The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies Presented By Exel and MavenWire Terrell Brown and Samuel Levin June 22, 2009
The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies
Presented By Exel and MavenWire Terrell Brown and Samuel Levin
June 22, 2009
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• Exel Company Overview
• Exel Glog/OTM History
• Customer/Domain Structure Overview
• 9 Years of Challenges
• Success Criteria for Deployment of OTM
• Outsourcing History
• MavenWire Model
• MavenWire Key Successes, Challenges, and Lessons Learned
Agenda
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A global player with strongly placed divisions...
Global Business Services (GBS) Finance, Insurance/Risk, Claims Mgt, Legal, HR, Procurement, Real Estate, IT Services, Claims Mgt
DP DHL 2008
€ 54B Rev € 2.4B EBIT
220 Countries 500K Employees
Germany Delivers mail to about
40mm households
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$4.6 billion turnover in 2007
$186 million EBIT in 2007
41,000 employees
Operations focused in six countries
Over 90 million square feet operated
Over 925 tractors, 3325 trailers and 370 straight trucks
Exel Supply Chain Americas
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• Six Industry Verticals: Retail, Consumer, Life Sciences, Auto, Chemical/Industrial, Technology
• Sector Leaders - Responsible for operations and sales in North America and market development in Latin America
• Latin America operations and sales are delivered by country management working with Americas sector leaders
• In addition, there are four product-based business units:
• Exel Transportation – Managed Transportation, Truckload, Intermodal, LTL, and Brokerage
• DHL Global Service Parts – service parts distribution
• Express Logistics – time critical fulfillment
• Exel Direct – an “in home” final mile delivery business
Exel Supply Chain Americas Structure
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Exel Transportation Business Segments & Service Offerings
• Network Brokerage Business – Network of over 90 Independent Business Owners (IBO’s) with national
coverage (plus Canada) – Nationwide network of 250+ sales representatives – Ad-Hoc and Contract Customers
• Managed Transportation – Classic 3PL Transportation Management – Customer Managed Operations – Customized solutions within multi-client Transportation Management Centers – Specialized Logistics (Hospitality Industry)
• Modes – TL – LTL, LTL Consolidation and Pool Distribution – Intermodal – International
• Canada & Mexico---domestic and cross border
• Rail & Rail Car Management programs
• Temperature Controlled Intermodal Fleet
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Exel Supply Chain Americas OTM History
• Exel Americas entered relationship with Glog in 2000
• First Customers implemented in 2001 – Started on version 2.5 – Upgraded to 3.1 in 2002
• OTM recognized as Global Strategic TMS Platform in 2004 – Upgraded to 4.0 in 2004
• Developed standard implementation model, processes, tools, and methodology
• Implemented 4.5 for new customers in 2005
• Upgraded 4.5 to 5.5 in 2007
• Migrated remaining 4.0 customers to 5.5 in 2008 and 2009
• Currently running version 5.5 CU3
• Certification of 5.5 CU5 in progress
• Exel Hosts OTM environment internally
• Exel controls all integration internally
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Customer Configurations Implemented
• Customer 1 (Chemical) – Bulk Planning (Buy no Sell) – Rate Preferences, – Execution, Track & Trace, Milestones – Actuals – Freight Pay in Process – Integrated with External WM, Carriers,
and Freight Pay Audit
• Customer 2 (Retail) – Bulk Planning (Buy No Sell) – Cross-dock Planning – Schedule based planning – LTL Trailer Building (Shipment Groups) – Integrated with Internal WM
• Customer 3 (Consumer) – Bulk Planning (Buy no Sell) – Majority TL and Intermodal some LTL – Rate Preferences – Execution, Track & Trace, Milestones – Freight Pay Integrated with Outsourced Audit – Integrated with External WM, Carriers and
Freight Pay Audit
• Customer 4 (Chemical) – Bulk Planning (Buy no Sell) – Outbound, Inbound, Returns – Dock Scheduling – Rate Preferences – Execution, Track & Trace, Milestones – Freight Pay Integrated with Outsourced Audit – Integrated with External WM, Carriers, and
Freight Pay Audit
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Customer Configurations Implemented
• Customer 5 (Mexico Chemical) – Bulk Planning (Buy and Sell) – Cross-dock Planning – Freight Pay with Internal Audit – Integrated with Internal WM
• Customer 6 (Mexico Consumer Consolidation)
– Parent/Child/Grandchild Domain Structure 40+ Domains
– Bulk Planning (Buy and Sell) – Cross-dock Planning across 40 domains – 8 Cross-dock locations (4 more by end
of year) – Custom Dispatch with Drivers License
and License Plate verification – Order Level POD – Integrated with Internal WM – VPD Profiles for Planners
• Customer 7 (Home Delivery) – Visibility Only (Shipment as Work SAW) – 10+ Customers, 10K+ Shipments/Consignees
per month 160K+ Events per month – VPD Profiles for Multi Customers – Public Track and Trace (Sign in based on
Phone Number and Zip Code no Login) – Integrated with Internal Home Delivery
Planning TMS
• Customer 8 (Chemical/Industrial) – No EDI – Manual Order Entry – BOL Creation and Auto Email – Radioactive, Explosives and Hazardous – Freight Pay Integrated with Outsourced Audit
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9 Years of Challenges
• Recruiting and retaining resources with: – OTM technical knowledge – Transportation Management Knowledge – Knowledge to translate business requirements into OTM
functional design – Process knowledge to continuously improve
• Implementing a one instance, scalable production environment
• Maintain separate instances for testing current versions while certifying new versions
• Clumsy, error prone process of migrating from test to production - base data, configurations, etc
• Significant work to accommodate a release schedule with frequent updates (CUs) to features and functions
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Success Criteria for Deployment of OTM
• Implementation – Business Process knowledge – Application expertise – Design efficiency – Technical Administration – Quality Assurance – Project Management
• Daily User Support Level 1 (answer phone/email) to Level 2 - diagnose/fix problem to Level 3 - Metalink“
– Detailed process and application knowledge – Standard application support procedures – Day to Day user interaction – Incident Management tools to support SLA’s and provide visibility to
workflow and progress of incidents and requests
• Continuous Improvement – Processes to certify and deploy new releases – Change Management Effectiveness – Improvement Action Plans by customer to ensure continuity of solution
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Project Types
• New Customers
• Migration of existing customers from Legacy TMS (Non-OTM)
• Upgrades to New releases
• Continuous Improvement
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Exel’s Objective to Outsourcing
• The following slides will show the changes we’ve made in our implementation and support model throughout the course of 9 years to meet our ultimate objective to
– Maximize our use of the OTM product to support our core competency of Supply Chain Management
– Streamline Implementation timelines – Improve on-going Support Service Level Agreements – Keep costs as variable as possible
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Project Team Project Sponsor
Solution Delivery SC3 Support IT PM Operations
Owner
Integration Analyst Operations Lead
Business PM
Solution Delivery Manager
Solution Delivery Analyst
Implementation Systems Analyst
Implementation Support
Integration Mapper Operations Users
Operations Systems Analyst Integration Mapper
Carrier Management Financial Owner
Financial Lead Financial Analyst
The specified roles of a project team are the areas in which Exel has considered for Outsourcing.
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Exel Outsourcing History 2000 – 2002 Glog
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
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Overview of Model 2000 – 2002 Glog cont…
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
• Glog Project Manager
• Glog Systems Consultants
• Exel Business Operations
Benefits
• Most knowledgeable Resources of the product
• Direct communication to Glog developers through our Consultants
Why we changed
• Expensive
• Resources knowledgeable of product, but not of our business and processes
• Resources changed often causing a learning curve of our business
• Resources did not always have knowledge and experience in the functionality we use
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Exel Outsourcing History 2002 – 2004 Glog and CGEY
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
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Overview of Model 2002 – 2004 G-log & CGEY cont…
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
Recap of Outsourced Model
• CGEY Project Manager
• Glog Systems Consultants
• CGEY Consultants
• Exel Business Operations
• Exel Support
Benefits • Most knowledgeable Resources of the product • Direct communication to Glog developers through our Consultants • Experienced Consultants to help drive processes and documentation
Why we changed • Expensive • Resources knowledgeable of product, but not of our business and processes • Resources changed often causing a learning curve of our business • Resources did not always have knowledge and experience in the functionality we use
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Exel Outsourcing History 2004 – 2006 All Internal Resources
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
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Overview of Model 2004-2006 All Internal Resources cont…
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Configuration
Design
Ongoing Support
Shared
Outsource
Internal
• Exel Support – Memphis, TN
• Exel Solution Delivery – Varied Locations
• Exel Project Managers – Varied Locations
Benefits
• Knowledgeable Resources of the product, the business and the processes
• Less expensive resources
Why we changed
• Turnover in Resources (Training Ground for Consultants)
• Overloaded Resources
• Difficult to maintain customer satisfaction and SLA’s
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Exel Outsourcing History 2006 – 2008 Cambridge
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
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Overview of Model 2006 – 2008 Cambridge cont…
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
Cambridge Resources
• Manager
• Onsite Analyst
• Offshore Support Analyst
• Offshore Development Analyst
• Offshore Flexible Resources
Benefits • Bench strength of resources to leverage offshore
Why we changed • Limited Knowledge of full functionality of OTM • Limited knowledge of business and processes • Language Barrier • Time Difference
Exel Resources
• Solution Delivery
• Support Analyst
• Project Managers
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Exel Outsourcing History July 2008 – Present MavenWire
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
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Overview of Model July 2008 – Present MavenWire cont…
Requirements Gathering
Project Management
Go Live Support
Migration To Production
Training
Testing
Data Loading
Technical Configuration
Functional Configuration
Design
Ongoing Support
Shared
Outsource
Internal
MavenWire Resources
• Manager
• Support Resource
• MavenWire Developers and Consultants
Benefits • Very strong product knowledge and relationship with Oracle • Mavenwire's hosting service provides technical insights that none of the other companies have • Great insights into future product direction • Good value for money spent • Smooth and rapid transition from implementation to Support
Challenges to date • 24x7 support for level 2 diagnosis and remedy within SLA has been challenging • Follow-up and continuous improvement to assess root cause and eliminate is still evolving
Exel Resources
• Solution Delivery
• Support
• Project Management
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MavenWire Standard Engagement Model
OTM Development
XSL, Reports, PL SQL, ETC
Development Team
OTM Consulting
Business Process Config,
Integration
Functional / Technical
Consulting
OTM Support
Application Configuration
Issues, Stability Issues
Technical Support
OTM Hosting
Environment Assistance
Hosting Services
OTM Data Maintenance
Rates, Locations,
and Product Updates
Managed Services
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MavenWire / Exel Engagement Model
MavenWire Support
OTM Development
Data Maintenance
Support & Hosting Services
Consulting Services
Benefits
• A single point of contact into both MavenWire and Exel streamlines communication
• Provides Management visibility into all work streams
• Easier to manage
• Expert OTM resources
• Availability of MavenWire technical resources to assist with complex issues
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Key Successes, Challenges, and Lessons Learned
• MavenWire Support is based on Key Glog/Oracle Tech Support resources, that had prior knowledge of Exel business and processes
• Resource Changes at the User and Management Level – Important to have buy-in and support at the executive level – As key team members change, re-defining roles and
responsibilities is difficult
• Proper Communication between Organizations – Schedule regular meetings to stay apprised of major
milestones, challenges, and changes on the horizon – Set Expectation and Goals – Clearly define Roles and Responsibilities