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Complex Logistics Use Cases - OTM Myths

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Traditional TMS has not ventured into the world of more specialist logistics solutions such as Air, Rail networks and Postal services. However more and more we are seeing OTM being delivered in these industries across Europe . In the presentation we will demonstrate with use cases how OTM is being applied in these complex, previously off limits industries.

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Complex Logistics Use Cases - OTM Myths

  1. 1. OTM MythsThe impossible made possibleEric van den Born14th August 2012
  2. 2. Myth: OTM not capable to support: Rail Air Street level routing Parcel Postal Transportation of people
  3. 3. Introduction Eric van den Born Director Business Development
  4. 4. OTM – Industries in 2002 Retail LSP Automotive Manufacturing
  5. 5. OTM – Industries Heavy Industry 4% High Tech 4%Chemicals CPG 3% 14% Other Manufacturing 8% 21% Retail 11% LSP 35%
  6. 6. G-Log – January 2002
  7. 7. OTM – History Procurement, Advanced Analytics,, 3D Load Configura- Application Planning and SCEM, Reporting, tion, ITL APIs and integration to the Settlement and optimisation for and Order Expand breadth Workflow, Document web infrastructure content that close multi-tier Management and depth of the Management, Claims (industry standard the loop on the full distribution functionality, and product footprint. Management, Appt First release post XML). business cycle. networks. security. Enhanced usability Scheduling acquisitionFounded Release 2.0 Release 2.5 Release 3.0 Release 3.5 Release 4.0 Release 5.0 Release 5.5 May Mar July Aug Oct Mar Aug Nov June Oct June June Mar Nov May 1999 2000 2000 2000 2000 2001 2001 2001 2002 2002 2003 2004 2005 2005 2006 Release 1.0 Release 2.1 Release 2.6 Release 3.1 Release 3.7 Release 4.5 Acquisition Focused on the Provided enhanced Reporting and Reporting, Order Enhancements to Network-based global data model functionality related status Management, and Inventory Visibility, Planning and Java code to to early adopter enhancements Visibility. and Optimisation International RIQ provide the Web- implementation based on functionality. Pier Assignment designed requirements. operational QuotingJobs/Consol’s infrastructure. feedback. Vessel Management Broadcast/Spot Tender
  8. 8. OTM – HistoryRelease 5.5 Release 5.5 Release 5.5 Release 5.5 Release 5.5 Release 5.5 Release 6.0 Release 6.1 Release 6.2 CU 1 CU 2 CU 3 CU 4 CU 548 features 10 features 39 features 33 features 25 features 9 features May Aug Dec May Jan June June Dec Dec 2006 2006 2006 2007 2008 2008 2009 2009 2010Cooperative Routing, Container/Equipm Cooperative Route Fusion Fusion Dock Scheduling Fleet & Asset Global Trade Fleet MngtmtProduct Name Change ent Visibility, Execution, Transportation Transportation Enhancements, Management, Management Global Trade& Re-Branding Integration Enhanced Air Intelligence, Intelligence, Cumulative Multi-Tier Network Mobile LTL SourcingIntegration with eBS, enhancements, Processing, Dock Scheduling Dock Scheduling Broadcast Tenders, Execution, Communications Small ParcelConsolidated Tender, Enhanced Help Simplified UI for mid- Enhancements, Enhancements, Sourcing Siebel Order LoadEnhanced UI, including “Show- tier, Container Sourcing Enhancements, Capture Integration, ConfiguratorScalability & me” & Custom UI Enhancements, Optimization, Enhancements, Optimization eBS Integration Help Shipment Cost Rail TransportPerformance Dock Scheduling Parcel CWT Enhancements, Phase II,Enhancements, Merge-In-Transit Adjustment, Rating, GTM – eBS Enhancements. Service Provider Small Parcel ID Customer integrationCarrier Commitment Rail Assignment Record System Integration.Management. Management Enhancements, Management. User interface Cooperative RouteFF Enhancements, Optimization ExecutionRIQ with Show Enhancements. Enhancements.Routing.
  9. 9. Oracle Sales Course – 2006
  10. 10. OTM – High Tech Customers
  11. 11. Logistics cost by Industry8,0%7,0% 0,9% 0,8% 0,9%6,0% 0,7% 0,8% 0,7%5,0% 1,6% 1,4% 0,5% 1,3% 0,5%4,0% 0,5% 0,5%3,0% 1,0% 1,0% 0,3%2,0% 4,2% 0,3% 3,8% 3,5% 0,6% 2,6% 2,6%1,0% 1,4%0,0% Manufacturing Process CPG Automotive Retail Pharma Trans port Handling Inventory Adm inis tration
  12. 12. OTM – Street Level Routing
  13. 13. Rail: Functionality Rule 11 Block Trains Rail Schedules
  14. 14. Rail – Rule 11 ExampleLeg 1 Leg 3BNSF (KCITY) NS (BELVU) WE BNSF (CHGO) CSXT (GRNWH) WECost $1050 + $2100 + $1000 = $4150 Cost $2100 + $1500 + $1000 = $4600Time 4 + 5 + 2 = 11 Days Time 6 + 3 + 2 = 11 DaysDistance 67.3 + 692.4 + 56.9 = 816.6 Miles Distance 506.5 + 281.2 + 38.7 = 826.4 Miles Route 2 BNSF (ESTL) NS (BELVU) WE Cost $1575 + $1800 + $1000 = $4375 Time 5 + 4 + 2 = 11 Days Distance 489.6 + 462.2 + 56.9 = 1008.7 Miles Leg 1 Leg 2 Leg 3 Topeka - KS Junction Junction Medina - OH
  15. 15. Rail – Block Trains
  16. 16. Rail – Block Trains & Fleet Management
  17. 17. Rail – SchedulesSighting Events
  18. 18. Ocean: Functionality Transload Shipments Demurrage – Detention Consoles
  19. 19. Ocean – Transload ShipmentsPOL PODPOL POD Feeder Vessel Mother Vessel Transload
  20. 20. Ocean – Transload Shipments
  21. 21. Planning with Consols Consols provide the ability to manage defined capacity for a voyage. Consols may be created from an existing Schedule. Consol shipments can be created independent of orders. Once a consol shipment exists, orders can be booked onto it. Available capacity for the shipment can be tracked.
  22. 22. Air: Functionality TACT Rating & Chargeable weight Cut off and Recovery times Air Schedules
  23. 23. Functionality – Display Rating
  24. 24. Chargeable weight & TACT Rting Amsterdam to Singapore: 98 kg Actual weight 800,000 cm2Chargeable WeightKLM Minimum < 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric charge factorAMS - SIN € 410 € 24.50 per kg € 23.50 per kg € 19.50 per kg € 16.50 per kg 6,000• Chargeable weight = 800,000 / 6,000 = 133.33 kg• Chargeable weight > Actual weight => Use Chargeable weight• 133.33 kg @ € 19.50 / kg = € 2,600.- • Without chargeable weight : 98 kg @ €23.50 / kg = € 2,303,- • Without chargeable weight but with deficit : 100 kg @ €19.50 / kg = € 1,950,-Display Rate – TACT (The Air Cargo Tariff)TACT Minimum < 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric charge factorAMS - SIN € 550 € 56,50 per kg € 53,00 per kg € 47,50 per kg € 37,50 per kg 6,000
  25. 25. Functionality – Cut off & Recovery time Loading Unloading Cuttoff Departure Arrival Recovery aircraft aircraft
  26. 26. Functionality: Air Schedules
  27. 27. Air freight: OTM FunctionalityFunctionality Covered Not coveredOrder Validation “Known” Shipper  INCO Terms Routing IATA Codes and Active / Inactive airports  Air Schedules  Agents and profit Splits Consol Management Capacity Management Rating Chargeable weight  TACT / Display Rating  Spot Costs Documentation Airway bill – House & Master - Rules for numbering and valid ranges  Commercial Invoice - Automatic assignment of item data  - Automatic assignment of Hazmat item data  - Validate Hazmat Customs submission 
  28. 28. Other: Functionality Postal Industry Parcel Industry Shipping people
  29. 29. OTM in Postal service
  30. 30. OTM in Postal service National Sorting Center Regional RegionalSorting Center Sorting Center
  31. 31. OTM in Postal service
  32. 32. OTM in Parcel Service
  33. 33. OTM in Parcel Service
  34. 34. Life cycle of a Parcel ShipmentGeneral tasks • Network Control - Communications • View and Update tariff adjustments • Maintain master dataVisibility & Exception ManagementOrder taking Operations Order Planning Pickup Terminal Hub Gateway Gateway Hub Terminal Delivery capture location location1. Booking 2. Dispatch 3. Pickup 4.Outbound 5. Export 6. Transfer 7. Import 9. Inbound 10. Delivery • Rating Process • Shipment • Breakbulk • De- • Delivery • Network Capacity Pickup • Clearance Containerisation • POD Alert management (air) • Inventory management • Containerisation • Redim & Reweigh 8. Customs Clearance • Manual AWB entry • Correct Invoice 11. Billing • Additional charges
  35. 35. OTM – Shipping People
  36. 36. MavenWire: ConclusionTurning the best …into the best …requires the best product… solution… people
  37. 37. Thank-You!www.MavenWire.com

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