Ways to Accomplish

Multi Leg Planning

Joseph Callan - Capgemini

Why to Discuss

• Over the years, I have seen/read many presentations on the multi-leg subject

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• Wanted to make an attempt to bridge all of these through an Assessment

Planning Deep

Dive Training

MultiLeg_

Shipment.pdf

OTM Functional

Boot Camp

Multi-Leg

Configuration

Networking

Solutions in

OTM - OTMSIG

OTM 6.3

Network

Routing – SIG

Quarterly

Ways to

Accomplish

Multi-Leg

Planning -

OTMSIG

OTM

Optimization

Bulk Plan

Overview

Multi-Mode/

multi-leg for

AM Castle -

OTMSIG

Multi Tier

and Network –

OTMSIG

Network

Planning - 6.3

Partner

Training

Ocean Related

Enhancements

– Euro

OTMSIG

Feb 2006 Aug 2007 Oct 2007 Jun 2009 Mar 2010 Aug 2011 Aug 2012 Jan 2013 Jan 2015 Mar 2015 Aug 2015

Dealing with the Multi-leg Problem

• Looking back on life, I’ve been dealing with multi-leg problems for a while...

– Adolescence

• Havertown, PA to 17th and Girard

• Havertown, PA to PSU

• Eagles games via SEPTA transfers

– Professionally

• Steamship Line…coordinated import leg

• Minerals Shipper…a lot of LTL and Intermodal

• Consulting wise…not truly exposed until a project at AT&T

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• Can be tough to manage and execute but if done effectively...can save on transportation costs

Know of a Shipper generating ~$500K of Cost Avoidance per month by inserting inbound freight into its

dedicated network that was put in place to initially move its outbound goods to market

Agenda

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Overview

Use Cases

Approaches

Conclusion

OVERVIEW

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Definitions

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• Represents the movement of freight on 1 carrier on 1 piece of equipment Shipment:

Multi stop:

Multi leg:

Multi tier:

• Represents the movement of freight destined for multiple Locations on 1

Shipment on 1 carrier on 1 piece of equipment

• Represents the movement of freight across multiple shipments on 1 or

more carriers on 1 or more pieces of equipment

• Represents a more complex and dynamic multi-leg movement of freight

across multiple shipments on 1 or many carriers on 1 or many pieces of

equipment thru multiple intermediate points such as CrossDocks, Pools,

Ports, etc. – Synergistic Routing/Multi tier Planning:

• Represents making dynamic cost based routing decisions for multiple orders across many

available paths through a transportation network while producing consolidations

• a.k.a. Holistic Routing

Object Relationships (Potentially)

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USE CASES

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• In OTM, often there are multiple ways to address the same problem

• When it comes to multi-leg, it is no different

• But when it comes to multi-leg modeling, understanding the problem one is

attempting to solve helps drive the modeling activities

– So, modeling starts with clearly defining the business problem/problems

you are trying to solve…with diagrams, reasons

– It is possible that you could have multiple problems that need to be

solved and modeled in different ways

Not All Multi-leg Problems are the Same

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• Consider using a TL to a sort facility with multiple shorter LTLs for local delivery

Use Case 1: Considering Deconsolidation Locations

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*** other options to consider are direct to Delivery 2 and Delivery 3 *** Regions serviced by the Sort facilities overlap

• Management of Orders that involve multiple Shipments, parties and modes

Use Case 2: Simple Multi leg

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*** Equipment could be re-used or optimized throughout the journey

• Multiple cross docks with multiple available paths that should be influenced by the

other orders that are being routed at the same time

Use Case 3 – Simple Network

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• Dealing with a Hub and spoke network model where demand is constantly entering

the network to be consolidated with freight that is already flowing

Use Case 4 – Complicated Dedicated Network

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• Involves making day-to-day on-going Transportation Management

decisions:

– Will my package make it through the network in time?

– Does my network have capacity?

– Should my package move outside of my network?

– How do I handle capacity bottlenecks?

– What to do when a linehaul is under-utilized?

– Should I arrange for an ad-hoc move that skips a node?

– How to handle real-world events that affect down stream moves?

Tactical Network Planning Challenges

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METHODS

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• In the past, we could approach multi-leg Use Cases with these Legacy multi-

leg Modeling Methods:

– Order Release Planning using a Single Leg Itinerary with Pools being

evaluated

– Order Release Planning using multi-leg Itineraries

– Order Release-to-Order Movement Planning using multi-leg Itineraries

Legacy Modeling Methods

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Legacy Modeling Method Limitations

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Key notes: not synergistic and will not be enhanced going forward

Single Leg

Itinerary

Dynamic

Pools

OR

Planning

multi-leg

Itinerary

OR-OM

Planning

multi-leg

Itinerary

• An Itinerary cannot have both consolidation pools and deconsolidation pools

• Can have only one cross-dock per Itinerary

• Cost based dynamic pooling works only for deconsolidation pools

• Lack of control on how the inbound and outbound Shipments are built

• OTM will not consolidate two orders that are planned using different Itineraries

– In order to plan Orders across Itineraries, Order Movements must be utilized

• Planning Engine determines which Itineraries are feasible selects the Itinerary that has the most number

of orders or most weight/volume flowing through it

• Planning not synergistic

• OTM does not evaluate all Itinerary options to determine and select the low cost route (chooses 1st

one it finds in database)

• Unless an Itinerary is chosen for and assigned to an Order Release as a constraint, OTM will select the

first Itinerary it finds that is applicable

• Planning not synergistic

New Modeling Methods

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• Order Release Planning using multi-leg Itineraries with Network Routing Logic

• Order Release Planning using Network Routing and Network Legs

Of note:

• Recommended going forward

• With the proper modeling, anything accomplished with the Legacy Modeling

Methods for multi-leg planning can be done with Network Routing

• Overcomes mentioned Legacy Method limitations

• Routing is done considering all Orders involved in the optimization run

• More flexible network definition (entire network on 1 Itinerary Leg) which requires less

Itineraries

– Each Lane in the network is a Network Leg

• Offers more control at the Leg Level using Leg Consolidation Groups

• Handling Time and Handling Costs can be considered during the routing process

• Will be enhanced going forward

Network Routing Advantages

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Network Routing Concepts to be Addressed

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• The Network Routing functionality will evolve and be enhanced over time

• In the future, these concepts will be addressed:

– Location Capacities

– Asset or Power Capacity Limits

– Staged Planning improvements

• The ability to plan Order Movements as originally defined OR to re-route

the Order Movement during the journey based on other Movements

involved in the solve

Conclusion

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• Recognize that the problem is a difficult one

• Clearly defining the Business Case and problems you hope to solve (using diagrams) should be

done prior to modeling

• Network Routing is the recommended approach for multi-leg problems

• Network Routing can accomplish anything that the Legacy Modeling Methods could accomplish

• Network Routing overcomes some key Legacy Method limitations

• Multiple multi-leg problems can be addressed and modeled using OTM’s Network Routing Logic

Tip: when you need suggestions on how a problem can be modeled or find what appears to be a

gap, communicate your Business Case to the Oracle Dev Team