© 2013 Oldemark LLC

Delivering the Buns Wendy’s OTM Implementation

Phil Kilgore – Director Solutions ArchitecturePhil.Kilgore@Wendys.comOctober 2nd 2014 – OOW 2014

2

Agenda• Company Overiew – Price of Admission

• Oracle Portfolio

• Intro of Bakey, Challenges and Success Criteria

• Oracle Transportation Manager - Phased Implementation

• Lessions Learned

• R12 upgrade experience

• Next steps

3

• 3rd Largest QSR Chain

• 6500 Franchise and Company Restaurants

• 39,000 Employees

• Corporate Headquarters Dublin, Ohio

The Wendy’s Company

4

• e-Business 12.1.3

• Demantra

• Business Intelligence

• SOA Suite 11G

• WebLogic

• EXADATA

Wendy’s Oracle Portfolio

• Web Content Management

• Web Center

• Oracle Transportation Manager

• SiteHub MDM

5

• Located Zanesville Ohio

• 2 Bakeries producing 135 truck loads of buns weekly

• 1 billion + buns annually

• 53 Truck Fleet 18 trucks on road daily 6 days per week.

• 100 - 120 routes per week from two Bakeries (shipping locations). Each route consists of 10-14 stops & 1000 miles.

• 1470 deliveries weekly

• 2900 Customers including other brands

• Checkers, Rally’s, Generic Grocery Brands

The New Bakery Company

6

• Lack of accurate forecasting

• Labor and Master scheduling

• Invoicing, POs and Acknowledgements

• Trucks and routes manually planned

• Perpetual Inventory control

• Timely data capture, recording and tracking

The Bakery Challenges

• Reduce Transportation Costs

• Use Perpetual Inventory and Cycle Counting

• Electronic PO’s, Invoices, Acknowledgments

• Efficient Use of Raw Materials

• Real-Time Analysis Tools

• Yield Optimization

• Additional Automation

7

• Increase average trays per drop

• Decrease number of annual deliveries per store

• Reduction in time spent in planning process

• Allow drivers to select route preferences

• Reduce amount of product on-hand at time of next delivery.

Success Criteria

8

• Phase I – 2011

• Implement Demantra Forecasting

• Load Bun Demand

• Phase II – 2012 to January 2013

• Added Bakery Purpose to SiteHub

• Develop Demantra to OM Interface

• Develop OM to OTM Interface

• Implement Advanced Pricing

• Implement OTM

• Develop OTM to OM/Cadec Interface

Project Phases and Approach• Phase III – 2013 to July 2014

• Implement Cadec to OM Interface

9

• Oracle Transportation Manger Version 6.2.5

• BPEL & SOA WebLogic Cluster 10.3.6 for the Integration Between EBS OM and OTM

• WebLogic 10.3.3 – Application Server

• EXADATA – OTM Database Server

• PC*Miler to Support Route Bulk Planning

• Mileage Between Stops

• Speed Limits

• Road Construction & Closures

• New Roads

OTM Infrastructure Components

10

OTM Infrastructure & Integration

11

Our Implementation Process

12

Pre-Requisites – Phase I – Forecasting Requirements

• Implement Demantra Forecasting

• Forecast at Raw Item Level for Bakery SKUs

• Load Historical Bun Demand

• Develop Initial Load Interface

• Develop Core Data Refresh Procedure

• Validate Demantra Results

• Compare Forecast to Legacy Bakery System

13

Implementation – Phase II• SiteHub Configuration

• Configuration of Demantra

• Configuration of Oracle e-Business Suite (EBS)

• Inventory Module

• Implement Advanced Pricing Module

• Order Management Module

• Accounts Receivable Module

• Installation and Configuration of Oracle Transportation Manager

• Creation of Truck Loads

• Truck Routing – PC*Miler

• Creation of Delivery Tickets

14

SiteHub – Master Data Managment• Added Bakery Location Attributes

• Latitude/Longitude

• Needed for Route Planning in OTM

• Route ID

• Used in Demantra Worksheets

• Used as “Ship With Group” in OTM

• Delivery Ticket Type

• Company, Franchise, Warehouse/Outside Customer

• Delivery and Run Instructions

• Freezer Information (Size Capacity etc)

15

Demantra

• Create Load Planning Worksheets

• Route Master Worksheet

• Restaurants, Products, Projections, Date

• Input Days to Cover

• Route Trailer Worksheets

• One for Each Trailer Size (48’, 50’, & 53’)

• Pick Warehouse, Delivery Date, & Export

• Create ETL to Process Planned Data to OM Module

• Validates All Required Data is Entered

• Validates All Data is Feasible

• Create Order Actuals Interface

• Sends Delivered and On-Hand Back From OM Module

16

EBS – Inventory, Advanced Pricing, & Order Management

• Inventory

• Warehouses as Inventory Organizations

• Create Items & Establish Inventory

• Advanced Pricing

• Price Lists

• Line Modifiers

• Zone Pricing

• Surcharges

• Order Management

• New Order Types

• Shipping Methods

• New Order Line Types

• Accounts Receivable

• OM to AR Interface for Bakery

• Enable DFF on Invoices for Delivery Ticket ID

17

Infrastructure, Integrations, & Oracle Transportation Manager• Installed BPEL & SOA WebLogic Cluster 10.3.6 for the Integration Between OM and OTM

• Standard BPEL interfaces delivery with EBS patch

• Deploy to SOA

• Installed PC*Miler to Support Route Bulk Planning

• Mileage Between Stops

• Speed Limits

• Road Construction & Closures

• New Roads

• Installed Oracle Transportation Manager Version 6.2.5

18

Oracle Transportation Manager Configuration

• Delivery Calendars

• Defined Route ID, Delivery Ticket Type, Key Indicator, Run Instructions, & Store Instructions for Order Releases

• Drivers and Power Units

• Assigned Power Units to Drivers

• Hours of Service Rules

• Daily & Weekly Rules

• Single & Team Driver Rules

• Limits on Driving Hours & Activity Hours

19

Oracle Transportation Manager Configuration (Cont.)

• Setup All Customers as Locations

• Setup Regions to Support Denver CrossDock

• ALL – US & Canada

• Setup Depot Profiles

• Allows Routes to be Planned to Return to Origin (Virtual Locations)

• Setup Service Providers & Service Provider Profiles

• Fleet

• Common Carriers

• Customer Pick-Up

20

Oracle Transportation Manager Configuration (Cont.)

• Configure Integrations from OTM to OM and Cadec

• Setup Document Manager, Web Services

• Setup Out XML Profiles and External Systems

• Customize Layouts & Screen Sets

• Drivers, Power Units, Locations

• Order Releases

• Shipments

21

Implementation - Phase III – Truck Mounted Systems

• Cadec is a Web Service

• No Software Installation Needed

• Routes, orders, instructions etc. pushed to Cadec truck units.

• Installed Cadec Handheld Units in Trucks

• Drivers Sign-On to Units and Pick Routes

• Cadec Tells the Drivers Directions, Order of Stops, & Displays Items/Quantities to be Delivered at Each Stop

22

Truck Mounted Units

23

Mapping and Dashboards

24

Process Flow

25

Successes, Failures, & Lessons Learned

26

Success• Completed – Meeting and exceeding success criteria

• By Business Agreed Upon Time

• Within Budget and Scope

• Configuration and Deployment Went Exactly as Planned with no Major Issues

• Minimum number of Post Go-Live Issues

• Mostly Business Process Issues

• No Production Down Issues,

27

Lessons Learned

• Business Rules and Alignment

• Improved exploratory and documented exceptions

• More Volume Testing

• Identifies missed exceptions etc.

• Volume Visibility

• Once OTM was Live, Configuration Updated to Allow Further Visibility on Dispatch Board

• Business Process Learning Curve

• Training for Business Owners and Super Users

• Super Users put Together Business Process Documentation and Desk Level Procedures

EBS R12 Upgrade – Issues & Hurdles

28

• SOA Suite Upgraded From 10.1.3.5 to 11.1.1.6.0

• SOA Suite 11G required for R12

• Required EBS Patches to link R12 EBS to OTM

• 1 Patch Required on 11g SOA Side

• Big Hurdle – My Oracle Support Note: “Integrating Oracle E-Business Suite 12.1.3 with BPEL in SOA Suite 11g [ID 1070257.1]”

• Gaps Around Required Security & Setting Up Against a RAC R12 Environment (ex. Making the SOA Connections Redundant)

29

What’s Next?

30

Next Steps

• Implement Cadec Payroll for Fleet Drivers

• More Accurately Track Hours of Service

• Validate Miles Driven Equal Miles Planned; Have Visibility to Differences and Understand Why

• Route Modelling

• New Customers, New Regions

• Switch to Dynamic Routing in OTM

• Static routes: Pre-defined groupings of stores, delivery every store every time

• Dynamic routes: Plan orders just for stores that need a delivery, let OTM determine the best way to group those stores into routes

• Upgrade OTM to version latest release

31

Questions ?