Digital Transformation & Implications for

Logistics Industry
India Logistics Expo 2016
May 19-21, Mumbai

Gopal R, Global Vice President

Transportation & Logistics Practice, Frost & Sullivan

Story Board

What are the Game Changing

Technologies?

Which Areas of Logistics are the

Technologies Changing?

How are the Technologies

Changing in the Areas of Logistics?

Last word Predictions!

Story Board Where Are We?

What are the Game Changing

Technologies?

Which Areas of Logistics are the

Technologies Changing?

How are the Technologies

Changing the Areas of Logistics?

Last word Predictions!

Game Changing Technologies

Big Data and Analytics

Big Data and Analytics are specialized

tools that collate, structure, and
analyze large data sets.
The Internet and the
Social Media are the
driving forces of large
data sets being generated.

Replacement of machines and

robots to perform routine,
repetitive, and rigorous tasks in
warehouses are included under
the scope of Automation /
Robotics.

Cloud Computing utilizes a network

of systems over the internet for data
processing. This eliminates the need
to set-up dedicated IT Infrastructure
to run software-based solutions.

Game Changing
Technologies

Augmented reality is a technology

that enables live superimposition
of computer-generated input on
the view of real-world
environment. The computergenerated input is based on the
real-world elements in the view.

Augmented Reality

Cloud Computing

Autonomous Vehicles are vehicles

that have built-in sensors,
connectivity facilities, and
capabilities to control and
manoeuvre the vehicle thereby
eliminating human intervention
in the form of drivers.

Automation /
Robotics

Mobile devices include smartphones,

tablets, and other portable devices that
are used to connect the end user to
the Internet. Mobile apps are
software applications that are
designed to run on these
mobile devices.

Autonomous Vehicle

Mobile Devices
and Apps

Technology Enablers that will Shape Industry Growth & Transformation

Source: Frost & Sullivan Analysis

Game Changing Technologies (Continued)

It is imperative to implement new technology developments to ensure efficiency, reduction in turnaround time and cost, and therefore to stay in
the industry.

Cloud
Computing

Big data and

Analytics

Mobile devices
and apps

Automation /
Robotics

Autonomous
Vehicles

Augmented
Reality

Enables remote
access through
multiple devices
including mobile
devices
Eliminates the
need for internal
IT infrastructure

Helps identify
regular pattern
through large sets
of data
Useful to
generate reports
to identify gapsin
processes and
hence bridge the
same

Necessary to ensure
shipment tracking
and hence maintain
supply chain
visibility to plan and
track
Apps are now
marketplaces for
freight forwarding
services,
crowdsourcing
information, cargo,
and warehousing
capacities

Reduces
manpower
intervention in
repetitive and
mundane tasks,
especially in
warehousing
environment
Improves
efficiency and
turnaround time
and efforts

Reduces accidents
and costs of
accidents
Establishes scope
to increase driver
work hours due to
reduction in
driver efforts
Platooning, a
method enabled
by autonomous
capabilities,
considerably
reduces fuel costs

Enables paperless
environment in
warehouses,
distribution, and
delivery scenarios
Smooth flow of
informationand
activities

Source: Frost & Sullivan Analysis

Story Board Where Are We?

What are the Game Changing

Technologies?

Which Areas of Logistics are the

Technologies Changing?

How are the Technologies

Changing the Areas of Logistics?

Last word Predictions!

Five Areas of Digital Disruption in Logistics

Area of Focus

Entire supply chain of the Logistics Industry is undergoing a process of revamp due to advancements in the field of technology.
Information, access to data, connectivity, processing mechanisms, and tools that were restricted to few military departments about
a decade ago, are now available for industrial and public use, at economical rates. These dynamics have changed the very mode of
business giving rise to disruption in multiple areas.

Logistics Market
Segments

Logistics Value Chain

Logistics Market
Segments Role in the
Value Chain

Freight Forwarding
Services

Transportation
Services

Sourcing and
Intermediation

Freight
Forwarding

Outbound
Shipment Handling

Transport

Warehousing
and VAS

Value-added
Services (VAS)

Warehousing Services

Transport

Inbound Shipment
Handling

Warehousing
and VAS

Transport

Supply Chain Information Management Systems

Areas of Digital
Disruption in Logistics

Freight Forwarding Services

Warehousing Operations

Distribution and Delivery

Fleet Management
Source: Frost & Sullivan Analysis

Five Areas of Digital Disruption in Logistics (Continued)

Advancements in technology have not only changed the way the following activities are conducted but also introduced newer ways
of performing the same activities. Access to technology at economical prices is becoming a driving force for these disruptions.
Supply Chain Information Management Systems
Information Management Systems such as Transport Management Systems (TMS) & Warehouse Management
Systems (WMS) are widely used in the logistics industry to capture, manage, and process data throughout the
value chain. Order management, inventory management, fleet management, and many other processes are
executed using these tools to manage information and generate reports, invoices, and keep track of the flow
of shipment.
Freight Forwarding Services
Areas of Digital
Disruption in Logistics

Freight forwarding services

include sourcing of transport and
warehousing services, planning,
and brokerage services.

Warehousing Operations
Warehousing Operations include
storage and retrieval of
shipments, palletizing & depalletizing, picking & packing, and
others within a storage facility.

Distribution and Delivery

Distribution and Delivery
activities include distribution
planning, last mile delivery, and
brokerage services.

Fleet Management
Fleet management includes vehicle maintenance, tracking, and routing and
management of speed, driver ,and vehicle safety. It encompasses activities that deal
with drivers and commercial vehicles such as trucks, cars, etc.

Source: Frost & Sullivan Analysis

Story Board Where Are We?

What are the Game Changing

Technologies?

Which Areas of Logistics are the

Technologies Changing?

How are the Technologies

Changing the Areas of Logistics?

Last word Predictions!

Five Areas of Digital Disruption in Logistics

These are some of the technologies that are disrupting the following areas of Logistics.
Big
data and
Analytics

Supply
Chain
Information
Management
systems
Cloud
Computing

Big
data and
Analytics

Autonomous
vehicles

Automation
/ robotics

Warehouse
Operations
Mobile
Devices
and Apps

Augmented
reality

Augmented
reality

Fleet
Management
Mobile
devices
and apps

Autonomous
vehicles

Autonomous
vehicles

Big
data and
Analytics

Distribution
and
Delivery

Freight
Forwarding
Mobile
devices
and apps

Cloud
Computing

Mobile
Devices
and Apps

Mobile
Devices
and Apps

Source: Frost & Sullivan Analysis

10

Supply Chain Information Management Systems

Expertise and Labour Advantage from the ITES Sector
Need for faster and multi-device remote access of information are pushing the industry to shift to SaaS model for its
information management systems such as Transport Management Systems (TMS) and Warehouse Management Systems
(WMS). Big Data & Analytical tools, when used to structure large sets of data generated by these information
management systems, promise the prospects of bridging inherent inefficiencies.
Abundant availability of ITES workforce and imperative need to
adopt SCIMS to maintain shipment visibility drive the adoption
Adoption is on par with developed markets

Big
data and
Analytics

Supply
Chain Information
Management
systems

E-Commerce boom and need for supply chain visibility drive the
implementation of shipment identification and tracking devices
Availability of integrated solutions to capture and display data
from the devices adds to the growth of adoption rates

Mobile
Devices and
Apps

Cloud
Computing

Comparison of Adoption Rates between India and Developed Markets (N. America & Europe)
Technology

India

Developed Markets

Cloud Computing

Low-Moderate

Moderate-High

Big Data & Analytics

Low-Moderate

Moderate-High

Mobile Devices & Apps

Moderate-High

Moderate-High

Growth in Adoption

Low

Moderate

High

Source: Frost & Sullivan Analysis

11

Warehouse Operations
Lack of Infrastructure and High Implementation Costs Deter Adoption
Augmented Reality, Automation, and Autonomous vehicles in Warehousing Environment have proven to improve
efficiency and time taken for loading-unloading, storage-retrieval, picking-packing, and other processes. Mobile devices
such as tracking devices enable faster order and inventory management by integrating the shipment location data with
the WMS, thereby letting the systems prompt and enable easy shipment detection.

Automation /
robotics

Autonomous
vehicles

Lack of infrastructure support and high cost of implementation

hinder the adoption
However, e-Commerce boom demands fast logistics turnaround
time pushing adoption of augmented reality, automation and
autonomous vehicles within controlled environments

Mobile
devices
& apps

Lack of infrastructure support and high cost of implementation

hinder the adoption
However, e-Commerce boom demands fast logistics turnaround
time pushing adoption of augmented reality, automation, and
autonomous vehicles within controlled environments

Warehouse
Operations

Augmented
reality

Comparison of Adoption between India and Developed Markets (N. America & Europe)
Technology

India

Developed Markets

Automation and Autonomous Vehicles

Low

Low-Moderate

Augmented Reality

Low

Low-Moderate

Moderate-High

High

Mobile Device & Apps

Growth in Adoption

Low

Moderate

High

Source: Frost & Sullivan Analysis

12

Fleet Management
Route Optimization and Vehicle Tracking Widely Implemented
Utilization of Big Data & Analytics is reflected in route optimization based on traffic congestion data and shorter route
analysis on mobile device apps such as Google Maps. Fleet management vendors are benefitted across economies by
these developments due to reduction in fuel consumption and delivery timelines.
Industry adoption is driven by a combination of the following
factors:
Evident advantage of tracking vehicles and shipment
Plummeting costs of smartphones & tracking devices and
easy integration of device data into proprietary systems
Smartphones and apps utilize Big Data & Analytical Tools to
generate, capture and utilize relevant data

Big
data and
Analytics

Fleet
Management

Lack of traffic discipline and infrastructure support deters

implementation of Autonomous Vehicles in India on roads

Mobile
Devices and
Apps

Autonomous
vehicles

Comparison of Adoption between India and Developed Markets (N. America & Europe)

Technology

India

Developed Markets

Autonomous Vehicles

Low

Low-Moderate

Big Data & Analytics

High

High

Moderate-High

High

Mobile Device & Apps

Growth in Adoption

Low

Moderate

High

Source: Frost & Sullivan Analysis

13

Distribution and Delivery

Mobile Devices and Apps to Disrupt Delivery Business Models
Autonomous Vehicles will see delayed implementation in India compared to developed economies. Regulatory bans and security
concerns are delaying usage of Unmanned Aerial Vehicles (UAV) such as drones for last mile delivery. However, service providers are
utilizing mobile devices and mobile device app-based marketplaces for last mile delivery.

Real-time tracking
capabilities augment
adoption of mobile
devices in last mile
delivery

Autonomous
vehicles

Regulatory ban on
drones for commercial
and individual usage
deter industry adoption

Distribution
and
Delivery

High cost of
implementation is
hindering the adoption
of Augmented Reality

Mobile
devices
and apps

Augmented
reality

Mobile device appbased marketplace act

as interface between
retailers and
consumers providing
last mile delivery
services

Comparison of Adoption between India and Developed Markets (N. America & Europe)
Technology

India

Developed Markets

Autonomous Vehicles

Low

Low-Moderate

Mobile Device & Apps

High

High

Augmented Reality

Low

High

Growth in Adoption

Low

Moderate

High

Source: Frost & Sullivan Analysis

14

Freight Forwarding
Critical Need for Dynamic Information Flow Drives Adoption
Freight Forwarding Service Providers deal with multiple stakeholders such as shippers, carriers and third-party vendors, all of whom
need access to dynamic shipment information to ensure optimized transactions. Therefore, freight forwarders need to stay abreast
technology advancements.

Access to information and solution systems via multiple devices and

mobile devices due to Cloud Computing drives adoption

Big
data and
Analytics

Enhanced demand forecasting and inventory optimization mechanisms

using predictive modeling drives adoption of Analytics

Freight
Forwarding
Demand for supply chain visibility drive the implementation of
shipment identification and tracking devices

Mobile
Devices
and Apps

Cloud
Computing

Availability of integrated solutions to capture and display data from the

devices adds to the growth of adoption rates

Comparison of Adoption Rates between India and Developed Markets (N. America & Europe)
Technology

India

Developed Markets

Cloud Computing

Low-Moderate

Moderate-High

Big Data & Analytics

Low-Moderate

Moderate-High

Mobile Devices & Apps

Moderate-High

Moderate-High

Growth in Adoption

Low

Moderate

High

Source: Frost & Sullivan Analysis

15

Story Board Where are We?

What are the Game Changing

Technologies?

Which Areas of Logistics are the

Technologies Changing?

How are the Technologies

Changing the Areas of Logistics?

Last word Predictions!

Last Word Predictions

Solutions that offer flexibility of use, enhance the visibility of the supply chain will be
the need of the industry. Mobile devices and apps feature as the most import
technology disruptor in the field of logistics followed by Big Data & Analytics and
Cloud Computing.

E-Commerce boom will only increase the demand for performance of Logistics
Service Providers in delivery timelines, volumes and cost. Last-mile delivery will be
the focus of this demand.

In India currently, Warehouse Automation is the most under-utilized category of

technology development. Local material handling and robotics manufacturers are
equipped to provide high quality warehouse automation support. Gradual adoption
is driven by demand from e-commerce fulfillment centers.

Source: Frost & Sullivan Analysis

17

Thank You
Gopal R

Jahnavi Gokulakrishnan

Global VP, Transportation & Logistics Practice

rgopal@frost.com
210 BT Building
Dubai Internet City, Dubai
UAE
Tel: +971.4.433 1892
Fax: +971.4. 427 8784

Senior Research Analyst, Transportation &

Logistics Practice
jahnavig@frost.com
ASV HANSA, No.53, Greams Road, Thousand
Lights, Chennai 600 006 India
Tel: +91.0.44.6160 6666
Fax: +91.0.44.4230 0369

www.frost.com
"We Accelerate Growth"

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