Oracle Transportation Management: Hong Kong Apps Day 2008.

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Oracle Transportation Management:

Hong Kong Apps Day 2008

Supply Chains Dynamics• Customer demands• Shrinking product lifecycles• Shifts in supply chain

strategies

Supply Chain Complexity• Globalization – longer supply

chains with more parties • Increased variability and risk

Supply Chain Cost Pressure• Need to lower unit costs

• Rising transportation costs

CarriersShippers Customers

Supply Chain Flexibility• React to business changes• New products, channels,

suppliers, customers

Logistics Service

Providers

Trends Impacting TransportationWhy transportation has become a top priority

Today’s Transportation Requirements

• Global scope• Complete supply chain – inbound materials,

finished goods, parts, etc.• Ship anywhere to anywhere• Truck, ocean, air, rail, etc.

• Optimization• Reduce / control transportation costs• Integrated planning & execution

• Multi-party collaboration• Suppliers, contract manufacturers• Carriers, 3PLs, forwarders, brokers• Process & system integration

• Manage by exception• Automate processes• Proactive resolution

• Flexibility• Adapt quickly to new supply chain requirements

and opportunities

• Over 45 customers using installations of the same product for leading:

• Logistics Service Providers

• Manufacturers

• Retailers

G-Log• Provider of Logistics Software• Single Transportation Product• 180 staff globally

• 48 Research & Development

• 55 in EMEA & AsiaPacNovember 2005 Bought By

Customers

Retail

LogisticsService

Providers

Manufacturing

High PerformanceTransportationOptimization

Global TransportationCollaborationand Execution

Logistics Automationwith ExceptionManagement

Complete LogisticsNetwork Visibility

Global, Local, andCentral Logistics

Management

Oracle Transportation ManagementProvides…




Complete LogisticsNetwork Visibility*

*Currently re-implementing analytic capabilities using Oracle technology



Management

- Container and trailer optimization & configuration- Shipment assignment, stringing & continuous moves- Fleet sizing & assignment (execution, strategic)

- International shipping- Facility resource balancing- Bid collaboration and optimization

Support a Wide Range of Optimization Needs

• Route

• ModeOptimizedDecisions

• Timing

• Equipment

• Multi-Leg Multi-Mode Consolidation

• Common Leg Consolidation

• Multi Stop Consolidation

• Multi-Tier Networks

• LTL Consolidation

• Continuous Moves

Algorithms

• Consolidation

• Service Provider

Engines& Rules

• Service Time Calculation

• Container Optimization

• Itineraries & Profiles

• Resource Capacity

• Throughput

• Rating

Shipment Planning & OptimizationMaximize Fulfillment Service, Minimize Transportation Costs

• Dynamic Routing &Consolidationthroughout Network

• Intermediate Facilitiesfor Consolidation- Consolidation pools

and cross-docks

• Dynamic Optimization- When to use pool vs. by-pass- Consolidation from pool

• One order can involve multiple shipments, parties, and modes

• Optimization can be performed for unlimitedlegs and modes

SupplierSupplier

ConsolidPool

ConsolidPool DC 1DC 1

Mul

tiple

Ord

ers

SupplierSupplier

SupplierSupplier

DC 2DC 2

Consolidated Multi-Stop Shipment

DCDCPortPort PortPort

China – US Order

(Guangzhou) (Chicago)(Hong Kong) (Los Angeles)

SupplierSupplier

Example: Multi-Tier Distribution

Example: Multi-Leg, Multi-Mode

Shipment Planning & Optimization

ConsolidationConsolidation

Leg-specific Leg-specific shipment & order shipment & order

informationinformation

• Multiple modes Multiple modesMultiple modes

Multiple nodesMultiple nodes

Highly Graphical Display of Results Relate Optimization Results to Actual Execution








Management

Review &Approve Shipment

Message: Picked-up

TenderAccept Tender

Pick-up Transport Deliver

Message: En route

Message: Delivered

YourCompany

ServiceProvider

Transportation ExecutionTightly Link Your Processes with Service Providers

• Intermodal Support: Ocean, Air, LTL, TL, Rail

• Electronic and Internet communication

• Share forecast, tender shipments, shipment status, delivery confirmation

Example: Auto-Pay

Example: Match-and-Pay

Carrier

Proof of Delivery

Voucher for Rated Amount

Payment forRated Amount

Carrier

Invoice Alert user if no match is found

Alert user if amounts are out of tolerance Voucher for

Approved AmountPayment for

Approved Amount

Automated Payments and Settlements

APSystem

APSystem

Find shipmentmatching the invoice

Compare invoice amountwith OGL calculated amount

If amounts are within defined tolerances, approve invoice

Create invoice

Auto-match

Auto-approve

Transportation Management

Supplier

CustomerReceiving

LSP Cross-DockLSP Regional DC

LSP On-siteCoordinator

Pickconfirmshortage

Shipconfirmshortage

Ship confirmation Route & PUS data

• Send pick confirmation• View PUS• Confirm ship quantity• Generate bar code labels

PUS = Pick-Up Schedule

• Review shipment status• Cross-dock manifesting• Status updates

CustomerMaterialsControl

• Request pick-up• Raise supplementary PUS• View PUS status

• Allocate equipment• Review shipment status• Control execution• Shipment management• Linehaul manifesting• Status updates

• Maintain fixed route data• Plan daily fixed routes

• Enter supplementary PUS• Append supplementary to planLSP

Planner

= Flow of information= Flow of goods

Example 1Example 1

Example 2Example 2

Alerts

Seamless Trading Partner CollaborationExtend Capabilities to Service Suppliers & Customers



Logistics Automation

with ExceptionManagement





Management

• Establish business rules… Arrive at port 24 hrs prior to scheduled departure

• Monitor activities…Container arrives at port

• Assess activities…arrived at port 5 hrs prior to departure

• Take action…re-run model for feasibility of on-time delivery

Evaluate changes in business environmentand automatically take

appropriate actions

Wor

kflo

w-D

riven

…Replacedby…

Manual,error-prone

processes…

Manual,error-prone

processes…

…Configurable automation

Business Process AutomationEliminate Time-Consuming, Error-Prone Processing

OEM Plant Dealer 1

Order: 1 VIN

Dealer 1

Dealer 2

(Yokohama) (Los Angeles)OEMPlant

PortPort PortPort

Alert! … Delayed in customs

Automated Action …Split shipment of vehicles

Alert! … Dealer msg “Partial Ship”

Automated Action … 1) Order and routing change2) Expedite replenishment order

• Receive Proactive Notifications and Rapidly Adjust to Unforeseen Delays

• Utilize Event Management to Trigger Automated “Corrective Action” Flows

A Simple Order…

…Really Looks Like This

Example: Vehicle Distribution Mgmt




Complete LogisticsNetwork Visibility



Management

Business Intelligence

Fusion Transportation

Intelligence

Separate Dashboards for KPI Groups

Brown Shoe

Brown Shoe

• Brown Shoe – Key Facts• Founded in 1878• Revenue - $1.9B in 2004 - 71% retail, 29% wholesale• No. 1 footwear chain in US – Famous Footwear• No. 1 supplier of shoes to the mass market.

• Supply Chain – Logistics Network• 65 million pairs sourced each year, sourced from Brazil, Italy, China,

Hong Kong, Taiwan, Indonesia and Mexico.• Multiple modes – LTL, TL, intermodal, parcel, ocean, drayage, air• Multiple DCs in US for stores and retail customers• Famous Footwear - 900 stores, Naturalizer – 400 stores;

International Inbound Business Drivers

• Inventory• Need for earlier visibility of all international inbound from CHN, BRA,

ITA• Problem -Inbound visibility originated @ domestic port of discharge

• About 2 to 3 weeks after product was shipped from the overseas factory – missing 2 weeks of inbound visibility

• Need in-transit inventory planning and control• Problem - No visibility and no way to expedite and/or divert in-transit inventory

• Transportation/Logistics• Need self-serve web enabled tools to answer “where is it?” queries• Need tools for ocean contract compliance• Need tools for “on-line” DTD routing/rating guide

• Ocean rates (BAF, CAF, Inland Arbs), schedules (carrier, vessel and voyage rotations)

ReceivedCFS

PO‘open’ status

ShippedEn-route

Booking‘ Ready to Ship’

Buyer Suppliers

Order Management

850 PO

Production dates

MSB datesProactive

alerts

Booking response times

Conditional bookings

300 Bking Req 304 SI

Ocean Carrier

Freight Forwarder

301 Bking Conf

Freight Forwarder

Suppliers

FCR

856 ASN

Approved RTS not received

ClearedTendering

En-route Settlement

Customs Cleared/Hold

Freight AvailableTendering

response times

Customs Rec. Agent

Cleared204 Offer

Dray Deconsolidation

Customs

Dates (NLT)Items - Style, color, size,

widthQuantities –

#Pairs, #Cartons

Suppliers Freight Forwarder

RTSPre-ASN

RTS Approval

PU CFS In-Gate POL

Lift to Vessel Vessel Sail

Vessel @ POD Container Discharged

Packing list

ContainerManifest

Freight Forwarder

Ocean Carrier

315 Status310 OBL

Inland Carrier

ApptScheduling

990 Accept214 Status

Appt madeEn-routePOD DC

Empty Available

DC Operations

YMSWMS

In GateUnloadedAvailable

Invoice received

Match status

TolerancePaid

Invoices

Freight Payment

AP

210 Invoice

ConsolidationCFSCHN

Factories

Port CNSHA

Port USLGB

1 CBL 2 Containers

Dray

ConsolidationCFS

Deconsolidation

CHN Factories

Style, Color, Sizes, Widths# Pairs, # of Cartons

Port CNSHA

Port USLGB

1 CBL 2 ContainersVessel

DrayTL

Customs

CHN Factories

Buyer Suppliers

Order Management

850 PO 300 Bking Req 304 SI

Ocean Carrier

Freight Forwarder

301 Bking Conf

Freight Forwarder

Suppliers

FCR

856 ASN

Customs Rec. Agent

Cleared204 Offer

Freight Forwarder

RTSPre-ASN

RTS Approval Packing

list

ContainerManifest

Freight Forwarder

Ocean Carrier

315 Status310 OBL

Inland Carrier

ApptScheduling

990 Accept214 Status

DC Operations

YMSWMS

In GateUnloadedAvailable

Invoices

Freight Payment

AP

210 Invoice

CHN Factories

Port CNSHA

Port USLGB

1 OBL 2 ContainersVessel

DrayTL

Customs

DC

Exel Logistics• Exel – Key Facts

• £5.1B Revenue, 120 countries (Europe 52%, Americas 36%, Asia 12%)

• Customer Markets: Technology 25%, Consumer 22%, Retail 16%, Automotive 11%, Chemical 7%, Healthcare 5%• Integrated supply chain focus

• Transportation management• Warehouse management• Integrated logistics services

• 67,000 employees• With acquisition of Tibbett & Britten largest contract logistics LSP

worldwide• G-Log relationship began with a TMS swap out @ Mark VII (now Exel

Transportation)• Additional license for global SCI (Supply Chain Integrator)

replacement

• SCI within Exel• Helped sell contract logistics• Provided clients with a consolidated view of freight flows and inventory on the

web• Exel challenges in maintaining SCI

• Limited flexibility to support multiple supply chain partners across different operations with diverse business requirements – difficult to on-board new clients

• Modifications required to support operations across multiple geographies, different modes, currencies & time zones – high cost of ownership

• Not a global platform / data model difficult to manage high volumes and multiple users across many enterprises in a single environment – platform did not scale

• G-Log selected to replace SCI with SCI2• Flexible/comprehensive global product footprint• Global multi-modal data model• Scalable multi-tenant architecture• Global support for addresses, UOMs, currencies, time zones, number formats,

date formats• Double byte language support

Exel SCI and SCI2

SCI2 Visibility

Order VisibilityOrder VisibilityPurchase Order/ASNPurchase Order/ASNDates/Quantities/SKUDates/Quantities/SKU

PO/SKUPO/SKU

Inbound VisibilityInbound VisibilityShipment StatusShipment StatusPU/En-route/PODPU/En-route/PODPO/SKU/ShipmentPO/SKU/Shipment

On-Hand VisibilityOn-Hand VisibilityWMS SKU TransactionsWMS SKU TransactionsQuantity On-hand/StatusQuantity On-hand/Status

SKU/StatusSKU/Status

Outbound VisibilityOutbound VisibilityShipment StatusShipment Status

Dispatched/ConsumedDispatched/ConsumedPO/SKU/ShipmentPO/SKU/Shipment

Manufacturing Suppliers Warehouse 1 Carriers

Manufacturing Suppliers Warehouse 2 Carriers

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Oracle Transportation Management: Hong Kong Apps Day 2008.

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