OTM SIG Americas Quarterly Call

Panduit OTM Implementation

April 26, 2016 11:00 EST otmsig.com

OTM Implementation Tom Meisinger (tjme@Panduit.com) and Adam Stibitz (acs@Panduit.com) - Global Logistics 2016

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Panduit Overview

Panduit delivers comprehensive infrastructure solutions to help customers achieve operational and financial goals. Panduit is known for quality

products and innovative technological leadership combined with a strong international group of partners.

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About the Company

§  Independent, financially sound leader since 1955 §  Over $1B in annual sales §  At least 8% annual investment in R&D §  Operations in 35 countries, serving customers in 120 countries §  5000+ employees worldwide §  Over 4,000,000 ft2 of manufacturing and warehouse capacity

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Global Logistics

USA

China

Singapore

Romania

CostaRica

Mexico

Netherlands

Chile

UAE

Japan

Australia

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How is this different from what we currently do? - Prior State

§  Operational inefficiencies and high costs become major hurdles in global freight distribution.

§  Panduit was incapable of optimizing freight management.

•  Minimal shipment consolidation •  Limited visibility to global shipments in transit. •  The freight settlement process is time consuming and relies heavily on human

intervention. •  No freight analytics

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How is this different from what we currently do? - Current State

§  The OTM module provided us a single platform to manage all transportation activities throughout our Supply Chain network.

§  Components:

–  Planning and Execution –  Shipment Visibility –  Freight Settlement –  Transportation Intelligence

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DistributorDistributor

PresentState FutureState

Parcel/SmallPackages

LTL/PalletFreight

ConsolidatedShipment

OTM Transformation

Visibility

Analy4cs

FreightInvoicing

CurrentStatePriorState

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Deliveries

PlannedShipment/Trip

OracleEB

S11.5.10.2

WMSOM Carriers

ItemMaster

Loca9onMaster

ActualShipment

PaymentVoucher

ShipmentPlanning

ShipmentExecuEon

Visibility

FreightSeJlement

Dashboard

OTMCloud

ShipmentNo9fica9on

TenderOffer(email/pos9ng)

TenderResponse(WebPortal)

ShipmentEvent(WebPortal)

Invoice

ShipmentEvent

EDI/EDIFACT

Integration

EDI/EDIFACT

EDI/EDIFACT

LTLRa9ng SMC/CzarLite

PCMilerTLMileage

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DeliveryCreationSO

AOr

acleE

BSOT

M

OracleEBSR11andOTMv.6.3.4.1

OrderBooked

OrdersscheduledandpassedthroughPOF/reservationchecks

DeliveryAssignment

DeliverySenttoOTM(concurrentprogram

schedule)

DeliveryReleaseSent

Delivery(Order)AvailableforPlanning

OrdersarePlannedontoa

Shipment

PlannedShipmentSent

EBSTripCreated PickReleaseForm

ReleasedtoWarehouse

ShipmentActuals

UpdateShipmentActuals

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Project Timeline/Schedule Plan

§  TheMexicoandNetherlandswarehousesweredeployedinfor4thquarterof2015.

Month April MAY JUNE JULY AUGUST SEPT OCTOBER NOVEMBER DECEMBER

Week 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Analyze/Assessment

4Weeks

Design 2Weeks

Build 10Weeks

Test 3Weeks

Train(UAT) 2Weeks

RegressionTesOng

6Weeks

Cut-Over/Support 2Weeks 2Weeks PostSupport

MXW ECW

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NLW MXW

NLW and MXW OTM Planning and Operations

§  Go-Live date was Nov. 2, 2015. §  Bulk plans twice per day to

accommodate Parcel and LTL §  1800 lines processed daily. §  CS cut-off time is 3:00pm and

warehouse cut-off time is 4:30pm. §  Carrier communication via EDI. §  Carrier coverage is currently

segmented by country. §  Palletization

§  Go-Live date was Oct. 19, 2015. §  Bulk Plans once per day at 4:30pm

to build multi-stop shipments. §  500 lines processed daily. §  CS cut-off time is 3:00pm and

warehouse cut-off time is 4:30pm. §  Carrier communication utilizes a

portal in OTM. §  Carrier coverage is not segmented. §  Dock Door Assignment

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Project Timeline/Schedule Plan

§  TheUSAwarehouse(DK)deploymentissloWedfor3rdquarterof2016.

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OTM Benefits

§  Optimize freight spend –  Consolidating shipments reaped a benefit of reducing spend by 15%.

§  Enhance shipment visibility –  Reduced expedites through improving visibility and proactively

identifying alternative method of transportation. §  Automate Freight Settlement

–  Reduced overhead by 20% through automating the freight payment, billing, and audit.

§  Streamline Logistics Dashboard –  Reduced procurement spend, by 10%, through leveraging data

analytics.

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Lessons Learned (Mexico and Netherlands) §  EBS – OTM Integration

–  EBS Shipment Outbound Process, SOA Failures, EBS R11. §  User Acceptance/Adaptability

–  Challenges with dealing with ambiguity/change –  Management understanding/commitment

§  Go-Live –  The deployments time, between Mexico and Netherlands,

needed a greater buffer –  Setting expectations

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Key Takes:

§  Assess the cost benefit of Cloud vs. On-Premise §  Select an SI partner with insight and expertise. §  Establish a strong project team

–  Complemented by a adept project manager §  Obtain commitment from Stakeholders §  Assess the existing state in respect to the ERP suite/foundation §  Timeline agility/flexibility §  OTM is ubiquitous in impacting the entire value chain

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OTM Roadmap

§  Deploying USA warehouse §  Evaluate Inbound Raw Material §  Assess future location §  Assess the benefits of other OTM components

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Panduit OTM Awards

§  2016 Oracle Excellence Award for Supply Chain, Logistics §  2015 Inspirage Innovation Partner of the Year §  2015 Panduit Process Improvement Project of the Year

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Core Project Team Members

§  Tom Meisinger, Global Logistics Planner §  Sam Hanieh, Global Logistics Manager §  Gurpreet Sidhu, Manager Solution Architecture Inspirage §  Adam Stibitz, Global Logistics Systems Specialist §  Katherine Fisher, Logistics Analyst

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Questions?