Transportation Track and Trace Solution at Electrolux

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




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




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




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




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

Transportation Track and Trace Solution at Electrolux

Technology