Transportation Track and Trace Solution at Electrolux
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Transportation Track & Trace 2016 OTM Conference Europe - Malmö, 3-5 FEBRUARY 2016
Agenda
Electrolux and OTM High Level Intoduction –Chris&anBolander,EMEAIT-BusinessProcessDesignManager,Transpora8onSolu8ons.
Track & Trace, business case and challenges -AndreaBino1o,EMEALogis8csOpera8onProcessOwnerPrimaryTransporta8onandSpecialProjects
Track & Trace, Technical Solution –GiuseppeDeVincenzi,EMEAITSolu8onArchitectTranspora8onSolutons.
Q & A
1. 2. 3.
1. Electrolux and OTM - High Level Intoduction
Electrolux and OTM High Level Intoduction –Chris&anBolander,EMEAIT-BusinessProcessDesignManager,Transpora8onSolu8ons.
Track & Trace, business case and challenges -AndreaBino1o,EMEALogis8csOpera8onProcessOwnerPrimaryTransporta8onandSpecialProjects
Track & Trace, Technical Solution –GiuseppeDeVincenzi,EMEAITSolu8onArchitectTranspora8onSolutons.
Q & A
1. 2. 3.
Electrolux Group
Net sales SEK
112 bn
Sales in
150 countries
People
61,000 in 60 countries
Products
+50 million
Four trends will impact the appliance industry in the coming years
Industry Consolidation • Few global players • Local relevance • Global scale: strength
Consumer Power • Power shift • Consumer experience
Digital Transformation • Digital commerce • Connected home • Consumer journey
New Landscape • New middle class • Adjacent products • New global competiton
Geo-political: macro-economic uncertainty / turbulence
Electrolux and OTM Journey – Key Milestones
7 0 0 2 8 0 0 2 LaunchProjectGLOG PrimaryTransporta8on.
• OceanAPAC,EU&NARDCRoad.
9 0 0 2 Start:Implementa8onPrimaryFlowsEMEA
StartImplementa8onofOTMSecondaryTransporta8onEMEA
0 1 0 2 3 1 0 2 EndEUPrimaryFlowimplemented.
4 1 0 2 EndSecondaryTransporta8onEMEA20+Markets.
6 0 0 2 AirTransport&OceanEU/LATAM
AreaswhereOTMhavebeenorisused
Enterprise Structure – Acting in a complex environment
OTM
Manufacturing
External Parties
SOP
Customer B2B
Warehouse Systems Legacy
ERP Warehouse
Business Intelligence
Track & Trace
• OTMhandlesPrimary,Domes8candOverseastransporta8onover31countriesintheworld.
• OTMsupportsinputfrommul8pleapplica8onsacrosstheOrdertoCashandSupplychainlandscape.
• OTMisconnectedtomul8ple3PLsolu8onsrangingfromtenderandbookingtoTrack&Trace.
• ForEMEA90%ofalltransportop8ons(modes&equipmenttypes&carriers&rates&lead8mes)aremanagedinthesamecentraltool:
• OTMautoma8callyselectsthemostop8mal(i.e.costvs.lead8me)transportsolu8onfortheneeds(i.e.ordervolumesanddates)
• Improvecomplianceintheuseofcontractedcarriersandcentralizedcontroloftransporta8onflows
• Allowsconsolida8onofshipmentsacrossallsourcesanddes8na8ons(e.g.mul8-pickandmul8-drop)
Main Scenarios & Functionalities:
Commonly Used Functionalities* • DockScheduler• ShipmentSplit• Track&Trace• AutomatedTenderAccept/Reject/Retender• AdvancedRa8ngandAccessorialsflexibility
• AutomatedPlanningbasedonproduct/customerandcarriercriteria.
• CombinedCrossDockandconsolida8onfromserveralsourcesandsequen8aldrops
* MOST FUNCTIONALITIES ARE STRONGLY ALIGNED WITH THE PARTNER APPLICATIONS ALLOWING FOR AN EFFICIENT TRANSPORT MANAGEMENT PROCESS IN OTM.
Key Success Factors: 1. Strongcollabora8onwithSectorstakeholders.2. Processdrivenchangesfromstragetytoenduser(endto
enddriven).
Key Challenges: 1. Localstakeholderbuyintodrivechange2. BusinessProcessChangeManagment.
Primary Transportation: • Replenishmentflows–Road/Rail• MaketoOrderflows–Road/Rail/Ocean• OEMflows–Mul8modal
Secondary Transportation: • InhouseLogis8csmanagment• OutsourcedWarehousing• OutsourcedTransporta8on• CustomerSpecificSolu8ons
2. Track & Trace, business case and challenges
Electrolux and OTM High Level Intoduction –Chris&anBolander,EMEAIT-BusinessProcessDesignManager,Transpora8onSolu8ons.
Track & Trace, business case and challenges -AndreaBino1o,EMEALogis8csOpera8onProcessOwnerPrimaryTransporta8onandSpecialProjects
Track & Trace, Technical Solution –GiuseppeDeVincenzi,EMEAITSolu8onArchitectTranspora8onSolutons.
Q & A
1. 2. 3.
Challenges and Targets
§ Goodissuedate/8meisknown(shippingdate)–real8me
§ OriginalExpectedarrivaldate/
8meisknown(fromtheorder)–real8me
§ Arrivaldate/8meisknown–noreal8me,usuallysomedayslater
§ Arrivaldate/8meisstoredonlyinthePOD,nodatabaseavailable–noenquirydatabase
§ Notraceabilityofeventsduringthetransit.
Informcustomerspro-ac8velywhenETAchanges
Understandourreliabilitytothecustomers
Measureourserviceproviders
Current Situation: Limitedvisibility
Target: ProvidevisibilityofthegoodsintransitbetweenElectroluxandCustomer
Main Scenarios 1:2 - Factory Distribution
Track and Trace: “Geofencing”
• Arrival8meiskeyforadirectcustomer
• Delayonarrivalusuallytriggerpenal8es
• Longdistances(days)
• GPStechnologyavailability
DirectDeliveriesfromFactorytoDistribu8onCenterDirectDeliveriesfromFactorytoCustomer
Main Scenarios 2:2 - Regional Distribution
B. Direct Deliveries from Regional Distribution Center
Track and Trace: “Event driven”
• Lessprecisionneededonarrival
• Shortdistances(somehours)
• NoGPSavailability
DirectDeliveriesfromRegionalDistribu8onCenter.DeliveriesfromRegionalDistribu8onthroughPlaaorm/Crossdocking/DoortoDoor
Track and Trace - Factory Distribution - Geofencing
GPS functionality through carrier’s transponder: • Trucksposi8oning• Keyloca8onsstatusupdates• Alertsandno8fica8ons• Performancerepor8ngandsta8s8cs
GPS conveyed through 3rd party service provider
Activated for major European customers (2015)
Extension to additional 70 destinations (2016)
GPS Monitoring always start at ETP-3h and continues until goods reach customer.
E.g.FDCPickup,ArrivalPort,DeparturePort,Arrivalcustomer.
Track and Trace - Regional Distribution - Event Driven
Direct interfaced to carriers via EDI or web OTM
Track and Trace is “event driven”: • ForeveryeventtheCarriersendsaReasoncode,andStatuscode.• Eventmeans:o achangeofthestatusofthedeliveryo achangeofthereasoncodewithinthecurrentstatusofthedelivery
• Carrierhastoassignastatusandreasoncodeateachdeliveryandsendto
Electroluxlatest2hoursacerthe“event”hasoccurred
Target: tocoverallMajorAppliancesDistribu8oninEuropebyend2016
Track and Trace - Main challenges
• Track and Trace Factory Distribution Ø AvailabilitytoshareGPSsignalwithathirdpartyproviderØ AvailabilityoftheGPSsignalforthefulltripØ Spotbuy/subcontractorscarriers
• Track and Trace Regional Distribution Ø Conversionofthecarrier’sstatus/reasontoElectrolux’sonesØ Conversionofthecarrier’sinputformatintoElectroluxEDIformatØ ReluctancefromcarriersnotyetenabledtosupportT&TØ Frequencyofdataexchangeintheday
Track and Trace Benefits
ü Providescompe88veadvantagesinTransporta8onandimproveabilitytoservicecustomers
ü Allowsthecustomerclerkandtransporta8onplannertohavethefullvisibilityaboutthedeliverystatusintheshortestreasonable8me
ü Allowsthemeasurementoflogis8csperformancesaccordingtothedeliverydate
ü Allowsthemeasurementofthecarrierperformances(POD)
ü Makesevidenttheresponsibilityofashipmentdelaytotheinvolvedactors/events
ü Customerpenal8esbeherundercontrol(poten8alreduc8on)
ü BehercontrolofDemurrages(poten8alreduc8on)
Track and Trace Next Steps
• Calculation of the new ETA (Estimated Time Arrival)
• Connectivity to SAP BI to improve strategical view
• Connectivity to B2B portal
• Connectivity to Claims management system
• Improve the operations reports
3. Track & Trace, Technical Solution
Electrolux and OTM High Level Intoduction –Chris&anBolander,EMEAIT-BusinessProcessDesignManager,Transpora8onSolu8ons.
Track & Trace, business case and challenges -AndreaBino1o,EMEALogis8csOpera8onProcessOwnerPrimaryTransporta8onandSpecialProjects
Track & Trace, Technical Solution –GiuseppeDeVincenzi,EMEAITSolu8onArchitectTranspora8onSolutons.
Q & A
1. 2. 3.
Track and Trace messaging
Primary Distribution:
• ShipmentStatusXMLviaOracleQueues
Secondary Distribution
• ShipmentStatusXMLviaOracleQueues
• WebUI
Available Input Formats:
• XML
• FORTRAS
• WebUI
Geofencing lat/long in Primary Distribution
Acertenderprocesshasbeencompleted,carriersstartregistra8onoftheirbookingdataintothegeofencingsystem.ItwillupdateElectroluxTMSwithlatandlongposi8onsatcertain«pointsofinterest».Italsoexecutesa«thirdparty»valida8onfortruckposi8ons.
GPS Event Milestones
TrackandTraceGPSmilestonesandahributesusedintheEventGroup
ShipmentStatus XML
UI monitor and most relevant informations
TrackandTraceindicatorisacombina8onofmilestonestatusandGPSsignalatthemilestone.
Usage of the Map
Track and Trace status events in Domestic Distribution
• Shipment Events • Transporta8onEvents• Deliverydelays• POD
• Order Release Events • Damages• Claims• Failures• Refusals
Order Release Incidents Registration
1. Trackingatorderlevel2. Mul8plestatuseswithinthesame
order.3. Product/unitinforma8on
Shipment Events
Current and Future Utilisation of Track and Trace data
OTM
Sales Reports
Transport Planning
Reports & UI Screens
Warehousing OAQ, iDocs
BI Data
Warehouse
B2B Data
Warehouse
CRM Webservice
OTM
Manufacturing
External Parties
SOP
Customer B2B
Warehouse Systems Legacy
ERP Warehouse
Business Intelligence
Track & Trace
Application Landscape With OTM T&T Data Sharing
Example of T&T reporting
Example of T&T reporting
Q & A
Electrolux and OTM High Level Intoduction –Chris&anBolander,EMEAIT-BusinessProcessDesignManager,Transpora8onSolu8ons.
Track & Trace, business case and challenges -AndreaBino1o,EMEALogis8csOpera8onProcessOwnerPrimaryTransporta8onandSpecialProjects
Track & Trace, Technical Solution –GiuseppeDeVincenzi,EMEAITSolu8onArchitectTranspora8onSolutons.
Q & A
1. 2. 3.
Transportation Track & Trace Solution- Back up Slides 2016 OTM Conference Europe - 3-5 FEBRUARY 2016
Track and Trace Factory Distribution, Geofencing – Process overview
q GPS Monitoring always start at ETP-3h and continues until goods reach customer. The following check points are considered:
- ETP-3h
- FDCarrival(ElectroluxFactoryDistribu8onCenter=loadingpoint)
- FDCdeparture
- ETD+6h
- ETA-24h
- EUportarrival
- UKportarrival
- ETA-6h
- ETA-1,5h
- Arrivaltocustomer
Europe - Broad offering with significant market shares
Main brands • Electrolux • AEG • Zanussi
Innovative products • ProTex dryer • Sous-vide cooking • Masterpiece Collection • First AAAA-vac
~23,000 employees
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