Logistics are such a hard thing to manage and the better the information the better the results. M2M has the ability to impact logistics in a manner that has not been seen since railed and shipping standardized containers. What does the future hold for logistics management and how can M2M be used to make just-in-time services even better?

2. M2M Solutions For
Logistics / Transport
5 October 2010
Bruce Kraselsky
President & CEO
Telepath Systems, Inc.

3. Salient Facts
• 40% - 70% of electrical energy is lost to inefficiencies in
the grid.
• In one small business district in Los Angeles alone, cars
burned 47,000 gallons of gas just looking for parking.
• Our healthcare system can’t link from diagnosis to drug
discovery, providers, insurers, employers and patients.
• In a world where 820 million people are undernourished,
$48B of food is thrown away each year in the US.
• Consumer products and retail industries lose about $40B
annually due to inefficient supply chains.
Source: IBM

4. Logistics / Supply Chain
Simple Definition:
– the planning, implementation, & control of the flow and storage of
goods, services, & related information
– from point of origin to point of use or consumption
– in order to meet customer requirements

5. In Fact, The Supply Chain Is Highly Complex
US Logistics In 2009 Cost Over 7.7% Of GDP, Or $1.1 Trillion

6. Transport Accounts For About 25% Of Logistics Cost

7. Trucking Is By Far The Largest Mode Of Transport
Air: Ship:
0.2% of Freight 7.4% of Freight
2.3% of 1.0% of
Revenues Revenues
Rail: Pipeline:
13.7% of Freight 8.9% of Freight
5.6% of 3.7% of
Revenues Revenues
Truck:
69.8% of Freight
87.3% of
Revenues

8. US Industry Loses Tens of Billions
From Logistics / Supply Chain Inefficiencies
• Significant % Of Loss Is During Transport:
– Inefficient Shipping Methods
– Travel Delays
– Breakdowns of machines and vehicles
– Product loss from spoilage, theft, misplacement, etc.
– Other

9. Significant Portion Of Loss Is During Transport
Losses Due To Theft: Losses Due To Spoilage:
% Of Losses:
Air: 4%
Truck: 86%
Rail: 5%
Ship: 1%
International Cargo Security Counsel 2005

10. M2M Efficiencies And Cost Savings
– Enables sharing of real-time information between suppliers, manufacturers, distributors
as well as the ultimate customer
– Provides real-time tracking of components and finished goods, as well as visibility into
key performance indicators throughout the supply chain
– Costs are reduced and inventories optimized through better coordination of supply
strategies, ordering, manufacturing runs, deliveries and other business critical
processes.
– Improves ability to prevent loss through spoilage, theft, misplacement
– Enables better regulatory compliance; avoidance of fines

11. Example: Cold Chain
The cold chain is an integrated system of partners and activities
involved in processing, transporting and storing temperature
sensitive products from the supplier to the consumer.
•Produce •Baked goods
•Meat •Floral
•Seafood •Cosmetics
•Dairy •Pharmaceuticals

12. Enormous Losses From Cold Chain Lapses
• $48B in annual waste from perishable goods in
the US alone
• Total value of temperature related perishable
shrink per supermarket in the US is $80K / year
• Across a 500 store chain: $40M / year

13. The Challenge
• To protect the refrigerated trailers and their high-value
contents, effective fleet management is critical.
• Fleet managers must understand each trailer’s location
and its compliance with temperature control objectives.
• Unfortunately, current methods for managing trailers are
often expensive, inefficient, time-consuming and
ineffective.

14. M2M Reefer Solution
Install remote terminal monitoring unit(s) on
each refrigerated trailer:
• Temperature sensors and others
• GPS tracking capability
• Cellular and / or satellite radio
• Power source and backups
Web-based applications for timely
management of critical info. for each reefer:
• Location, Status, and Temperature
• History Logs
• Alert Notifications if any problems occur
• Ability to remotely configure critical
controls on reefer

15. Example: Cargo Theft
• Average value of single cargo theft: $500K
• A kilo of heroin is worth approximately the same as a
kilo of Pentium chips; organized crime is going after
chips and other valuable cargos because the penalties
of getting caught are much less severe.
• The FBI has stated that cargo theft is so widespread, it
constitutes a serious threat to the flow of commerce in
the USA
• New York, New Jersey, Southern California, Atlanta and
Miami are three regions where 75% of the nation’s
cargo theft occurs.
• When the freight is moving, no problem; when it
stops, the problems start.

16. Example: Transportation Security

17. M2M As A Partial Solution
Install remote terminal monitoring unit(s):
• Sensors, controllers, alarms
• GPS tracking capability
• Cellular and / or satellite radio
• Power source and backups
Web-based applications:
• Ignition detection
• Intrusion alerts (doors, windows, engine)
• Remote door and window locks
• Immobilizer
• Panic Button
• Automatic Alarms
• Covert video capability

18. M2M Value Chain / Complexity
Selecting the right combination of applications, equipment and communications
networks for an optimum M2M solution can be a daunting task

19. Some Challenges Selecting The Best Solution
• Not “plug and play” with • Diverse assets require
existing enterprise systems different solutions
• No “out of the box” mobile • Application fit to bandwith
terminated wireless availability
solution • Large capital outlays
• Coverage issues • Implementation assistance
• Communications neutral expensive or non-existent
strategy (cellular, • Retail pricing often
radio,satellite, etc.) very prohibitive
complex to implement • Many small players; stability
• May require separate an issue
connections and contracts • Technology will continue to
for SMS, GSM, Satellite, etc. change

20. Discussion
• According to Berg Insights, “2010 will again be a very challenging year
for the industry, as the overall economy has not recovered completely
yet.
• Decision makers are still more likely to delay projects and require even
shorter payback periods on capital investments.
• Some companies may simply not have the organisational or financial
resources needed for successful implementation of a fleet management
solution and a number of existing FM users will be forced out of
business.
• Fortunately for the industry, there will however be an even stronger
focus on cost efficiency and the com- panies that fare best in the hard
times are likely going to be those that master advanced technology.
• Despite the current economy, the number of fleet management systems
in active use is expected to grow at a compound annual growth rate of
21.7 percent from 1.5 million units at the end of 2009 to 4.0 million by
2014.”