Transportation VerticalToolKit06

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TRANSPORTATION

AND LOGISTICSVERTICAL TOOL KIT


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PART I:

TRANSPORTATIONAND LOGISTICS AT

A GLANCE


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OVERVIEW

• The Transportation and Logistics industry includes companies that are involved in theplanning, implementing, and controlling of effective, efficient transportation and storage ofgoods, people, and related information from one physical location to another. The industrysegments included in this toolkit under the umbrella of “Transportation and Logistics” aretranseportation of cargo and passengers via air, road, train and water, postal, courier, expressand parcel, non-storefront retailers, logistics management, warehousing and wholesaledistribution

• Retailers and manufacturers are highly dependent on the Transportation and Logisticsindustry for production and distribution.

• Successful businesses meet customer expectations by delivering the right products/people ontime and damage-free, while operating efficiently, cost-effectively, safely, and within regulatoryboundaries.

MARKET VALUE

• In 2013 the total volume of Global Trade was over $20 Trillion, the ration of Trade to GDPincreased from 39% in 1990 to 59% in 2011

• In 2013, worldwide transportation industry revenues were $4.5 trillion, $950.6 billion of which

were in the U.S.

• IT spending for the worldwide transportation industry is projected to be $130 billion in 2014,growing at a compound annual growth rate (CAGR) of 3.7% to nearly $151 billion by 2018.Major initiatives include intelligent transportation management solutions and mobility-relatedenhancements.

• Total logistics activities make up 15 to 20% of finish product cost (source: InternationalWarehosue Logistcs Association)

• As the U.S. and Europe struggle with weakened economies and declining consumptiongrowth, multinational corporations are looking to emerging markets (particularly Asia) for

market expansion and profitability growth opportunities, due to its expanding middle class andincreased urbanization.

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)

MAJOR TRANSPORTATION AND

LOGISTICS FUNCTIONS

MAJOR SOFTWARE SYSTEMS

PART V:

CONVERSATION

STARTERS

MARKET DICTIONARY

REGULATORY ISSUES

TYPES OF BUSINESSES

TRANSPORTATION AND LOGISTICS

RESOURCES


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• The Middle East is developing into a global logistics hub, driven by oil revenues, aconstruction boom, and an emerging manufacturing base. The government of the United Arab

Emirates is placing a high priority on infrastructure investment.• In Australia, the transportation and logistics industry generates roughly $201 billion in annual

revenues. Information and Communications Technology (ICT) spend within the transportationand logistics industry was $1.6 billion in 2012 and is expected to grow at a 2.8% CAGR to $1.7billion by 2015. Mobility solutions dominate ICT spending.

KEY INSIGHTS

• Transportation and logistics operations are no longer viewed as cost centers, but rather asstrategic activities that can differentiate a business from its competition.

• The ability for a logistics company to provide complete arrival, departure, shipment informationand to capture signatures electronically is now a core requirement for most suppliers,manufacturers, retailers, and customers.

• The growth of e-commerce in retail is changing warehousing and distribution operations, asmore shipments are going directly to consumers than ever before, and demand for same-day or next-day delivery service is rising. This creates the need for e-fulfillment centers andrestructured delivery networks. For instance, many retailers are positioning warehouses withhigh sales volume goods in close proximity to retail outlets in order to guarantee next-day or

same-day deliveries, or building massive e-fulfillment centers near interstate highways. Thesechanges drive the need for technology that can improve inventory accuracy and operationalefficiency, such as RFID technology, fleet management, and warehouse management andoptimization tools.

• Major shifts are beginning to take place in the industry, such as Amazon.com’s restructuringof its delivery network in order to increase control over its fulfillment infrastructure whilereducing transportation costs, with a goal of achieving same-day or next-day delivery windowsfor nearly every order. Orders will be routed through Amazon’s 55 fulfillment centers, withinventory positioned to support local deliveries. Amazon is creating a private fleet to deliverorders to the 40 most populous markets in the U.S., and will use regional parcel delivery

carriers to service an intermediate (by population) segment and the U.S. Postal Service toservice the remaining markets. This shift is driving other retailers to re-think and re-vamp their

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

CONVERSATION

STARTERS

MARKET DICTIONARY

REGULATORY ISSUES

TYPES OF BUSINESSES


RESOURCES


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delivery networks, presenting new opportunities for technology vendors to help streamlineinventory and delivery operations.

KEY CONCEPTS

Transportation and Logistics is a broad sector that touches many other industries in the supplychain.

• The supply chain is a set of organizations directly linked by one or more of the upstream ordownstream flow of products, services, finances, or information from a source to a customer.Supply chain organizations include suppliers, manufacturers, wholesale distributors, retailers,

and transportation and logistics providers.

• Transportation is the physical movement or flow of goods or passengers via water, rail, motorcarrier, or air. Factors such as speed of transport and security requirements affect the costassociated with each transportation mode.

• Warehousing and storage is the setting aside of raw materials, semi-finished goods, orfinished goods in a facility for various amounts of time. Warehousing and storage interruptsthe flow of the supply chain and may increase the cost of a product.

• Distribution refers to the process of getting products to the correct end user on time.

• Logistics is a set of activities focused on planning, implementing, controlling, and monitoringthe efficient, cost-effective flow and storage of goods, people, and related informationbetween two points. The purpose of logistics is to ensure that the correct goods/merchandise/people are always where they need to be, when they need to be there, and in the rightcondition.

• Logistics in a supply chain context is concerned with the movement of supplies, semi-finisheditems, and manufactured products between the point of origin and the point of consumptionanywhere along the supply chain (e.g., supplier to manufacturer, manufacturer to warehouse,warehouse to retailer, warehouse to consumer, etc.).

• Passenger logistics is concerned with the movement of people and baggage from the point of

departure to the point of arrival.

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

CONVERSATION

STARTERS

MARKET DICTIONARY

REGULATORY ISSUES

TYPES OF BUSINESSES


RESOURCES


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• Logistics can be viewed as the planning and implementation portion of the supply chain,whereas warehousing, distribution, and transportation together constitute the physical portion

of the supply chain.• Transportation and logistics is a key driver of the overall profitability of a firm because it

directly impacts both the supply chain cost and the customer experience. Well-managedtransportation and logistics can be used to achieve a variety of supply chain objectivesranging from low cost to high responsiveness. As a result, companies in the same industryoften select very different distribution networks.

• The term “logistics” is often used to refer collectively to all logistics, warehousing, andtransportation activities across the supply chain. (For the purposes of this document, we referto these activities as “Transportation and Logistics.”).

MAJOR TRANSPORTATION AND LOGISTICS FUNCTIONS

In a supply chain context, transportation and logistics spans all activities concerned with the ow

of a product in its various stages (e.g., raw materials, nished goods) between nodes in the supply

chain, including suppliers, manufacturers, warehouses and distribution centers, retailers, andcustomers. Major functions include:

• Order processing

• Warehousing• Packaging

• Transport

Order Processing

• Orders form the basis for information flow in a logistics system, enabling goods to be trackedthroughout the supply chain.

• An order precedes the goods, accompanies the goods, and follows the goods.

»

Advance information ow (e.g., expected delivery date, storage/transport needs) is sent to

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PART III:

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PART IV:

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SNAPSHOT

PART VI:

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QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

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MARKET DICTIONARY

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all parties involved in the ow of goods to facilitate planning and scheduling.

» Accompanying information ow (e.g., hazardous contents) provides operational information

necessary for the proper handling, storage, and transport of goods, and enables real-timetracking throughout the supply chain.

» Follow-up information ow is communicated after completion of the ow of goods or a

checkpoint along the way. Examples include an invoice sent to a customer a few daysafter delivery, and information sent to the dispatching site regarding when a packagepassed through a point in the transport chain.

• Order processing tasks include order transmission, preparation, routing, picking, shipping, andinvoicing.

Warehousing

• Warehouses are hubs in a logistics network that are responsible for the efficient storage,supply, and rerouting of goods.

• There are several ways to classify the different types of warehouses:

» Supply warehouses

◦ Are part of a production operation. They store raw materials, supplies, and otherresources needed for production as well as semi-nished goods and seasonal nished

goods.

» Distribution Warehouses

◦ Warehouses performing distribution services on behalf of their customers. Thisgenerally requires that products be received and tracked by lot or sub-lot, with orwithout tracking numbers, such as pallet tags or serial numbers. Shipping is usuallyby the pallet or bulk unit. Handling and storage charges generally relate to the itemwith accessorial charges being billed by the transaction. On-going storage chargesare generally billed ahead on the rst of each month. Distribution warehouses,

or Distribution Centers (DCs) store nished goods before shipping to retailers or

customers. Retail DCs are often located within a day’s drive of large retailers’ stores inorder to streamline restock of store inventory. Many large retailers operate a central DCand several regional and local DCs. Smaller retailers typically contract with wholesaledistributors to buy from them the products they store or represent. The E-Commerce/

Internet Fulllment Center is a type of DC at which orders are picked, packed, andshipped directly to consumers. This is a growth area for Zebra in the Transportation and

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PART III:

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INSIGHT

PART IV:

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SNAPSHOT

PART VI:

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QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


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Logistics market.

» Fulllment/ Consolidation Warehouses

◦ Warehouses where products are generally received in large quantities and shipped outin a large number of smaller mixed shipments. Such pick and pack operations requirespecial inventory management and picking procedures. Location tracking is essential.Billing methods are generally similar to distribution warehouses.

» Warehouses Providing Value Added Services

◦ Warehouses providing a wide range of value added services. This requires thewarehouse to apply labor and, in some cases, special equipment to the customer’sproducts, such as repackaging, further processing, or labeling. This not only changesthe product but requires additional billings. Such services are generally performedalong with other warehouse functions.

» Cross Docking and Trans-loading Warehouses

◦ Warehouses that provide cross dock and trans-loading services. Container or railcartracking is generally important. These services often require temporary storage withcharges adjusted for free days or a grace period.

» Break Bulk Warehouses

◦ Warehouses that receive product in bulk, of ten by railcar, and then repackage theproduct based on customer requirements. In the case of containers with importedproducts, this generally requires the inspection and relabeling of product. Generally,special billing rules apply.

» Storage Warehouses ◦ Warehouses which store product for periodic delivery to a manufacturer or distribution

center. This is often associated with providing just in time delivery of the product to theconsignee. This could be imported raw materials or items used in the manufacturingprocess, such as cans or sub-assemblies. Items are generally tracked by lot, with thelot often being specied for delivery. Handling, storage and accessorial charges are

similar to distribution warehouses.

» Refrigerated Warehouses

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OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


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◦ Refrigerated warehouses often require more detailed tracking of product and specialbilling procedures. Handling charges often involve a table of decreasing charges based

on volume. Often each transaction is subject to a minimum charge. And, storagecharges are generally billed based on anniversary dates.

• In most warehouses, incoming goods from vendors are stored on racks, shelves or pallets.When an order comes in, workers pick the appropriate goods, pack them, and ship them outto customers or retailers.

• The functions of the Warehouse are grouped on inbound, inventory and outbound, the mainprocesses are receiving/inspection, reverse logistics/returns, storage (or put-away), inventory,picking, packing, and shipping.

» Receiving: accepting merchandise at the loading dock and checking to ensure the rightmerchandise was received and in the expected condition

» Reverse logistics/returns: receiving returns accessing key information to allow efcient

transfer to subsequent processes

» Storage/put-away: transferring received merchandise into bins for storage

» Inventory: keeping track of the quantity and location of merchandise

» Picking: pulling merchandise once an order has been placed and moving merchandise toshipping

» Shipping: loading merchandise onto trucks or other transport vehicles to be delivered tothe customer

• Inventory management in a warehousing context focuses on determining the optimal level

of stock to maintain at any given time in order to ensure customer commitments can be metwithout tying up too much capital in high inventory levels.

Packaging

• Optimal packaging fulfills several logistics functions, including protection, handling, storage,transport, and information.

• Bar code labels or RFID tags are commonly used on packaging to identify contents and anyspecial handling (e.g., fragile, perishable) in order to facilitate automatic product recognitionduring automated transportation and logistics processes.

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

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MARKET DICTIONARY

REGULATORY ISSUES

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Transport

• External transport involves moving goods between locations (suppliers, warehouses,manufacturers, wholesale distributors, retailers, or customers) in a transport network. Internaltransport involves moving goods within a production facility or warehouse.

• External transport consists of the cargo, transport mode, and transport process.

• Modes of transport include ground (truck, rail, pipeline), air, and water.

• Intermodal transport is the movement of freight stored in special containers, known asintermodal containers, by more than one mode of transportation.


There are several major software systems that are commonly used by larger companies in theTransportation and Logistics industry. Label printers, RFID printers/encoders, real time locationsolutions, enterprise mobility and data capture solutions typically interface with one or more ofthese systems.

• Order Management System (OMS)

» Facilitates order entry and processing

• Warehouse Management System (WMS)

» Supports the day-to-day operations involved in controlling the movement of material insidea warehouse

» Enables centralized management of warehouse tasks, such as tracking inventory levelsand storage locations

» May be a standalone system or part of an enterprise resource planning (ERP) system

• Warehouse Control System (WCS)

» Acts as a “trafc cop” in a warehouse/distribution center, directing activities among

subsystems (e.g., conveyor system, sorters, palletizer) » Interfaces with WMS, exchanging data to facilitate optimal control of operations

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

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• Transportation Management System (TMS)

» Coordinates transportation logistics activities such as advanced shipping notication, loadoptimization, route planning and optimization, freight audit and payment, and order visibility

» Interfaces between OMS and WMS

» Traditionally focused on truck transportation, but expanding to ocean and air

• Yard Management System (YMS)

» Manages the ow of trucks and trailers in the yard of a manufacturing plant or warehouse/distribution center

» Provides real-time information on the location of vehicles

» Coordinates the activity of yard workers in moving vehicles from staging to docks in orderto improve efciency

• Asset Management Systems

» Manages the location, movement, state and usage of different type of assets: IT assets,tools, returnable transport, in-transit equipment, materials handling assets, manufacturingasset, and personnel/ staff

» Provides real time information on the location of assets

TYPES OF BUSINESSES

Transportation and logistics companies are typically viewed as service providers that are hiredby manufacturers, retailers, and consumers to provide transportation, transshipping, storage, andother logistics services. Many manufacturers and retailers purchase and manage their own eet

of transportation assets themselves.

• Freight transportation carriers: transport, transship, and store goods

» Trucking companies, which are characterized by the type of services of fered, including:

◦ Truckload (TL) service – freight from one customer is loaded into a semi-trailer orcontainer and transported to a delivery terminal

◦ Less-Than-Truckload (LTL) service – small shipments from multiple customers areconsolidated and transported to a delivery or hub terminal

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PART III:

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QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


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◦ Parcel service – transport of small packages or freight from multiple customers. Apackage is considered parcel if it weights less than 35 pounds and it is not a at

envelope. » Railroad carriers, which may offer one or more services, including:

◦ Container services (transport containers to or from ships or trucks)

◦ Piggyback services (transport freight trucks or trailers)

» Shipping carriers, including bulk carriers (for transport of unpackaged bulk cargo),container ships, roll-on/roll-off carriers (for transport of wheeled cargo, such asautomobiles), tankers, and gas carriers

» Air freight carriers, including dedicated cargo operators, passenger operators carryingfreight as a secondary service, and specialized operators (e.g., for heavy load freighttransport)

• Third Party Logistics (3PL) or Contract Logistics companies (e.g., C. H. Robinson Worldwide)

» Asset based 3PLs are companies that provide logistics services, such as transportation,warehousing, cross-docking, inventory management, packaging, and freight forwarding,for use by customers.

» Non-asset based 3PLs provide logistics expertise such as negotiating contracts withcarriers and optimizing warehousing and distribution operations. For example, FreightForwarder s, Non-Vessel Operating Common Carriers (NVOCCs), and IntermodalMarketing Companies (IMCs) contract with carriers to arrange for the shipments of goodsfrom a manufacturer or producer to a customer or other point of distribution.

• Passenger transportation carriers (airlines, bus/rail, ship/ferry/cruise operators)

• Courier, Express, and Postal Carriers facilitate the transport of documents and packages.

KEY PERFORMANCE INDICATORS (KPIS)

Transportation and logistics companies closely track productivity, efciency, cost, safety, security,

and customer service measures. Typical performance indicators include both internal metrics(e.g., productivity, efciency, resource utilization) and external metrics (e.g., service reliability,

effectivity). Some specic KPIs include:

PART II:

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PART III:

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PART VI:

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QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

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• Share of logistics costs as a percent of revenue (costs/revenue) for various logistics functions:

» Order processing costs

» Warehousing costs (includes capital costs, equipment, payroll)

» Inventory management costs

» Transport costs

» Distribution cost as a % of sales

• Warehousing KPIs

» Order-picking accuracy

» Inventory-to-sales ratio

» Inventory turnover

» Delivery in full, on time (DIFOT) » Average storage-location costs (average warehouse costs/occupied storage locations)

» Average stock-movement costs (average warehouse costs/stock movements

» Engineered Labor Standards (ELS) are used in well-run DCs to rate employee perfor-mance of tasks (e.g., an employee is working at 50%, 90%, 110% of the average employ-ee)

• Transport KPIs

» Load factor (average load/total vehicle freight capacity)

» Pickup and delivery (P&D) productivity (pounds/man hour)

» Dock productivity (pounds/man hour)

» Fuel efciency (miles/kilometer per gallon/liter)

» Reliability or on-time delivery (number of deliveries received on-time/total number of deliv-eries)

» Damage rate (number of damaged shipments/total shipments)

» Delivery quality (number of complaints/total number of deliveries)

» Delivery exibility (number of fullled special requests/number of special requests)

» Equipment availability (percent of requests that can be satised with available equipmentat the time of request)

» Turndown ratio (number of shipments declined/total shipments offered) or delivery readi-

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MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


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ness (number of requisitions lled ex warehouse/total number of requisitions)

• Yard Management KPIs

» Moves per driver (from yard position to dock door)

» Length of time trailer is sitting in yard

REGULATORY ISSUES

Compliance with government and industry standards may require additional tasks and reportingas well as adjustments to route planning for transportation carriers.

• Hours-of-Service (HOS) regulations in the U.S., Canada, Australia, and nations in theEuropean Union (EU) specify the allowable number of consecutive driving hours, downtimebetween shifts, and other factors, and require logging and reporting on driving hours.

Authorized government inspectors may review driver’s logbooks or electronic logging systemsat any time.

• Mandates for electronic on-board recorders (EOBRs) in the U.S. and European Union

• U.S. Department of Transportation (DOT)

» Compliance, Safety, and Accountability (CSA) regulation is a safety measure and equip-ment maintenance reporting initiative of the intended to reduce accidents.

»

The U.S. Food Safety Modernization Act will require companies to provide proof that foodhas been transported at the proper temperature throughout the supply chain. However, theFood and Drug Administration (FDA) has not yet completed a timeline for implementation.

• Pharmaceutical Traceability and the Drug Supply Chain Security Act - The Drug SupplyChain Security Act (DSCSA, or Title II of the Drug Quality and Security Act) was enactedon November 27, 2013 - replaces a 50-state patchwork of pedigree requirements with onefederal traceability solution for prescription medicines, and raises licensure standards acrossthe U.S. The law will transform how the domestic supply chain operates to the benefit ofhealthcare providers and pharmacists — and their patients. In 2015, enhanced product tracingrequirements begin, which over 10 years, will lead to the establishment of a single system offederal electronic, unit-level traceability requirements across the entire supply chain. Nationaldistributor licensure standards also have been strengthened. Instituting strong, consistent

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DISCOVERY

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MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


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distributor licensing standards is a critical component in ensuring that the supply chainremains safe and secure.

• U.S. Environmental Protection Agency (EPA): A number of states in the U.S. have anti-idlingregulations and laws with various fines.

MARKET DICTIONARY

Bulk Break CargoGoods that must be loaded individually, as opposed to in containers, and is usually delivered bytruck or rail to a warehouse where it is stored prior to loading onto a ship. Also known as generalcargo. The volume of bulk break cargo has been declining since the 1960’s, as container shippinghas increased.

Broker A third-party company that works with shippers and carriers to arrange for the transportation ofgoods.

ConsigneeThe party to whom a freight shipment is delivered.

Contract carrier

A carrier offering its services under contract to one or a limited number of shippers

Contract logisticsThe complete outsourcing of the distribution and transportation function.

Cross-docking A practice in which pre-picked materials are unloaded from an incoming truck, semi-trailer, or railcar, batched together, and transferred directly to an outbound truck, semi-trailer or rail car withlittle or no storage in between (usually less than 24 hours). In a pre-distribution cross-dockingoperation, incoming goods already have a customer assigned, so workers simply need to transfertagged and bagged goods to outbound trailers. In post-distribution cross-docking, workers at acompany’s cross-dock allocate incoming goods to various store branches.

PART II:

CHALLENGES AND

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PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


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Dedicated logistics A third-party logistics provider or carrier offering dedicated or contracted services in a specic

region.

DrayageThe transport of freight over a short distance, typically as one leg of a longer move. Points oforigin and destination are often in the same urban area. The term drayage is also used for the feecharged for such transport.

External transport The movement of goods between locations (suppliers, warehouses, manufacturers, retailers, orcustomers) in a transport network.

Ex Warehouse An agreement between parties in which a seller assumes the risk and expense of transportinggoods to a warehouse, at which point the expense and r isk are transferred to the buyer, who isthen responsible for transporting the goods from the warehouse.

Freight forwarder A company that arranges to pick up or deliver freight on behalf of a shipper or consignee.

Intermodal Freight Transport (or Intermodal)The transportation of freight in special containers (known as intermodal containers, or simply

containers) via multiple modes of transport, such as ship, rail, and truck. Freight is transferredfrom one mode of transportation to another without any additional handling, resulting in fastertransport, less damage, and increased security over bulk break or general cargo.

Internal transport The movement of goods within a production facility or warehouse.

Less-than-truckload (LTL)The transportation of smaller quantities of freight or cargo from multiple customers on the samesemi-trailer or intermodal container.

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DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


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GLANCE

Local cartage A motor carrier whose service area is a local region or metropolitan area.

Long-haul Refers to a trucking company or a load that is transported over longer distances.

Omnichannel Retailing Multichannel retailing conducted in such a way as to provide a seamless customer experiencethrough any and all channels. For instance, an order placed online and delivered directly to thecustomer can be returned to a brick-and-mortar store.

Private eet

A eet of trucks owned and operated by a company (e.g., manufacturer, distributor, or retailer) for

the purpose of delivering the company’s products.

Reverse Logistics All activities related to the moving of goods from the point of consumption to the point of originfor the purpose of reusing or properly disposing of products and materials. Examples of the useof reverse logistics are to process defective or leased products returned to a manufacturer or toreuse items such as printer cartridges.

Shipping The act of using a commercial carrier to move or transport goods.

Short-haul Refers to a shipment that is transported over short distances and is usually carrier by regionalcarriers or local cartage companies.

Truckload (or Full Truckload, FTL)Refers to the transportation of large amounts of freight or cargo, generally lling an entire semi-

trailer or intermodal container, and usually from or to a single customer.

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

CONVERSATION

STARTERS

MARKET DICTIONARY

REGULATORY ISSUES

TYPES OF BUSINESSES


RESOURCES


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PART I:

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GLANCE

TRANSPORTATION AND LOGISTICS RESOURCES

• Transport Intelligence (Ti) (www.transportintelligence.com)• Journal of Commerce Magazine (www.joc.com)

• Supply Chain Brain (www.supplychainbrain.com)

• Logistics Management (www.logisticsmgmt.com)

• Inbound Logistics (www.inboundlogistics.com)

• Modern Materials Handling (www.mmh.com)

• Global Logistics Media (www.globallogisticsmedia.com)

»

Logistics Asia (www.logisticsasia.asia) » Logistics India (www.logisticsmediaindia.co.in)

» Logistics UK (www.logisticsmediaUK.co.uk)

» Logistics New Zealand (www.logisticsnewzealand.co.nz)

» Logistics Australia (www.logisticsmediaustralia.co.au)

» Logistics United Arab Emirates (uae.globallogisticsmedia.com)

PART II:

CHALLENGES AND

TRENDS

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

OVERVIEW

MARKET VALUE

KEY CONCEPTS

KEY INSIGHTS

KEY PERFORMANCE

INDICATORS (KPIs)


LOGISTICS FUNCTIONS


PART V:

CONVERSATION

STARTERS

MARKET DICTIONARY

REGULATORY ISSUES

TYPES OF BUSINESSES


RESOURCES


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PART II:

CHALLENGESAND TRENDS


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PART II:

CHALLENGES AND

TRENDS

GLOBAL CHALLENGES

Achieving the right balance of efciency, accuracy, and cost management is the top-levelchallenge for transportation and logistics businesses. Specic business challenges include:

• Lowering carbon emissions and enhancing energy efficiencies

• Megacities, traffic congestion and regulations on truck idling time places constraints onshipping schedules; speed and timing of deliveries are critical (especially for fresh-dated orco-dated products)

• Maintaining profitability despite rising costs (assets, labor, taxes, fuel, insurance) and tighteconomic conditions

• Ensuring safe passage of freight and passengers in the wake of terrorism and piracy threats• Ageing workforce and difficulty attracting workers with the necessary skills due in part to a

less-than-ideal image of the industry (e.g., jobs associated with unpleasant working conditionsand unappealing career paths)

• E-commerce demanding more supply chain efficiency to comply with service levelagreements.

• Improving customer service and satisfaction in the face of aggressive competition; publicperception drive supply chain decisions

• Operational challenges:

» Enabling real-time freight visibility

» Low asset utilization

» High labor turnover (100-115% per year in trucking)

» High cost structure (fuel, labor, assets)

» Mis-ships

» Issues with data integrity

» Billing and collections delays

» Regulatory compliance issues (e.g., truck idling)

»

Poor asset tracking capabilities

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS

FUTURE TRENDS: IoT FORRESTER

RESEARCH


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TRENDS

» Inability to track drivers and costly assets

» Ineffective utilization of vehicle and drivers

» Inability to meet customer requirements due to vehicle breakdowns and maintenance

REGIONAL CHALLENGES

• North America

» Compliance with environmental, regulatory, and security regulations

» Low unemployment, hHigh labor turnover and poor productivity.

• Europe/Africa

» Bureaucracy, poor infrastructure, and lack of logistics expertise are hampering growth inRussia, which holds promise as a hub between Asia and Europe.

» Africa’s underdeveloped transportation infrastructure, inadequate security, and long dwelltimes of import containers (due to red tape at customs, collusion, and other factors) weak-en the business case for investment.

» A shortage of skilled employees is suppressing economic growth.

• Latin America and Caribbean Region

» Megacities trafc.

» High cost structure; fuel and assets

» Logistics costs are high in Brazil, due to regional differences in infrastructure, high harborfees, difculty developing the Amazon region, and an underdeveloped rail network.

• Asia-Pacific and Middle East

» India has an underdeveloped transportation infrastructure, particularly highways.

» India will need 25 million workers in the transportation and logistics sector by 2022, anincrease of over 17 million workers since 2011 levels, posing a tremendous challenge innding and training workers with the required skills

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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PART II:

CHALLENGES AND

TRENDS

KEY TRENDS

• Globalization and high population growth rates are contributing to the increase in the flow ofgoods and people.

• The growth of e-commerce in retail is changing warehousing and shipping operations, asmore shipments are going directly to consumers than ever before.

• New manufacturing technologies like additive manufacturing (3D printers), densificationof products and robotics are supporting a positive business case for factory of the futureinvestments.

• Transportation management is going global, as Transportation Management Systems expandfrom primarily truck transport to cover air and ocean transport as well.

• Customer expectations for limited (or no) stockouts, rapid fulfillment, accurate delivery status,real-time visibility into inventory levels and delivery/transit information are rising.

• Intermodal transportation, especially the rail component, is on an upward trend as more truckdrivers retire, fewer new drivers enter the industry, and trucking costs rise due to hours-of-service rules and mandatory (in some countries) electronic on-board recorders.

• Radio Frequency Identification (RFID) and analytics are playing a big part in helpingwarehousing and distribution centers increase efficiencies and effectiveness.

» RFID is used for inventory control, scanning pallets or products as they enter a ware-house, and scanning products as they are delivered to customers. Helps ensure accuracy

of orders and reduces losses due to theft or out-of-date fresh products. » Big Data analytics is used to collect data generated by warehouse systems (e.g., conveyor

systems, picking systems, robotics) and generate actionable insights that can be present-ed in real-time to warehouse manager via mobile computer, so manager can take stepsimmediately to x problems and improve operations.

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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PART II:

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TRENDS

REGIONAL TRENDS

• North America » Major retailers (e.g., The Home Depot) are investing in facilities and operations in order to

enable one-day or same-day delivery, sometimes within a specic t ime window (e.g., 15

minutes).

» E-commerce growing at a CAGR of 17% in the next 3 years, web only retailers growing atover 20%. Non-store front retailers (e.g., Amazon) investing in distribution centers to becloser to their customers in order to enable fast delivery.

» Traditional retailers are building very large (1+ million square feet) E-Commerce/InternetFulllment Centers as e-commerce grows from 8% of retail sales in 2013 to a projected

30% by 2025. In 2013, both Urban Outtters and Nordstroms built fulllment centers in

Pennsylvania.

» Brick-and-mortar stores are being used as mini-distribution or fulllment centers, as retail -ers strive to reduce customer lead time in fullling online orders, eventually offering same-

day delivery.

» Shippers are becoming “modal agnostic,” selecting capacity based on what makes eco-nomic sense.

» Undercapacity is an issue in trucking (driver shortage), while overcapacity is an issue inair, ocean, and rail transport.

» Public transportation ridership is up signicantly and continuing to trend upward due to

high fuel prices, trafc congestion, and the high costs of owning a car.• Europe/Africa

» Europe is experiencing growth in high-speed passenger rail services.

» Transportation and warehousing are becoming more efcient in Europe due to uniformregulations advanced by the European Union.

» Companies in western Europe are increasingly outsourcing logistics services.

» Africa is viewed as a growth market, as developing nations expand their economies. Portprojects and other infrastructure improvements (funded in part by China, as it seeks toincrease imports of the raw materials it lacks) are under development as of 2014.

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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TRENDS

• Latin America and Caribbean Region

» Brazil and other emerging nations are taking steps to modernize their transportation infra-

structure (e.g., Brazil sold three of its aging airports to private investors, who are commit-ted to modernizing them in time for the 2016 Summer Olympics).

» An expansion project is underway to double the capacity of the Panama Canal by 2015,allowing larger and more ships to pass through.

» Logistics providers taking an important role supporting manufacturers in their distributionfunction; Brazil, Mexico, Argentina and Colombia.

• Asia-Pacific and Middle East

» China’s economy is shifting toward domestic consumption as the middle class expands; E-Commerce sales in China were up 78.5% in 2013 and are projected to grow 64% in 2014.

» China is investing heavily in road, rail, and air transportation infrastructure, and has in-stalled a modern expressway network outside major cities.

» The Australian transportation and logistics market is growing, with freight but protability isdeclining due to rising labor and fuel costs.

» The government of Dubai is engaging in a strategic initiative to develop a major free tradezone in the emirate.

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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PART II:

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TRENDS

FUTURE TRENDS: IoT FORRESTER RESEARCH

• There is a growing trend toward improving customer service and away from focusing primarilyon cost-cutting and improving efficiencies.

• Suppliers and retailers will take steps to improve inventory visibility and speed delivery inorder to meet the expectations that major retailers are setting with customers (e.g., real-timeorder tracking and same-day or next-day delivery).

• Greater investment will be made in security to prevent cyber attacks in order to preserve dataintegrity and privacy.

• Low-cost sensors, such as those used in smartphones and tablets, will be integrated intoproduction and logistics processes, creating “smart” logistics infrastructures. Applications

such as pick-by-vision, wearable RFID scanning, and 3D image documentation of freightcondition during delivery will be developed.

• Additive manufacturing and 3D printers will enable new business models for custommanufacturing; medical devices, dentures, machine parts, decoration, increasing the flow andtraceability of small packages.

• Europe/Africa (EA)

» Expect future growth opportunities in Africa, as retailers expand operations and risingwages in China are projected to spur growth in manufacturing in many African nations,creating the need for transportation and logistics activities.

As a means to further rene our business strategy around the Internet of Things (IoT), Zebra

contracted Forrester Research, a premiere analyst rm, to conduct nearly 600 online interviews

with decision-makers across the world, of which 117 were from the transportation sector.The main objectives of the study were to understand the market’s activity level, perceptions,expectations, and barriers to adoption of IoT. For the purpose of the study, the following denition

of IoT was used:

“Smart interconnected devices that businesses use to get more visibility into the identication,

location, and condition of products, assets, transactions, or people to drive more effective andtimely business decisions or to improve customer interactions.”

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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TRENDS

For most transportation rms surveyed, they associated this denition with solutions leveraging

technologies such as Wi-Fi, Sensors, NFC, RTLS, GPS, Passive RFID and Barcodes, amongst

others.

The demographics of this audience included Manager, Director and VP-level individuals that areinvolved in or inuence the decision-making process for IoT, with the bulk of respondents from the

European and Asia-Pacic regions. The average company size was about 6,400 employees and

the majority of respondents were in IT related positions.

Despite concerns about privacy/security, implementation/integration, risk of mitigation/installation,cost and IT Governance, IoT activity and adoption within the transportation sector is rapidlyincreasing. For example, 96% of respondents in transportation feel that the IoT is the technologyinitiative of the decade, and 98% stated that they were ready to make the necessary changes toimplement solutions. IoT adoption is also high, with 62% of respondents stating that they alreadyhave implementations in place and another 29% are planning to deploy solutions within the nextyear. All respondents stated that they had discussed implementing IoT.

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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TRENDS

For the actual IoT implementations, most rms indicated a strong preference to partner with

(or have partnered with) hardware (i.e.: Zebra), networking and security rms, as well as utilizeIoT platforms that are secure, easy to use, scalable and provide robust functionality. Mostrespondents had several strategic objectives for IoT implementations, including improving theircustomer’s experience, creating new revenue streams, providing competitive differentiation,promoting workforce collaboration and process automation & control (see chart above).

Respondents also expect to be able to leverage IoT solutions that will provide operational andactionable location and condition data on containers, objects and personnel (see chart below).Transportation companies will use IoT so that they can use to ensure compliance (i.e.: industry,government, customer), empower process and cost optimization (i.e.: achieve cost and processefciencies), enhance their supply chains (i.e.: optimization and increased visibility) and mitigate

loss & risk (i.e.: improve loss prevention, enhance risk management).

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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CHALLENGES AND

TRENDS

Zebra is well positioned to capitalize on the IoT opportunity in transportation for the followingreasons, amongst others.

• Our company is a premiere brand and share leader in several core technologies/solutions

supporting most IoT implementations (i.e.: RTLS, Barcodes, Mobile computing, Enterprise Asset Intelligence, RFID, etc.)

• Zebra has extensive experience with – and a proven track record of success with – many ofthe key IoT solutions and objectives. In many instances, we’re the share leader.

• We have an extensive partner network capable of supporting most deployments and ourproducts/solutions are compatible with many related technologies

• Our Zatar platform can satisfy the aforementioned requirements as well as enable simplifiedand facilitated implementation.

PART I:

T&L AT A

GLANCE

KEY TRENDS

REGIONAL CHALLENGES

GLOBAL CHALLENGES

PART III:

DECISION MAKER

INSIGHT

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

REGIONAL TRENDS

PART V:

CONVERSATION

STARTERS


RESEARCH


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PART III:

DECISION MAKERINSIGHT


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PART III:

DECISION MAKER

INSIGHT

In the transportation and logistics industry, the size of the company determines who the decisionmakers are for technology purchases. For small companies, the president or owner makes

decisions about technology sales. For large companies (e.g., Con-way, Old Dominion), the VPof Operations is the key decision maker, and CIO and CFO make also participate in decisionmaking. For some large companies, the entire senior management team may get involved in theselection and deployment process. Warehousing and distribution companies have a more formalmanagement structure than that of trucking and freight forwarding companies.

DECISION MAKERS AND INFLUENCERS

• President/CEO/Owner

» Decision maker at smaller trucking companies (50-100 trucks) » Focused on how IT can improve operational efciency and service levels, reduce costs,

increase sales

• VP Operations/Supply Chain Management/Logistics

» Decision maker at larger trucking companies and at warehousing and distribution compa-nies

» Concerned with functionality, productivity, ease of use, speed of IT implementation (can’tafford to shut down warehouse/delivery operations for a day or more during system imple-mentation)

»

Key metrics include operational efciency, accuracy, costs, and service levels• CIO

» Strong inuencer in warehousing and distribution companies

» Owns the warehouse management system that enterprise mobility solutions connect to

» Focused on building infrastructure to support business functions

» Concerned with implementing technology to ensure a competitive advantage without dis-rupting business operations, making IT as agile as the business demands, and reducingimplementation time in order to deliver value faster

» Key metrics include cost management, execution on time and on budget

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

TOP TIPS FOR SUCCESS

DECISION MAKERS AND

INFLUENCERS

TYPICAL TRANSPORTATION AND

LOGISTICS GOALS

KEY DECISION DRIVERS

PART V:

CONVERSATION

STARTERS

STRATEGIC INITIATIVES

HELPING YOUR PROSPECT

ORK SMARTER



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PART III:

DECISION MAKER

INSIGHT

• CFO and other C-level executives at large companies may be influencers

» CFO concerned with ROI

TYPICAL TRANSPORTATION AND LOGISTICS GOALS

• Maximize operational efficiencies

• Reduce costs (e.g., fuel, labor, freight rates, claims)

• Reduce fuel consumption (green initiatives)

• Decrease errors and mitigate risks

• Improve order and shipment accuracy• Speed delivery

• Enhance customer service

• Ensure regulatory and environmental compliance

• Increase fleet utilization and extend asset lifetime

• Improve driver efficiency


• End-to-end supply chain visibility

• Operational efficiency and accuracy

• Worker productivity

• Space optimization

• Cost containment

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE


DECISION MAKERS AND

INFLUENCERS


LOGISTICS GOALS


PART V:

CONVERSATION

STARTERS



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PART III:

DECISION MAKER

INSIGHT

STRATEGIC INITIATIVES IN WAREHOUSING AND DISTRIBUTION

In 2013, survey participants indicated the following plans for expansion and investment:

• 26% said that management views warehousing and distribution as an asset that can drivebusiness growth.

• 35% plan to increase the number of warehouses and distribution centers they operate by2018.

• Reasons cited for expansion include lower transportation costs, shorter delivery times, newsuppliers and trading partner locations, and heightened omnichannel pressures.

• 66% plan to increasingly automate processes by equipping staff with new technology

solutions.• Picking and replenishment solutions are moving towards multimodal over the next five years.

• There is a shift away from paper-based processes (71% decrease) and toward handheldmobile computers and tablets (100% increase) for cycle counting and inventory validation by2018.

• Bar code utilization is expected to increase from 67% of items received at warehouses in 2013to 84% of items received by 2018.

Source: Motorola Solutions’ 2014 Future of Warehousing Survey. 328 respondents included ITand operations professionals in manufacturing, retail, wholesale, and 3PL markets in rms with at

least $15 million in annual revenues.


• Understand strategies around omnichannel retailing so that you can understand the timingneeds in the transportation and logistics industry.

• Understand the impact of government and industry regulations on your prospect’s business.Start by reviewing country-specific federal agency websites (e.g., for the U.S., the Departmentof Transportation, Food and Drug Administration, Homeland Security, Environmental

Protection Agency).

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE


DECISION MAKERS AND

INFLUENCERS


LOGISTICS GOALS


PART V:

CONVERSATION

STARTERS



ORK SMARTER


PART III PART IV PART VIPART IIPART I PART V


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PART III:

DECISION MAKER

INSIGHT

• Recognize that transportation and logistics is a 24x7 operation and technology deploymentsmust be planned so as not to disrupt operations.

• Recognize that safety is an important goal for transportation and logistics companies anddemonstrate how your solution can enhance worker safety.

• Tie your solutions to specific metrics (KPIs) that are important to stakeholders.

HELPING YOUR PROSPECT WORK SMARTER

Here are some ways in which technology can help:

• Improve efficiency in yard management: Real time location systems (RTLS), mobiledevices and automation technologies equipped with yard management applications can cutidling and wasteful driving patterns, reduce errors that save fuel and materials, and improveasset utilization so that you can do more with fewer vehicles.

• Transform warehouse management: Mobile communications and computing, voice-directedpicking, RTLS dynamic staging, color enabled labels and electronic data capture technologyenable you to respond quickly to customer demands, increase inventory turns, optimizespace, improve line-level accuracy, and simplify compliance with regulatory and industryrequirements.

• Improve fleet utilization: Mobile technology and fleet management applications enable

you to monitor and manage idle time, fuel consumption, truck diagnostics, cargo capacity,travel routes, and driver behavior. Among the benefits are reduced fuel consumption andgreenhouse gas emissions, improved driver and route eff iciencies, and reduced costs.

• Improve productivity: RFID tags and systems streamline receiving and inventory. Wirelessbroadband networks provide the foundation for automating manual tasks and collecting andanalyzing warehouse system data to provide decision support to mobile workers on thewarehouse floor so that they can rectify problems and make informed decisions faster.

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE


DECISION MAKERS AND

INFLUENCERS


LOGISTICS GOALS


PART V:

CONVERSATION

STARTERS



ORK SMARTER


PART III PART IV PART VIPART IIPART I PART V


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PART III:

DECISION MAKER

INSIGHT


• Enhance customer service » Process and deliver orders faster

» Deliver orders at the right time (e.g., perishables to restaurant during off-peak hours)

» Improve accuracy of order fulllment

» Enable automated order status retrieval in real-time

» Facilitate convenient returns process

• Improve efficiencies and drive down operating costs

» Streamline work ow throughout warehouse facilities and use existing space more ef-ciently

» Reduce receiving time and inventory replenishment time

» Reduce errors in order picking

» Automate warehouse processes

» Optimize transportation asset utilization

» Streamline scheduling and dispatch functions

» Reduce idle time throughout delivery routes

» Reduce eet operating costs

• Improve cargo security

» Comply with government mandates (such as the Container Security Initiative of the U.S.Customs and Border Patrol)

» Enable real-time tracking and status reporting of cargo

• Enhance visibility of assets and inventory

» Deliver real-time processes for supply chain visibility to meet shippers’ demands

» Expand mobile cargo locator, track, trace, and status reporting systems for containers andpackages

» Facilitate vehicle tracking

PART IV:

SOLUTION

SNAPSHOT

PART VI:

DISCOVERY

QUESTIONS

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE


DECISION MAKERS AND

INFLUENCERS


LOGISTICS GOALS


PART V:

CONVERSATION

STARTERS



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PART IV:

SOLUTIONSNAPSHOT

PART IV:PART II:PART I: PART III: PART VI:PART V:


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PART IV:

SOLUTION

SNAPSHOT

THE ZEBRA KNOWS TRANSPORTATION & LOGISTICS

Zebra knows that the T&L industry can only evolve by implementing greater visibility into processes and supply chains. Zebra’s extensiveportfolio of marking and printing technologies, including barcode, RFID, RTLS, Voice, GPS and sensoring help provide this. Zebra’stechnologies not only tell you where your smallest shipments are, but also what state they’re in––are they hot enough? Cold enough? Humidenough? All in service of completing orders as fast as possible.

SOLUTION AREA APPLICATIONS/OFFERINGS PAIN POINTS ENTERPRISE COMPONENTS ZEBRA COMPONENTS CUSTOMER BENEFITS

WAREHOUSE, STORAGE, DEPOTS (INSIDE FOUR WALLS)

Warehouse

& MaterialsManagement

Inbound• In-bound Receiving

• Reverse Logistics

• Sortation

• Put-away

Inventory• Cycle Counts

• Physical Inventory

• Replenishment

• Slot MovesOutbound• Pallet/Cases/Each

Picking

• Staging & Shipping

• Receiving, Returns, Inventoryand Shipping Label printing(bar code or RFID)

• Rack lD label printing

(barcode or RFID)

• Location SolutionsWarehouse Dynamic Staging

• Location Solution AssetManagement Solution (w/WMS)

• Voice Picking

• Cross Dock

• Operation that ispaper-based

• Data delays, allbatch processing

• Inventorydiscrepancies

• Poor accuracy

• Large inventorycarrying costs

• Poor customerservice

• Inventory latency

• Increased labor

• Hardware: MC67, MC95xx,TC70, ET1, WAP, LS3xxx,FXxxxx, MC9200, MC31xx,VC70, VH10, 8585, WAP

• Software: TeKspeechPro,

• Partner WMS

• WLAN

• Service: MLM

• Hardware: Industrialprinters: Xi4,ZTxxx(RFID)

• Desktop: Gxxxx,

ZD500 (RFID)

• Mobile: Qlnxxx

• Supplies: labels andribbon

• Software: Partner WMS& DM, Link-OS ProfileMgr & Device Mgr,Enterprise Connector,Zebra Designer,Netbridge

• Service: Zebra Carerepair

• Complete Solution:Location Solutions (LS)Warehouse DynamicStaging (VSS SW,RTLS Dart, WLan,MC95xx,Xi4/ZTxxx(RFID), Services), LS Asset Management(VSS SW, RTLSDart, WLan, MC95xx,Services)

↑ Inventory accuracy↑ Labor productivity

↑ Efciently speed uppicking, stacking andput away

↓ Cycle time

↓ Reduced costs

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

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PART IV:

SOLUTION

SNAPSHOT


TRANSPORTATION & DELIVERY SYSTEMS (OUTSIDE FOUR WALLS)

Fleet Operations • Delivery Operations (POD)

• Route Accounting/DSD(Wholesale Distributors)

• Fleet Routing/Scheduling

• Mobile dispatch

• Cargo/Container/TrailerTracking

• Telematics

• Fleet Maintenance

• Consumables (Tire, Fuel)Management

• Pre-Post Trip Inspection

• Regulatory & Compliance/Hours of Service (HoS)

• Safety Monitoring &Inspections

• Proof of activityand delivery

• Not able to trackdriver and costlyassets tracking/rotation

• Underutilizationof limited drivers& vehicles

• Costly idle anddwell time

• Lack of visibility

• Paperworkwastes

• Complianceto regulatorystandards

• Hardware: MC9500, TC55,TC70/75, ET1, WAP, LS3xxx,FXxxxx, MC9200

• Software: Partner WMS

• WLAN

• Service: MLM

• Hardware:

• Mobile printers:RWxxx, iMZxxx, ZQ110

• Supplies: receipt paper,

• Software: ZebraDesigner,


↑ Stops Per Driver PerDay

↓ Fuel Costs

↑ Equipment Up Time↓ Unplanned Down-time

↓ Eliminate Paperwork &Data Entry Errors

↑ Customer Satisfaction

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

CONVERSATION

STARTERS



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PART IV:

SOLUTION

SNAPSHOT


YARD /TERMINAL OPERATIONS (INSIDE DESIGNATED AREA)

Yard Management • Location Solutions – YardManagement

• Wireless Yard

• Long lines oftrucks waiting inline to enter theyard and stagingarea

• Excessiveamount of leasedtrailers, unableto account forlocation of allassets

• Limited visibility

to inventorywithin trailerwhile in the yard

• Manual process,paper-basedsystem

• Inefficient andunder achievingyard switchers

• Hardware: MC67, MC9500,ET1, WAP4, LS3xxx,FXxxxx, MC9000-R,

• WLAN

• Service: MLM – otherservices

• Complete Solution:Location Solutions(LS) Yard ManagementSystem (VSS SW,RTLS Wherenet,MC95xx,Gxxxx/Qlnxxx,ZD500 (RFID),Services), LS AssetManagement (VSSSW, RTLS WherenetMC95xx,Gxxxx/Qlnxxx,ZD500 (RFID),Services)

• Supplies: receipt paperand ribbon



↑ Yard productivity↑ Visibility of trailers &inventory in the yard↓ Decrease gate check-in/out times↑ GPS location of eachasset in yardTerminal Operations

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

CONVERSATION

STARTERS



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PART IV:

SOLUTION

SNAPSHOT


YARD /TERMINAL OPERATIONS (INSIDE DESIGNATED AREA)

Terminal Operations Cross docking/sortationDispatchLoading/unloading

Costly idle anddwell timeLack of visibility oflabor and goodsPaperwork wastestimeComplianceto regulatorystandards

Hardware: MC67, MC95\ ,ET1, WAP4, LS3xxx, FXxxxx,MC9200,WLANService: MLM – other services

• Hardware: Industrialprinters: Xi4,ZTxxx

• Desktop: Gxxxx,ZD500

• Mobile: Qlnxxx

• Supplies: labels andribbon

• Software: Link-OSProfile Mgr & DeviceMgr, EnterpriseConnector, Zebra

Designer, Netbridge


↑ Termnal productivity↑ Visibility of vehicles &

inventory↓ Decrease check -in/out

times↑ GPS location of

assets

Asset & FacilityManagement

• Location Solutions – YardManagement

• Wireless Yard

• Untimelywarehouse/DCmaintenanceand shutdownCompliancerequired forexternal assets

• Timelypreventivemaintenance

• Manual formsand cumbersomeprocesses

• Lost assets

• Excessive orrepetitive assetacquisition

• Hardware: TC70/75, TC55,ET1, MC65/67

• Software: Partner EAM

• Service: MLM

•

• Hardware: QLn420,P4T, ZT400

• Software: ProfileManager, Zatar, ZebraDesigner Pro

• Supplies: PolyO 3100T

• Service: ZebraCare

• Complete Solution: LS Asset Management(VSS SW, RTLSDart, WLan, MC95xx,,Gxxxx/Qlnxxx,ZD500(RFID), Services),

↓ Decrease Costs/ CAPX; through assetreduction or laborefciencies

↑ Increased Productivity;for labor and assetutilization

↑ Improved Service;when customer serviceis tied to asset uptime

↑ Improved Compliance;with accepted /required regulations/standards

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

CONVERSATION

STARTERS



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PART IV:

SOLUTION

SNAPSHOT


EMPLOYEE PRODUCTIVITY & IDENTIFICATION

WorkforceManagement

• Employee Time / AttendanceTracking

• Mobile Video Training

• Task Management - JobTracking

• Labor Management -

• Lack ofvisibility into jobcompletion

• Inaccurate timeand attendancedata capture

• Poor decisionmaking forprojects /maintenance/repairs

• SB1, MC40, TC70, ET1

• Workforce connect

• WLAN

• Services: Device and assetmanagement, MWLAN

• Hardware:

• Card printers: ZXP3

• Supplies: cards andribbon



↑ Staff Productivity↑ Customer satisfaction↑ Communications

and replace disruptiveoverhead paging

↓ Communication costs

PersonnelIdentifcation

• Personnel and Visitor ID

• Access Control

• Maintainingwarehouse, DCor Yard securityEmployeeaccess

• TC70; SB1

• WLAN

• Hardware:

• Card printers: ZXP3

• Supplies: cards andribbon



↑ Secure workenvironment↑Accurate time cards

↓ Wrong personsentering secure areas

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

CONVERSATION

STARTERS



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PART IV:

SOLUTION

SNAPSHOT


PASSENGER/CUSTOMER SERVICES

Check-in, Boarding &Immigration

• Frequent Traveler Solutions -Digital Loyalty & Rewards

• Mobile Boarding Pass /Q-Busting

• Gate Kiosk

• Passenger Tracking/Locationing

• Customer Self-Service

• Biometrics

• Inefficient paper-based prone toinaccuracy

• Increasedsecurity risks

• Increase in longlines

• Increasepersonnelrequired to staffentry points

• MC67, TC55, TC70/75, ET1,KIOSK-CONCIERGE

• Hardware: Industrialprinters:,ZTxxx


• Mobile: Qlnxxx

• Kiosk: KR403

• Supplies: tags, receiptpaper

• Software: Link-OSProfile Mgr & Device

Mgr, EnterpriseConnector, ZebraDesigner, Netbridge


↑ Customer satisfaction↓ Labor costs associated

with ticket agents↑ Incremental revenue

through mobilepurchases

↓ Decrease gate check-in/out times and longlines

↑ Loyalty programs ↑Security compliance

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

CONVERSATION

STARTERS



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PART IV:

SOLUTION

SNAPSHOT



Baggage • Baggage Tracking

• Baggage Tagging

• 60% of bags aremislaid becausethe airplaneconnection timesare too shortor an aircraft isdelayed reducingthe connectiontime

• Not havingenough groundstaff to takethe bags offthe plane toload them ontoconnectingflights in time

• Barcodes on thebaggage tags notread properly

• People are notproperly checkedthrough to theirfinal destination

• Missingmessagesfrom alternateairport regardingtransfer baggage

• MC9500, MC9000-R, RFID ANTENNAS ETC,

• Hardware: Industrialprinters:,ZTxxx (RFID)


• Mobile: Qlnxxx

• Supplies: labels, tags(RFID), receipt paper

• Software: Link-OSProfile Mgr & DeviceMgr, EnterpriseConnector, Zebra

Designer, Netbridge


↑ Customer satisfaction↓ Lost baggage claims↑ Savings to airlines =

$100 / found bag↓ Plane turn-around time

↑ Baggage tag readrates

PART II:

CHALLENGES AND

TRENDS

PART I:

T&L AT A

GLANCE

PART III:

DECISION MAKER

INSIGHT

PART VI:

DISCOVERY

QUESTIONS

PART V:

CONVERSATION

STARTERS



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SOLUTION

SNAPSHOT



Sales/Ticketing • Mobile POS

• Mobile Coupons & Offers

• Mobile Ticketing

• Mobile Seat Assignment


• Increasedsecurity risks

• Increase in longlines

• MC67, TC70/75

•

• Hardware:

• Mobile: ZQ110, Qlnxxx

• Supplies: receipt paper,tags

• Software: Link-OSProfile Mgr & DeviceMgr, EnterpriseConnector, ZebraDesigner, Netbridge


↑ Customer satisfaction↓ Labor costs associated

with ticket agents↑ Incremental revenue

through mobilepurchases

↓ Decrease gate check-in/out times and longlines

↑ Loyalty programs↑ Security compliance

Quality of Service • Mobile Cabin/Vessel/Coach Audits

• Mobile Satisfaction Survey


• Inability tocapture customerfeedback

• MC67, TC70/75 ↑ Customer satisfaction↑ Customer data to

make businessdecisions

CHALLENGES AND

TRENDS

T&L AT A

GLANCE

DECISION MAKER

INSIGHT

DISCOVERY

QUESTIONS

CONVERSATION

STARTERS


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PART V:

CONVERSATIONSTARTERS

PART V:PART II:PART I: PART IV:PART III: PART VI:


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CONVERSATION

STARTERS

CUSTOMER EXPERIENCE

In person or on the phone:

, coordinating and managing vehicles, employees, and technical systems across anentire passenger transportation system is a major logistics challenge. Equipping your transit employeeswith reliable mobile voice and data communications systems and applications that give dispatchers areal-time view of your entire line network can enable you to better control operations, regulate dynamicpassenger information, and ultimately provide more reliable transit service to your customers.

, proper baggage handling is a major contributor to ensuring passenger safetyand enhancing customer satisfaction. Equipping your passenger terminal with an easy-to-use RFIDsolution enables you to transport screened baggage safely to the right place at the r ight time. As anadded benet, you’ll have real-time visibility into the location of each bag from the time a smart label is

applied to the moment the bag leaves the terminal. 100% baggage tracking accuracy, end-to-end assetvisibility, enhanced passenger safety and satisfaction, and reduced operating costs all add up to a betterexperience for your customers and enhanced protability for your business.

Over voice mail:

, helping your retail customers keep up with ever-increasing consumer demands isthe key to maintaining their business. Using mobility and data capture solutions in your warehouse andtransportation operations, you’ll be ready to deliver faster, more accurate service on behalf of your retail

STEP 2CHOOSE A TOPIC

Hello, , my name is and I represent , a Zebra BusinessPartner. I am a specialist who helps transportation and logistics companies achieve greater operationalefciencies and sustained customer loyalty through enterprise mobility technology

STEP 1TAILORING YOUR

GREETING

Here is an easy process to help you talk to

transportation and logistics prospects about

their most important issues. Although some aretargeted toward specifc situations, you should

choose the option that feels right to you.

CHALLENGES AND

TRENDS

T&L AT A

GLANCE

SOLUTION

SNAPSHOT

DECISION MAKER

INSIGHT

DISCOVERY

QUESTIONS

PART V:PART II:PART I: PART IV:PART III: PART VI:


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CONVERSATION

STARTERS

customers —so that they can fulll their customers’ expectations of

accurate, damage-free orders delivered on time.

FACILITY AND FLEET OPERATIONS

In person or on the phone:

, providing your drivers and dispatchers withthe ability to communicate consistently and without interferencecan really help your business. Reliable, easy-to-use mobile radioscan keep your drivers connected wherever they are working, sothat dispatchers can quickly reprioritize and reroute trucks whenneeded, improving productivity and reducing wasted trips and fuelconsumption.

, receiving and handling incoming shipmentsat your warehouse is one of those processes that requires alot of coordination to ensure that the materials received matchthe shipper’s records and are properly stored and entered intoinventory. Mis

Transportation VerticalToolKit06

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