oracle transportation management cloud in the global ... · using oracle eam certified pre...

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 OTM/GTM Cloud Approach

2/10/2016 © KPIT Technologies Limited3


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


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


Why Consider Oracle Transportation Management


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


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


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


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 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


OTM Customer Success Story

12 2/10/2016


Customer Success Story Background

13 2/10/2016


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


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


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


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


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


High Level Flow for Primary / Secondary Distribution

2/10/201619

Order

Management

Transport

Planning

Shipment

Management

Shipment

Execution

Freight

Settlement


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


Secondary Distribution Process Flow

2/10/201621

E

R

P

O

T

M


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


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


Warehouse / CFA Receiving Process

2/10/201624

Vehicle at

Gate

Vehicle Gate

In

Cargo

Unloaded

Generate

Consignment

Receipt

Vehicle Gate

Out

Vehicle Detention


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


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


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


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


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


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

[email protected]

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