oracle transportation management cloud in the global marketplace
TRANSCRIPT
Oracle Transportation Management
Cloud in the Global Marketplace
Presented on February 4, 2016
OTM SIG, Malmo, Sweden
Sushant SawantGlobal Practice Leader
Supply Chain and Logistics
Isha KashivaOTM Solution Architect
© KPIT Technologies Limited
Agenda
2
KPIT OTM/GTM Cloud Approach
KPIT OTM Cloud Customer Success Story
1
2
1/18/16
© KPIT Technologies Limited
Transportation – Top Objectives and Challenges
2/2/2016 © KPIT Technologies Limited4
Freight planning
Freight Cost Optimization: Complex Contract structure with Penalty
High Detention
Carrier performance KPIs
Supply chain visibility and tracking: No visibility of shipping execution
Freight audit and settlement: Long payment cycle
Control over ad-hoc cost
Inefficiencies in extracting reports
© KPIT Technologies Limited
Trends in TMS
2/10/20165
0
Cloud lowers the cost of
entry for a TMS making
them available to the mid
market as well as enterprise
level companies.
Cloud/SaaSMore companies will require
their core applications to have
a tablet or phone version for
an increasingly mobile work
force. New OTM mobile apps
are available.
Mobility
With an aging driver pool
companies will need to plan
sooner and more often to
get their most optimal
transportation plans. Drones
& autonomous trucks will
not help in the near future.
Capacity Shortages
Too many companies still
cannot track all of their
shipments and lack visibility
into transportation spend.
Supply Chain Visibility
© KPIT Technologies Limited
Why Consider Oracle Transportation Management
© KPIT Technologies Limited
Need to lower transportation spend.
Using manual processes to support business.
Currently lack of visibility to process and goods in transit.
Have always been forced to choose between a 3PL or a TMS.
Need to increase Event Management visibility
Outsource their freight payment to a 3rd party.
Do not want to lend staff to IT projects for half a year or more.
Manage by Exception
Business process standardization.
Globally enabled and Scalable solution.
6 2/10/2016
© KPIT Technologies Limited
Oracle Transportation Management – Key Features
© KPIT Technologies Limited7
Transportation Procurement
Contract and rate management
Transportation Order Management
Fleet and Driver Management
Order and Shipment Planning
Shipment Booking and Tendering
Visibility and Event Management
Freight audit and payment
Reporting, documentation, and business
intelligence
2/10/2016
© KPIT Technologies Limited
Changing Implementation ParadigmNeed for OTM/GTM Cloud
Accelerating Business Innovation– Align Value
• Strategic Drivers / Rate of Industry Change / Ability to Change
– Leaner Implementations• Pre-Built Templates / Accelerators
– Manage Risks• Patching / Automation
Cloud Changes Everything– Why
• Visible Costs / Underlying Costs / Managing Risks
– What• Environment / Support / Portal
– How• Readiness / Execution / Deployment
8 2/10/2016
© KPIT Technologies Limited2/10/20169
Planners Customers Suppliers
KPIT OTM Connector
Konnect (CloudLink)
Email TrackSMS TrackPOD
Solution
ERP/Order
Management
Master Data
Carriers
EDI Events
GPS Provider
GPS Events
KPIT Cloud Solution
Back
-En
d P
roce
sses
Bu
sin
ess
Pro
cess
es • Low Operating Cost
• Multiple Data conversion formats such as EDI to
XML , XML to EDI , XLS to XML , XML to XML
• Technology agnostic integration capabilities
• In-built FTP, HTTP, DB, Email adaptors
• Easy to configure adapter endpoints configuration
files.
• E-mail Alerts for exception management
• Enhanced error logging system
• Admin console to monitor data interchange and
administrative tasks
© KPIT Technologies Limited
Key Offerings Snapshot
Oracle Logistics Applications
Products
• OTM, GTM, WMS, MSCA
Services
• Logistics Management Advisory
• OTM Integration & Development
• OTM Implementation & Support
• OTM Shared / Managed Service
KPIT Transportation Solutions
Application and Database Support Services
Implementations, Configuration & Development, Roll-outs
Design & Product Blue Print
Application Management/ Operations Consolidation
Upgrade and Migration
Consulting and Assessment Services
Serv
ice
Off
eri
ng
sOn-Track – OTM Integrated VTS application
Container Track – Pre-configured solution for Container Management in the supply chain
Fleet Track – Pre configured solution for integrated fleet management and asset management
using Oracle EAM
Certified pre configured solution for
Pre configured solution for Auto Logistics LSP’s – Auto Ready, Shipper’s – Shipper
Ready, Freight Forwarding – Forwarder Ready
Logistics Management Platform - Integrated solution comprising of OTM, WMS and VTS
Bolt On Solutions
OTMReady
2/10/201610
© KPIT Technologies Limited
KPIT OTM Cloud Implementation Methodology & Approach
Prepare Start Configure Test Migration Go-Live
Pre-engage
Meeting
Super Users
Training
Kick-off
Prepare
Environment
Configure for
GapsTesting
Master Data
Upload
End User
Training by
Client
Go Live
Activities
Go Live
Support
Get ready for
the project
Understand
Process and
Train Key Users
Fine Tune
System and
Validate
Testing with
Client Data
User
Acceptance and
Cutover
Environment is
live and
supported
Understand
Process
Cutover
2/10/201611
Show Confirm
High Level
Client Business
Solution
Accepted
Demonstrate
the Solution
Scoping and
identifying
Gaps
On board
Client
Run Demo
Deployment PhasePre-Project Phase
Identify and
document
Gaps
Provide
Checklist to
Client
Document
GapsUAT
Deployment Schedule (Week)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Integration
Development
© KPIT Technologies Limited
COST MANAGEMENT
• Minimize freight spend using logistics best practices
• Carrier Performance analysis to ensure low cost / kg /km at optimal service levels
SERVICE LEVEL MANAGEMENT
• Ensure in time and full deliveries to customers
• Ensure zero in-transit losses due to damages
• Visibility of deliveries to customers to plan for receipts viz. workforce planning
SUPPLY CHAIN SECURITY
• Control over logistics process to ensure secure supply chains
• Item Traceability till point of consumption
SUSTAINABLE LOGISTICS
• Lower carbon emissions by ensuring vehicles adhere to emission norms
• Minimize driven miles and maximize truck loading to enable lower per kg /per km carbon emissions
Challenges – Primary Distribution
14 2/10/2016
© KPIT Technologies Limited
Transportation Planning
• Correct Transport Mode, Correct Vehicle, Correct Transporter, SKU Compatibility, Truck Capacity
• Calculate Dispatch Time, Plan Multi-stop shipments
Transportation Execution
• Vehicle Booking Process
• Document Control for Shipment/Dispatch
• Addition of events by transporters and various parties
Claim Settlement
• Shortages and Damages
• Debit Notes
Other Charges / Penalties / Freight Accrual
• Calculate Detention Days / Incentive Days
• Penalties related to Truck Non Compliance, Non Performance, Delivery Delays
• Freight Accrual and Variance calculations
Challenges – Secondary Distribution
15 2/10/2016
© KPIT Technologies Limited
Customer’s Objective
Project Objective : To implement OTM to Improve Efficiencies and Strengthen Control on
Primary and Secondary Freight Execution
ROI Levers for OTM
Detention
Time
Settlement
Days
Errors due to
Manual freight
Settlement
• Framework for OTM configuration, Order Management, Tendering, Integration Set-up, Reports development, troubleshooting etc.
• Optimization engine to optimize shipments based on cost and service level
• Share of Business among service provider according to contract and removing manual error using preferred carrier per lane per
vehicle type
• Automates the processes of internal and external freight payment
Errors due to
Manual Share of
business
Improve
Transit time
of shipment
16
Increase Load
Efficiency
2/10/2016
© KPIT Technologies Limited
Business Challenges Addressed
2/10/201617
• Freight planning
• Freight cost optimization: Complex Contract structure with Penalty and Incentives was
difficult to manage
• High Detention value
• Transporter performance measurement
• Supply chain visibility and tracking: No visibility of shipment execution
• Freight audit and settlement: Long payment cycle
• Control over ad-hoc cost
• Huge time investment in extracting MIS report
© KPIT Technologies Limited
Solution Deployed
• Robust Pre-configured On Cloud OTM solution for Primary and Secondary Distribution
• Rate Utility upload tool to manage:
• Rate Structure Complexity
• Frequent Rate Changes
• Rate Approval Process
• Easy Order Upload through Konnect (CloudLink)
• Orders (~ 200 OR with around 800 OR lines) are punched in an excel file
• The file is uploaded using Konnect
• Order Releases are created in OTM
• Analytical Reports
2/10/201618
© KPIT Technologies Limited
High Level Flow for Primary / Secondary Distribution
2/10/201619
Order
Management
Transport
Planning
Shipment
Management
Shipment
Execution
Freight
Settlement
© KPIT Technologies Limited
Primary Distribution- Process Flow
2/10/201620
FMCG Transactional Workflow
OTM
ER
P/ O
MS
Dispatch Plan
Transport Order(Order
Release)
Shipment Creation
Loading Confirmation(Add Reporting and
Gate In Event)
Update Shipment
Details
Vehicle Departs
(Add Gate Out Event)
Shipment Received at Warehouse/ CFA(Add Gate Events)
Automatic Invoice creation
Shipment Start Validation
Order Constraints
Share of businessPreferred Carrier (Quality Service)
Loaded Vehicle Weight
Stock Transfer Created
Actual Loading(Stock Transfer is confirmed)
Shipment Start Validation
Receive GRN
Transporter Adds In-transit
events
Invoice Approval process
Accounts Payable
Payment Acknowledgem
ent
Transporter Approves
Invoice
Tolerance of 0%
Start
End
Tender Process
© KPIT Technologies Limited
Rate Approval Process
2/10/201622
Level 1 Manager enters Online approval no and
approves rate
Level 1Approve Rate
Level 0Upload Rate
(Rates are not ready to use)
Level2 Manager Approve Rate
Level 2Approve Rate
Rates are active and
ready to use
© KPIT Technologies Limited
Shipment Execution
2/10/201623
Vehicle
Reports At
Gate
Gate In
Loading
Gate Out
Stock
Transfer
Note in ERPTare Weight
Sequential Events
Total Weight +5%
Document Ids
Validations
© KPIT Technologies Limited
Warehouse / CFA Receiving Process
2/10/201624
Vehicle at
Gate
Vehicle Gate
In
Cargo
Unloaded
Generate
Consignment
Receipt
Vehicle Gate
Out
Vehicle Detention
© KPIT Technologies Limited
Freight Settlement
2/10/201625
Transporter
approves
Invoice in OTM
Finance
Approves
Invoice in OTM
Payment
Initiated
Physical LR and
Invoice sent for
matching
Payable updates
receipt status
on invoice
© KPIT Technologies Limited
Execution Challenges Addressed
• Real time event capture was crucial
• Event time is captured by the people at Gate
• Security Guards used Tablets for ease of Mobility
• Most of the security guards have never used any computer
• Simplified screens to add events and eliminate data entry errors
• Gate Keepers are now using tablets to log gate events for 200+ shipments on a daily
basis.
2/10/201626
© KPIT Technologies Limited
Achievements
• Primary Distribution Pilot site went live in 14 weeks and 2 weeks of infant support
• Primary Distribution - 20 Dispatch locations and 35 Receiving locations rolled out in additional 6 weeks
• Secondary Distribution - 6 stocking locations to 52 + distributors in 12 countries in middle east
• Primary Distribution Achieved ROI in first 16 weeks of execution without ‘Planning’ module. ROI continues to be
tracked on :
– Detention
– Transit time
– Freight approval process
– Automatic and seamless payment interface
– Reduction in Payment cycle
• OTM helped client in rate comparison analysis and transporter scorecard which further helped in Rate Negotiations
• Achieved 85% utilization (since vol utilization is difficult to achieve) without any manual intervention.
• Further benefits:
Cost saving from automating the Control tower from Day1
2/10/201627
© KPIT Technologies Limited
Benefits Realized
Actual Truck Placement vs. Contracted Truck Placement - Analytics
Monitor Detention times & Improve – Analytics
Better Financial Compliance to Contracts – Control
Reduced Invoice Settlement Days - Control
Future Extension to Global sites – Scale
2/10/201628
© KPIT Technologies Limited
Impact on Key Performance Indicators – Primary Distribution
2/10/201629
KPI Objective Baseline Target
Detention Charges
Track Detention Charges at
factory & CFA level to enable
actions for reduction
180K GBP/year120K GBP/year in 2016 (33%
reduction in 2016)
Cost/case
Higher adherence to optimized
plan & self- billing will minimize
cost of inefficiencies
Plan 2016 (no baseline) Plan 2016 (63.14 GB pennies/case)
Invoice settlement days
Drive cash discounts and better
service levels through faster
invoice processing
30 days for the transporter to
collect the delivery documents +
63 Days payment terms
63 days payment terms from
transporter self-billing in OTM
Penalties and lead time
monitoring
Enforce penalties to transporters
in the contract based on service
level and tracking of actual vs.
agreed lead times
Not possible to track
Have zero penalties to
transporters with increased truck
availability linked to below KPI.
>90% lead time compliance
Truck Placement efficiencyTruck placement within 24h of
call-up to the transporter70% 90% (from H2 2015 onwards)
Freight covered through OTMFreight movement to be covered
through OTM0% 100% from August 2015 onwards
OTM availabilityDowntime excluding planned
maintenanceNA - less than 3.5hrs in a month
© KPIT Technologies Limited
Client Contribution to Success
2/10/201630
• Trust and positive approach of the client was one of the key point in the successful implementation within the
stipulated timeline
• Client’s acceptance to improve their business process and aligning the users accordingly is appreciable.
• Project Manager understanding of the business process and the management of getting infrastructure ready from VM
Server to micro level management eg. arranging tablets during EUT of gate keepers
• Dedicated Change Management resource:
– The Change management was very effectively planned
– All pain areas from almost all the physical locations were gathered and aligned
• On-time Data readiness
• Deploying resource to complete essential requirement coming during UAT to help implementation partner
© KPIT Technologies Limited2/10/201631
Thank You
www.kpit.com
Contact
Sushant Sawant
770.298.7058