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OTM Myths
The impossible made possible



Eric van den Born
14th August 2012
Myth: OTM not capable to support:


 Rail
 Air
 Street level routing
 Parcel
 Postal
 Transportation of people
Introduction




    Eric van den Born
    Director Business Development
OTM – Industries in 2002


                    Retail




                      LSP




               Automotive




             Manufacturing
OTM – Industries

                       Heavy Industry
                            4%    High Tech
                                      4%
Chemicals    CPG
   3%        14%

   Other                                      Manufacturing
    8%                                            21%

    Retail
    11%

                       LSP
                       35%
G-Log – January 2002
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             acquisition

Founded            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
OTM – History


Release 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 5
48 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                2010

Cooperative Routing, Container/Equipm Cooperative Route         Fusion              Fusion            Dock Scheduling      Fleet & Asset           Global Trade        Fleet Mngtmt
Product 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 Sourcing
Integration with eBS, enhancements,      Processing,            Dock Scheduling     Dock Scheduling   Broadcast Tenders,   Execution,              Communications
                                                                                                                                                                       Small Parcel
Consolidated Tender, Enhanced Help       Simplified UI for mid- Enhancements,       Enhancements,     Sourcing             Siebel Order
                                                                                                                                                                       Load
Enhanced UI,          including “Show-   tier,                  Container           Sourcing          Enhancements,        Capture Integration,
                                                                                                                                                                       Configurator
Scalability &         me” & Custom       UI Enhancements, Optimization,             Enhancements,     Optimization         eBS Integration
                      Help                                      Shipment Cost                                                                                          Rail Transport
Performance                              Dock Scheduling                            Parcel CWT        Enhancements,        Phase II,
Enhancements,         Merge-In-Transit                          Adjustment,         Rating,                                                                            GTM – eBS
                                         Enhancements.                                                Service Provider     Small Parcel
                      ID                                        Customer                                                                                               integration
Carrier Commitment                                                                  Rail              Assignment Record    System Integration.
Management.                                                     Management          Enhancements,     Management.                                                      User interface
                                                                Cooperative Route
FF Enhancements,                                                                    Optimization
                                                                Execution
RIQ with Show                                                                       Enhancements.
                                                                Enhancements.
Routing.
Oracle Sales Course – 2006
OTM – High Tech Customers
Logistics cost by Industry

8,0%

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
OTM – Street Level Routing
Rail: Functionality


 Rule 11
 Block Trains
 Rail Schedules
Rail – Rule 11 Example
Leg 1                                                                                  Leg 3
BNSF (KCITY) NS (BELVU) WE                                                             BNSF (CHGO) CSXT (GRNWH) WE
Cost $1050 + $2100 + $1000 = $4150                                                     Cost $2100 + $1500 + $1000 = $4600
Time 4 + 5 + 2 = 11 Days                                                               Time 6 + 3 + 2 = 11 Days
Distance 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
Rail – Block Trains
Rail – Block Trains & Fleet Management
Rail – Schedules




Sighting Events
Ocean: Functionality


 Transload Shipments
 Demurrage – Detention
 Consoles
Ocean – Transload Shipments




POL                                               POD




POL                                               POD


      Feeder Vessel               Mother Vessel

                      Transload
Ocean – Transload Shipments
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.
Air: Functionality


 TACT Rating & Chargeable weight
 Cut off and Recovery times
 Air Schedules
Functionality – Display Rating
Chargeable weight & TACT Rting

                                                            Amsterdam to Singapore:
                                                                 98 kg Actual weight
                                                                        800,000 cm2

Chargeable Weight
KLM          Minimum           < 45 kg      45 – 100 kg       100 – 300 kg    300 – 1,000 kg    Volumetric
               charge                                                                               factor
AMS - 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                                                                               factor
AMS - SIN        € 550   € 56,50 per kg   € 53,00 per kg     € 47,50 per kg    € 37,50 per kg        6,000
Functionality – Cut off & Recovery time


                   Loading                Unloading

             Cuttoff    Departure   Arrival      Recovery
                         aircraft   aircraft
Functionality: Air Schedules
Air freight: OTM Functionality
Functionality                                               Covered   Not covered
Order 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                                                        
Other: Functionality


 Postal Industry
 Parcel Industry
 Shipping people
OTM in Postal service
OTM in Postal service



                    National
                 Sorting Center




  Regional
                                    Regional
Sorting Center
                                  Sorting Center
OTM in Postal service
OTM in Parcel Service
OTM in Parcel Service
Life cycle of a Parcel Shipment

General tasks
                                • Network Control - Communications
                                • View and Update tariff adjustments
                                • Maintain master data


Visibility & Exception Management


Order taking                   Operations



 Order          Planning            Pickup           Terminal            Hub               Gateway         Gateway          Hub            Terminal         Delivery
 capture                            location                                                                                                                location



1. 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
OTM – Shipping People
MavenWire: Conclusion




Turning the best         …into the best    …requires the best
   product…                solution…            people
Thank-You!




www.MavenWire.com

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Complex Logistics Use Cases - OTM Myths

  • 1. OTM Myths The impossible made possible Eric van den Born 14th August 2012
  • 2. Myth: OTM not capable to support:  Rail  Air  Street level routing  Parcel  Postal  Transportation of people
  • 3. Introduction Eric van den Born Director Business Development
  • 4. OTM – Industries in 2002 Retail LSP Automotive Manufacturing
  • 5. OTM – Industries Heavy Industry 4% High Tech 4% Chemicals CPG 3% 14% Other Manufacturing 8% 21% Retail 11% LSP 35%
  • 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 acquisition Founded 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. OTM – History Release 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 5 48 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 2010 Cooperative Routing, Container/Equipm Cooperative Route Fusion Fusion Dock Scheduling Fleet & Asset Global Trade Fleet Mngtmt Product 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 Sourcing Integration with eBS, enhancements, Processing, Dock Scheduling Dock Scheduling Broadcast Tenders, Execution, Communications Small Parcel Consolidated Tender, Enhanced Help Simplified UI for mid- Enhancements, Enhancements, Sourcing Siebel Order Load Enhanced UI, including “Show- tier, Container Sourcing Enhancements, Capture Integration, Configurator Scalability & me” & Custom UI Enhancements, Optimization, Enhancements, Optimization eBS Integration Help Shipment Cost Rail Transport Performance Dock Scheduling Parcel CWT Enhancements, Phase II, Enhancements, Merge-In-Transit Adjustment, Rating, GTM – eBS Enhancements. Service Provider Small Parcel ID Customer integration Carrier Commitment Rail Assignment Record System Integration. Management. Management Enhancements, Management. User interface Cooperative Route FF Enhancements, Optimization Execution RIQ with Show Enhancements. Enhancements. Routing.
  • 10. OTM – High Tech Customers
  • 11. Logistics cost by Industry 8,0% 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. OTM – Street Level Routing
  • 13. Rail: Functionality  Rule 11  Block Trains  Rail Schedules
  • 14. Rail – Rule 11 Example Leg 1 Leg 3 BNSF (KCITY) NS (BELVU) WE BNSF (CHGO) CSXT (GRNWH) WE Cost $1050 + $2100 + $1000 = $4150 Cost $2100 + $1500 + $1000 = $4600 Time 4 + 5 + 2 = 11 Days Time 6 + 3 + 2 = 11 Days Distance 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. Rail – Block Trains
  • 16. Rail – Block Trains & Fleet Management
  • 18. Ocean: Functionality  Transload Shipments  Demurrage – Detention  Consoles
  • 19. Ocean – Transload Shipments POL POD POL POD Feeder Vessel Mother Vessel Transload
  • 20. Ocean – Transload Shipments
  • 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. Air: Functionality  TACT Rating & Chargeable weight  Cut off and Recovery times  Air Schedules
  • 24. Chargeable weight & TACT Rting Amsterdam to Singapore: 98 kg Actual weight 800,000 cm2 Chargeable Weight KLM Minimum < 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric charge factor AMS - 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 factor AMS - SIN € 550 € 56,50 per kg € 53,00 per kg € 47,50 per kg € 37,50 per kg 6,000
  • 25. Functionality – Cut off & Recovery time Loading Unloading Cuttoff Departure Arrival Recovery aircraft aircraft
  • 27. Air freight: OTM Functionality Functionality Covered Not covered Order 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. Other: Functionality  Postal Industry  Parcel Industry  Shipping people
  • 29. OTM in Postal service
  • 30. OTM in Postal service National Sorting Center Regional Regional Sorting Center Sorting Center
  • 31. OTM in Postal service
  • 32. OTM in Parcel Service
  • 33. OTM in Parcel Service
  • 34. Life cycle of a Parcel Shipment General tasks • Network Control - Communications • View and Update tariff adjustments • Maintain master data Visibility & Exception Management Order taking Operations Order Planning Pickup Terminal Hub Gateway Gateway Hub Terminal Delivery capture location location 1. 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
  • 36. MavenWire: Conclusion Turning the best …into the best …requires the best product… solution… people