OTM Cloud IntegrationChallenges Beyond theBasicsLaura Esmeral TSP Colombia

Alejandra Covarrubias KSAP Global

Presentation Outline• Company Profile and Network• Project Background• Project Approach• ERP WMS TMS Legacy Integration Strategy• Cloud Challenges• Project Outcome• Q & A

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Company Profile• Transportes Sanchez Polo, with 40

years in the transportation market, isthe pursuit to become the first 4PL inthe upper South America region.

• Mission: To maintain our leadership inthe integrated Logistics Operations andbuild to suit services with the alignmentinto the Customer specific needs.

• The Best Practices and Systems havebeen evaluated during thistransformation process

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Company Profile• 9 Business Units to serve our customers

• Corporate and Main Transportation Business Unit TSPbased in Colombia

• Warehouse and Distribution Services Unit LDSP basedin Colombia with 7 Locations

• International Units in the over the road TL and LTLbusiness in Venezuela, Ecuador and Peru

• In Bond warehouses at 2 strategic ports forinternational services

• Over the Road transportation security Business Unit

• Geo-satellite Business Unit to provide shipmentvisibility

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Company in Numbers• 520 Employees• 921 Shipments per day• 17,000 Locations• 150 Million Dollars in Revenue• 2,500 Different Carriers• 140 Types of Equipment• 2,700 Drivers• 2,700 License plates

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Project Background• Transportes Sánchez Polo implemented OTM Cloud (Version 6.4.1)

leveraging its standard customer service operations already running inColombia.

• The main objective was to duplicate the actual operation schema andobserve the upgrade to industry best practices that could be used asenhancements in the actual services, along with the implementation.

• The integration approach for this project was to leverage existing IT LegacySystems solutions along with a best of breed Transportation ManagementImplementation: OTM Cloud

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Project BackgroundHistorically, the way TSP had managed transportation operations wasin cooperative teams:

• Loyalty Private Fleet,• For-Hire carriers on the go,• International Services,• Warehouse & HOD´s,• Overall Domestic Colombian Transportation and,• In Transit follow up team who tracks every shipment in hourly basis.

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Project Background• TSP Customers demanded for capabilities to extend beyond

Truckload Freight through better rates in order to optimize the wholenetwork.

• There are many different areas to grow business thru sameCustomers, but the key is to accurately identify where thoseopportunities exist:

– If the freight was moving enough to keep customers satisfied, there was not a systemic wayto identify additional areas for Savings and Operational improvement that could be sharedwith Customers without a robust TMS solution in place.

– Some times those opportunities are hard to see upfront but they are present.

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OTM FootprintTSP and LDSP Business Units Based in Colombia

• Transportation Management Cloud Service (Core)• Transportation Management Operational Planning Cloud Service

(Planning)• Transportation Fleet Management Cloud Service (FM)• Freight Payment, Billing and Claims Cloud Service (Settlement)• Transportation Intelligence Cloud Service (FTI)

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Project Approach• Change Management, Change Management and Change

Management… in order to Implement and Enable Procedures to introduceIntegrated Process to our company.

• OTM Core and Planning: to enable the new process based onTransportation Optimization instead of Transportation automatization. Buyand Sell perspectives were implemented along with Secondary Charges forNon Freight Service Providers.

• Transportation Fleet Management: a tool that allowed us to discover“Black Holes Sightings” in our “Fidelizada” Fleet, which means LoyaltyCarriers

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Project Approach• Freight Payment: to automate a complex POD process that mirrors Buy

and Sell perspective from the Actual Shipment part of the Process all theway to the Invoice, Billing and Claims activities

• Transportation Intelligence: to substitute analysis based on static datalacking dynamism as our business basis and provide a permanentmeasurement at various dimensions of our Operational.

• Integration: to put together Internal Master Data and Transactions alongwith External Government regulations in order to enable a single tightenedbackbone based on Silos dependency segments: Master data supervisedby Government, ERP (in house), WMS, Government ControlledTransactions and KSAP OTMNow Massive Loaders for various BusinessUnits

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Integration StrategyVarious entities needing to Integrate with OTM:

• ERP: In house built application, excludes Order Management andInventory functionalities

• WMS: Third Party vendor application that enables Order Managementand Warehouse activities for the “with Stock Orders” Customers’Business Unit

• No Stock Orders Customer’s Business Unit• KSAP OTMNow Add-ons to enable massive load Order Load

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Integration StrategyVarious entities requiring integration with OTM:

• Ministerio de Transporte: Government Office that controls TransportationServices in Colombia in a “step by step basis” from Planning up to POD. Thesecontrols are based on Inbound and Outbound Interfaces, e.g. a non-successfulTransportation Service cannot be executed

• GPS Events: Various GPS providers post events to our Geo-Satellite BusinessUnit to be later posted to OTM via OTMNow Massive Event Loader

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Integration Layout

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Integration Strategy• Implemented a Complex Workflow to enable Integration during the

Transportation Process to grant necessary control interchange betweenTSP and Colombia’s Ministerio de Transporte

• Master Data Integration complex workflow to allow In House ERP tomanage and control, to be correctly Used by OTM and returned toGovernment Office as periodical maintenance and/or Transaction itself

– OTM became the front end for both Master Data and Transactions of Government Controlactivities

• HTTPOST protocol to use and maintain in the Cloud

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The TSP Challenge• According to industry analysts, today’s Transportation Management Systems

(TMS) typically reduce transportation overhead by 10% to 30%, while reducingtransportation expending by 5% to 15%

• Savings factors include whether Transportation Operations are centralized orfragmented

• We focused on the following rule of thumb to implement OTM Cloud:– How many LTL’s can be consolidated in the same shipments we are already planning?– How many daily tasks like load tendering and equipment control can be automated with a best of breed solution?– What about Contract Management, Freight audit and Payment? Are we paying less or overpaying?– How do we change from Plan and Execute transportation using manual processes (spreadsheets, faxes, emails

and phone calls) and in house software?– Can we save money and still comply with government regulations while maintaining customer service levels?

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The TSP ChallengeKey Goals to Achieve• Increase Load Consolidation among different TSP entities• Optimize Carrier and Mode Selection• Increase the usage of Multi- Stop shipments• Shipment Visibility across one screen• Basic Process Automation• Equipment Inventory Visibility and better use• Track Carrier Quality Performance• Lower Administrative Costs• Profit performance per shipment

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The TSP ChallengeKey Decision Triggers to Implement a TMS

• We can save money using a TMS according to the industry analysts, andalso we understand that Oracle Logistics Cloud solutions are moreaffordable and faster to implement vs. On Premise solutions

• Instead of paying a large license fee up front, you pay a periodicsubscription fee, converting what was once a capital investment into anoperating expense

• The equation is: “The more cents you spend on technology, the moredollars you save on transportation”

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The TSP Challenge in Numbers

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Service Providers 2558Buy Side Rate Records 9639Sell side Rate Records 10844Average Accesorials per Rate Geo 18Secondary Charge Rules WIP: Currently: 1 RR for 1037 unloading points in 1 CITYShip From/Ship To Locations 17554Xdocks 9CUSTOMER locations 218PORT Locations 6Drivers 2699Equipment 4330Power Unit 2727

Entity ObjectsUser Roles 19Active Agents 125 (To be increased when Fleet Management Phase is Released)Currencies in Rates 3Items 23294Packaged Items 29503Regions 985Screensets at TSP domain 99Manager Layouts at TSP domain 26

Configuration

Business Monitors Queries per MonitorTSP.TSP_ADMIN_FINANCIERO 11TSP.TSP_CUMPLIDOR 9TSP.TSP_DASHBOARD 10TSP.TSP_GESTOR_DE_FINANZAS 2TSP.TSP_PLANEADOR 6TSP.TSP_SEGUIMIENTO_LOCALIZACION 8

Grand Total 46

The TSP Challenge in Numbers

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# VolumetricPer Day

(average)Per Month(average)

Per Day(Max)

Per Month(Max)

1 Sales Orders 410 12,572 1,208 13,5472 Sales Order Lines 410 12,572 1,208 13,5473 Deliveries (intermmediate Drop off) 471 14,434 1,254 15,1304 Delivery Lines 471 14,434 1,254 15,1305 Shipment / Trips 416 12,743 550 13,7466 Average Stops / Trip 1.13 1.13 2.28 1.107 Total Weight Shipped in Kilos 9,054,587 277,674,000 25,311,850 293,533,050

# VolumetricPer Day

(average)Per Month(average)

Per Day(Max)

Per Month(Max)

1 Sales Orders 437 13,412 44,689 2,2722 Sales Order Lines 1,280 39,248 44,689 2,2723 Deliveries (intermmediate Drop off) 1,394 42,762 48,599 2,2594 Delivery Lines 1,394 42,762 48,599 2,2595 Shipment / Trips 241 7,406 8,781 4136 Average Stops / Trip 5.78 5.77 5.53 5.477 Total Weight Shipped in Kilos 815,294 25,002,338 31,191,111 1,252,467

PRIMARY TRANSPORTATION (TL)

SECONDARY TRANSPORTATION (LTL & HOD)

OTM Cloud ChallengesPractically

• High dependency on OOD support, services and maintenance• Upgrade timeline is up to Cloud Operations, so you must plan accordingly• Federated SSO component is one more tool to train on and maintain (to use

an SSO outside the Oracle Public Cloud is not supported by OTM Cloud)• Mobile will not work for current OTM Cloud version (6.4.1)• Only 2 environments constraining customer from a Sandbox with their own

data• SQL backdoor is limited to only queries• Migrate tool good, but not enough: Domain export is unavailable• Maps functionality presenting some issues for LA Geographies

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OTM Cloud ChallengesTechnically

• Inbound and Outbound Integration via Transmissions are only supported bythe HTTP protocol, including Web Services. There is no support for FTP,Direct Database, or Oracle Advanced Queues.

• Windows IPP Printing is not supported. Unix based CUPs printing issupported, but there is currently no support for Printer Conversions.

• Defining custom PL/SQL functions and procedures for use in WorkflowAgents and Reports are not supported.

• User Interface configuration is restricted to capabilities accessible via theOTM Menu.

• Faxing is not supported.

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Cloud ChallengesTechnically (cont.):

• Scalability configuration is unnecessary in the Cloud.• The Info Page contains security sensitive data that is not accessible in the

Cloud.• Data purging without archiving is configured by default and cannot be

modified by the customer.• Some configuration and diagnostics interfaces are intentionally

not accessible in the Cloud, e.g.:– Scalability– Data Source– Information

• Log files are limited to a maximum capacity of 10MB and 20 Backups,regardless of the value set in the Log user interface.

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Cloud ChallengesTechnically (cont.):

• Use of Embedded images in Reports is restricted to PDF documents.• By default, Cloud installs take advantage of an OTM capability to redirect

primary key (ID) generation of significant objects such as shipments andorders to use a database sequence, which performs much faster than aBN Rule. The use of the sequence numbers is controlled by properties.

• The embedded BI Publisher engine is disabled in the Cloud. Reports needto be created, modified, and executed using the external BI Publisher 11ginstance which is installed along with the service.

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FTI Cloud ChallengesTechnically (cont.):• Direct database access to the OLTP from Fusion Transportation Intelligence

has been removed for all Business Intelligence (BI) Roles including BIAdministrator.

• Web catalog privileges are no longer available even for authenticated users.Instead, you must use BI Publisher for reporting against the operationaldatabase.

• The following cannot be customized in an FTI Cloud installation:– RPD (you cannot merge OBIA and FTI since the RPD cannot be customized)– ODI Configuration– Translations– Cannot deploy multiple RPDs in a single OBIEE install– Cannot create or alter existing BI Roles since the Cloud installation does not have access to Enterprise

Manager

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Project OutcomeOperational Aspects that changed TSP employees’ mindsets:• From Fixed route Planning to a Dynamic transportation planning based on

efficiencies using distance and cost as the main variables• Load Type is now a component of the planning in terms of compatibilities• Load Size optimization based on Equipment “on hand”• WMS data accuracy got improved since we needed to update data for load

size accuracy• Due to “on hand” equipment inventory availability, relocation cost will be

reduced• Warehouse Operations got extended by complementing Pick Activity with

opportunistic cross dock orders

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Project OutcomeOperational Aspects (cont.)• Operation is now based on orders classification based on Stock or No Stock

instead of company profile serving diverse Business Units• Service Time is honored because Customer Demand is now supported on

actual Fleet Inventory• Rates Management is now automated and replaces informal bargaining

between Dispatcher and Carrier• Operations are to be improved due to formal presence and maintenance of

data such as pick up and receiving timelines at Location level,appointments, POD paper work needs and specifications, etc.

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Project OutcomeOperational Aspects (cont.)• Claims are mirrored between Buy and Sell shipments, saving time and

avoiding inaccuracy when Billing and Invoicing , which produces auditabledata and enabling procedures based on batches reducing bottle necks

• Door to Door traceability on all aspects: Planning, Events, Documents,Actuals and Receivables

• OTM Portal will provide service providers and customers a formal follow uptool mounted on Actual Data working on Real Time

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Impact Factor• "OTM Cloud solution does not have to be Vanilla, Inflexible, Pre-configured

solution to fit the timeline! It is still the same powerful OTM that can beleveraged to start with a Pre-configured footprint and then expanded to meet thecomplex Business needs and provide a robust customized solution!"

• Cloud does not mean To force the Business Solution fit the Available Pre-packaged solution (SMALL, MEDIUM, LARGE) but rather provide a seamlessrobust solution that meets and exceeds the Business Needs!

• If OTM cloud can be implemented seamlessly to meets our complex 3PLbusiness needs in a challenging Latin America Market then it can pretty muchmeet the needs for almost any other industry!

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Q & A

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