otm for freight forwarding and 3pl industry
TRANSCRIPT
OTM for Freight Forwarding and 3PL Industry OTM SIG 2014, Philadelphia, USA, 11-13th Aug 2014
© KPIT Technologies Limited
Contents
• Introduction
• Major Challenges
• Leveraging OTM for Freight Forwarding
• Other Key Configurations
• Business Value Offered
• Customer Testimonial
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Introduction
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Introduction
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Client is Egypt’s largest freight forwarding company with wide and varied mix of services in the field of integrated
transport, with the ability to handle all the stages of any shipment - door-to-door from pick-up and transport to delivery.
Solution Offerings
Sea
Direct/Consol
Air
Consolidation
Customs
Clearance
Land
Transport
Chartering
Project Cargo
Exhibition
Management
General
Warehousing
Free Zone
Warehousing
Insurance
Packing
Customs
Transit
Sales
International
Overland
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Major Challenges
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Operational Requirements
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• Design workflow for ‘Quote to Cash’ cycle spanning Primary operation along with various ancillary services
for Import and Export cases.
• Design robust solution for console management with House Bill (HBL) generation option or facility to upload
HBL details via excel.
• Require separate workflows for Trans-shipment, Re-export and Cross-Trade scenarios
• Ability to managing Airway bill stock and send alert when stock reaches threshold limit
• Manage complete data set for walk in (one time) customers
• Managing Project Cargo with a challenge of using Project specific contracts in all associated transactions and
mapping project’s reference in all objects
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Operational Requirements
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• Propose accurate list of documents and formalities(clearance steps) for Customs Clearance process based
on customer’s Industry type and clearance type requirement.
• Calculation of Insurance Premium and Commission from insurance companies.
• Managing inventory stock in warehouses with an option to dispatch partial stock and billing for it.
• Requirement of dashboard for tracking container movement.
• Various operational reports like, HBL document, Shipping Instructions, Shipping declaration, HazMat
Certificate etc.
• Managing way bill details for Land operation.
• Manage complex rate structure which varies for each operation type. Maintain airline tariff card.
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Financial Requirements
• Integrated Customer advance information and using it during bill calculation.
• Profit and Loss report at order or console level.
• Manage Multi Currency billing.
• Accurate cost allocation in case of Console where each order in console require separate ancillary services.
• Approval hierarchy for Bills and Invoices based on tolerance limit of each approver.
• Real time Customer credit check.
• Multiple bills to various bill to parties associated with single transaction.
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Financial Requirements
• Tax calculation based on tax exemption status of Customer or specific instance of order or specific charge head
in financial transaction.
• Capturing details of Payment made to custom authorities via official receipts and bill it back to customer
• Intercompany billing
• Managing commission for sales team v/s order booked directly at Branch
• Discharge fee calculation for Dangerous goods
• Map every cost line to accurately derive Ledger code
• Detention and Demurrage calculation
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User Accessibility Requirement
• Show/Hide data elements based on values selected in previous section
• Field level validation while data entry
• Data filtration based on role selected like Customer, supplier, Shipping Line, Customs agent etc.
• Fields to capture data in regional language
• On Screen Container Number Validation
• Bridge the communication gap between various stakeholders associated to single operations
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Leveraging OTM for Freight Forwarding
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PROCESS
Receive Quote Request
Get rates and Schedule
from Shipping Line
Prepare Quote and get
Customer Approval
Receive Shipping
Instructions
Send Booking Request to
Shipping Line(S/L)
Receive Booking
Confirmation Co-Ordinate with Customer
for Loading Date
Plan Shipment for Sea
Export and Land Movement
Arrange Empty container
pickup as per Loading Date
Cargo Stuffing and
Inspection
Receive Draft MBL from S/L
Confirm MBL details
Receive Final MBL after
issuing payment
On-Board Confirmation and
Vessel Departure from S/L
Surrender documents to
customer after payment
received
Sea Export Normal with Land Movement
Cargo Movement to Port
Release Cargo on board
Get Draft HBL approved
from Customer
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Prepare Quote and Manage Customer Approval
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Quote Screen : Shipping and Cargo Details
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Quote Screen : Financials
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Capture Shipping Instructions : Order Entry Screen
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Order Entry Screen
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Booking Request to Shipping Line
Email with Booking details will be sent to Shipping line. It is possible to replicate integration architecture with Maersk and INTTRA which is already Live for another client in India for Booking Request, Sailing Schedules and Shipping Events.
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Plan Shipment for Primary Operation of Sea
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Shipment for Sub Operation of Land Movement
Each Sub-Operation will have separate shipment which will get allocate back to associated order only.
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Shipment Execution Events
Detailed Event management for Events related to Booking Request, MBL and various stages of execution
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Receivable from Customer
Final Customer Bill should also consider Down payment (Advance) paid by customer while booking order.
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Job Details
Profit and Loss details which can be calculated at single Order level or at Consol level.
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Sea Import Consolidation with Customs Clearance
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PROCESS
Receive Pre-Alert from
Agent/Customer
Verify Supporting
Documents
Define Voyage and Consol
Update Vessel Details
Update MBL Details
Create HBLs as per HBL
Count on Pre-Alert Update HBL Details as per
Pre-Alert
Map HBLs to MBL
Follow up for Vessel Arrival
Send Arrival Note to
Involved Parties
Collect Delivery Order
(DO) from Shipping Line
after Payment
Get Cargo cleared from
Customs
Arrange Transport till port
warehouse
Unload Cargo and Return
Empty Container to
Shipping Line
Bill each Customer belongs
to Consol based on
payment Terms
Settle Clearance Expenses
with Delegates
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Define Vessel, Voyage and Consol
Create Vessel
Create Voyage
Create Consol from Voyage
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Generate MBL shipment
Generate Empty Shipment from Consol and update MBL details
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Generate multiple HBL from MBL
Enter Number of HBL consolidated in specific MBL and OTM will Auto generate those many HBL and attach to MBL
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Upload HBL details Via CSV
HBL Detail csv will
be loaded in OTM HBL Created in OTM
Rest all HBL sharing
same MBL number
will get Auto
Attached to MBL
Manually Attach First
HBL to MBL using
action
HBL Upload Process
HBL Details csv file
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Send Arrival Note
Arrival Note as an attachment in email to all Involved parties
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Shipment for Customs Clearance Sub-Operation
Clearance Shipment Screen
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Customs Clearance : Formalities and Documents
List of Activities Required for executing a Clearance Process based on ‘Clearance Type’ Selected
List of Documents Required: Specific to Clearance Type and Customer’s Industry Type
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Air Export Consolidation
PROCESS
Receive Rate Request from
Customer (ExW)
Create Quote
Confirm Quote with
Customer
Co-Ordinate for Booking
with Airline
Arrange to pick-up cargo/
Receive cargo Handover cargo to Airline
Issue AWB to Customer
Settle Expenses with
Airline/Agent
Issue Customer Bill and
Receive payment Maintain MAWB serial
number stock and Send
Notification if stock is
below threshold limit
defined.
Daily Process
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Managing MAWB stock in Air
MAWB stock specific to Airline and Distributed across branches
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PROCESS
Receive Quote Request/
Rate Request (import)
Define Project
Prepare Proposal with
reference to Project
Get Proposal Approved
from Customer
Sign MoU with Customer Define Exchange Rate
specific for project
Get Route Survey done and
Arrange for permissions
Create Order with
reference to Project
Use Project specific
contracts while planning
Settle Expenses with
Carrier
Issue Customer Bill
Repeat steps for each new
request to move cargo
against specific Project
Project Cargo Management
Receive Request to move
cargo against Project
Capture Execution Events
Execution of Project
Shipment
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Managing Project Cargo
Project Definition
Project Reference on Quote
Project Reference on Order
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Other Key Configurations
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Land Operation
Waybill Management
Container Tracking Module
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Insurance Operation
Insurance Details : To calculate Insurance Premium and commission from job
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Ease in User Interface
There are numerous features developed to ease data entry through UI for users. Below video will demonstrate some glimpse of it
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Validations Some Examples of Validations to avoid errors in ‘data entry’ or in ‘end to end’ process.
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Credit Limit Check
Integration Layer
Oracle EBS with Customer Master and associated Credit Limit value
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Invoice Approval Hierarchy
Note:
- X1, X2, X3 are variables defined in absolute USD value
- Variable values varies for Project cargo and Non-Project cargo
Screensets with Filter Criteria are used to define approval hierarchy . Once Invoice fail Auto Approval process, it will be correctly routed to appropriate Authority for manual decision using various filter criteria.
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Business Value
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• Replacement of Legacy system with more advanced Transportation Management
System
• Reduced operational cost, Improved customer service, Optimized asset utilization and
mainly, Increased profit margins.
• Automated, Streamlined and completely Integrated processes for client’s expanding
freight forwarding business
• Simplified and Accurate customer invoicing, Carrier payment and Claim management
processes with reduced ‘Service to Cash’ cycle
• Drastic cutback on labor cost and office overheads with shorten time for day to day
operations.
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Business Values
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Customer Testimonials
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"Oracle Transportation Management supports our goal to become the preferred partner for integrated global transportation solutions in Egypt by providing best value for our customers’ complex global logistics requirements.
KPIT Technology had the expertise and experience to manage both the technical and business challenges involved in implementing a new business platform. The team was very skilled in helping our users adapt to the new processes, which helped ensure rapid adoption of Oracle Transportation Management and will deliver faster time to value.“
– Jalal Sulaiman, IT Manager, Egytrans
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Customer Quotes
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Presenters
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Rohit D. Bhogate
Sr. Techno-Functional Consultant,
Value Chain Execution Practice
Karthik Venkataraman
Lead Consultant,
Value Chain Execution Practice
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Thank You
www.kpit.com