Oracle Transportation Management - · PDF fileOracle Transportation Management. Best-In-Class Solution Footprint *Currently re-implementing analytic capabilities using Oracle technology

OracleTransportationManagement

Keith IpDirector of SCM & Logistics

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40M audience

New Audience - High income

Rapid growth

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Musical & Dance

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Go Beyond Existing Requirements

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Agenda

Introduction to Oracle Transportation Management

Customer Cases

Value to our Customers

SCMLogistics Event

Agenda

Introduction to Oracle Transportation Management

Customer Cases

Value to our Customers

SCMLogistics Event

• Over 50 customers using installations of the same product for leading:

• Logistics Service Providers• Manufacturers• Retailers

Who is G-Log?• Provider of Logistics

Software• Single Transportation

Product• 180 staff globally

• 48 Research & Development• 55 in EMEA & AsiaPac

November 2005 Bought By

G-Log Corporate

1999

65175

50+

Founded

Customers

Employees

Development Staff

1 Product

What Analysts are saying about acquisition

Oracle's G-Log emerges from the TMS Forrester Wave as a strong overall force to contend with. G-Log's offerings are functionally expansive and solid, posting competitive rankings across ground, ocean, parcel, and air transportation criteria. Additionally, the vendor's strong market presence, owing to its acquisition by Oracle, and strategy moving forward uniquely position it to have a more well-rounded presence than competitors that are more apt to be leaders based almost solely on current offering. Forrester predicts that Oracle's G-Log will appeal to the user clamor for full functionality and vendor longevity.

http://www.forrester.com/Research/Document/Excerpt/0,7211,38614,00.html

OTM - Global DeploymentUS:•Advantage•BDP•Big Lots!•Brown Shoe•Soda•CRST•Deringer•DuPont•Family Dollar•FedEx•GE•Giant Eagle

Canada:•Alcan•Progistix

Mexico:•TMM

UK:•Exel•Tesco

Norway:•Elkem

Sweden:•Volvo

Finland:•UPM

Germany:•Karstadt-Quelle / Optimus•Vector•VfW

Austria:•Quehenberger

Switzerland:•DHL Solutions•Kühne + Nagel

Australia:•Toll Solutions

•Halliburton•IBS•Land O’Lakes•Newell Rubbermaid•Ozburn-Hessey•Rohm & Haas•Retail •Spiegel Group•Smurfit Stone•Supervalu•TLC•XPL

Belgium:•DuPont

Singapore:•DuPont•Exel

Recent additions in SE Asia:MILSBAXBluescope Steel

Recent additions in NA:GE HealthcareGrief BrothersLivingston International

Sample of Customer Base

Retail

LogisticsService

Providers

Manufacturing

Customer Examples

Transportation of paper products from mills to end customers

Visibility of shipments between manufacturing and field locations on a global basis

Transportation of consumer products to retailers

Outsourced transportation and supply chain visibility services

Transportation of finished goods and internal transfers on a global basis for all divisions

Transportation of products from suppliers to their distribution centers

OTM Use CaseCustomer

Global Control and Visibility Local Planning and Execution

Centralized Single System, Single Instance Maintenance and Execution

Single Platform Solution with Best-in-Class Functionality

Oracle Transportation Management

Best-In-Class Solution Footprint

*Currently re-implementing analytic capabilities using Oracle technology

Transportation Order Capture

Global Visibility

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)*

Freight Forwarding and Brokerage

Transportation Planning

Transportation Execution

Car

rier a

nd A

sset

Man

agem

ent

Coo

pera

tive

Rou

te P

lann

ing

Tran

spor

tatio

n So

urci

ngFreight

Payment, Billing and

Claims

PlanningLevel

ExecutionLevel

Dashboard Level

Across……the entire supply chain: from raw materials to point-of-sale…all roles: suppliers, planners, service providers, customers, management…all phases: before (planning), during (execution), after (improvement)

Manufacturer

Customer

Consolidator

Shipper

*Currently re-implementing analytic capabilities using Oracle technology

Complete Logistics Network Visibility

Agenda

Introduction to Oracle Transportation Management

Customer Cases

Value to our Customers

SCMLogistics Event

What Customers are Saying…“Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native

technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tescoto deploy the solution worldwide, whilst maintaining central controland administration.” -- Colin Cobain, IT Director

“We've enabled our buying organization to reduce the number of days between placing an order & receiving the order by 30%…Although I wouldn't say it's reduced

the number of exceptions in our supply chain, what it has done is made it easier to identify and manage exceptions.”

-- Bill Parry, Vice President of Logistics

“We’re able to take transportation information from Asia, move it all the way through to the US and trackit on the same system.”

-- Martin Neil, Chief Technology Officer

Corporate Details• 1802 Founding Year• 80,000 Employees• €20Bn Turnover (2003)• 18,000 Direct Customers• 135 Manufacture & Process Plants• 70 Countries• 15 ERP/OM systems. Multiple SAP’s and

Mainframe systems• $1.5B Annual Freight Spend• 1.2M Shipments per year, parcel to

FTL, multiple modes• 3kg-20T Order weights• >100 LSP No. of Logistics Service Provider

Challenges Before OTM:

• High transportation & logistics costs prevent margin improvement• High IT cost to maintain multiple mainframe logistics systems• Lack of real-time information for decision making• High safety stock inventory ($25M per day of inventory)• Lack of flexible system to support continuous changing logistics operations

DuPont Branding: Transoval

Facts about Transoval:• Selected OTM (formerly GC3) in May 2000• North American went live in Sept 2002• Followed by Go-Live in South America, Asia, and Europe• ~80% of DuPont logistics information resides in Transoval• Replace multiple legacy systems with 1 single, centralized, integrated

system• Collaborate with customer, suppliers, LSPs (>150)• Real-time visibility for proactive decision making (status, cost,

history)

DuPont: Benefits• Save tens of millions of dollars annually in transportation costs• Reduce inventory carrying cost by 5-10% (around 6 days of

inventory = $150M)• Replace multiple legacy mainframe systems with a Web-based

transportation mgmt systems which is less expensive to operate• 1% reduction in freight spend from optimization (~$15M/year)• Improve service level to customers and business units• Efficiency – handling 1500 shipment orders / weeks in Europe in

2004, doubling in 2005

“When we started we had 115 days of inventory. Today we have 109. We wanted to build a system that, when someone wanted to know something about logistics at

DuPont, there's only one place they can go.”

Jerry Reynolds, global manager logistics technology & processes, DuPont

’s Global LSP Network

Region Country LSPs Region Country LSPsAP Australia 1AP China 10 EU Europe 15AP Hong Kong 4AP India 7 LA Argentina 4AP Indonesia 3 LA Brazil 5AP Japan 15 LA Chile 1AP Korea 3 LA Colombia 2AP Malasya 3 LA Mexico 16AP New Zealand 1 LA Venezuela 1AP Pakistan 1 LA 29AP Phillipines 4AP Singapore 5 NA Canada 1AP Taiwan 2 NA USA 5AP Thailand 3 NA 6AP Vietnam 2AP 64

Challenges Before OTM

• Need to retire multiple legacy applications and replace with one single platform• No single view of goods in motion and goods at rest• Customers and supply chain partners on multiple systems• Need a single solution for existing customers, and cater for expanding customer base in U.S.

EMEA and Asia• Different customers, different business units, different modes and different systems. Challenges

in maintaining a standard system• Provide cost accounting for customers

Corporate Details• 74,000 Employees• €7.5Bn Turnover (2003)• 120 Countries• 1,600 Operating Locations• 70% Non-financial Global FTSE 250 Customers

• World’s #1 Contract Logistics Specialists• World’s #2 Airfreight Forwarder

Exel Branding: SCI2

Facts about SCI2:• 50+ customer contracts in a single global instance• 6,000 users in over 25 countries• 1m+ customer orders processed annually• 36m EDI messages processed annually• 56m shipment miles processed annually• 6.6m shipments processed annually• High availability

Exel: Benefits• Gain market share with more business as it now has the

functionalities to support various dynamic business models

• Replaced multiple legacy systems with one single platform

• All customers and supply chain partners now able to access through SCI2 – one single source that is web-native

• Visibility of goods in motion and goods at rest

“Powered by a single instance of the OTM software, Exel provides its customers with a consolidated view of freight flows and detailed stock-level inventory, as well as proactive supply chain event management alerts. With this unique ‘glass pipeline’

view of their entire logistics network, our customers are executing vendor-managed inventory programs with great success and making their respective supply chains

leaner than ever.”

Martin Neil, Vice President of Global Solutions

• €37B international retailer based in Cheshunt Hertfordshire, U.K.- 2,365 total stores throughout Europe and Asia selling 50K product lines

(food retailing comprises over 2,000 stores)- 367,000 employees throughout Europe and Asia- 5 years of consecutive earnings growth and profitability- Utilizes Oracle E-Business Suite for Financials and Procurement,

PeopleSoft Enterprise for HR, and Oracle Retail (Retek) for Merchandising

• Key Business Goals- Utilize factory gate pricing to reduce costs and gain complete control

of inventory from supplier to store shelf- Support the flexibility and scalability required by their expanding business

(e.g., 12.4% Revenue and 24.5% Profit Growth in 2004 alone)- Non-invasively integrate logistics management and key support systems to

minimise both internal and external IT resources- Utilize web-native technology to eliminate financial and technical adoption

barriers for supply chain partners- Deploy a “phase 1” solution within six weeks

“Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy the solution worldwide, whilst maintaining central control & admin. -- Colin Cobain, IT Dir.

• Live on Oracle Transportation Management (G-Log GC3)- Plans and executes factory gate pricing for 6,000 daily shipments (70% of

inbound freight) including the tracking of costs and performance service levels, order booking, and support for financial settlement

- Automated 95% of all inbound scheduling resulting in improved availability, reduced stockholding, and increased vehicle / trip utilization

- Automatically optimizes loads & manages communication with carriers- Eliminated EDI by enabling carriers and suppliers direct entry of shipment

details (e.g., appointment, pick-up, out-gate times)- Integrated demand (from order management system) and status (from

warehouse management system) with transportation logistics

Improved on-time deliveries by 14%Supports 24 / 7 shipping operation with 9 plannersReduced cost per case by 10-15% (£500M in distribution costs)

Challenges Before OTM

• > 1 million inbound shipments from more than 2,500 suppliers, with different systems, and Tescodid not have single view

• Their huge supplier base ranged from very small suppliers for whom technological implementation costs would be very high, to large suppliers who had their own legacy systems in place. Tesco needed one web-native solution that all of them could use.

• Logistics costs not optimized with multiple vendors sending small shipments using LTL – this resulted in very high transportation cost that was passed on to Tesco by the suppliers

• Tesco business was growing and they needed a single solution that was scalable for their expansion

Corporate Details• 296,000 Employees• €37bn Turnover (2003)• 2,291 Stores worldwide• > 50,000 Product lines• > 800 Convenience Stores• Largest UK retailer• Largest UK private employer

Tesco: Benefits• Improved on-time deliveries by 14%• Supports 24 / 7 shipping operation with only 9 planners• Reduced distribution cost per case by 10-15% (£500M in distribution

costs)• Automated 95% of all inbound scheduling resulting in improved

availability, reduced stockholding, and increased vehicle / trip utilization• Support the flexibility and scalability required by their expanding

business (e.g., 12.4% Revenue and 24.5% Profit Growth in 2004 alone)• Rapid deployment of solution for phase one – only 6 weeks – this

resulted in minimal disruptions to their business

“Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy

the solution worldwide, whilst maintaining central control & admin. --

Colin Cobain, IT Director, TESCO

Agenda

Introduction to Oracle Transportation Management

Customer Cases

Value to our Customers

SCMLogistics Event

RetailWarehouseManufacturing DistributionTransportation

Transportation Cost

10% 40%

Cost

BreakdownOn average, transportation cost accounts for 12-16% of cost of

goods sold

Manufacturing Cost vs. Transportation Cost

“Understanding Global Outsourcing” Dr. Joachim Jeller, Fujitsu Siemens Computers

Transportation Mgmt Opportunity

28.9%

42.1%

13.2% 13.2%

2.6%

0%

10%

20%

30%

40%

50%%

of C

ompa

nies

Res

earc

hed

1-5% 6-10% 11-20% 21-30% x > 30%

Companies with Annual Transportation Spend > $10 Million Source: The Logistics Institute at Georgia Tech

Savings Opportunity

Transportation Mgmt Solutions can Save Most

Companies 5-25%

What Customers are Gaining…Logistics Order Management

Shipment Planning & Optimization

Shipment Execution:Booking/Tendering, Status Updates, En Route Planning

Freight Payment/Billing

Supply Chain Event Management:Anticipate, Analyze, Resolve, Collaborate

Operational Reporting & Document Generation

Visibility:Global In-Transit Inventory Visibility

Analysis – Performance, Financial, Forecasting

• 5 – 50% Productivity Improvements• Reduced order processing costs & errors• 3 – 20% Transportation Cost Savings• 5 – 25% Expedited shipment reductions • 5 – 15% Capacity increase

• 5-50% Productivity Improvements• Reduced errors, increased loads per hour

• $0.20 per transaction vs. >$0.75• Improved cash-to-cash cycle times

• ½ – 5% Revenue Increase• Improved customer service• Improved customer retention

• 1 – 10 day inventory reduction• 5 – 25% safety stock reduction• 2 – 8% carrier contract reduction• Reduced IT development & support costs• Stronger supplier / customer relationships, improving margins

Critical to SuccessRegulation & Infrastructure

People

Management & Process

Transportation Management

Local Planning and Execution

Centralized Single System, Single Instance

Maintenance and ExecutionGlobal Control and Visibility

Executional

Transportation Logistics Solutions

Operational

Tactical

Strategic

Strategic Level:

Supply Chain Network Design

Logistics Modeling

Annual Bidding and Negotiation

With Logistics Service Providers

Transportation Planning

Scheduling

In-Bound & Out-Bound

Warehouse Management

Transportation Execution

Event Monitoring, Alerts

Optimize the entire network

For efficiency

Drive down the cost with

Strategic negotiation

Increase execution

Efficiency and

visibility

Optimize schedule for

Lower cost and feasible

plan

Impact of decisions

_

+

Length of Planning horizon

Num

ber o

f dec

isio

ns

+

_

Strategic Logistics Network Design

The solution: Strategic Network OptimizationModeled full truckload and LTL costs,

inventory handling and carrying costs, DC inventory capacity and loading dock capacity

The solution: Strategic Network OptimizationModeled full truckload and LTL costs,

inventory handling and carrying costs, DC inventory capacity and loading dock capacity

Decide the locations of DCDecide buying fleet or using LSPSelect the right Logistics Service ProvidersAnalyze the impact of currency appreciationIdentify the long term growth strategyCalculate ROI for new customers and new business models

Agenda

Introduction to Oracle Transportation Management

Customer Cases

Value to our Customers

SCMLogistics Event

16 – 19 October 2006, Singapore

Asia’s largest gathering of senior-level executives involved in global and regional supply chain issues

Is Proud To Be A Platinum Sponsor At

More than 50+ companies across the world will be sharing case studies on their supply chain challenges and issues at the event…including…

And of course…

Jon Chorley, Vice President, SCM Strategy, Oracle USA

Jasbir Singh, Senior Director, Supply Chain Applications, Oracle Asia Pacific

Saj Kumar, Director, SCM Product Solutions, Oracle ASEAN

John Murphy Director, Product StrategyOracle, USA

Keith IpDirector, SCM Product Solutions, Oracle Greater China

Maha Muzumdar Vice President, Global SCM,

Oracle USA

Eric van den Born

Solutions Architect,

Oracle EMEA

How To RegisterOracle will sponsor 25% of the cost of your

seat at the event. To register:

- Website: www.terrapinn.com/2006/scmlog

- Email: [email protected] and register <company name> - <oracle>

- Call: +65 6322-2701 and quote Oracle

WORLD’S TOP 5 CARGO AIRLINES

1)1) FedEx ExpressFedEx Express

2)2) UPSUPS

3)3) Korean AirKorean Air

4)4) LufthansaLufthansa

5)5) Singapore AirlinesSingapore Airlines

Sources: Air Cargo World, June. 2006.Sources: Air Cargo World, June. 2006.

WORLD’S TOP 5 AIRPORTS

1)1) MemphisMemphis

2)2) Hong KongHong Kong

3)3) Tokyo NaritaTokyo Narita

4)4) AnchorageAnchorage

5)5) Seoul Seoul IncheonIncheon

Sources: Air Cargo World, July. 2005.Sources: Air Cargo World, July. 2005.