penske - managing private fleet & 3rd party carriers using otm as a single platform
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Managing Private Fleet &3rd Party Carriers usingOTM as a single platform
Agenda• Overview of Penske Corporation• OTM / Fleet Manager• Current / future implementation plans• Hub & Spoke network• 3rd party carriers• Illustration of fleet & 3rd party network
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Penske Organization Corporate Structure
A market-leading providerof full-service leasing,contract maintenance,truck rental, and supply
chain solutions.
An international company,operating retail dealerships
and commercial vehicledistribution.
A third-party private equityfund that invests in the
transportation andtransportation services
industries.
Transportation Automotive Performance Private Equity
• Headquartered in Bloomfield Hills, MI• Over $25 Billion in Revenue• 50,000 Employees• 3,300 Locations Worldwide
Indy Race League
NASCAR
Penske Logistics - Product Overview
Managing “privatefleet” operation forshippers
Managing movementthrough a warehouse
Managing inbound andoutbound materialflow
Managing &optimizing overalllogistics network
Value based supplychain consultingservices
Dedicated Contract Carriage
› Manage professionally trained drivers› Provide equipment, maintenance and road service› Oversee fuel procurement and consumption› Manage safety, insurance and compliance
Core Services› Optimize and design fleet› Determine routing and scheduling› Arrange third-party and supplier backhauls› Maximize trailer capacity
Value Added Services
Employing dedicated transportation resources to efficientlyachieve peak service performance.
DCC
One single platform for managingDedicated Contract Carriage Drivers,Trucks, Routes & Costs and 3rd partyCarriers
What is Fleet Manager?
OTM is the solution for efficient & profitableoperations
• Master Schedule• TIRB• EDI
Static & dynamic routeschedules
Cellcomm AppDriver’s mobile device
Billing & DriverPay Portal
Special services and billingmanagement
OIC – Driver PayDriver Work Invoice anddriver pay Cellcomm Portal
Update actual and shipmentevents
Fleet Manager
OrderManagement
Carrier onboarding, contractand payment management
• POPS• FMA• FPAP• CSR
MasterDataMgmt.BI / AnalyticsMCP PortalReal time Operational
DashboardManage / Monitor integration
messages & exceptionsOperational, Billing and
Analytical Reports
Support and ContentManagement
• HRIS• VeCAP• RentalNet
OMD
TMS and Brokerage integration
Penske’s OTM Ecosystem
CURRENT IMPLEMENTATIONSTATUS
What Have We Done?
2,000+ 2,680+172+
What’s Next?
61
876
1,052
2016 Plan 2017 Plan2016 YTD
39
333
394
Target
59
853
1,220
250+
3,350+
5,000+
Current State of ImplementationKey OTM’s Fleet Related Functionalities
OrderManagement
Buy ShipmentPlanning
FleetAssignment Track & Trace
Driver Pay
Sell Shipmentcreation
CustomerBilling
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• Application of Dispatch Board andrelated functionalities
• Automatic Fleet Asset Assignment– Driver – Self Assignment using CellComm™– Power Unit assignment by Driver– Equipment assignment by Driver
• Dynamic Shipment Building• Polling position• Tandem Equipment Assignment
– Doubles and Triples
• Substitute Equipment Assignment
Implementing Hub & Spoke process flows for Fleet businessLeveraging OTM’s single platform advantage
• Penske’s acquisition of Transfreight required us to enhance our model
• Key functionalities incorporated for Hub & Spoke:– Utilizing an inter-connected cross dock network– Executing shipments across multiple days and shared fleet assets for a single or multiple OD Pairs– Executing an order shared across both private fleet and 3rd party carriers– Centralizing the management of the shipments from hub locations– Incorporating brokerage loads to leverage backhaul opportunities
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Adding 3rd party carrier operations and managementExpanding OTM Fleet’s implementation framework
• Penske’s DCC business model utilizes private fleet assets and 3rd party carriers• The framework was provisioned to consider the future requirements of the 3rd party carriers• The introduction of carriers onto our fleet framework required additional complexity and expansion
of OTM’s functionalities• The updated framework ensures a separation of workflows between private fleet and 3rd party
carriers• The co-existence of two distinct paths are vital• Our automated QA processes ensure the successful co-existence of these diversified operations
in one domain
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Key functionalities implemented for 3rd party carrier management
• Automatic carrier selection• TL & LTL modes• Tender management and spot rates for expedited loads• Intra-company tenders• Transfer of shipments between Penske & 3rd party carriers• Co-execution of a shipment by fleet and 3rd party carriers• Track & Trace Penske’s trailers used by 3rd party carriers• Freight settlement• Fuel surcharge and ETA / Delivery Confirmation Notifications
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Pickup A Hub ADriver 1picks theshipmentand dropsat Hub
Driver 1 picks empty racksand delivers back at Pickup Aand returns to DCCDCC
Driver 2 delivers theBackhaul order andreturns home
1
3rd party carrier was tenderedto haul between Hubs
Hub B
2
Driver 2 picks up theOrder and delivers tofinal destination
Driver 2 was informed of abackhaul shipment
Delivery A DCC
3
Driver 2 picks upthe backhaul
order Pickup B
Delivery B
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Centralized OperationalGroup monitors the end toend movement of theshipments and assets
Illustration of co-existing fleet and 3rd party shipment execution
Penske’s domain structure
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• Master Data• Locations• Carriers• Fleet Assets (Driver, Trailer, Power Units)
ParentDomainParent
Domain
Child DomainChild Domain
• Transactional Data:• Order Release• Order Movements• Buy Shipments• Carrier Payment Invoice• Driver Work Invoice• Sell Shipments
172+ DCC customers 70+ Carriers
• Configuration Items:• Business Automation Agents
Roadmap - OTM’s 6.4.x functionalities to leverage
• Migration to 6.4.x• Leverage Work Bench and Map
related functionalities• Fleet Aware planning• Bulk planning with carrier capacity
and commitment constraints• Usage of bulk planning to determine
carrier selection
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Q&A
Michael Sharp, IT Manager, Penske Logisticsmichael.sharp@penske.comMobile: +1.330.212.4684
Chirag Patel, Director Product Developmentchirag.patel@penske.comMobile: +1.216.288.6040
Sanju Sethumadhavan, Manager Advisorysanju.sethumadhavan@penske.comMobile: +1.920.819.2117
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