Ndevr + Simplot InSync 2012 Presentation - A Close Look at E1 Transportation Management

JD Edwards E1 9.0

A Close look at E1 Transportation
Management

The most comprehensive Oracle applications & technology content under one roof

Agenda
• Who are Simplot?
• Simplot Supply Chain Overview
• Simplot Order Cycle
• Business Challenges
• Load Planning
• JDE Modifications
• Transport Module - Lessons learnt


Stephen Cathie
• National Logistics Manager – Simplot Australia
• Background mixed in Logistics and Accounting
• 10 years service with Simplot
• Transport Management Functional Lead for Simplot’s JDE
implementation “Project Catalyst”


Simplot Overview
• Owned by JR Simplot – USA based private family owned company
• Owner of well known food brand names such as Birdseye, Edgell, John
West, Leggos and Chiko
• Mixture of in-house manufacturing and outsourced supply
• Mixture of Retail & Foodservice customers


Simplot Products


Simplot Customers


Simplot Supply Chain Network
• 6 domestic manufacturing sites
• Multiple outsourced suppliers both domestic and imported
• Decentraliesed 3PL warehouse network – 3 ambient and 7
frozen
• Several hundred customer delivery locations
• 1,000+ products


Simplot Order Cycle
• Orders are received by customer service team
• Orders are passed to the logistics team for load planning
• Loads are ‘planned’ to maximise the utilisation of vehicles
• Orders are transmitted (EDI) to warehouses for picking and
transport providers notified of a impending transport task
• Goods are invoiced and dispatched
• Transport accruals are matched to freight invoices


JDE @ Simplot
• Order to Cash JDE modules Go Live = July 2011
• E1 Transport module manages…
– Internal Transfers (warehouse to warehouse),
– Customer Distribution (warehouse to customer & customer pick ups),
– Credit Returns (customer to warehouse)
• Simplot’s Transport module is highly integrated with Sales
Order Management, Inventory Management and Accounting


The Business Challenges
• All JDE shipments/orders go through internal load planning.
• Large orders are split into smaller transport tasks (shipments)
• Small shipments are grouped together
• A mixture of transport modes (boat, train, truck) and varying
travel distances leads to multiple billing methods.
• Transport varies between full load rates and variable rates (ie
per tonne)


The Business Challenges - Rates
• JDE handles a mixture of billing methods from multiple
transport providers…
– Full load rates (Semi Trailer, B-Double, 20’ or 40’ Container, etc…)
– Per pallet
– Per pallet space
– Per tonne (including pallet weight)
– Per tonne (excluding pallet weight)


The Business Challenges - Rates
• JDE handles on cost and other ad hoc charges
– Fuel levies
– Minimum Charges
– Document Fees
– Government rebates (Tasmania to Mainland)
• Carrier payments occur 2 different ways
– RCTI and traditional invoice processing/accrual matching


The Business Challenges - Routes
• Multiple routes required (1,200+ routes)
• Lots of similar routes e.g. Mel > Syd
– multiple temperatures (frozen, chilled, ambient)
– multiple service providers
– multiple truck types
– multiple vehicle paths (direct, via Canberra).
• Preferences required for certain customers
• Intermodal routes where multiple carriers are involved (i.e. Mel > Perth
route involves train and 2 trucks = 3 carriers)


- Load Planning Example Sydney
Shipment 2 Customer
- Sydney customer places an order for
Fish
Fish & Chips
Sydney
- Chips supplied out of Mel DC
- Fish supplied out of Syd
Shipment 1
- JDE creates & auto-routes 2 shipments Chips
- Customer expects all product to be on
one delivery. Chips need to be cross- Melbourne
docked via the Syd DC. DC


- Load Planning Example Load 2 Sydney
(Fish & Chips) Customer
- JDE – shipment is load planned to be
delivered via the Syd DC xdock.
Sydney
- Immediately after the Mel-Syd load is DC
approved, JDE auto-routes a new
Load 1
shipment leg for the chips
(Chips for several
customers)
- Finally the Fish & Chips can be load
planned together for delivery Melbourne
DC


JDE Modifications
- Paperwork - pick slips, invoices, proof of delivery documentation were
all heavily customized
- Pallet calculation – custom pallet calculator had to be written to correctly
predict the numbers of pallets required per order
- Transport Invoice Matching – Simplot invested in a custom invoicing
scanning/matching solution to increase efficiency
- Accounting - Multiple mods to achieve Simplot’s desired cost allocation
and reporting requirements


E1 Tpt Module - Lessons Learnt
• Synchronizing order status is challenging
– sales order status, shipment status and load status
• Lack of ‘Shipment Ledger’ complicates problem solving
• Transport module can be quite fickle and is not as robust as other
modules. Simplot’s heavy use of load building, intermodal routes and
EDI contributes to this complexity.
• Users require quality training and instructions. In Simplot’s environment
shipments can be easily broken by users (i.e. shipments become
corrupted and orders require re-entry).


Questions


Thank You


Ndevr + Simplot InSync 2012 Presentation - A Close Look at E1 Transportation Management

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Ndevr + Simplot InSync 2012 Presentation - A Close Look at E1 Transportation Management