cargo visibility for efficient and secure supply chains

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Cargo Visibility for Efficient and Secure Supply Chains Lance Ludman April 2007

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Cargo Visibility for

Efficient and Secure Supply Chains

Lance LudmanApril 2007

5/2/2007 2© 2006 Savi Networks

Savi Networks History

The challenge -- improved, automated visibility in commercial supply chain -- has been one of the chicken and the egg– Cross-entity collaboration on network deployment is difficult– No one entity willing to invest in network

Hutchison Port Holdings / Lockheed Martin joint venture to address the container tracking market

Savi Networks– Provides container and cargo location, identity, and status information

services – Partners with terminal operators, carriers, shippers, and their service

providers– Network built to international technical and industry standards

5/2/2007 3© 2006 Savi Networks

Savi NetworksBusiness Model

• Savi Networks is a utility service– Installs and operates a shared network infrastructure– Operates the service to collect data, monitor the network and provide

information to customers

• Savi Networks provides hardware, services, and tags necessary for users to connect– Manufacturing and consolidation facilities that originate cargo– Distribution centers receiving cargo

• Savi Networks provides data to carriers, shippers and/or other customers– Hosted view of the information– Integration to backend systems– Per transaction or subscription basis

5/2/2007 4© 2006 Savi Networks

SaviTrak Adoption DriversEfficiency and Security

AUTOMATED DATA CAPTURE

Commercial Benefits Enhanced supply chain security• Reduced inventory carrying costs

• Reduced inventory out-of-stocks

• Reduced lead time variance

• Increased manufacturing uptime

• Preventing theft

• Preventing lost containers

•Reducing administrative costs and fees

• Supply Chain Data for Risk Targeting

• Immediate

• Direct

• Dynamic

• Unique

• Secure State Engine

• Seal Verification

Road Transport

Consolidator / Distribution

CenterRoad

TransportPort of

Loading VesselTransit

Port VesselPort of

DischargeRoad/Rail TransportFactory

Retail Distribution

Center

5/2/2007 5© 2006 Savi Networks

5/2/2007 6© 2006 Savi Networks

5/2/2007 LOCKHEED MARTIN PROPRIETARY INFORMATION 7

RISK SCORE: 165RISK SCORE: 165HTC: 900640 Instant Print Cameras

EDI Status UpdatesEnvironmental Status

SECURITY STATUS

ImageColor ContrastNII ImagesRPM ReadingsOCR ViewCCTV – Digital Images

TERMINAL SCANNING AND IMAGING

CAXU737042CAXU737042--52055205Security Filing (Manifest, 10+2)Entry

Purchase OrderPurchase Order Change

Advance Shipment Notice

Shipment Order

Container Manifest

Shipping Instructions

Commercial Invoice

C-TPAT StatusShipper

Logistics Providers

Other

Time: 21:34 GMT22 October 2006Door Tamper

Report: YICT In-gate14:00 GMT24 October 2006

ETA Status: Exceeded

CONTAINER TAMPER

NO MATCH

Centralized Dashboard ViewCentralized Dashboard View

5/2/2007 8© 2006 Savi Networks

Savi Networks Hosted Software

SaviTrakArchitecture

Web Based Services Data ServicesAlert Services

Automated Data Capture across Supply Chain

Customers

5/2/2007 9© 2006 Savi Networks

Network Deployment: In & Out Gates

5/2/2007 10© 2006 Savi Networks

Network Deployment: Quay Cranes

5/2/2007 11© 2006 Savi Networks

Terminal OperatorConcerns

Cost– Savi Networks makes infrastructure, operational cost investment

International standards– Carriers, terminal operators and cargo owners came created an

international standard for container tracking: ISO 18185 – Key performance guides:

• WCO Seal Integrity Programme• USCBP C-TPAT Tier III

Deployment risk– Terminal operations are paramount– Discrete, non-intrusive footprint

5/2/2007 12© 2006 Savi Networks

Terminal Operator Benefits

Satisfy shipper demand for visibility• Maintain existing customers• Competitive differentiation• Preparation for SAFE Port Act S. 216 (C-TPAT)

Operational enhancements• Audit trail and change of custody

• Automated seal verification• Quay side & Gate In / Out• Insurance saving

• Earlier cargo visibility• Shippers, carriers sharing upstream data to provide operational efficiencies

5/2/2007 13© 2006 Savi Networks

Thank you!