Oracle Transportation Management Customer Case Study

1. T H E P A S S I O N R U NS D E E P
Stuart Patsos, CIO / Vice President of IT
Oracle Transportation Management:
Customer Case Study

2. Company Background (Cont.)
Macsteel Service Centers USA is one of the leading metals
processors and distributors in North America.
A division of Kloeckner & Co – the largest mill-independent
distributor of steel in the world
● 30+ locations throughout North America and Puerto Rico
● processes and distributes
► carbon ► aluminum
► stainless ► specialty metals
● Products include a full range of
► flat rolled ► pipe
► plate ► bar
► tubing ► structurals
● The company also supplies a full range of
► Coated ► steel building products
► prepainted metals
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3. Macsteel USA
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4. Global Project Objectives
Key objectives for this project
Replace legacy ERP and Mgt Reporting systems
Standardize key business processes across all plants
Transition to and Implement Oracle EBS R12
Adopt industry best practice processes to speed
implementation and reduce risk
Facilitate statutory compliance
Provide easy access of data
Provide one true complete picture of information across
the entire organization
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5. Project Timeline
Macsteel Oracle Implementation Timeline
Western Division Golive
Implemenation Partner Selected Eastern Division Golive
Atlanta Division Golive
Hawai Golive
Project Restart - USA Only 3.0
Oracle EBS Selected Midwestern Division Golive
Project Restart - USA Only 2.0 Southwestern Division Golive
Requirements / Gap Analysis
Global Implementation Start
Completed
CS&T Division Golive
Southeast Division Golive
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6. Applications Footprint
Version of EBS currently Implemented: 12.1.2
Oracle products implemented:
Financials (GL, AP, AR, Advanced Collections)
Order Management (including Configurator)
OPM (Process Manufacturing, Inventory)
Discrete Inventory
Procurement (including LCM – Landed Cost Management)
OTM (version 6.04)
eBus Tax (with Vertex O series)
OBIEE and OBIEA
On Demand since Sept 20, 2010
Future implementation
Discrete manufacturing (will sunset OPM)
Warehouse Management
EAM
ASCP
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7. OTM Business Requirements
Carrier Bidding and Rate Optimization by Lane
Carrier Rate Management – Including Buy Side and Sell Side Rate
Management
Web Based Load Tendering/Acceptance
Load Planning Tools (Schedule Pickups and Deliveries)
Reporting and “Management” Tools
Carrier Approval Management - Insurance Certificates, etc.
Carrier Warnings & Suspensions – ability to block the usage of
Unapproved Carriers
Freight Tables – Allocation of Private Fleet costs to associated
orders.
Use Transportation Analytics for reporting
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8. OTM Implemented Flow
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9. Benefits Seen By Macsteel
Although we are not yet using contracts we are seeing how our spot rates fluctuate by vendor by
lane
Starting to use the sourcing functionality to negotiate rates by vendor
Starting to building vendor contracts to progressively move off spot rates
Better able to manage vendor certifications – particularly insurance eliminating picking trucks
without a valid insurance certification
Analyzing shipping costs per lane and miles to understand how to better service customers and
better load trucks
Improved matching of vendor invoicing against planned trips and followup performed at the branch
rather than at accounts payable
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10. Lessons Learned
Steel companies have an unsophisticated user base
Change Management is an issue
Training – including PC skills training
OTM concepts may be too advanced
Allow for the effect of unionized labor
More steps are involved in our shipping department with OTM and may
require additional headcount in some cases
No traffic department at our branches – lower skilled workers to load trucks
At Macsteel we were running very lean and only used spot rates
Types of product require better planning for shipping since we weight out trucks before
dimensioning out
Get the basics working
Shipping execution
Planning and loads
Vendor Contract s
Insurance Certifications
Manual Freight matching
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11. Next Steps
Electronic Freight matching
Evaluating Vendor Portal for entering of invoices
Utilize Vendor Sourcing
Expand use of Transportation Analytics
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