Managed Logistics Services
The last few years have seen our Logistics customers and prospects increasingly seeking to convert existing capacity-based relationships (staff augmentation, T&M contracts) to outcome-based ‘managed services’ relationships. The expectation clearly, was for HCL to become a strategic partner, driving business growth and transformation, rather than remain a mere supplier of IT capacity.
Through Managed Logistics Services, HCL offers services with the agreed outcome measured as Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) for a fixed price. There could be certain components of managed service (typically in the application development scenario) which are variable in nature and priced using hourly rate card. The service is managed by HCL pro-actively with minimal management overhead to the customer. The service can be for applications, infrastructure or both.
The idea surrounding Managed Logistics Services
The key value proposition for Managed Logistics Services is to deliver ‘predictable Logistics services at a predictable cost’ with continuous improvements and proactive value addition. This allows customers to pay less for the same quality of service in successive years or get a higher quality of service for the same price over successive years.
In this regard, Managed Services for Logistics encompasses a host of activities in Freight Forwarding and Contract Logistics in the areas of Instance Hosting, Consulting, Training, Support and Custom Development. HCL manages administrative processes, maintenance activities, support services, training requirements and custom developments on core applications such as Transportation Management systems, Warehouse Management systems, Fleet management systems, Inventory management systems, and Yard Management systems, among others, all at a fixed periodic cost. The hosting can be done either within the HCL infrastructure or on client premises and services could be delivered remotely, thus taking advantage of low-cost outsourcing to manage theses core applications at a fixed price. This methodology eliminates the constant attention of management into application management activities and also transforms the variable expenses that a shipper or an LSP spends into predictable fixed expenses that are more manageable.
HCL has a comprehensive best-in-industry mature framework for Managed Services covering scope management, pricing models, governance & reporting mechanisms and delivery structures. Besides this, MASCOT also supports all processes in Managed Application Services including quality assurance, knowledge management, test management, project management, demand management, governance and transformation.
Benefits to the Customer & HCL
Managed Services offers a ‘win-win’ situation both for the customer and HCL. Our logistics customers moving from staff augmentation to Managed Services model derive the following benefits:
- Reduced TCO of Logistics applications
- Achieve predictable cost through application-based pricing for support and RICE/F (Reports, Interfaces, Conversions, Enhancements and Forms) based pricing for application development
- Gain access to best of breed tools at reduced costs
- Free up management bandwidth to focus on core business
- Enable improvement in processes by leveraging the mature processes (CMMi/ITIL) of HCL
- Enable creation of Knowledge Management framework
- Gain from productivity levers
