Exel and MavenWire discuss lessons learned over 9 years while outsourcing the support for key applications, including OTM (Oracle Transportation Management).
Presented by Samuel Levin (MavenWire).
The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies
1. The Right Collaboration,
Leveraging Outsourcing Services to Focus on
Core Competencies
Presented By Exel and MavenWire
Terrell Brown and Samuel Levin
June 22, 2009
2. Agenda
• 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
2
3. DP DHL
A global player with strongly placed divisions... 2008
€ 54B Rev
€ 2.4B EBIT
220 Countries
500K Employees
Germany
Delivers mail to about
40mm households
Global Business Services (GBS)
Finance, Insurance/Risk, Claims Mgt, Legal, HR, Procurement, Real Estate, IT Services, Claims Mgt
3
4. Exel Supply Chain
Americas
$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
4
5. Exel Supply Chain Americas Structure
• 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
5
6. 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 6
• Temperature Controlled Intermodal Fleet
8. 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 8
9. Customer Configurations Implemented
• Customer 1 (Chemical) • Customer 3 (Consumer)
– Bulk Planning (Buy no Sell) – Bulk Planning (Buy no Sell)
– Rate Preferences, – Majority TL and Intermodal some LTL
– Execution, Track & Trace, Milestones – Rate Preferences
– Actuals – Execution, Track & Trace, Milestones
– Freight Pay in Process – Freight Pay Integrated with Outsourced Audit
– Integrated with External WM, Carriers, – Integrated with External WM, Carriers and
and Freight Pay Audit Freight Pay Audit
• Customer 2 (Retail) • Customer 4 (Chemical)
– Bulk Planning (Buy No Sell) – Bulk Planning (Buy no Sell)
– Cross-dock Planning – Outbound, Inbound, Returns
– Schedule based planning – Dock Scheduling
– LTL Trailer Building (Shipment Groups) – Rate Preferences
– Integrated with Internal WM – Execution, Track & Trace, Milestones
– Freight Pay Integrated with Outsourced Audit
– Integrated with External WM, Carriers, and
Freight Pay Audit
9
10. Customer Configurations Implemented
• Customer 5 (Mexico Chemical) • Customer 7 (Home Delivery)
– Bulk Planning (Buy and Sell) – Visibility Only (Shipment as Work SAW)
– Cross-dock Planning – 10+ Customers, 10K+ Shipments/Consignees
– Freight Pay with Internal Audit per month 160K+ Events per month
– Integrated with Internal WM – 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
• Customer 6 (Mexico Consumer Planning TMS
Consolidation)
– Parent/Child/Grandchild Domain
Structure 40+ Domains
– Bulk Planning (Buy and Sell) • Customer 8 (Chemical/Industrial)
– Cross-dock Planning across 40 domains – No EDI – Manual Order Entry
– 8 Cross-dock locations (4 more by end – BOL Creation and Auto Email
of year)
– Custom Dispatch with Drivers License – Radioactive, Explosives and Hazardous
and License Plate verification – Freight Pay Integrated with Outsourced Audit
– Order Level POD
– Integrated with Internal WM
– VPD Profiles for Planners
10
11. 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
11
12. 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 12
13. Project Types
• New Customers
• Migration of existing customers from Legacy TMS
(Non-OTM)
• Upgrades to New releases
• Continuous Improvement
13
14. 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
14
15. Project Team The specified roles of a project
Project Sponsor
team are the areas in which Exel
has considered for Outsourcing.
Business PM
Solution Operations
SC3 Support IT PM Carrier Management Financial Owner
Delivery Owner
Solution Delivery Solution Delivery Implementation Implementation Operations
Operations Lead Integration Analyst Integration Mapper Financial Lead Financial Analyst
Manager Analyst Systems Analyst Support Systems Analyst
Operations Users Integration Mapper 15
16. Exel Outsourcing History 2000 – 2002
Glog
Outsource
Design
Requirements Functional
Gathering Configuration
Project Technical
Management Configuration
Internal
Ongoing
Support
Go Live
Data Loading
Support
Migration
Shared To Production
Testing
Training
16
17. Overview of Model 2000 – 2002
Glog cont…
• Glog Project Manager
Design
• Glog Systems Consultants
Requirements Functional
• Exel Business Operations
Gathering Configuration
Project Technical
Management Configuration
Ongoing
Support
Go Live
Data Loading
Support
Migration
Benefits
Testing
To Production
• Most knowledgeable Resources of the product
Training
• Direct communication to Glog developers through our Consultants
Why we changed
Outsource
• Expensive
• Resources knowledgeable of product, but not of our business and processes
Internal
• Resources changed often causing a learning curve of our business
• Resources did not always have knowledge and experience in the functionality we use
Shared
17
18. Exel Outsourcing History 2002 – 2004
Glog and CGEY
Outsource Design
Requirements Functional
Gathering Configuration
Project Technical
Management Configuration
Internal Ongoing
Support
Go Live
Data Loading
Support
Migration
Testing
Shared To Production
Training
18
19. Overview of Model 2002 – 2004
G-log & CGEY cont…
Recap of Outsourced Model
Design
• CGEY Project Manager
Requirements Functional
Gathering Configuration
Project Technical
• Glog Systems Consultants
Management Configuration
Ongoing
Go Live
Support
Data Loading
• CGEY Consultants
Support
Migration
To Production
Testing • Exel Business Operations
Training
• 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
Outsource
Why we changed
• Expensive
• Resources knowledgeable of product, but not of our business and processes
Internal
• Resources changed often causing a learning curve of our business
• Resources did not always have knowledge and experience in the functionality we use
Shared 19
20. Exel Outsourcing History 2004 – 2006
All Internal Resources
Outsource
Design
Requirements Functional
Gathering Configuration
Project Technical
Management Configuration
Internal
Ongoing
Support
Go Live
Data Loading
Support
Migration
Shared To Production
Testing
Training
20
21. Overview of Model 2004-2006
All Internal Resources cont…
• Exel Support – Memphis, TN
Requirements
Design
Configuration
• Exel Solution Delivery – Varied Locations
Gathering
Project
Management
Data Loading
• Exel Project Managers – Varied Locations
Ongoing
Support
Go Live
Testing
Support
Migration
To Production
Training Benefits
• Knowledgeable Resources of the product, the business and the processes
• Less expensive resources
Why we changed
• Turnover in Resources (Training Ground for Consultants)
Outsource
• Overloaded Resources
• Difficult to maintain customer satisfaction and SLA’s
Internal
21
Shared
22. Exel Outsourcing History 2006 – 2008
Cambridge
Outsource
Design
Requirements Functional
Gathering Configuration
Project Technical
Management Configuration
Internal
Ongoing
Support
Go Live
Data Loading
Support
Migration
Shared To Production
Testing
Training
22
23. Overview of Model 2006 – 2008
Cambridge cont…
Cambridge Resources Exel Resources
• Manager • Solution Delivery
Design
Requirements Functional
Gathering Configuration
• Onsite Analyst • Support Analyst
Project Technical
Management Configuration
Ongoing
Support
• Offshore Support Analyst • Project Managers
Go Live
• Offshore Development Analyst
Data Loading
Support
Migration
Testing
• Offshore Flexible Resources
To Production
Training
Benefits
• Bench strength of resources to leverage offshore
Outsource
Why we changed
• Limited Knowledge of full functionality of OTM
• Limited knowledge of business and processes
Internal
• Language Barrier
• Time Difference
23
Shared
24. Exel Outsourcing History July 2008 – Present
MavenWire
Outsource Design
Requirements Functional
Gathering Configuration
Project Technical
Management Configuration
Internal Ongoing
Support
Go Live
Data Loading
Support
Migration
Testing
Shared To Production
Training
24
25. Overview of Model July 2008 – Present
MavenWire cont…
MavenWire Resources Exel Resources
Design • Manager • Solution Delivery
Requirements Functional
Gathering Configuration
Project Technical
• Support Resource • Support
Management Configuration
Ongoing
Support • MavenWire Developers and Consultants • Project Management
Go Live
Data Loading
Support
Migration
Testing
To Production
Training
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
Outsource • Good value for money spent
• Smooth and rapid transition from implementation to Support
Challenges to date
Internal
• 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
25
Shared
26. MavenWire Standard Engagement Model
OTM OTM OTM Data
OTM Support OTM Hosting
Development Consulting Maintenance
Application
Business Rates,
XSL, Configuration
Process Environment Locations,
Reports, PL Issues,
Config, Assistance and Product
SQL, ETC Stability
Integration Updates
Issues
Functional /
Development Technical Hosting Managed
Technical
Team Support Services Services
Consulting
26
27. MavenWire / Exel Engagement Model
Benefits
OTM
Development • A single point of contact into both
MavenWire and Exel streamlines
communication
• Provides Management visibility into all
work streams
Consulting MavenWire Data • Easier to manage
Services
Support Maintenance
• Expert OTM resources
• Availability of MavenWire technical
resources to assist with complex issues
Support
& Hosting 27
Services
28. 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
28