This CSCMP 2014 topic, presented by Ryder and LogFire, compared traditional, hosted, and cloud-based WMS solution alternatives and dispelled the myths and TCO differences.

1. Traditional Verses Cloud-based
WMS Solutions
What Is The Right Operating Platform
and Total Cost of Ownership
Differences

2. Introduction / Speaker Bio
Andrew Cree
• Senior Director of IT
– Ryder
• Senior IT Manager
– Loblaw Companies Limited
• Consultant
– AT&T Capital
• Business Analyst
– Municipal Financial Leasing
About Ryder
• Since 1933
• Leading Provider of Integrated
Logistics Solutions
• Outstanding Functional
Execution and Proactive
Solutions
• Deep Expertise in Key Industry
Verticals:
– Retail
– Industrial
– Automotive
– Hi-Tech

3. Since its founding in 1933, Ryder has become a leading provider of integrated logistics and transportation
solutions. We deliver outstanding functional execution and proactive solutions built from deep expertise in key
industry verticals, including retail, industrial, automotive, and hi-tech.
Proprietary and Confidential |
Corporate Overview
2
2013 Total Revenue $6.42 Billion
Supply Chain Solutions (SCS) $2.38 Billion (37%)
Fleet Management Solutions (FMS) $4.04 Billion (63%)
2013 Net Earning $238 Million
Employees 28,900
Fortune 500 Rank [NYSE : R] 404
DC’s Managed / Sq Ft 235 DCs/35+M sq ft
SCS Customer Accounts 671
Fleet Equipment 172,100
Headquarters Miami
Canada Toronto
Asia Shanghai
Mexico Mexico City
Other London
Freight Under Management $4.6 Billion
Cross Border Shipments Managed 9,700 / Month
30%
SCS Product Offering

4. Proud to Serve Industry Leading Consumer / Retail Customers
Proprietary and Confidential |
3

5. Ryder Supply Chain Solutions began operations in Canada in 1986. Since this time, we have developed an
impressive client base that spans across industries and a comprehensive portfolio of supply chain services. Our
Canadian headquarters is located in Toronto and we have facilities and operations coast-to-coast.
Proprietary and Confidential |
Ryder SCS Canada Overview
4
Supply Chain Division Fleet Management Division
Logistics Locations 45
Total Square Feet 1.3 Million
Freight Under Management $450 Million
Fleet (Ryder Dedicated
power + trailers)
700
Drivers (Ryder Dedicated) 475
Annual Miles (Ryder Dedicated) 34 Million
Total Employees 1000

6. Introduction / Speaker Bio
Larry Ferrere
• 30+ Year Software / Technology
Executive
• Executive Vice President - LogFire
• Cross-functional and customer-facing
growth leader for enterprise and
supply chain solution providers:
– Andersen Software/Andersen Consulting,
now Accenture
– JDEdwards, acquired by Peoplesoft, now
Oracle
– Vastera, acquired by JPMorgan, now
Livingston
– InterimONE – CxO strategy & advisor
– Yantra, acquired by Sterling Commerce,
now IBM
– Manhattan Associates, including
Logistics.com TMS and Evant SCP
– JDA, including i2, Manugistics, E3, Intactix,
and Arthur, and now Red Prairie
– LogFire – cloud-based SC provider
About LogFire
• Since 2007
• Leading Multi-Tenant Cloud-Based
SaaS Fulfillment Solutions and
Managed Services Provider
– Multi-Channel Warehouse Management
– Store Inventory & Fulfillment
– Workforce Management
• Serving customers of all sizes and
geographies
– Retailers
– Wholesalers
– 3PLs
– Manufacturers
– eCommerce

7. Definition: Traditional vs Cloud
Source: Gartner
TRADITIONAL: HOSTED & HYBRID: “TRUE” CLOUD-BASED:
Source: Gartner
“Multi-Tenant” Cloud:
Secure, shared solution,
sometimes also referred
to as a “Public Cloud”
“Private” or “Dedicated”
Cloud: Any hosted
solution, run in a third
party data center
CLOUD: “where you run solutions”
BUSINESS PROCESS OUTSOURCING (BPO) & MANAGED SERVICES:
“who runs it & who maintains/upgrades it”
“On-Premise” hosted /
installed and maintained
solution
SOFTWARE AS A SERVICE (SaaS): “how you buy”
normally an all-inclusive monthly usage charge
based on transactions, named users, or concurrent users
Up Front License &
Annual Maintenance Fees

8. Definition: Traditional vs Cloud
TRADITIONAL ON PREMISE “TRUE” CLOUD-BASED

9. Costs: Traditional vs Cloud
TRADITIONAL ON PREMISE HOSTED SOLUTIONS
$$$$$
100 / 0
Acquired
Cost
$$$
80 / 20
Dedicated
Cost
“TRUE” CLOUD-BASED
$
20 / 80
Shared
Cost

10. Myths: Traditional Systems
MYTH
- Traditional Solutions are more
mature, thus functionally
complete solutions
- Traditional vendors have better
support resources
- Traditional vendors have more
innovation ability
REALITY
 Business model based on large
up front license cost, annual
maintenance, and custom
modifications which are costly,
time consuming, and risky
 Customized solution are difficult
to support
 Customized solutions are
difficult to upgrade (without
re-installation) -- thus, new
innovation is not easily
leveraged

11. Cloud Benefits
Over Traditional & Hosted Solutions
Benefits
• Superior/No Cost Infrastructure
• Reduced IT Burden/Lower Overhead Cost
• Rapidly Installed
• No Cost Scalability
• Elasticity to Flex with Business Changes
• Network Connectivity & Big Data Leverage
• On-Demand User Access – Anywhere Anytime
• Faster/Immediate ROI
• No Cost/Continuous Upgrades
• Lower TCO
Drawbacks
If you want static, proprietary, custom system
– cloud solutions may not be for you!
Network Security
Network Speed
Network Reliability
Network Scalability
Solution Innovation

12. lndustry Perspective
Benefits of Cloud Solutions
Services Industry / Logistics Service Provider (3PL/4PL)
• Current Version Importance
– Vendor Support
– Version Knowledge
– Product Quality & Performance
• Reduced Internal IT & Support Requirements
• Ongoing Best Practice & Innovation Leverage
• Eliminate HW & SW Cost
– “Off the Books” After End of Client Contract

13. Total Cost of Ownership:
Traditional vs Cloud
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
True Cloud-Based Solutions
Traditional Solutions

14. Total Cost of Ownership:
Traditional vs Cloud
HARDWARE & RELATED
IT OVERHEAD
SOFTWARE
IMPLEMENTATION
SUPPORT
ON PREMISE
SOLUTIONS
HOSTED
SOLUTIONS
“TRUE” CLOUD
SOLUTIONS
$$$$$
$$$$$
$$$$$
$$$$$
$$$$$
$$$
$$
$$$
$$$$$
$$$$$$$
Included
$
$
$$
Included

15. Total Cost of Ownership:
Traditional vs Cloud
HARDWARE & RELATED
ON PREMISE
SOLUTIONS
HOSTED
SOLUTIONS
“TRUE” CLOUD
SOLUTIONS
 Server Hardware (Acquisition Cost) $$$$$ $$$ Included
 Development Environment
 Test Environment
 Production Environment
 Online Archive Environment
 Server Hardware (Upgrades)
 Hot Backup DR Environment
 Network & WiFi Infrastructure
 Maintenance Cost
 Servers
 Infrastructure
Peripheral Hardware
 Workstations
 Network Printers
 Bar Code Printers
 RF-Devices & Related Equipment
 Peripheral Maintenance & Spares
Cost neutral Cost neutral Cost neutral

16. Total Cost of Ownership:
Traditional vs Cloud
IT OVERHEAD
 Internal IT Resources (fully loaded)
 Shared IT Services
 Outsourced IT Resources
 Security & Infrastructure
 Monitoring & Tuning
ON PREMISE
SOLUTIONS
HOSTED
SOLUTIONS
“TRUE” CLOUD
SOLUTIONS
$$$$$ $$ $

17. Total Cost of Ownership:
Traditional vs Cloud
SOFTWARE
 Up Front License Costs
 Application Software
 User Licenses
 DB Licenses
 Operating System Licenses
 Infrastructure / Middleware Licenses
 Annual Costs
 Licensed Applications
 User Licenses
 DB Licenses
 Operating System Licenses
 Infrastructure / Middleware Licenses
ON PREMISE
SOLUTIONS
HOSTED
SOLUTIONS
“TRUE” CLOUD
SOLUTIONS
$$$$$ $$$ NA
$$ $$ $

18. Total Cost of Ownership:
Traditional vs Cloud
IMPLEMENTATION
 Pilot Cost (Resources*Days*Rate)
 Internal Costs
 External Costs
 Rollout Cost (Resources*Days*Rate)
 Internal Costs
 External Costs
 Upgrade Cost (Resources*Days*Rate)
 Internal Costs
 External Costs
ON PREMISE
SOLUTIONS
HOSTED
SOLUTIONS
“TRUE” CLOUD
SOLUTIONS
$$$$$ $$$$$ $$

19. Total Cost of Ownership:
Traditional vs Cloud
SUPPORT
 24x7x365 Support
 Dedicated Managed Services
 Modification Support
ON PREMISE
SOLUTIONS
HOSTED
SOLUTIONS
“TRUE” CLOUD
SOLUTIONS
$$$$$ $$$$$$$ Included

20. Summary: Traditional vs Cloud
TRADITIONAL ON PREMISE “TRUE” CLOUD-BASED
 Newer, More Nimble, Vendors
 No Cost Infrastructure
 Reduced IT Burden
 Lower Overhead Cost
 Rapidly Installed
 No Cost Scalability
 Flex with Business Changes
 On-Demand User Access
 Network/Big Data Leverage
 Faster/Immediate ROI
 No Cost/Continuous Upgrades
 Lower TCO
 Long Standing Mature Vendors
 Large Up Front Cost Model
 Not Always Best Functional Fit
 Large Install Base
 Cloud = “Hosted” Version
 Ecosystem of Partners
 Longer, Costly Installations
 Costly Annual Maintenance
 Past-Release Support Issues
 Difficult, Costly Upgrades

21. Questions?

22. More Details
• Visit Us During CSCMP
– Cloud Alliance for SCM – Booth 529
• Contact Us
– www.LogFire.com 678.261.9000
– www.GoCloudLogistics.com 561.800.1212
– www.Solvoyo.com 617.642.1338

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