oracle transportation management roy peterkofsky product director transportation planning oracle...
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A Better WayTRANSCRIPT
Oracle Transportation Management
Roy PeterkofskyProduct DirectorTransportation Planning
ORACLE CONFIDENTIALThis presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Your Company
Distribution CentersExecutionPlanning
Unreliable information – Constant re-planningMissed shipments – ExpeditingUnderutilization - Expensive contractsx
Multiple,non-integrated
systemsManual processes
Carriers
Traditional LogisticsCustomers/Suppliers
A Better WayA Better Way
Global Customers
CustomerCustomerSatisfactionSatisfaction
Continuous Improvement
CarrierCarrierAnalysisAnalysis
On-TimeOn-TimePerformancePerformance
Integrated Planning & Execution
Plan Book /Tender
Pick,Pack,Ship
Track Replan Rate Settle
Carriers / 3PLs
Collaboration&
SCEMInboundSupplySource
OutboundDemandDestination
Oracle Logistics Solution
Oracle Transportation Strategy
Provide comprehensive management tools that reduce Provide comprehensive management tools that reduce cost while shrinking the planning and execution cycle for cost while shrinking the planning and execution cycle for transportation managers in companies that control transportation managers in companies that control shipment of their products and materials:shipment of their products and materials:
- Manufacturers- Manufacturers- Distributors- Distributors- Retailers- Retailers
“Mission Statement”
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Oracle Transportation ManagementProduct vision: complete solution
Truck * Rail Air Ocean
ModePlace
Facility Local area Continental Intercontinental
Time
Dynamic Operational Tactical Strategic
Outbound Inbound Intra-company Returns Drop ships
Flow
* Truckload, Less than Truckload (LTL), and Parcel
Integrated Transportation ManagementMaximize value via interconnection and process automation
CONSOLIDATELOADS/MOVES
SELECT MODES/CARRIERS
TENDERLOADS
TRACK ANDTRACE
AUDIT/SETTLE
REAL-TIME REPLANNING
PERFORMANCE-BASED PLANNING
RESELECTION
Smooth plan implementation
Real-time feedback improves all processes
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
BenefitsOracle TMS enables you to:
Reduce freight costs
Reduce cycle time
Improve service quality
Increase process efficiency
28.9%
42.1%
13.2% 13.2%
2.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
% o
f Com
pani
es R
esea
rche
d
1-5% 6-10% 11-20% 21-30% x > 30%(Companies with Annual Transportation Spend > $10 Million)
Potential TMS Savings Opportunity
Source: The Logistics Institute at Georgia Tech
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Oracle Transportation Management
Planning and optimization– Reduce freight cost through load consolidation and continuous moves– Reduce cycle time through fast optimization and streamlined workflows– Improve service quality by enforcing delivery deadlines
Booking and tendering– Reduce cycle time by direct collaboration with carriers– Increase process efficiency by automation of repetitive tasks
Visibility and exception management– Improve service quality by proactive notifications and replanning– Increase process efficiency by centralization of shipment tracking
Auditing and settlement– Reduce freight cost by detecting and resolving overcharges– Increase process efficiency by automation of routine payments
Performance measurement– Drive continuous improvement by monitoring logistics performance
Capabilities
Planning andPlanning andOptimizationOptimization
Transportation Planning and Optimization
Load consolidation– Pooling– Multi-stop truckloads
Continuous moves
Optimal mode and carrier selection
Use multiple optimization strategies to achieve cost savings of 5-25%!
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Load Consolidation – Pooling
Reduce costs by– Combining multiple LTLs to TL– Breaking TLs into multiple LTLs
for local delivery– Combinations
multi-tier cross-dock
Hubbing at consolidation / deconsolidation facilities
LTLTL
LTLTL
LTL LTLTL
TL TL
Load Consolidation - Multi-stop TruckloadsMulti pick-up and multi drop-off
Local LTL deliveries
TL Line Haul
Pickup at plant
Pickup at DC
Pickup at supplier Delivery to plant
Delivery to customer
Drop-off at deconsolidation hub
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Continuous Moves
Reduce costs by– Combining loads into
extended movements– Creating volume purchases– Aiding carrier logistics– Gaining discounted pricing
Combine shipments into loads, loads into continuous moves
Emptymove
Empty move
Load
Load
Load
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Optimal Mode and Carrier Selection
Lane differences– One carrier’s head-haul = another’s back-haul
Parcel versus LTL versus TL– Parcel carrier cwt pricing– LTL carrier minimums– TL economies of scale
Same lane, different lowest-cost carriers– Higher per-mile rate, lower per-stop charge– Lower per-mile rate, higher per-stop charge
Reduce costs by examining every situation individually
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Fast Optimization
Run in minutes instead of hours
Allow multiple optimizations per day
Quickly react to major changes– New orders– Expedited orders
For increased planner productivity
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Advanced Interactive Graphical Interface
Identify issuesvisually
Point and clickediting/repair
Quick Analysis and Improvement ToolsUncover hidden cost savings
Built-in intelligence seeks out plan improvements Identify where relaxation of constraints can pay off most
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Real World Constraints
Extensive rule set
Flexible modeling– Consider various cases– Hard and soft constraints
Reduce need for rework of optimization results– Get it right the first time!
Reduce feedback loops and re-planning
Avoid problems at execution time– Rejected load tenders– Unworkable carrier/equipment assignments
Business rules for better, more executable plans
Real World Constraints
Vehicle capacity Pickup and delivery time windows Preferred carriers and volume commitments Commodity, equipment, and facility compatibility Carrier multi-stop and continuous move rules Transit times and lead-times Days and hours of operations Equipment availability Facility handling and dock capacity Merge in transit
Business rules for better, more executable plans
Oracle Solution
Example: Flexible Equipment Capacity
4130 ft3
Won’t fit !
Success !
2850 ft3
2851 ft3
2851 ft3
Booking andBooking andTenderingTendering
Load Tendering
Booking RequestYou
Accept or Reject
Collaborate with carriers from within your enterprise system
Centralize information Maintain constant visibility Stop waiting for your calls to be returned
Carriers
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Carrier Collaboration PortalReceive and respond to tenders
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Visibility andVisibility andException ManagementException Management
Tracking and Tracing
Collaborate with carriers to provide single source of information – Eliminate multiple phone calls, e-mails, web site visits
Allow real-time visibility into delivery status
Improve customer service– Provide information immediately and conveniently – Relate shipment tracking information to orders– Record carrier performance
Pick Up Proof of DeliveryIn-Transit Status
Centralize visibility across all carriers
Workflow-Based Exception Management
Quickly identify issues and opportunities
– Send proactive notifications– Monitor escalated issues
Reduce non-value-added activities
– Spend time fixing problems, not finding them
– Eliminate repetitive tasks
Automate resolution of problems
Detect problems for immediate attention
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Automated Problem ResolutionGenerate candidate solutions at the touch of a button
Problem: Underutilized truckloads
Solution: Shipments to fill them out with
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
The Need for Dynamic Planning
Customers andSuppliers
You
Carriers
Disruptions occur between plan runs – not on your schedule!
Last Scheduled Plan Run
Next Scheduled Plan Run
Outboundshipmentdelayed Material
for cross-docking is
lateMaterial doesn’t show up
Customerexpedites
order
! !!!
Filter to eliminate,Custom and seeded exceptions
Pegging
Demand-supply allocation,Simulation, Workflow
Business intelligence
Identify Disruption
Dynamically Update Plan Inputs
Re-Optimize Existing Plan
Evaluate New Plan
! !!!
Dynamic Planning and Re-OptimizationLast
Scheduled Plan Run
Next Scheduled Plan Run
Disruption
Re-Plan
Disruption
Re-Plan
Disruption
Re-Plan
Disruption
Re-Plan
Auditing andAuditing andSettlementSettlement
Freight Payment and Audit
Automatically pay bills within tolerance– Self-invoicing– Electronic payment
Flag exceptions for review– Resolve inconsistencies– Prevent overcharges
Track carrier performance– Who bills inaccurately?– Who bills late?
Automate handling of routine cases, catch problems
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Claims Management
Record loss and damage of cargo
Monitor insurance or other repayment
Track carrier performance– Who damages or loses cargo?– Who settles claims quickly?
When loss or damage occurs
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PerformancePerformanceMeasurementMeasurement
Integrated Performance Management
Track measures of activity– Quantity shipped– Order count, weight, cube
Calculate key ratios– Cost per unit weight shipped– Breakdown of movements by mode
Analyze carrier performance– On-time delivery– Claims– Billing
Measure enterprise and carrier results
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Fulfillment Intelligence PortalDashboard for your distribution-related KPIs
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
RolloutRollout
Features Available Now
Tendering/booking Tracking/tracing Routing guides Manual load building and shipment planning Constraints and rule checking LTL/parcel rating and freight cost analysis Parcel manifesting
Key collaboration and execution functions
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Features Available in 11.5.10Introduction of Transportation Planning and Freight Audit
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
Optimized load building (consolidation) Continuous moves Optimized carrier selection Freight audit and payment Truckload rating
Future Directions
Global, multi-modal transportation Fleet management, routing and scheduling Transportation procurement Load configuration/sequencing Bulk transportation
Strategic initiatives
This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.
SummarySummary
Your Company
Distribution CentersExecutionPlanning
Unreliable information – Constant re-planningMissed shipments – ExpeditingUnderutilization - Expensive contractsx
Multiple,non-integrated
systemsManual processes
Carriers
Traditional LogisticsCustomers/Suppliers
Global Customers
CustomerCustomerSatisfactionSatisfaction
Continuous Improvement
CarrierCarrierAnalysisAnalysis
On-TimeOn-TimePerformancePerformance
Integrated Planning & Execution
Plan Book /Tender
Pick,Pack,Ship
Track Replan Rate Settle
Carriers / 3PLs
Collaboration&
SCEMInboundSupplySource
OutboundDemandDestination
Oracle Logistics Solution
Integrated planning, execution, and collaboration
Integrated performance management
For planners, not programmers
Productivity enhancing UI and process automation
Lowest total cost of ownership
Why Oracle!
Benefits
Reduce freight cost – Optimized load building and continuous moves– Built-in intelligence to find savings opportunities– Eliminate carrier overcharges
Improve service quality– On-time delivery– In-transit visibility
Reduce cycle time– Closed-loop planning, execution, and collaboration
Increase process efficiency– Collaborative workflows
Drive continuous improvement– Integrated performance management
Oracle Transportation Management enables you to:
AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S