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Transforming transport procurement
through the creation of
“A High Value Collaborative
Community”
Brian Bolam
Founder
TGMatrix General presentation 2015
TGMatrix is to Transport/Logistics what Galileo and Amadeus
are to travel, Late Rooms.com and Last Minute.com are to the hotel
industry and UBER & Lyft are to the taxi industry
Agenda
 Background (the problem)
 Need for change
 The High Value Collaborative Community (the solution)
 Transport in the Internet Age
 A view of the future
TGMatrix General presentation 2015
TGMatrix General presentation 2015
The Problem :- “uncomfortable truth”
The European transport industry is: “inefficient,
expensive, polluting and living in a pre-internet age”.
 Overall truck utilisation is 43%, with trucks empty over 25% of the time
 Rail and coastal shipping only used in niche activities
 20th Century mentality largely based on combative relationships
 European shortage of drivers with an ageing population
 Freight industry alone in having failed to reduce carbon footprint
 Legislators will act if the Industry doesn’t resolve its own shortcomings.
Mode
• Capacity
• Timetables
• Cut-offs
• Efficiencies
C
A
R
R
I
E
R
S
S
H
I
P
P
E
R
S
REQUIREMENTS
THE
MATCHING
ENGINE
Flexibility
• Asset
• Product
Asset
• Availability
• Utilisation
• Size
• Visibility
Product
• Sizes
• Weight
• Compatibility
• Availability
• Consolidation
Proximity
• Empty
Running
• Drivers Hours
• Congestion
• Track ‘n’ Trace
QA
• SLAs
• Connectivity
• Preferred
Partners
• Visibility
TGMatrix General presentation 2015
The Conundrum
<2% NET
PROFIT
PAYING TOO MUCH
FOR TRANSPORT
TGMatrix General presentation 2015
Intermodal Collaboration Community
(What problem are we setting out to solve?)
 Total UK spend on Freight Transport is circa £35Bn per annum (EU circa €300Bn).
 Truck utilisation (time, weight and cube) is 43% compound and 59% (weight only)*
 Empty running is 29% and has not reduced for a decade*
 The internet and technology driving asset visibility present an opportunity to transform the industry’s
efficiency by matching demand and supply in close to real time using a Matching Engine.
 Transport companies are marginal businesses making net margins of circa 2-4%* (2013 top 100
carriers in UK=2%)*. TGMatrix will more than double the rate of return through higher asset utilisation
and drive an opportunity to refresh an ageing fleet with more efficient and cleaner trucks.
 Transport procurement processes have remained largely unchanged for decades.
 The processes are primarily manual and delegated to relatively junior staff.
 Shippers pay the price of this inefficient asset utilisation driving price inflation and reducing their
competitiveness.
* Source-FTA 2013 Logistics Report).
TGMatrix General presentation 2015
 TGMatrix is an Intermodal Collaboration Community and will provide the capability
to match supply and demand intelligently in the UK freight marketplace across all
modes (road, rail, short sea and coastal shipping).
 TGMatrix will launch with the support of shipper and carrier community members
who will provide the critical mass to prime the Matching Engine
 TGMatrix will reduce the total number of UK annual road freight movements by 1.5%
(1.5 million road journeys p.a.) and associated carbon emissions by some 250,000
tons p.a. by 2018 through improved asset utilisation and modal shift.
 TGMatrix will improve asset utilisation by 10% (a 40% reduction in empty running)
whilst reducing transport costs by 15% (£5.25Bn), and simultaneously reducing CO2e
by 15% and congestion by 15-30%.
 TGMatrix will provide 100% visibility utilising a Super-Connected platform (GPS/
TGMatrix Smartphone App)
 Shipper Value Proposition ~ 250% return on costs (Circa 15% cost reduction)
 Carrier Value Proposition ~ 200% margin improvement (improve asset utilisation by
10%)
(The Value Proposition-Users)
TGMatrix Matrix
 Highly automated and scalable
 Driven by master data
 Reduces CO2e by >15%
 >75% reduction in admin costs
 100% visibility/connectivity
 Targets asset optimisation/ROA
 Proactive customer service
 Carriers QA
 Win - Win for shippers and
carriers alike
 Targets large outsourcing market
 Builds a wide collaborative
community
TGMatrix General presentation 2015
Why is TGMatrix a
breakthrough
Competitors
 Highly manual / un-scalable
 Principally transactional data
 Industry CO2e increasing annually
 Admin costs linear with volume
 Low levels of visibility/connectivity
 Focus on moving freight
 Reactive customer service
 Often no carrier QA
 Shipper pays too much yet carrier
makes low returns
 Subcontract is a “black hole”
 Limited community restricts options
SHIPPER
TGMatrix
Upload
Master
Data (MD)
Send
Demand
Request (TD)
Self-Bill
(Advice)
Claim
Reconciliation
(in Portal)
Seek
Match
(using
MD/TD)
Confirm
Match
(Auto-
Allocate)
Settle
Claim
Settle
Claim
Confirm
Contract
in Shipper
System
POD (Data)
Stored
POD (Data)
Received
Store
Master
Data (MD)
Track
Asset
In Transit
Status/IoD
CARRIER
Upload
Master
Data (MD)
Trip
Events
Updated
Confirm
Contract
In Carrier
System
POD
(Data)
sent to
Portal
Send
Supply
Offer (TD)
Invoice
Settle
Claim
Remittance
Advice
TGMatrix General presentation 2015
The Process Flow
Transport Management in the Internet Age
Self-Bill
(Update)
Shipper
 15% price reduction
 250% return on subscription
 100% visibility (track & trace)
 >75% reduction in admin cost
 Access to dynamic capacity
 IOD/POD
 Claims management portal
 Access to accurate CO2e reporting
data
 Route to intermodal solutions
 100% EDI connectivity
 Access to BI reporting
Carrier
 Access to freight volume
 15% reduced cost of subcontract
 100% visibility (track & trace)
 200% margin increase on assets
 Access to accurate CO2e reporting data
 Claims management portal
 100% EDI capability
 Access to BI reporting
TGMatrix General presentation 2015
Shipper & Carrier Benefits
TGMatrix is a “High Quality Collaborative Community”
TGMatrix vs Freight Exchange
Freight Exchange
 Mainly road
 Manual Selection
 Low visibility
 Load matching only
 Generally sub-scale
 Marginal affect on industry
 Mainly a carrier play
 Last point of call
 Little to no stakeholder QA
 Web/manually driven
 Manually driven (often subjective)
 Opportunistic
TGMatrix
 Multi-modal
 Auto-allocated
 100% visibility
 End to end transaction
 More effective with volume
 Industry transforming
 All community members
participate and benefit
 First point of call
 Community QA
 System driven (objective)
 Collaborative
TGMatrix General presentation 2015
Timescales
 Beta Launch (UK only) Q4 2015
 Full roll-out (UK only) Q2 2016
 Beta Launch (Europe) Q3 2016
 Full roll-out (Europe) Q4 2016
TGMatrix General presentation 2015
 Be part of a “new paradigm in transport”
 Help to create a “High Quality Collaborative Community”
 Opportunity to secure significant modal shift with TGM acting as a market
aggregator
 Find new quality assured subcontractors at little/no cost
 Transform your traffic “back office admin” with >75% cost reduction
 Enrich your service to clients with lots of close to real time visibility & added
value data
 Increase profitability (lower costs, higher asset utilisation, increased revenue)
 Increase cash flow (lower DSO from less disputed invoices and SCF)
 Retain more business due to stickiness through being “easy to do business with”
 Improved image due to more frequent replacement of highly visible assets
(trucks)
 Ability to deliver accurate CO2e statistics to customers and shareholders
12
What’s in it for Community Members?
TGMatrix presentation to Alliance Boots, 31st July 2015
Passive
 Part of a “new collaborative
community”
 Seen as an innovator
 Part of your CSR mission
 Never “knowingly
underutilised”
 A good neighbour
13
The Role of Community Members
Active
 Provide data during development
phase
 Facilitate integration to Community
Members - ERP/TMS/WMS
 Commit freight & capacity (where
applicable) to TGM as “preferred
subcontractor”
 Complete master data template(s) as
Shipper & Carrier
 Provide support/endorsement with
investors/press/other stakeholders
 Allow TGM to use Community
Members name (on a pre approval
basis) initially as a launch partner and
later in a case study
TGMatrix presentation to Alliance Boots, 31st July 2015
 Master data/transactional data + combination
 Requirements
 Business rules
 Preferred carriers/excluded shippers
 T&C’s
 Rates/calculation algorithm
 Message formats
 Communication protocol
 Network architecture
 Intermodal transfer locations
 Generic or specific emissions data
 Dynamic/fixed traffic/congestion data
14
Requirements Definition
(Shipper & Carrier)
TGMatrix presentation to Alliance Boots, 31st July 2015
15
 Agree formal engagement
 Shipper and/or carrier?
 Agree scope of parallel running (carrier groups, carrier on-boarding.
X reference (master) data , message detail
 Agree medium term volumes (subject to acceptance at parallel running)
 Secure MIG for integration
 Check all messages related data available?
 Check alternative data sources for MD/TD (as necessary)
 Agree on “secured period”
 Integration meeting
 Master data template completion + agree special requirements
 Integration test
 Parallel running tests + evaluation
 Go/No go live
Next Steps
TGMatrix presentation to Alliance Boots, 31st July 2015
THANKYOU
?
TGMatrix General presentation 2015

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GENERAL PRESENTATION 2015

  • 1. Transforming transport procurement through the creation of “A High Value Collaborative Community” Brian Bolam Founder TGMatrix General presentation 2015 TGMatrix is to Transport/Logistics what Galileo and Amadeus are to travel, Late Rooms.com and Last Minute.com are to the hotel industry and UBER & Lyft are to the taxi industry
  • 2. Agenda  Background (the problem)  Need for change  The High Value Collaborative Community (the solution)  Transport in the Internet Age  A view of the future TGMatrix General presentation 2015
  • 3. TGMatrix General presentation 2015 The Problem :- “uncomfortable truth” The European transport industry is: “inefficient, expensive, polluting and living in a pre-internet age”.  Overall truck utilisation is 43%, with trucks empty over 25% of the time  Rail and coastal shipping only used in niche activities  20th Century mentality largely based on combative relationships  European shortage of drivers with an ageing population  Freight industry alone in having failed to reduce carbon footprint  Legislators will act if the Industry doesn’t resolve its own shortcomings.
  • 4. Mode • Capacity • Timetables • Cut-offs • Efficiencies C A R R I E R S S H I P P E R S REQUIREMENTS THE MATCHING ENGINE Flexibility • Asset • Product Asset • Availability • Utilisation • Size • Visibility Product • Sizes • Weight • Compatibility • Availability • Consolidation Proximity • Empty Running • Drivers Hours • Congestion • Track ‘n’ Trace QA • SLAs • Connectivity • Preferred Partners • Visibility TGMatrix General presentation 2015 The Conundrum <2% NET PROFIT PAYING TOO MUCH FOR TRANSPORT
  • 5. TGMatrix General presentation 2015 Intermodal Collaboration Community (What problem are we setting out to solve?)  Total UK spend on Freight Transport is circa £35Bn per annum (EU circa €300Bn).  Truck utilisation (time, weight and cube) is 43% compound and 59% (weight only)*  Empty running is 29% and has not reduced for a decade*  The internet and technology driving asset visibility present an opportunity to transform the industry’s efficiency by matching demand and supply in close to real time using a Matching Engine.  Transport companies are marginal businesses making net margins of circa 2-4%* (2013 top 100 carriers in UK=2%)*. TGMatrix will more than double the rate of return through higher asset utilisation and drive an opportunity to refresh an ageing fleet with more efficient and cleaner trucks.  Transport procurement processes have remained largely unchanged for decades.  The processes are primarily manual and delegated to relatively junior staff.  Shippers pay the price of this inefficient asset utilisation driving price inflation and reducing their competitiveness. * Source-FTA 2013 Logistics Report).
  • 6. TGMatrix General presentation 2015  TGMatrix is an Intermodal Collaboration Community and will provide the capability to match supply and demand intelligently in the UK freight marketplace across all modes (road, rail, short sea and coastal shipping).  TGMatrix will launch with the support of shipper and carrier community members who will provide the critical mass to prime the Matching Engine  TGMatrix will reduce the total number of UK annual road freight movements by 1.5% (1.5 million road journeys p.a.) and associated carbon emissions by some 250,000 tons p.a. by 2018 through improved asset utilisation and modal shift.  TGMatrix will improve asset utilisation by 10% (a 40% reduction in empty running) whilst reducing transport costs by 15% (£5.25Bn), and simultaneously reducing CO2e by 15% and congestion by 15-30%.  TGMatrix will provide 100% visibility utilising a Super-Connected platform (GPS/ TGMatrix Smartphone App)  Shipper Value Proposition ~ 250% return on costs (Circa 15% cost reduction)  Carrier Value Proposition ~ 200% margin improvement (improve asset utilisation by 10%) (The Value Proposition-Users)
  • 7. TGMatrix Matrix  Highly automated and scalable  Driven by master data  Reduces CO2e by >15%  >75% reduction in admin costs  100% visibility/connectivity  Targets asset optimisation/ROA  Proactive customer service  Carriers QA  Win - Win for shippers and carriers alike  Targets large outsourcing market  Builds a wide collaborative community TGMatrix General presentation 2015 Why is TGMatrix a breakthrough Competitors  Highly manual / un-scalable  Principally transactional data  Industry CO2e increasing annually  Admin costs linear with volume  Low levels of visibility/connectivity  Focus on moving freight  Reactive customer service  Often no carrier QA  Shipper pays too much yet carrier makes low returns  Subcontract is a “black hole”  Limited community restricts options
  • 8. SHIPPER TGMatrix Upload Master Data (MD) Send Demand Request (TD) Self-Bill (Advice) Claim Reconciliation (in Portal) Seek Match (using MD/TD) Confirm Match (Auto- Allocate) Settle Claim Settle Claim Confirm Contract in Shipper System POD (Data) Stored POD (Data) Received Store Master Data (MD) Track Asset In Transit Status/IoD CARRIER Upload Master Data (MD) Trip Events Updated Confirm Contract In Carrier System POD (Data) sent to Portal Send Supply Offer (TD) Invoice Settle Claim Remittance Advice TGMatrix General presentation 2015 The Process Flow Transport Management in the Internet Age Self-Bill (Update)
  • 9. Shipper  15% price reduction  250% return on subscription  100% visibility (track & trace)  >75% reduction in admin cost  Access to dynamic capacity  IOD/POD  Claims management portal  Access to accurate CO2e reporting data  Route to intermodal solutions  100% EDI connectivity  Access to BI reporting Carrier  Access to freight volume  15% reduced cost of subcontract  100% visibility (track & trace)  200% margin increase on assets  Access to accurate CO2e reporting data  Claims management portal  100% EDI capability  Access to BI reporting TGMatrix General presentation 2015 Shipper & Carrier Benefits TGMatrix is a “High Quality Collaborative Community”
  • 10. TGMatrix vs Freight Exchange Freight Exchange  Mainly road  Manual Selection  Low visibility  Load matching only  Generally sub-scale  Marginal affect on industry  Mainly a carrier play  Last point of call  Little to no stakeholder QA  Web/manually driven  Manually driven (often subjective)  Opportunistic TGMatrix  Multi-modal  Auto-allocated  100% visibility  End to end transaction  More effective with volume  Industry transforming  All community members participate and benefit  First point of call  Community QA  System driven (objective)  Collaborative TGMatrix General presentation 2015
  • 11. Timescales  Beta Launch (UK only) Q4 2015  Full roll-out (UK only) Q2 2016  Beta Launch (Europe) Q3 2016  Full roll-out (Europe) Q4 2016 TGMatrix General presentation 2015
  • 12.  Be part of a “new paradigm in transport”  Help to create a “High Quality Collaborative Community”  Opportunity to secure significant modal shift with TGM acting as a market aggregator  Find new quality assured subcontractors at little/no cost  Transform your traffic “back office admin” with >75% cost reduction  Enrich your service to clients with lots of close to real time visibility & added value data  Increase profitability (lower costs, higher asset utilisation, increased revenue)  Increase cash flow (lower DSO from less disputed invoices and SCF)  Retain more business due to stickiness through being “easy to do business with”  Improved image due to more frequent replacement of highly visible assets (trucks)  Ability to deliver accurate CO2e statistics to customers and shareholders 12 What’s in it for Community Members? TGMatrix presentation to Alliance Boots, 31st July 2015
  • 13. Passive  Part of a “new collaborative community”  Seen as an innovator  Part of your CSR mission  Never “knowingly underutilised”  A good neighbour 13 The Role of Community Members Active  Provide data during development phase  Facilitate integration to Community Members - ERP/TMS/WMS  Commit freight & capacity (where applicable) to TGM as “preferred subcontractor”  Complete master data template(s) as Shipper & Carrier  Provide support/endorsement with investors/press/other stakeholders  Allow TGM to use Community Members name (on a pre approval basis) initially as a launch partner and later in a case study TGMatrix presentation to Alliance Boots, 31st July 2015
  • 14.  Master data/transactional data + combination  Requirements  Business rules  Preferred carriers/excluded shippers  T&C’s  Rates/calculation algorithm  Message formats  Communication protocol  Network architecture  Intermodal transfer locations  Generic or specific emissions data  Dynamic/fixed traffic/congestion data 14 Requirements Definition (Shipper & Carrier) TGMatrix presentation to Alliance Boots, 31st July 2015
  • 15. 15  Agree formal engagement  Shipper and/or carrier?  Agree scope of parallel running (carrier groups, carrier on-boarding. X reference (master) data , message detail  Agree medium term volumes (subject to acceptance at parallel running)  Secure MIG for integration  Check all messages related data available?  Check alternative data sources for MD/TD (as necessary)  Agree on “secured period”  Integration meeting  Master data template completion + agree special requirements  Integration test  Parallel running tests + evaluation  Go/No go live Next Steps TGMatrix presentation to Alliance Boots, 31st July 2015

Hinweis der Redaktion

  1. Our industry has hardly changed since trucks first started carrying freight! Whilst there have been breakthroughs in such things as pallets and containers- the procurement process has remained largely the same Those companies who have a specific focus on asset utilisation make a multiple on industry standard returns e.g. Downton Transport-this validates the proposition The industry is “riding its luck” & will not escape the attention of the legislators for much longer if it fails to demonstrate efforts to put its own house in order with respect to emissions Notwithstanding current reductions in the cost of fuel, the industry is facing a “capacity crunch” based on congestion at ports, ageing truck drivers and unsustainably low return on assets
  2. The message flow sitting behind the TGMatrix Portal will use the OmPrompt service and will comprise 16 separate messages groups albeit 1 and 2 are periodic, 7 and 8 are multiple, 10 (to the shipper) is to be a look-up and 12/13 are exceptional (assume 2-5%). Basic messages per transaction are 10.