Effective Utilisation of backhaul for ff i ii i f f Logistics Management

Chennai 5th Oct 2009

5th Oct 2009

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What is Backhaul?

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What is Backhaul?
Originates in the Telecommunications terminology
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Refers to a leased line network configuration in which traffic is transported to a point that is geographically beyond and then transported back (hauled back) to the destination site This is due to the lack of a direct path between the originating and destination sites.

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Backhaul DEL IXG Multi modal

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What is backhaul?
The term evolved into a more generic meaning and often refers to transmitting from a remote site or network to a central or main site The hub and spokes concept that is widely used in distribution of goods uses the same principle. principle

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Hub and Spoke IN US Multi modal

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South - East

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Hub and Spoke

Hub and spokes is efficiently utilised in operations where there i not enough volume. Thi is also better utilised if th is t h l This i l b tt tili d the payload capasity of the feeder vehicle into the hub vehicle is different.

When the type of vehicle is the same in payload capasity and utilisation, direct linehaul should be utilised else, it increases - Time spent transferring goods to another vehicle - Cost of handling the goods -I Increase i d in damages d t multiple avoidable h dli due to lti l id bl handling

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Gati Network
ALL INDIA CDC/EDCs

DELW C o n f i d e n t i a l JAIC GZB LKO JSP AMDW IDR NAGW BOMO BOMI PNQN HYDN CCUN GUA

BLRN MAAW CJB CDC-1(PLN) EDC -18 6

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AMC

GATI Network and Infrastructure capabilities

Locations Locations serviced Delivery capability Routes R t Gati Associates Vendors Vehicles Handlers Weight H dl d ( W i ht Handled (per month) th) Dockets (per month) Packages (per month) g (p )
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422 20000 762 1046 677 1284 (Own vehicles-192) 1500 40000 ton 0.53 mn 11.81 mn
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604 out of 612 Districts

Backhaul in logistics
What is Backhaul in logistics?
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Unlike its telecommunications reference to mean accessing remote locations, Backhaul in logistics is commonly understood as , g y Return pay load or capasity utilisation on the vehicle. Eg. The BLR GAU linehaul route that exists also needs to return back full

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What is Efficiency?
Traditionally . Full capacity utilisation Generates profit after ALL costs are paid Allows you to service a market or location to maintain wider reach /service offering Requires high degree of planning

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Dealing with Backhaul

Pricing Maximise the cost recovery from the demand lane Ensure yields are high on demand lane Promotion Initiate consignee marketing demand pull Incentives the sale on weaker demand lanes Product What is generally sent out from here on other modes of transport? Filler loads
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Dealing with Backhaul

Operations Analysis Variability - flattening Planning the operation is essential Monitoring the variability Selecting the right Options / Alternatives available

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Options
Weak lane origin point ideal home base of the vehicle Better local interest and ability to fill in Consolidation G C lid ti Groupage Fill material outside of core Filler t i l t id f operation. Store non- urgent material outside of network Vehicle configuration to cater for multiple types of products; cattle; vehicles; produce; without contamination
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Options
Add touch points on return legs
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A C

B C

A C
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B C

Options
Multi modal Millenium Train Operation BOM CCU GAU 2 times a Return 2 times a month Railways Cool chain operations Empty Miles week
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Future of backhaul efficiency

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Co-operative Carrier Load Sharing Building sophisticated operations around backhaul Create the demand Green effect

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Thank you

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