IBM Travel & Transportation Global Centre of Competence (CoC)
“Top Industry Consulting Expertise without Borders”
Mark Bedeman, Global SME, Freight Logistics & Cargo
II International Transport and Logistics Business Forum
"NEW SILK WAY“
Multimodal solutions in transport logistics:
challenges and tendencies
© 2012 IBM Corporation
IBM Today
© 2012 IBM Corporation
IBM Global Business Services
 IBM Global Business Services is a partner of unmatched breadth and depth
– Consultants and professional staff in more than 160 countries globally
– Deep experience and expertise in 17 industries
Travel &
Transport
Industry Sectors
Service Lines
Public
Supply Chain Management
Industrial
Distribution
Communications
Financial Services
Strategy & Change
Human Capital Management
Customer Relationship Management
Financial Management
Application Services
© 2012 IBM Corporation
IBM presence in Russian Federation
Russia:
* HQ: Moscow City office
* RSTL, Moscow
* St.Petersburg
* Samara
* Yekaterinburg
* Kazan
* Rostov-on-Don
* Nizhniy Novgorod
* Novosibirsk
* Perm
* Krasnoyarsk
* Khabarovsk
* Voronezh
* Ufa
2013
CIS (Commonwealth of
Independent States):
* Kyiv, Ukraine
* Tashkent, Uzbekistan
* Almaty, Astana, Kazakhstan
IBM Confidential
© 2012 IBM Corporation
IBM‘s Global Travel & Transportation Centre of Competence (CoC)
provides deep industry knowledge to IBM account teams and clients
Orchestration of Eco-System of experience and knowledge
Other CoCs
Solution Centres
Global Business Services
GBS is one of the SBU’s
Of IBM
Mandated to create reusable assets
leveraging the
whole IBM eco-system
Global Delivery
Institute of
Business Value
Global delivery centre spread
across the globe is essentially
cost recovery business
units and form part GBS/GTS
The Institute for Business Value
provides Thought Leadership on
Key Industry Topics
Software
IBM Research and Labs
Pioneer in providing path breaking
technological solution & asset
which involves complex
algorithm , HW interfaces etc
The software product arm of
IBM that owns powerful
brands like Sterling, Websphere,
Rational, iLOG, SPSS etc
Markets/Countries
Practices
Local market practices spread
across various
market segments' of IBM
5
Software Providers
Independent Software vendors
are partner vendors of IBM.
For instance, SAP,ORACLE,IBS etc
© 2012 IBM Corporation
Research at IBM means: Finding the intersection between
Invention and Insight
Objectives:
Expected Outcomes:
 Accelerate ability to apply
technologies and
capabilities
 Demonstrate
the power of
collaboration
 Showcase what
sets client apart
Ecosystem of innovation
• Community Leaders
• Employees
• Business Partners
• Regulatory Bodies
• Independent Software
vendors
• Policy makers
• Competitors
Insight
From:
 CEO and CIO studies
 Market Research
 Client workshops and
discussions
 Global Innovation
Outlook
 Institute for Business
Value
• IT Analysts
• Investors
Compelling marketready solutions and
client partnerships
• Clients
Invention
Innovation
From:
Innovation Discovery
Innovation Teams
First of a Kind
Development/ Research
linkage
From:
 Research and
Development teams
 Partner value
differentiators
 Technical Advisors
 Global Technology
Outlook
Deeper client
understanding
© 2012 IBM Corporation
We also work with our freight logistics clients in innovative ways to
provide even greater value to all aspects of their business
IBM Centers for Solution
Innovation
IBM Center for Business
Optimization
IBM Research Services
IBM CEO, CFO, CIO, CMO
Studies
IBM Industry Solutions Labs
(ISLs)
IBM First-of-a-Kind (FOAK)
Program
IBM Global Technology
Outlook
IBM Global Innovation
Outlook
© 2012 IBM Corporation
Research and Services Centres for Clients and Business Partners
Russian Systems and Technology Laboratory
 Established 2006 by IBM CEO, Sam Palmisano
 IBM's lab main mission is the development and support of systems software, firmware
and middleware in the large systems area.
 RSTL is working on the full life cycle of product components and technology. This
includes IBM System z mainframe, which has high synergy with historical IT
development in Russia, as well as mainframe-connected storage, and software
middleware services including database, virtualization, service management and
messaging.
Main areas of development activity
 Large systems operating system software development
 Microcode development and hardware engineering
 Middleware (messaging, database, systems management)
Collaboration with IBM Research Labs
 Analysis of end-to-end relationship between applications and data
 Virtualization to enable multi-tenancy – i.e. hosting clients which run a software stack to solve
problems such as underutilization of hardware
© 2012 IBM Corporation
Smarter Transportation
Incorporating intelligent
sensors in your assets to
help drive operating
decisions
10
Getting real-time line of
sight across the
transportation supply
chain
Leveraging the information
you already have – in new
ways – to drive better
decision making
Instrumented:
Interconnected:
Intelligent:
Putting sensors not just in
“things,” but across entire supply
chain ecosystems. Track your
freight. Track and monitor your
ships. Know the condition of both.
Predict and prevent service and
equipment failures.
Enable an entire shipment to be
completed electronically – initiated,
managed, executed and delivered
- across multiple carriers without
repeated manual intervention.
Sense-analyze-act. Have the
ability to see and model the future,
for better decision-making.
Develop optimal resource
allocation and asset utilization
across your entire ecosystem.
© 2012 IBM Corporation
Business Dynamic Demands a Shift in Operational Management Focus
Transaction
Driven
Insight
Driven
The new future development of the Transport Systems will be based on
designing from the outset the management of the businesses from a
transaction centric approach to an information / insight driven approach.
Provide operators with real time insights and "what if" scenarios to support decision
making
© 2012 IBM Corporation
Innovation Idea 1
Multimodal Freight Route Optimisation
First of a Kind (FOAK)
“To create a dynamic multi model “end to end” pricing visibility tool”
© 2012 IBM Corporation
© 2012 IBM Corporation
Innovation idea 2
Empty Container Repositioning Problem Complexity – Typical Data Size
 Number of:
– Container types (~10-20)
– Weeks (~16),
– Port calls (x 10s of thousands),
– Ports (x hundreds),
– Vessels (x hundreds),
– Foreign transport links
(x 10s of thousands),
– Containers (x Millions),
 Means of repositioning:
– On board company vessels,
– Foreign marine feeders,
– Inland transportation,
 Other means of empty containers
control:
– 50-100 on-going leasing contracts
with leasing companies,
– 10.000-20.000 New built containers
annually,
 Annual costs of empty containers
logistics:
– Several hundreds of millions of
dollars,
© 2012 IBM Corporation
Business Solution Realisation with ILOG (Demand Map)
Surplus
Deficit
© 2012 IBM Corporation
Empty container distribution - The Railwagon Problem
 Approx. 600 depots and ports around the world
– Rail Terminals?
 17 types of containers
– 100 Wagon models, Container carryng?
 Transportation by own or other ships (schedule. on-demand)
– Train (schedule and on-demand)
 Constraints Demand forecast and ship capacity
– train capacities
 Depot capacity
– track capacity
 Transshipment capacities
– shunting capacities, times
For the given input and cost function: Optimal solution?
Allows tactical planning:"What if I have more capacity to xyz ship / train?"
Allows strategic planning:what happens if I have 10% more / less container / wagon?
© 2012 IBM Corporation
Innovation idea 3
Logistics “Community”
Role of Collaboration platform, based on single
Instance of the event data, accessible by all stakeholders
WMS/ Yard
Mgt
Stores
ERP
Legacy
BOB
Systems
Corp.
Accts.
Consumers
Call
Center
Rail Hub
Collaboration
Network
MFT
Mobile
Web
Interconnect
Networks
Order
Mgt
Shipper
Customs
Portal
TMS
Rail
Companies
3pl/Freight
Forwarders
Road Operators
Powered by IBM Sterling Commerce, Warehouse Management
Order Management, Collaboration Network, Integrator
Supply Chain
Visibility
&
Supplier
Small
Compliance Suppliers
Small
Carriers
© 2012 IBM Corporation
Innovation idea 4 Forecasting and Capacity Planning F&CP
Inputs from Marketing
Execs/Product Lead
•Marketing investments, projected
growth in market share
•Addition of new services
Existing Volume
Contracts
Inputs from Sales
Opinion on new business
pipeline; changes in
existing contracts,
new contracts
Inputs from
Operations
Previous Predictions
Demand Estimation
&
Plan Creation
Unstructured Data
• External PoV data, accounts
• News feeds, tweets, facebook
Historical Data
<network
plan>
Route and
asset plan
<procurement
plan>
Capacity
procurement
© 2012 IBM Corporation
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© 2012 IBM Corporation