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Agenda
• Today’s Challenges
• Best In Class Performance
• Achieve Best-In-Class Capability with OTM
• Questions
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Supply Chain Disruptions
• Global outsourcing, less predictable lead times, and vulnerability to supply chain shocks are the top challenges to manufacturers
• Other possible supply chain disruptions– Security threats to airports, ports and critical supply chain nodes– Natural Disasters– Port Disruptions– Aging and congested transportation infrastructure
• Accenture study found 73% of companies have experienced a disruption in the last 6 years
RSAG Research
How Do You Respond?• Increase agility needed for flexible execution • Utilize intelligent alerts that provide notification to adverse events• Perform what if analysis to evaluate alternate shipment methods, routes
and develop contingency plans for supply chain disruptions
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Limited Visibility & Manual Processes
Shippers Carriers Customers / Suppliers
ExecutionPlanning
Multiple,Non-Integrated
SystemsManual Processes
Warehouses / 3PLs
Fragmented Communication and Visibility
Fragmented Visibility to Shipments and Manual Labor Intensive Processes Results in reactive issue resolution that increases the need for expedited shipments
How Do You Respond?
• Automate manual tasks and proactively monitor shipments and manage by exception
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Increasing Customer Expectations
“Effective transportation management involves overcoming a host of real challenges and ever increasing customer expectations for smaller and more frequent delivery times.”
Aberdeen
Customers want increased global order promise accuracy
How Do You Respond?• Utilize a Transportation Management System to manage
more frequent deliveries with consolidated shipments• Increase visibility to shipments in order to improve lead
time reliability and reduce inventory levels• Allocate freight costs to orders to gain visibility to customer
profitability
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Volatile Fuel Costs
Primary component of freight cost has more than quadrupled in the last 6 years and nearly doubled in the last year
How Do You Respond?
•Consolidate and
optimize freight
•Mode shift and consider alternative routings
•Re-evaluate your supply chain network
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Green Initiatives Impact
How Do You Respond?Institute sustainable transport policies • Measure and Reduce your Emissions • Use more environmentally friendly logistics providers• Optimize your routing and consolidate freight to reduce miles driven• Automate tasks and communications to reduce paper consumption• Enact energy conservation strategies (Reduce, Re-use and Recycle)
Key Drivers of Green Initiatives (2008 eyefortransport Green Transportation Report)
• Desire to Improve Customer and Public Relations• Want to Decrease Fuel Costs• Part of their Corporate Responsibility Agenda• Financial Return on Investment (ROI)
“Both competitive pressure and marketplace perceptions will drive every major company to factor sustainability into their supply chain equations”
Inbound Logistics
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Impact of Challenges
• Supply chain disruptions • Limited visibility and
manual processes • Increasing customer
expectations• Volatile fuel costs• Green initiatives
• Supply chain disruptions • Limited visibility and
manual processes • Increasing customer
expectations• Volatile fuel costs• Green initiatives
SuppliersSuppliers
CustomersCustomers
Your Company
Your Company
Margin Pressure• Where can I
reduce costs?• How do I
differentiate my logistics offerings?
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Best in Class Performance
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What Are Industry Leaders Doing?
• Focus on maximizing profitability rather than just minimizing costs
• Make transportation decisions with overall supply chain performance in mind
• Access to timely and accurate data concerning their performance
• Utilize a Transportation Management System such as Oracle Transportation Management (OTM)
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Industry Leaders Performance
Definition of Best in Class• Top 20% of companies• Reduce freight spend relative to revenues year-
over-year• Greater than 97% on-time delivery performance• Achieve higher earnings (EBIT) averaging 14%
versus 6% for industry laggards• Possess a holistic view of their end-to-end
processes• Achieve better performance at lower costs
Aberdeen Group - Integrated Transportation Mgmt.
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Achieve Best-In-Class Shipment Lifecycle Capability with OTM
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Procurement Collaboration and Optimization
Oracle Global LogisticsOracle Global Logistics
Load ExecutionEnvironment
• Electronically sendout bid packages using real history, forecasts and actual orders
• Assess the financial impact of proposed rate changes before rates are awarded
• Evaluate multiple award scenarios based on cost, service and performance
• Automate transportation rate uploads into OTM
Your Company
Receive Demand
• Orders• Lane Forecasts Bid
Initiation
Quotes
Award Notice
Selected Carrier
Optimized AwardRecommendation
Bid Packet
QuoteAnalysis
Accept
Contract
Carriers
Solicit carrier bids, Optimize awards, Issue contracts
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Procurement Collaboration Bidding Results
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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• Plan both Purchase Orders for pick up & Sales Orders for delivery
• Quote freight options during order capture process
• Accurately promise deliveries based on inventory & transit times
• Allow routing guides to select carrier based on rules
• Allocate costs of complex routings to order lines & determine customer freight charges based on the allocations
• React quickly to changes in order sizes, cancellations, or delivery dates with rapid, continuous re-planning capabilities
Order Entry
• Freight Choices• Transit Time • Routing Guides
Logistics Order Management
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Inputs optimized for lowest delivered cost while accommodating business rules and constraints
Shipment Planning & Optimization
• Consolidate loads by leveraging pooling, cross-docking, or multi-stop routes• Streamline carrier selection & route optimization from item availability to final delivery
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Shipment Planning Results
• Planning results capture statistics such as total cost, weight, volume and distance
• Graphical view of results broken down by carrier and mode.
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Shipment Execution
• Automatically tender shipments eliminating delays from manual processes• Receive shipment status and delivery confirmation • Communicate with carriers through the internet, wireless device or electronically
Review &Approve Shipment
Message: Picked-up
TenderAccept Tender
Pick-up Transport Deliver
Message: En route
Message: Delivered
YourCompany
ServiceProvider
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Global In-Transit Inventory
• On hand as well as in-transit inventory visibility and management down to the SKU level
• Facilitates Vendor Managed Inventory (VMI)• Inventory data by supplier, owner, warehouse,
quantity on hand, aging and description• Employee, supplier and customer notifications for
changes in quantity on-hand or re-order points• Increases inventory reliability and reduces the
days of inventory on hand
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Supply Chain Event Management
• Agents automate business processes and notify involved parties to events
• Reduce non-value-added manual activities • React to potential issues - before they occur• Automate decisions where appropriate• Send proactive notifications• Monitor escalated issues • Utilize role based alerting so the right people are
notified of exceptions
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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OTM Reports and Documents
Reports• Activity • Carrier Delivery• Carrier Capacity• Carrier Commitment• Cost Savings• Event Reason• Freight Payment• In Transit Inventory• Inventory Visibility• LTL Trailer Building• Order Financial
• Planned versus Actual• Projected Late Orders• Purchase Order• Shipments by Carrier• Tenders Declined by Lane
Documents• Bill of Lading• Commercial Invoice• Packing List• Transmittal Letter
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Order-Shipment LifecycleOrder-Shipment Lifecycle
Performance & Performance & Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagement
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Freight Payment & Billing
Carriers
Financial System
Shippers /Customers
• Allocate coststo orders & order lines for billing
• Calculate profit margin for each shipment
• AR & AP Vouchers• Allocated costs
Invoicesonly for
additionalcharges
Pay based on actual shipment activity and contract ratesA
uto
-Pay
Payments Payments
Billsvia web
or integration
• Intra-company cost transparency
Automate Freight Settlement
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Streamline Processes
Shipment Shipment Planning & Planning & OptimizationOptimization
Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit
Inventory Inventory VisibilityVisibility
Procurement Procurement Collaboration Collaboration & Optimization& Optimization
Reporting &Reporting &Document Document GenerationGeneration
Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims
Performance & Performance &
Financial AnalysisFinancial Analysis
Supply Chain Supply Chain Event Event
MgmtMgmt
Achieve Best-In-Class Shipment Lifecycle Capability with OTM
LogisticsLogistics Order Order
ManagementManagementOrder-Shipment LifecycleOrder-Shipment Lifecycle
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Performance & Financial Analysis
• Key Performance Indicators based reporting• Quick visual status of performance such as:
freight cost per mode, cost per mile, trailer utilization and on-time arrival rates
• Drill-down into graphs for trend and variability• Monitor carrier performance and EPA SmartWay
progress• Analyze lanes that have high costs and target them
for improvement• Drives Continuous Improvement
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Monitor Goals & Improve Performance
Multiple dashboardsMultiple dashboards
Drill to transaction Drill to transaction shipment detailsshipment details
Weight shipped by Weight shipped by mode of transportmode of transport
Drill Into Details to IdentifyTrends and Variability
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TMS Value Proposition
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Transportation Cost Savings Forrester Research reports TMS savings of 8%year over year from the following benefits:
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OTM Sole Leader
• “Oracle scored the highest relative to its competitors across ground transportation planning, freight payment, multimodal transportation, product strategy and vision."
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OTM Leader in Gartner Report
• “OTM balances deep functionality with ease of use, which appeals to a broad array of customers.”
• “OTM provides credible and powerful capabilities across the TMS functional spectrum, with notable depth of functionality in international logistics for which global visibility is important.”
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COMPANY OVERVIEW
• World leader in the agricultural and construction equipment businesses
• $13B in revenues with 30 manufacturing sites and over 25k employees
• Products sold in 160 countries through more than 11k dealers and distributors
• Brought transportation operations in-house to reduce costs and increase visibility
SOLUTION• Live on Oracle Transportation
Management, future integration to SAP
RESULTS
• Lowered transaction, headcount, and carrier selection costs
• Improved visibility to suppliers, shipment data, freight rates & payments, damage claims, and dealer destination charges
• Retired legacy system in Europe
• Live in United States and Europe less than 6 months after selection
Case New Holland
CUSTOMER PERSPECTIVE
“CNH embraced an aggressive plan to insource its N. American logistics operation and gain control of its global inbound transportation within a year. With the partnership of Oracle and the implementation of Oracle Transportation Mgmt, this plan was successfully executed.”
-- Kathy Acker, IT Director
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In Summary: Transforming Transportation In Your Organization
Optimize and automate transportation processes utilizing OTM
Collaborate with carriers, suppliers and customers to create more economical processes
Benchmark metrics, establish objectives for success and monitor with OTM’s Transportation Intelligence
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Complimentary Assessment
Contact Emerging Solutions for a complimentary Transportation Value Assessment
Utilizes proven analytical tools and our extensive industry expertise to identify quantifiable improvements in your transportation operations and to your bottom line.
www.emergenow.com/transportation-assessment
Questions and Answers
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Additional Questions?
Contact
Brian Hamrock
www.emergenow.com