1 Big Data: The Future of Logistics KPMG Luxembourg 17 March 2015 Partners:
2 Pascal Denis KPMG Luxembourg
3 Arthur Sosna Luxembourg-Poland Business Club
4 Big Data: The Future of Logistics 2015 Luxembourg, March 17 th, 2015
5 LPBC Board Members Artur Sosna Chairman Adam Tymofiejewicz Treasurer Iwona Pawelec Attorney Renata Niekras-Zielonka Media Relations Support Team Gregory Peczkowski Entrepreneurial Women Project Manager Copyright LPBC
6 Advisory Board Members Frauke Carola Oddone President Partner - KPMG Didier Mouget Member Managing Partner - PWC Luxembourg Marcel Goeres Member President - Geores Group Luxembourg Marie-Helene Massard Member CEO - Axa Luxembourg Dr. Donat Jagiello Honorary Member Prof. Dr. Franck Leprevost Member Vice-president - Organization & International Relations, University of Luxembourg Copyright LPBC
7 Frauke Carola Oddone Alternative Investments (e.g. Real Estate, Infrastructure, Private Equity) LPBC Experts Antoine Clasen, Bernard & Massard Expertise: Wine, Cremant, Sales and Marketing Anna Sergiel, Loyens and Loeff Expertise: Tax and Consulting Ian Cresswell, Luxinnovation Expertise: Research, Development and Innovation Christian Tailleur, Totalserve Expertise: Domiciliation and Management Services Frédéric Dupont, Jeantet Associés Expertise: Tax and Consulting Mark Vrijhoef, Intertrust Expertise: Investments, Private Equity, Real Estate Peter Golda, Stidia Expertise: Vulnerability audits of websites and networks; Data protection Maciej Waloszyk, Finexis Expertise: Investment Funds, Financial Structuring, SPV s Christoph N. Kossmann, SGG S.A. Expertise: Corporate Admin, Fund Admin Global Accounting and Consolidation, Dariusz Wasylkowski, Wardynski & Partners Expertise: Legal and Tax services Raymond Krawczykowski, Deloitte Expertise: Tax and Consulting Piotr Kozikowski, PWC Expertise: Private Equity, Investment & Hedge Funds, Int. tax advisory, Real Estate Copyright LPBC
8 + over 50 individual members Copyright LPBC
9 Thank you for your attention!
10 Bartosz Jałowiecki Ambassador of Poland to Luxembourg
11 Étienne Schneider Deputy Prime Minister Minister of the Economy
12 Pascal Denis KPMG Luxembourg
13 Big data: The future of logistics Presentation
14 Will Big Data really redefine the future of logistics? External data sources Service Improvement and Product Innovation Customer loyalty Management Environmental Intelligence - Customer needs and expectations - Traffic information - Regulations - Social Networks - Wearables - Big Data platform Information on: - Parking spots utilization - Noise - Pollution Information on - Location - Destination Customer satisfaction and experience Transportation network Real-time information shared across the network (incidents, traffic, delivery sequence, chain disruptions, short-term capacity ) Customers Financial Demand and SC Analytics Real-time route optimization End-Customers Strategic Network Planning Operational Capacity Planning Risk Evaluation and resilience planning 2015 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 14
15 Technology and data analytics provide new ways to address these challenges Enhance services and products Master operational capacity planning & efficiency Optimize the best route & last mile delivery Improve stock management Manage risks 2015 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 15
16 Where is the industry today? Client Warehouse Management Finance Transport 2015 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 16
17 A Well Connected Company Francis Castelin TRANSALLIANCE
18 A WELL CONNECTED COMPANY
19 TRANSALLIANCE GROUP Support Services Finance and Accounting Human Resources CEO Alexandre MICHEL Legal Department IT Technology & Services Communication INTERNATIONAL BUSINESS UNIT FRENCH BUSINESS UNIT DEVELOPMENT Quality/Certification Creation by P Michel : 1969 Origin: North-East France Consolidated TO - M : 590 Nbr of employees : With offices in : 10 countries
20 INTERNATIONAL DIVISION NETWORK 100% Subcontracting 100% Subcontracting 100% Subcontracting 100% Subcontracting GBE LHV TS/UK HN/BEL KERPEN/ALL Freight Forwarding Mgt of Subcontrators Freight Forwarding Freight Forwarding Mgt of Subcontrators Freight Forwarding 100% Subcontracting 100% Subcontracting GBE BDX POLSKA/POL Freight Forwarding Freight Forwarding Service Centre 100% Subcontracting Iberica/ESP Freight Forwarding Mgt of Subcontrators Cross-Dock HR Credit Control Insurance Accounting Trpst purchasing services Cial follow-up Commerce Production Invoicing 100% Subcontracting Rapidsped/HON Freight Forwarding Service Centre
21 POLSKA 1 site in Poznan Since employees Turnover : 10M
22 IT TOOLS (OPERATIONS) Ulysse Own fleet/tractionnaires Synersys Traplus Equateur Sage Galaxy Freight Forwarding Distribution Logistics Accounts Database
23 IT TOOLS (COMMERCIAL) TMS - SLX Sales Management Appointment booking Client database Statcom Common databases used throughout the Group (No Big Data Insufficient Volumes)
24 IT FLOWS Customers EDI Lux Flow Mgt Transport orders sent via Ulysse Orders monitored in Ulysse - Geolocalisation POLSKA Own fleet Service Centre Orders sent via Transics Real-time follow-up of activity via Transics Drivers Customers EDI Profit Centre Mgt of transport orders In Synersys Follow-up of orders & invoicing via Synersys Subcontractors
25 OUR EXPERIENCE DO S Make sure you have a project for the present & the future Centralise support functions in Luxembourg, especially when you have branches throughout Europe Decentralise production & commerce Communication is paramount Have a database that is readily accessible by everybody Make sure your processes are in place and that everybody adheres to them
26 OUR EXPERIENCE DON TS Fail to tailor your project to take into account the rules prevailing in each individual country Centralise everything without putting in place uncomplicated and effective methods of control Do not split databases on a country basis Do not underestimate the customs of each country (legal/human Resources/Commerce) : take expert advice
27 Thank You For Your Attention
28 The Advanced Electronic Data Interchange Hub As A Supply- Chain Performance Booster Piotr Reichert COMARCH
37 Global Precense of InPost Parcel Lockers Rafał Markiewicz InPost
38 - 38 -
39 InPost the world leader in design and production of parcel lockers International operator of a network of self-service pick-up lockers, co-financed by PineBridge - a U.S. private equity fund managing $71.7 B assets One of the fastest growing companies on the Warsaw Stock Exchange, capitalization growth of 750% in 3 years InPost Finance S.à r.l. is a part of the Integer.pl Group, responsible for implementation of innovative solutions in the payment sector Owner and operator of parcel locker network in Poland, working with over 5,000 senders and 900,000 customers Producer of award-winning technology that customers love! Categories: Growth e-commerce Innovation Customer Service Retail Innovation of the Year 2014
40 PARCEL LOCKERS is an open network of machines available 24/7 across cities above 30k inhabitants in frequently visited, easily accessible locations with associated services that allow to receive and send packages AVAILABILITY 24/7 No queues or opening hours. Over 1100 locations in the Polish cities over 30k inhabitants. FAST Picking up a parcel takes just 7 seconds and 98% deliveries are delivered next day after dispatch. SIMPLICITY A text message, a few clicks or a QR code scan - and the locker opens. FULL DISCRETION No matter what you buy, the InPost Locker keeps private what s personal. PRICE One of the cheapest delivery options. SAFETY Unique collection codes, CCTV, secure locks and solid steel locker construction. INNOVATION A truly innovative service that can interact with users with video, voice, and trigger-based personalized multichannel messaging!
41 LAUNDROMATS Our Parcel Lockers can also effectively work as Laundromats. They operate on a similar business model as the APMs a customer brings his/her own laundry and can pick up washed clothes on the next day. 24/7 AVAILABILITY You can use our services whenever and in any laundromat you want to. IN YOUR NEIGHBOURHOOD You can now easily do your laundry on your way to work or home. SPEED You are a few clicks away from completing your order in just 7 seconds QALITY GUARANTEED! We cooperate with an experienced partner to ensure highest quality. EASE OF USE All you need to use a Laundromat is your mobile phone.
42 INPOST POSTAL TERMINAL Functionalities: Sending and collecting registered letters Dispatching and picking up parcels Bill payments Money transfers Cash deposit / withdrawal InPost Postal Terminal is an outcome of our strategic alliance with the leading global ATM manufacturer NCR.
43 InPost GLOBAL EXPANSION 21 countries with InPost lockers over InPost Lockers in the world now InPost Lockers in Europe by 2016
44 InPost lockers revolutionize parcel delivery and collection just like ATMs revolutionized personal cash management Number of ATMs worldwide Parcel machine expansion plans units units F Source: A.Sirocki, ATMdrive jako trend w bankowości samoobsługowej F 2012F 2013F 2014F 2015F Source: Company data
45 Today we have the biggest network in the world Tomorrow we ll be global Baltic States UK Australia Ireland Chile China Italy Russia
46 - 46 -
47 IMPROVED CUSTOMER SATISFACTION 97% willingness to recommend InPost, while Amazon is 82% 80% of e-shoppers who use the parcel lockers would be more likely to use an online retailer which offered it in its delivery service 74% prefers parcel lockers than courier 73% of UK shoppers walked away from an e-store because there was insufficient choice of delivery options 70% of consumers would rather pick up high value goods from secure lockers 45% of customers would like to have an alternative delivery option with long opening hours Sources: Research conducted in Chile by Correos, Ireland research (Parcel Motel conducted), InPost research, OnePollresearch in a study for DPD
48 CUSTOMER SATISFACTION ACCORDING TO NET PROMOTER SCORE InPost Parcel Lockers 91% UPS 86% DHL 84% OPEK 77% Siódemka 68% Polish Public Post 56% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Opineo.pl, InPost, link:
49 CUSTOMER EXPECTATIONS WITH DELIVERY 76% Inform about progress of order 84% Inform the dispatch date and tracking number 81% Confirm expected Time of delivery 85% Inform of a failed delivery Clear communication of delivery progress and eliminating time slots means addressing customers needs Using both SMS and notifications is a must! 48% prefers information 44% by prefers information by SMS Source: Imrg UK Consumer Home Delivery Review May 2013
50 CUSTOMER BEHAVIOUR 29,7% OF PARCELS ARE COLLECTED AT WEEKENDS Parcel collection vs. day of the week Indications: Shopping online Monday - Wednesday at work Possibility of predicting shopping visit peaks based on habits (Thu-Sat) Possibility to shift traffic slightly using local promotion (i.e. morning coffee) Source: InPost data. All users statistics. 2013
51 56,1% OF PARCELS COLLECTED BETWEEN 4 AND 9 PM 51 % OF PARCELS COLLECTED BETWEEN 5 PM AND 8 AM Source: InPost data. All users statistics 2013
52 InPost Locker 24/7 is the most popular delivery option at e-shops 58% biggest e-shops offer InPost Lockers Delivery options in Polish e-shops InPost Lockers 24/7 DPD UPS Polish Public Post 15 DHL 10 GLS 5 DB Schenker 0 InPost Lockers 24/7 DPD UPS Polish Public Post DHL GLS DB Schenker Stacja z Paczką Kurier48 Others Stacja z Paczką Kurier48 Others Source: Based on TOP 50 eshops on the market
53 How InPost solution supports sustainable development Courier APMs 60 Parcels daily per one courier Kilometers daily per one courier g CO² emission per parcel 14g 0,23l Fuel consumption per parcel 0,01l 95% reduction of CO² emission and fuel consumption Yearly analysis, source: calculations by Akademia Górniczo-Hutnicza in Krakow
54 Picking up parcels is a core functionality that allows cutting the costs of the last mile and increases the Customers satisfaction by letting them collect their parcels 24/7 Extra long version of a Polish Parcel Locker
55 Thank you for attention Rafał Markiewcz President & CEO Mobile:
56 We Optimise Your Supply Chain Michael Kreutzmeier Dematic
57 Big Data - the future of logistics We optimise your Supply Chain.
58 Dematic. Offer. We optimise your supply chain. Complete solutions for any logistics requirement Intelligent systems that work not only quick and efficient but sustainable Real-time Control of your system from anywhere with our iq software Worldwide service 24/
59 Dematic More than employees More than 50 branches worldwide More than5.000 installed systems 1,2 Mrd. of Volume worldwide 40% Of worldwide retail orders
60 Challenges in e-commerce - 1 Everthing for everybody. Seasonal peaks, or offer-related maximum peak loads High percentage of orders with only one item Dispatch on same day Processing deliveries and returns
61 Challenges in e-commerce - 2 SPEED High Delivery Reliability / Accuracy Error-free order processing Minimizing / Reducing Delivery Time Order Processing Picking Change management in Returns processing Minimizing Costs for processing Rising competitiveness
62 Excerpt of our Solutions. Dematic Multishuttle 2 System for storage, buffering, sequencing, picking and editing jobs AMCAP Mixed Case Palletising Automatic palletising of mixed cases. Most compact system in the market Dematic RapidPick System Goods-to-person commissioning Dematic IQ High performance processing orders and facility status
63 Thank you.
64 Big data: The future of logistics Panel Francis Castelin Transalliance Michael Kreutzmeier Dematic Rafał Markiewicz InPost Piotr Reichert Comarch
65 Will Big Data really redefine the future of logistics? External data sources Service Improvement and Product Innovation Customer loyalty Management Environmental Intelligence - Customer needs and expectations - Traffic information - Regulations - Social Networks - Wearables - Big Data platform Information on: - Parking spots utilization - Noise - Pollution Information on - Location - Destination Customer satisfaction and experience Transportation network Real-time information shared across the network (incidents, traffic, delivery sequence, chain disruptions, short-term capacity ) Customers Financial Demand and SC Analytics Real-time route optimization End-Customers Strategic Network Planning Operational Capacity Planning Risk Evaluation and resilience planning 2015 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 65
66 We kindly invite you to a cocktail reception in the Atrium.