FUTURE TRENDS AND OPPORTUNITIES IN CEMENT TRANSPORT

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1 Mahindra Outperformer s League (OPL) FUTURE TRENDS AND OPPORTUNITIES IN CEMENT TRANSPORT

2 Presentation Sequence Stake Holders Challenges Cement Logistics Future Trends Value Proposition Logistics Eco System Transparency, collaboration- Logistics Surplus Hardware Tracking Technology IT Software Logistics key to Customer Delight

3 Cement Logistics Stake Holder Challenges 1. Shipper a. Marketing / Sales. b. Plant Manufacturing. c. SCM Function. d. Customers Bagged / Bulk Cement (Retail and Institutional) 2. Service Providers Challenges a. Transport Contractors. b. Fleet Owners c. C&F Service Providers. d. Handling Contractors. e. Support Services.

4 Future Trends 1. Collaborative 2. Transparent 3. Technology ( Hardware and Soft ware) 4. Business Process Automation 5. Integration 6. Infrastructure

5 Value Proposition - Logistics Eco System LSI value proposition Authenticated trucks Secure Truck parking terminals Improved service quality Reduce working capital Improve asset utilization IT and GPS Technology o Load planning o Route analytics Transparent Lorry Hire Core 2 way loads to FO on fixed rates Reducing waiting time Loyalty perks Clean amenities Savings schemes Medical and accident insurance Higher driver incentive Reduce operating cost Strategic partnerships with tire, fuel, lubricant companies, etc. Enhanced fleet management systems software

6 LSI value proposition illustration Transparent Lorry Hire & effective trip planning create logistics surplus Illustration Chennai Ahmedabad Current scenario Total Improved trips/month 16% 17% 2% Waiting for loads 2 Unloading 2 Check post 3% 16% 7% 4% 6% Tolls Driver resting 5% 8% Proportion of time spent in a month 38% 17% Truck Running Loading 2 16% 45% 1 For a 16 Ton HCV truck with 10 wheels Current freight rates Improved freights Average round trip freight rate 112, ,800 Avg. # of round trips/month Revenue increase by ~19% Total Revenue 1 /month 280, , % of freight each 33,600 41,328 Total expense 1 /month 227, ,954 FO monthly free cash flow 52,879 70,446 Revenue increase by ~25% 2 Reducing loading and unloading time by ~20% and reducing waiting time through by ~ 52% Source: Based on discussion with FO, driver, TC and brokers

7 GPS Technology Tracking of Fleet A GPS tracking device is installed in your vehicle and records the coordinates. The tracking device has a built in capability to send messages over the GSM network to the servers which in turn use the same data to show on a map. Login to Service Provider website to locate your vehicle. Satellite GSM / GPRS Vehicle Service provider Control Center Your Computer With Internet Web Browser

8 GPS Technology Value Proposition Measure and improve Delivery Compliance (Plan VS Actual) giving good insights on Customer Service Levels. Improve safety standards within source and on road (reducing pilferages) Reduce trip turnaround time improve Asset utilization for fleet(no of trips/month) Integrating with ERP and providing seamless order visibility and setting service standards (also provide estimated time of arrival for consignments) Truck wise profit and loss incurred and root cause for the same.

9 GPS Technology Value Proposition Improve dispatch efficiencies by providing visibility (including ETAs) of incoming vehicles and planning outbound movement towards customer. Route optimization and planning. Monitoring on time deliveries and providing root cause analysis for improvement of OTIF(on time in full) as their differentiators with competitors. Vehicle scorecards improving performance and incentives for drivers. Transparency of their performance to customer achieving better CSL and Asset Utilization.

10 RFID Technology Plant Automation Vehicle tracking: RFID tagging for every vehicle and track movement at gateway points inbound & outbound Optimization: decision support to plan vehicle movement and equipment operations GPS Integration: advance visibility of trucks coming to the plant Autoplant Collaboration: share information and track commitment from transporters Automation: Access control (boom barriers, traffic lights) & Information sharing (dashboards, LED displays, PA system) to reduce people and paper dependency Automation: integration with ERP and auto-capture of data from mfg. systems & PLCs

11 Process Automation in Plant Indent Plant DISPATCH CALCULATED AND CIRCULATED AUTOMATICALLY IN AUTOPLANT Transporter REQUISITION CHIT (RC) Truck yard REMOTE TRANSMISSION OF PAPERS THROUGH A KIOSK AT YARD IN Sales / Dispatch WB (Gross) AUTO-WEIGHMENT DONE, TRUCK NUMBER, WEIGHT DISPLAYED, TRANSMITTED TO S&D S & D STATUS CHECK & AUTO EGP GENERATED Security ALLOW SLIP (REMOTE) GIVEN TO DRIVER AT YARD IN AFTER PAPER CHECK yard CHECKS TOOL KIT PASS, ALLOW SLIP Gate Out WB (Tare) AUTO-WEIGHMENT DONE, TRUCK NUMBER, WEIGHT, LOADING POINT DISPLAYED ON LED

12 Integrated IT platform 1. Web enabled Fleet management ERP System 2. Web Enabled Transport management System for 3PL service providers and Shippers. 3. GPS / RFID Tracking software for truck operations planning and controls. 4. Business Intelligence Systems Integrating all software modules providing End to End visibility.

13 Logistics Key to Customer Delight Assured Delivery at preferred locations. Competitiveness through asset utilization. Product safety Product / Asset visibility for proactive action. Faster POD, Reduce Working Capital Faster Resolutions on deviations from the plan. Route and Freight Optimization.

14 THANK Q

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