Hon. Robert G. Taub Postal Regulatory Commission (PRC) · Hon. Robert G. Taub Postal Regulatory...
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Innovation and Invention in the Supply Chain
Mike Comstock
GrandCanal
Ursa Major Associates
Global Online Trade Solutions
Jay Emmet
OpenMarket/Amdocs
Nagesh Kadaba
ipCG
Ramesh Ratan
Bell and Howell
Predictive Supply Chain Analytics Enabling the Intelligent Supply Chain
Mike Comstock, Sr. Vice President-Customer Success&
Co-founder- Ursa Major Associates, LLC
Today’s Supply Chain Limitations
© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 4
ERPAnalytics
Fabrication Warehousing Distribution
ERP,
OMSCarrier Data WMS TMS
Supply
Chain
Systems of
Record
Carrier-specific Analysis
Supply
Chain
Data
Analysis
Today’s Supply Chain Limitations
© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 5
ERPAnalytics
Fabrication Warehousing Distribution
ERP,
OMSCarrier Data WMS TMS
Supply
Chain
Systems of
Record
Carrier-specific Analysis
Supply
Chain
Data
Analysis
Inventory
Today’s Supply Chain Limitations
© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 6
ERPAnalytics
Fabrication Warehousing Distribution
ERP,
OMSCarrier Data WMS TMS
Supply
Chain
Systems of
Record
Carrier-specific Analysis
Supply
Chain
Data
Analysis
UPS/FedEx
Optimize Predictive Analytics Cloud (PAC)
© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 7
Fabrication Warehousing Distribution
ERP,
OMSCarrier Data WMS TMS
Supply
Chain
Systems of
Record
Supply
Chain
Cross-
functional
Data
Analysis
Optimize™ Predictive Analytics Cloud
Remove Barriers to Optimization
© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 8
Fabrication Warehousing Distribution
ERP,
OMSCarrier Data WMS TMS
Supply
Chain
Systems of
Record
Supply
Chain
Cross-
functional
Data
Analysis
Optimize™ Predictive Analytics Cloud
Enabling Intelligent Supply Chain
© 2015 GrandCanal Solutions. Confidential Information. Do Not Distribute. 9
Fabrication Warehousing Distribution
ERP,
OMSCarrier Data WMS TMS
Supply
Chain
Systems of
Record
Supply
Chain
Cross-
functional
Data
Analysis
Optimize™ Predictive Analytics Cloud
Dynamic optimization for Supply Chain
Using Invention, Innovation and Its Resulting IP as You Develop Your Supply Chain / Logistics Solutions
Nagesh KadabaSenior AdvisoripCapital Group
March 15Prepared for Prepared by
ipCapital Group426 Industrial Avenue • Suite 150 • Williston, VT 05495
802.859.7800 • www.ipcg.com
© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.
B2Me - Game Changers
© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.
11
• Innovation• The process of taking an idea from mind to
market• A series of inventions towards a marketable
product or process
• Invention
• Solving of a specific technical problem or…• The discovery of something new – but this is
more rare
• Intellectual Property
• Exclusive rights on inventions• Granted through vehicles including patents and
trade secrets
Introduction - Detailed View of Innovation, IPthrough Invention
IP Trends in the Supply Chain& Logistics Industry Innovation and Invention in the Supply Chain - B2Me - Game Changers
• Group 1
• “The Last Mile”, Carrier agnostic delivery and returns
• Environmental sensors based routing and dynamic delivery. (Cold Chain)
• Internet of Things, IoT sensors on mobile assets
• On-demand delivery for eCommerce
• Dynamic Routing & Real-time visibility
• Cloud Computing (Information flow, communication flows and Funds flow)
• Group 2
• Millennium generation and smart phones, Mobile computing
• Human Machine Interface (HMI)
• Social networking triggered marketing
• Big data harvesting
• Group 3
• Drones, Driverless trucks, Robotic vehicles (Warehousing)
• Uber model for delivery
• Smart Kiosks, Flexible access points, Self-Sorting Collection Box
© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.
12
Inventions in Drones
Inventions in Internet of Things
IP Trends in the Supply Chain& Logistics Industry
© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.
13
Invention, Innovation and Its Resulting IP • Methodic data driven Strategic IP analysis can:
• Identify “White Spaces”
• Rapidly identify NEW application areas
• IP can serve as a catalyst and an accelerator
• Recognize the need for organizations to devise new IP development strategies that address the issues of speed, quality and relevance.
• Identify TECHNOLOGY ADVANCEMENTS
• Will your IP become obsolete with next generation technologies?
• Identify COMPLIMENTS
• Have you protected invent-on-top-ofs?
• Have you protected add-ons & interfaces?
• POTENTIAL ENTRANTS
• How well does your IP protect your core business?
• Is your 1st mover advantage protected?
• To invent-in-front of new technology trends. Investors will support innovative companies by investing in invention, not litigation
© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.
14
Business
Market
Products
Innovation & Invention
Intellectual Property
Technology
Intellectual Capital
426 Industrial Ave, Suite 150Williston, VT 05495
(802) 859-7800
www.ipcg.com
Thank You
© 2016, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.
15
A Day in the Life of a Parcel
Innovations driving new value in the economics of
supply chain and logistics
Order Pick Pack Label / Encode
Sort / Encode Deliver / Track
Collect & Acknowledge ReturnEnjoy
Old Today Future
10x 3x
3x
6x 3x 15x
Proprietary & Confidential to OpenMarket20
About OpenMarket
We believe mobile has fundamentally transformed how Enterprises communicate, engage, and interact with their customers
4 of the Top 10 most respected global
brands1 work with OpenMarket
Over 40% of mobile messaging VARs rely
on OpenMarket2
1 Harris Interactive 2014
2 Forrester Mobile Messaging Vendor Overview report 2013
Managing over 1B E2P engagements
per month
Proprietary & Confidential to OpenMarket21
Why Mobile Messaging
EngagementReach Outcome
OpenMarket provides interactive mobile messaging solutions with expert guidance to help achieve your desired business results
Proprietary & Confidential to OpenMarket22
For more information, contact:
Jay Emmet
2211 Elliott Avenue, Suite 400
Seattle, Washington 98121
United States
openmarket.com | +1.877.277.2801
24
U.S. E-Commerce Establishments Over Time
_____________________
Sources: Forrester Research; www.ibisworld.com; www.outerboxdesign.com.
4957
67 73 7690
99113
122138
148163
176
198213
0
50
100
150
200
250
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
(Establishments in
thousands)
Online Retailers Fuel the Search for Options
• Growth in e-commerce
establishments is expected to
continue, driving increased
need for affordable and
accessible shipping solutions
• Consumer expectations of free
shipping and free returns are
forcing sellers to optimize their
shipping strategies across
shipping carriers and
technology providers
Ecommerce is growing fast with shipping innovation
More platforms… more options
• Making it easy for sellers to
use USPS across multiple
marketplaces
• Automatically imports
orders from direct
integrations to
anywhere
a seller sells
…and many more!
25
Diversified fulfillment… ship-from-store
What is it?
An integrated solution allowing retailers
around the country with multiple locations
to successfully fulfill orders from stores
using the USPS.
The benefits
• Easy to use: minimal training required with integration to POS processes
• Reduced shipment errors: built-in address validation, correct rates and
services and shipping labels with tracking all available at the push of a button
• Reduced shipping time and cost: ship from within a customer’s zone
instead of a far-away distribution center
• Increased visibility: comprehensive reporting and tracking across all
locations, as well as automated customer notifications
Source: Customer Desires Vs. Retailer Capabilities: Minding The Omni-Channel Commerce Gap, Forrester Research, 2014
The time is now: 93% of retailers report
positive revenue uplift
with ship-from-store
26
Getting creating… hybrid shipping options
Ship more quickly & easily to
all of Latin America
• Fast & predictable service
○ Consistent delivery in less than 10 days
○ Clear customs in less than 6 hours
○ Tracking and confirmation of delivery
• Easy to use
○ No customs forms
○ No tariff codes required
○ No surcharges or extra fees
• Reduced fraud potential
○ No goods declared on external label
○ Address validation and postal code lookup
○ Pay duties and taxes in advance
Best of the Best Options!
• USPS domestic
• Commercially cleared
• Private foreign courier
network
27
B2Me – Retail Front End – First Mile
Robert Reisner
PwC
Neel Murthy
SwapBox
John Reis
Canada Post
Corporation
Anthony Watson
ShipBob
The Traditional Certainties
From Retail to Delivery Supply Chain to the Mail Box
The Linear Delivery Model is Being Disrupted on All Sides
Proprietary
PwC
Connecting the Dots:Customer Centricity in the Digital Marketplace
• Placing tools in the hands of the empowered consumer
• Creating a power shift from shipper to consumer
• Building the consumer centric network multiple options offer new entrants the ability to redefine retail and delivery
• Is it the shipper? Or the carrier? Or the consumer who controls the future marketplace?
• In 1995 Fred Smith said that he could envision a time when the value of the information was equal to the value of the package itself
• Today we can see a time when the carrier is as important as the shipper, and then a time when the interface controls
• Sourcing the products,
• Sourcing the carriersProprietary
PwC
Some TakeawaysThe Age of the No Look Pass
You have to
1. Know where you are
2. Create capabilities
• Imagine Assymetry
• Create Agility
• Empower Collaboration
• Move Leadership to the Edge
• Manage with Anticipation
Strategic
Inflection
Innovation
Culture
Breakthrough
Reinvention
The Transformation
Imperative
Proprietary
PwC
Proprietary
© 2016 PwC. All rights reserved. “PwC”
refers to PricewaterhouseCoopers Public
Sector LLP (a Delaware limited liability
partnership) or, as the context requires, the
PricewaterhouseCoopers global network or
other member firms of the network, each of
which is a separate and independent legal
entity. Please see
CONFIDENTIALPage 38 | Canada Post Retail Network
6,300 Outlets
Crucial to advantage in parcels & e-commerce
Critical to providing consumer convenience
Largest retail network in Canada with over 6,266 locations
Generates $1.2B revenue
124M transactions per year (selling & parcel pick up)
98% of Canadians within 15 km
88% of Canadians within 5 km
78% of Canadian within 2.5 km
6,266 locations
Retail Network is a powerful asset and critical part of the overall
channel strategy
Strategic
1,400+
370+
1,400+
3,600+
In spite of its strategic importance, the Canada Post retail network
makes a marginal profit largely due to cost-heavy corporate locations
CONFIDENTIALPage 39 | Canada Post Retail Network
Market changes will create further financial pressures on our
corporate stores and threaten value to dealers
Lettermail
Dealer
economics
Moratorium
Letter volumes have declined driven by
technology, with current run rate of 4 to
6% p.a. (~10% decline at retail)
Dealer network specific
The current dealer operating model
requires dedicated resources (i.e.,
labour, space) and high capex; the
market trends will make it harder for
smaller dealers to breakeven, and put the
stability of the dealer network at risk
Corporate network specific
The moratorium will limit CPC’s ability
to compete and will cost to the tune of
hundreds of millions of dollars
(including benefits), making the retail
network unviable
$
Transaction
Mix
Transaction mix will shift towards zero
value transactions which will represent
up to ~60% of all retail transactions by
2025
Retail
Revenue
Even with planned price increases,
overall retail revenue will decline by
over 10% in 5 years and 20% in 10
years
$
Competition Traditional competitors are fighting for
the Canadian market by expanding
domestic infrastructure.
Third party delivery solutions such as
parcel locker networks and Penguin Pick-
Up locations are further intensifying the
competitive dynamics
CONFIDENTIALPage 40 | Canada Post Retail Network
As a result of the pressures, we have concentrated our efforts in
protecting this strategic asset using the following framework
The retail network holds tremendous value, evolution is needed and this will require a multi-year effort
Leverage Canada’s largest retail network to enable best in class delivery experience
for shippers and consumers and to support the company’s position as low cost leader
We will achieve this through a customer-focused approach consistent with the CPC
brand and by offering a strong dealer value proposition
Strategic Goal
Evolve how we think about the Network
1
Evolve the Dealer Model
2
Determining the Role of Corporate Stores
3
Building a Living Model of the Future
4
Significant corporate asset … must protect advantage
+Core to e-commerce play
+Room to improve …. within existing constraints
+
CONFIDENTIALPage 41 | Canada Post Retail Network
To further support e-commerce, we are testing a number of
postal technologies in our concept stores
FeaturesRichmond
HillEdmonton Vancouver
Drive-Thru
Extended Hours
24-7 Area
Kiosk (Self-Serve
Shipping)
Self-Serve Induction
Vending Machine
Fitting Room
Target opening date
Already
Open
(Oct 2015)
Summer
2016
Fall
2016
EDMONTON
RICHMOND HILL
VANCOUVER
CONFIDENTIALPage 42 | Canada Post Retail Network
The concepts in the Richmond Hill concept store are
continuously being monitored for uptake patterns
16%
84%
Kiosk Counter
16% of total volume
Peak migration of up to
45% observed on some
days in December
5% of transactions are
after-hours
24%
76%
24% of total inductions
Peak migration of up to
52% observed on some
days in December
10% of inductions are
after-hours
KIOSKINDUCTION
STATION
Induction
Station
Counter
CONFIDENTIALPage 43 | Canada Post Retail Network
The concepts in the Richmond Hill concept store are
continuously being monitored for uptake patterns
8% of relevant volume
Mostly selling stamp
booklets
8%
92%
Vending Machine Counter
26%
74%
Drive-Thru Counter
26% adoption
40% of pickups are after
5 pm
Total call-for pickups of
1,519 out of possible
5,769
Ven
din
g M
ach
ine
Dri
ve
-Th
ru
CONFIDENTIALPage 44 | Canada Post Retail Network
Customers much happier with concept store
Customer: “I was satisfied
with the service I received,
the staff was thorough
although the line was kind of
long”
Customer: “if self serve
machine has more functions,
it will be better”
Customer: “I like the
vending machine it was
quick and efficient, better
than waiting in like.”
Customer: “LOVE LOVE
LOVE THE NEW POST
OFFICE!!!”
89%
91%
90%
88%87%
90%
88%
83%
Overall Score Facility Service GeneralExperience
Customer Satisfaction Ratings
Concept Store Stores Replaced by Concept Store
PROBLEM
Ecommerce software (Shopify, Kickstarter, Etsy, Bigcommerce,
etc)
have made online selling easy but there is no easy fulfillment
solution
Innovation Lagging for SMB’s
1995 2005 2015 Future
Amazon Founded
1 Hour Delivery
AmazonNow Launches
Prime Launched
SMB’s
PROBLEM Customer communication
Order management
$50/monthShipping Platform
$30/month
Inventory
management
$200/month
Innovation and Invention in Transport & Delivery
Brian Bowers
Bell and Howell
Steve Burns
Workhorse
Keith Cornell
Starship Technologies
Robbie Diamond
Securing America’s
Future Energy (SAFE)
60
“I WOULD SELL MY MOTHER FOR NOT DOING THE LAST MILE”
A delivery executive
wishing not to reveal his identity to his mother
PACKAGE DELIVERY ECONOMICS
61
0
0.5
1
1.5
2
2.5
First 1000 miles Next 10 miles (Stemmiles)
The True Last Mile
Delivery cost per mile per package
80% labor
Starship’s delivery robots
1. Robots driving on sidewalks– Blending in with pedestrians at 4 mph
2. 99% autonomous– Human operators to take care of the last 1%
3. Low-cost hardware, superior software
4. Delivery areas with maximum 2 mile radius– Completing deliveries in less than 30 minutes
5. Optimized for low-rise suburban environment– Low to medium traffic and pedestrian density
How Starship works
The robots are based either at
local businesses or specially
built Starship hubs
Robots complete delivery in 15-
30 minutes
3 parcels
pending
Customers call up deliveries
when convenient
2
3 4
1
Logistics and retail companies
deliver goods to robot stations in
bulk
Business proposition
• Dramatic last-mile cost reduction – Cost per delivery $2-3 in ‘17, $1 target
• 80% of costs are mileage-based
• Unprecedented convenience for consumers– On-demand delivery in 15-30 minutes
• Inherently safe– Low-mass, slow-speed robots
• Ecologically clean– Virtually zero CO2 emissions
A land-based robotic local delivery platform
Enabling safe, on-demand
deliveries
for less than $1
65
Strictly Confidential. Not for Distribution.
USPS PACKAGE SERVICES FORUM RECAP
67
July 8, 2015; RARC-IB-15-003
From 2008 to 2014
package volume has
increased by
about 34% while the
remainder of mail
volume has decreased
by more than 20%
Strictly Confidential. Not for Distribution.
WORKHORSE CHASSIS & POWERTRAIN
68
Less Expensive to Own than Gasoline or Diesel
Improve profitabilityIncreased number of deliveries per dayStrengthened sustainability programs by achieving zero emission deliveriesImproved safety and driver experience
Reduced total cost of ownership
Strictly Confidential. Not for Distribution.
ATTRACTIVE ECONOMICS – LESS EXPENSIVE TO OWN THAN GASOLINE OR
DIESEL
69
Cost Comparison - Gas vs. Workhorse E-Gen Total Cost-of-Ownership: E-GEN Saves > $125,000 vs. Gas
over 15 years
Strictly Confidential. Not for Distribution.
OVERVIEW OF WORKHORSE’S UNMANNED AERIAL SYSTEMS
HorseFly Delivery Drone
Engineering the future of parcel delivery aviation
HorseFly™ Unmanned Aerial System (UAS) is designed for the package
delivery market and other commercial applications
• Designed to meet the existing and anticipated future FAA guidelines
• Differentiated from other UAS’s as it works in tandem with a Workhorse electric
truck
• Delivers packages, loaded en-route by the driver, to remote locations while the
driver continues on the main delivery route, saving the fleet operator much of
the fuel cost of the most expensive miles
• HorseFly rejoins the truck at its new location once its delivery is completed
• HorseFly recharges from atop the Workhorse truck
• Superior to other delivery UAV’s operating plans, where the package is loaded
at the warehouse and must return to the warehouse once the delivery is
completed
• Partnered with the University of Cincinnati’s Department of Aerospace
Engineering and Engineering Mechanics to develop HorseFly
70
Strictly Confidential. Not for Distribution.
WORKHORSE HORSEFLY
Specifications
71
Empty Weight:
Payload Capacity:
Configuration:
Guidance System:
9.5 lbs. (4.3 kg) [without battery] 10 lbs. (4.5kg)
8-Rotor Octo-copter
GPS and Compass (in-flight) Infrared Camera
(landing) 50 mph
30 min
Panasonic 18650 cells
Strictly Confidential. Not for Distribution.
OVERVIEW OF WORKHORSE’S UNMANNED AERIAL SYSTEMS (UAS)
Workhorse UAS Drone Delivery Process Illustration
72
Strictly Confidential. Not for Distribution.
NEW MARKET OPPORTUNITIES
73
E-Commerce fuels Last-Mile Delivery
Estimated Global E-Commerce Sales in 2016 = $1.8 Trillion
Sources: eMarketer.com, Forrester Research, Inc. & Internet Retailer
2015
Strictly Confidential. Not for Distribution.
E-COMMERCE DISRUPTORS
74
E-Commerce fuels Last-Mile Delivery
Disrupting Last-Mile Delivery