organization.
productivity by 3-8% negatively
• Deployment of low cost automation solutions using in-house developed tool set.
• 99.9% quality and accuracy in reporting with standardization across organization
Resource Management Aligning IT to Objectives • 30% reduction in employee engaged in mundane reporting
• Effective asset utilization and cautious capacity • Shippers are increasingly focusing on evaluating the eFleet Management • Telematics solution offering Fleet/ Driver monitoring and Geo-Fencing
expansion IT capabilities of LSPs • Paperless fleet management and Real time job dispatch and remote reporting
• Intermodal gaining prominence over air and • Inability to synchronize end-to-end business • Reduce TCO of mobile assets & improve fleet utilization through optimization and bundling.
road, spiking demand for intermodal chassis and processes is driving increased demand for SCM • Maximize resource/vehicle availability and safety
trailers application convergence • Reduce fuel costs and carbon footprint through efficiency of operations
• Inability to attract and retain talent. Challenges in • Leveraging IT to optimize/automate processes, CataLOG • A unified, one-stop-shop portal for all supply chain requirements
creating the future workforce increase fleet efficiencies, and to differentiate • SaaS enabled framework for service providers with subscription based “Pay-per-use” concept
• Need to build more fuel efficient fleets to offset • Inability to effectively leverage new technologies like • Automatic provisioning of customers, metering and billing
rising fuel prices and manage carbon footprint mobility, complex event processing, etc. • Timely order fulfillment due to automated order capture process
• Enhance efficiency in warehouse and complex distribution, yard and dock operations
• End-to-end visibility of material and information
HCL – Here to help Advanced Control • Proactive decision-making based on Complex Event Processing
Tower • Real-time / automatic trigger of applications based on business events and patterns
• 15+ years’ experience delivering successful global transformation initiatives for leading industry players
including 8 of the top 15 LSPs and 5 National mail companies • Flexible business rules for exception monitoring
• Correlate information in real time and derive insights based on user defined patterns
• Extensive expertise across 5 functional business areas of LSPs - contract logistics, freight forwarding, freight • Increased process automation for better customer satisfaction and optimized operations
management, customs management, and trucking & fleet operators • Faster and accurate predictions of operational irregularities and exceptional occurrences
• Helping customers achieve optimum value from technology investments; maximizing ROI through integrated
Green Logistics • An Emissions management framework to measure and track carbon footprint
service delivery across applications, infrastructure and BPO
Terminal • Optimize resource consumption – energy, fossil fuel, paper, water and travel
• Helping ‘align IT to business’ by mapping processes to applications, infrastructure and databases, thereby • Pre-configured KPIs for emission management and reporting
eliminating redundancies and cost overruns
• Monitor goal parameters and track emission offsets
• ROI based, proven Application Management methodology - alleviates the central issues of value addition, • Comply with US and European government laws
business alignment and cost reduction, delivering predictable services at predictable costs; Guaranteed savings
• Monitor and report savings from green initiatives/ projects
accrued from reduced cost of operations from “Run the business” are ploughed back into transformational
initiatives focused on “Change the Business”
• Industry-specific process repositories, frameworks and accelerators, to help expedite the realization of
transformation goals and provide predictable outcomes
3. PEOPLE IN ACTION
THE LOGISTICS TEAM
HCL engages with leading Freight & Logistics companies globally, helping transform IT – right from supporting business
operations to building sustainable competitive advantages
Domain-led Delivery
• Understanding business processes pertinent to the industry and applying technology to enhance customer
SUCCESS
experience
• Dedicated Logistics Center of Excellence (CoE) and individual customer academies - expediting resource on- Case Studies
boarding and enhancing productivity
STORIES
Global transformation of a freight forwarding system
• Recognized by leading analyst firm, Gartner: “HCL helps logistics companies unify their technology-enabled services”
A global freight forwarder with a wide range of clients
• Partnered with a leading logistics provider to develop the world’s first single instance business operating platform was looking for a partner to help it transform its freight
• Recognized as the only service provider to have successfully delivered on a core system transformation initiative in forwarding system globally, within a stipulated budget,
an onsite-offshore model timeline and resources. HCL took ownership of the end-
to-end reengineering of its business processes and
developed over 165 custom applications while delivering
Testimonials a single global freight forwarding system with unified
processes, data and measurement metrics. This was a
Industry Focus
fixed price, managed services model that was rolled out
Transportation & Logistics - Freight Forwarding, Contract Logistics, Customs Brokerage, Trucking & Fleet Operators, Warehouse “HCL has built a solid reputation of in phases across geographies. Results: Released a 24%
Management, Distribution, Shipping, Express Air Freight & Mail
providing industry-leading IT application FTE bandwidth for core business activities; reduced
Domain Expertise Transformation Partnerships & Industry Comprehensive Unique Business customer on-boarding time by 60%; faster deployment by
Solutions Alliances services across the & Engagement and infrastructure services. Given their 30%; 100% decommissioning of legacy applications; 2%
ecosystem Models commitment to the transportation and assured value creation on TCV.
• Over 15 years’ To enhance Operational Leveraging strategic • Enterprise • Collaborative
logistics industry, willingness to invest in our Contributing to operating margins by empowering
experience Efficiency alliances with Fortune Transformation Co-Sourcing success, and unwavering commitment to Business Operations & IT
1000 firms Model
• 2000+ domain & • Core systems integration • Product
(provides excellence, HCL was the right choice” For the last four years, HCL has been supporting the global
technology professionals • Electronic Data • SAP Engineering & BPO and IT Landscape (Applications & Infrastructure) of
Development flexibility &
• 25+ customers in North Interchange (EDI) based • Oracle the world’s 5th largest 3PL service provider, with 28% fewer
America, EMEA & APAC customer on-boarding • Microsoft • System
scalability as Senior Vice President and CIO, resources for the same scope of work and a 20% quicker
a customer
• Serving leading industry • Maintenance repair &
• TIBCO
Integration can retain a leading 3PL company call resolution rate. HCL is now the only service partner for
players - 8 of top 15 overhaul • IT Services control over all
• Red Prairie delivering global business transformation initiatives to this
LSPs and 5 national mail • Asset management Management the strategic
• eBiznet
customer. Results: Over €4 Mn annual savings and 1.47%
companies • Crew planning & Operations aspects
EBITA impact within three quarters; 50% reduction in DSO
• 400+ applications • Sustainability solution to • Daon • BPO of IT while
leveraging our by adopting a SLA-led approach; enabling 100% visibility
supported globally manage carbon footprint • AvFinity • Infrastructure
for logistics clients capabilities across channels; created a platform for service delivery
• SaaS enablement • EMC Services
including 65+ in contract for operational enabled by IT.
framework for • Custom
logistics, 180+ in freight • HP execution and
transportation service Application Online Shipment Booking System
forwarding, 220+ providers • CA excellence)
custom built and custom Development A leading global freight forwarder with a wide range
• Subscription based SCM • Misys • Risk-Reward
brokerage applications, • Legacy Sharing of manufacturing, industrial, retail, and government
Portals • Informatica
and 25+ TMS & WMS Modernization customers approached us to help create an Online
• Mobility • Output Based
applications • Master Data Pricing Booking system with features that enable requests for
• 100,000+ application For supply chain visibility Management quotes, quote creation, submission & retrieval, along with
• JVs
users supported in • Report factory – • EDI/B2B a graphical user interface for customer logins, and for
70+countries and 65000+ catalogue based Services creating, retrieving and tracking bookings. The solution
tickets handled every analytics
month for logistics clients was integrated with the Document Management system to
• e-fleet management
retrieve shipment documents. Results: Shipment booking
• Advanced control tower
data quality improved from 36% to 83%; we streamlined
for decision making
based on real time event/ the booking process for 85% of the shipments, and invoice
data correlation accuracy improved to 78% due to a reduction in shipment
• RFID based track and detail errors which led to a 30% improvement in the
trace realization of invoices.
25+ Global Customers
4. HCL Technologies: $6.2bn | 90000 people | 31 countries
• Experience - 15+ years
• Customers - 25+ global customers in North America, EMEA and APAC
HCL’s Logistics Team • Team - 2000+ technology & domain consultants
• Services - Enterprise Transformation, Product Engineering & Development, System Integration, IT
IMPACTING THE WORLD Services Management & Operations, BPO, Infrastructure Services, Custom Application Development,
Legacy Modernization, Master Data Management, EDI/B2B Services
• IPs & Frameworks – Freight & Transport Optimization, Report Factory, SCORP Platform, Asset
Management & Mobility, eFleet Management, Cross-Docking IT, CataLOGTM, eFMS, Customer
Onboarding, Advanced Control Tower, Green Logistics Terminal
• Partnerships - Oracle, SAP, Microsoft, TIBCO, Red Prairie, EMC, HP, Misys, Informatica, eBiznet,
Daon, AvFinity
5. The World is noticing
something unique about HCL
Acknowledges HCL Technologies as the HCL’s Employees First is a new and
HCL’s Employees First and ‘democratization’ radical management philosophy which will
world’s most modern management
of management concept could ‘bring about a catch on with the world sooner or later
HCL is also the only Asian company whose corporate renaissance’
CEO featured on Fortune’s ‘Dream Team’
Darden School of Business has done a
Harvard Business School teaches case study on the impact created by HCL
HCL is in the Elite “Thinkers 50” List through its “Employees First Customers
about HCL as a case study on business
transformation highlighting the Employees Second” practice
First initiative
For the fourth time in a row, WorldBlu lists HCL
as one of the Most Democratic Workplaces in
the World Honored with the Forrester Groundswell Award
Ranked as the world’s Most Innovative 2011 in the ‘Management – Innovative Systems’
Company in its workforce practices category for ‘Value Portal’ – an employee idea
exchange platform where employees collaborate,
Publishes a Case Study recognizing the innovate and lead the implementation of their
business value of HCL’s Employees First - Gartner ideas to deliver value to HCL’s customers
“For HCL customers, improved engagement
and employee passion translates into Exclusive report on EFCS recognizes that
greater flexibility, proactive innovation, and a this philosophy empowers HCL’s frontline Published by Harvard Press,
desire to do the right thing for the customer, employees to make decisions and take Employees First, Customers
regardless of what the rules might say”, actions for the benefit of customers Second is admired by global thought
it says. leaders - Tom Peters, Tony Hsieh,
Gary Hamel, Judy McGrath, Ram
Charan and Victor K. Fung; Ranked
No. 17 on the Best Seller list in 800-CEO-READ;
Listed amongst the ‘Best Business Books of
One of Britain’s Top Employers for the 2010’ by the Library Journal of America; Ranked
Wins the Asian Human Capital Award
5th Consecutive Year No. 7 on Amazon UK’s listing of ‘Best Business
2011 for innovative and impactful people
practices centered on the Employees Books of 2010’.
First, Customers Second philosophy
The ‘Employees First’ philosophy at HCL, the
first such articulation in the IT Industry, is at the
IT IS core of our efforts to provide our employees
EMPLOYEES FIRST
with a work environment and culture that they
can take pride in.
Employees First.
When you channelize the energies of 90,000 employees and pour it into a funnel, you get a potent concoction
gushing out of the other end that will send your company’s engines racing.
We call this the Employees First effect.
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