APL Logistics MTS

– Managed Transportation Services

OTM SIG Singapore
October, 2014
 Outlines

 APL Logistics Introduction & China Strategy

 APL Logistics MTS Service
 Implementation Methodology
 System Solutions
 Benefits of APL Logistics MTS
 Q&A

1
APL Logistics Introduction & China
Strategy
 An overview of the NOL Group

NOL at a Glance

 A world leader in global transportation and logistics services

 Strategic focus on integrated supply chain solutions
 The largest shipping and transport company listed on Singapore Stock
Exchange

Container Shipping Logistics

Liner Shipping and Terminals Supply Chain Services

• World’s 7th largest containership operator
- 120 vessel fleet
- Container fleet size of more than 1.1M TEUs
- 9 terminals (6 owned & 3 joint venture)
• US$7.3B in revenue (FY’13)
• More than160 years of continuous operation
• Global network serves in over140 countries
with over 100 weekly services
• Global Top 100 3PL Provider and Supply Chain
Partner
• US$1.6B in revenue (FY’13)
• More than 110 offices and agents in over 60
countries
• More than 20M ft² of warehouse facilities globally
• Leading provider of origin and destination services

3
 Organized to ensure continuous enhancement in providing better supply
chain solutions to customers in complex and competitive environments

Auto Consumer Industrials Retail

4 Focused
Industry
Verticals

5 Regions

Americas North Asia South East Asia South Asia Europe/Middle East

Strategic Solutions Supply Chain Logistics Service Account

Functions Engineering Technology Quality Management

Partnered with industry leaders to compliment our service offerings.

In USA for last mile In India for domestic In Japan for Contract In USA/India for In China for Automotive
Trucking Rail Transportation Logistics Automotive logistics logistics

4
 APL Logistics China Supply Chain Services
Warehousing and
Owned Fleet and Network of Partners Our People and Expertise
Distribution Network

• Operating from 38 service hubs across 18

cities
• Managing over 2.5 million sqm of distribution
centers and freight stations across China

•Over 1,600 dedicated employees with key

management staff in many hub locations
• Over 100 owned trucks and access to •Supported by professional and experienced

over 1,000 trucks through managed Solutions Engineering and project

transportation services deployed implementation teams focused on
nationwide developing solutions for our customers’
• Bonded & non-bonded trucking services unique supply chains
• Broad transportation and distribution •Strong customer care provided through key
through preferred partners
network covering over 2,000 locations in account management teams in China
• Full truckload and less-than-truckload
China, including third and fourth tier cities
services
• Nationwide network consisting of line-haul
• Covering all major cities in China
trucking, local PUD, short sea, rail, Yangtze
• Stringent lead time control
River ferry, domestic air, cross -border
• GPS-equipped with real time track & trace
transportation
capability

5
 APL Logistics China Supply Chain Services Con’t
Suite of Information Systems
APL Logistics’ Suite of WMS and TMS
solutions
•Top-tier WMS functionality, especially
retail/apparel and high-tech customers
that provide:
 Robust functionality drives
efficiencies throughout the
distribution center
 Inbound: Receiving, Put away &
Inventory Management
 Outbound: Planning, Fulfillment &
Shipping
 Task Management
•Proprietary applications applied to
projects that require a low-middle tier
functionality needs, lower cost WMS
solution
•Transport Management System (TMS)
Driving Freight Management
6
Broad and Deep Expertise in Select
Verticals
• Experienced and focus in High-tech, Retail
and FMCG, Automotive and Chemical
• Delivering tailored solutions and market
expertise for many leading brands
Solutions for Our Customers
Warehouse management
•Inbound and outbound management
•Automatic receiving and picking according to
orders; Inventory management
•Value-added Services - Labeling and
repacking according to buyers’ requirements
Distribution Management
•Transportation management
•Distribution planning and arrangements,
cargo tracking and timely feedback
•WMS & TMS support inventory transfer and
management
•Integrated Order Management with clients
Supplier Management
•Coordination of inbound shipments with
suppliers
•Documentation and customs clearance
•Physical receipt, storage and inventory data
integrity and visibility
•Cargo staging and delivery to fulfillment
locations
 Our hub and network provides extensive China coverage
Trucking Business Volume 2013:
• Over 175,000 truck moves
• 715k+ orders delivered to 200 plus cities
• 2,000+ trucks employed  17ops cities nationwide
• 30+ trucking partners contracted.
• 70k+ moves of container haulage  Among 17 cities, 11 hubs
have been set up, which
in line with China
economic development
trend
Harbin • Shenyang, Beijing,
Zhengzhou, Shanghai,
Urumqi
Changchun Wuhan, Changsha,
Guangzhou, Shenzhen,
Shenyang Dongguan, Huiyang, Hong
Beijing Kong
Huhehaote
 Further 25 hubs will be set
Bazhou Dalian
Yinchuan Tianjin up within next 3 years
Taiyuan
Xining Weihai
Shijiazhuang
Lanzhou Jinan Qingdao

Zheng zhou APLL SCS operation site, DC

Xi’an Nanjing

Chengdu Shanghai APLL SCS operation site, Hub

Hefei
Lhasa
Futrue potential hubs
WuhanHangzhou Ningbo
Chongqing
Nanchang
Chang sha
Guiyang Quanzhou
Xiamen
Kunming Guang zhou
HAK Huiyang
NanningDongguan Shenzhen
Hong Kong
To Vietnam
Haikou

7
APL Logistics MTS Service
 APL Logistics Provides managed Transportation
Service to Customer

Sales Delivery Shipment Shipment Service and

Shipment Operation
Order Order Creation and Trace and Payment Payment
Execution Reporting
Creation Creation Optimization Track Verification

Customer APL Logistics OTM Customer

ERP system ERP system

3PL 3PL 3PL

OTM Platform

9
APL Logistics provides a Control Tower between
Customer and 3PLs
Customer
The control tower includes an
IT platform and a Operational
Team
• Order Capture
• Order Validation APL Logistics Control Tower
• Shipment Optimization
• Tender to 3PLs
• Track and Trace
• Exceptional Handling
• Settlement Verification
• KPI-Reporting

3PL1 3PL2 3PL3 3PL4 3PLn

Implementation Methodology
Implementation Methodology

25% 50% 75% 100%

Project Resource Consumption / Per Phase

12
 Project Team Alignment

13
Operational Organization

Customer

Daily Work
Daily Work
Communication Communication
APLL Account
Manager

Site 1 Supervisor Site 2 Supervisor

Operator Operator Operator Operator Operator

1 2 3 1 2

3PLs 3PLs
System Solutions
APL Logistics OTM Journey
Regions Locations
Africa 3
Asia 172
Caribbean 7 Domestic Land Transport
Central/North America 10 Optimization for a large Chemical
Europe 4 company in China
ShipmentOptimizer for a
Middle East 3 major Sporting Apparel and
South America 12 Accessories company in
North America Expansion from Legacy TMS and
Grand Total 211 move forward to a collaborative
domestic TMS platform (ShipMax)

ShipmentOptimizer
implemented for a leading Domestic Land
Sports Footwear company in Transport
North America with Asia Optimization in
Europe for a Key
Purchased Domestic Land Transport Retailer
Oracle OTM Optimization for a large
software Chemical company in North
America
Continuous
ShipmentOptimizer development for our
Plus in Asia and International Logistics
Europe platform
2009 2010 2011 2012 2013 2014

International ShipmentOptimizer Domestic Land Transport Domestic Land Transport

Pro for a Leader in Sports and Optimization in China for a Optimization for a large
Apparel in Asia and North America Key Retailer Chemical company in
Mexico

16
APL Logistics provides OTM System solution to Customers
Shipment Planning
Order Management & Integration • Consider Various Shipment Options
• Consider Request Delivery Date and
• EDI Integration
Pickup/Delivery Window
• Multiple Order Entry Modes (EDI, Manual)
• Consider Commodity Characters (DG/Non DG)
• Order Pre-Processing & Validation
• Worst Direct Cost, Best Direct Cost, Best
Planned Cost and Cost Savings
• Auto Trucking Cost Calculation

Management Reports
• Operational Reporting
• Management Reports & KPIs - Shipment Execution
3PL KPI:
-On-time Delivery ;
OTM • Shipment Tendering Process
-Timely Reporting; • Shipment Spot Rating
-Tender Reject… • Shipment Management
APLL KPI:
-Productivity ;
-Cost Saving…
Order Tracking &
Exception Management
Settlement Management • Order event mass update
• Order track& trace visibility
• Service & Payment Verification Process
• E-POD management
• Milestone to alert user on events which require
attention and action

17
Order Management & Integration (1/2)

 Order in OTM via interfaced from Customer system

18
Order Management & Integration (2/2)

 Order in OTM via manually created by excel upload

19
Distance Calculation (1/2)

20
Distance Calculation (2/2)

 Distance engines supported by OTM do not have map data for China
 Interface is developed to query distance engine that host China map data
 OTM send source/destination location data
 Interface return lane and distance info to OTM

21
Shipment Planning (1/2)

 OTM build orders directly for worst direct cost and best direct cost and
then get cost saving

22
 Shipment Planning (2/2)

 OTM will consolidate orders into shipment with below criteria and choose
service provider with best planned cost
 Shipment mode
(Truck/Rail/Multimodal)

 Reefer/Non Reefer

 DG/Non DG

 Request Delivery Date

 Shipping Window

 Source City and Delivery

City

 Equipment Weight
Constraint

23
Shipment Execution

 Tender to Carrier

 Carrier accept/decline the tender

24
Order Track & Trace

 Use OTM UI to mass update order event

 Order track & trace visibility

25
E-POD Upload

 Carrier can upload E-POD and other document into OTM

 User can view /download these uploaded documentations

26
Exception Management

 Email alert will be sent to involved parties to remind exceptions

 Message Center to alert users on order modification

27
Settlement Management

 Carrier mass input invoice number via OTM UI after confirming

the cost calculated by OTM

28
Management Reports

 Carrier KPI Report

 Country Spending Report

29
Building Flexible Workflow
APLL Base TMS APLL China TMS APLL US TMS

Order Order Order Order Order Order

Entry Validation Entry Validation Entry Validation

Shipment Shipment Shipment Shipment Shipment Shipment

Rating Planning Rating Planning Rating Planning

Shipment Shipment Shipment Shipment Shipment Shipment

Approval Tendering Approval Tendering Approval Tendering

Freight Shipment Freight Shipment Freight Shipment

Payment Execution Payment Execution Payment Execution

Customer Customer Customer

Billing Billing Billing

30
Building Flexible Workflow – Illustration (1/3)

31
Building Flexible Workflow – Illustration (2/3)

32
Building Flexible Workflow – Illustration (3/3)

33
Benefits of APL Logistics MTS
 What are the Benefits?
1. Increase 4. Enhance delivery
communication service quality with
efficiency on the pro-active risk
Increase Enhance
same platform management and
Efficiency Service instant incident
response

Save
Manpower
2. Save on 5. Improve order
customer’s tracking visibility with
manpower by Improve information sharing
centralization Visibility
management

3. Win higher product

margin due to
potential savings on Win APL Logistics MTS: we know
cost of shipment Margin what you want, we can make it
better.
Q&A
Thank you