OTM 101 Chris Gumz can set up OTM in a way that makes sense for your business. Each organization has their own process and way of doing thin\൧s. You can determine the best way to

$Page 1: OTM 101 Chris Gumz can set up OTM in a way that makes sense for your business. Each organization has their own process and way of doing thin\൧s. You can determine the best way to$
OTM 101

Chris Gumz

OTM SIG – Philadelphia, PA

July 29, 2013

Introduction Transportation Market Oracle Transportation Management

Domain Structure User Roles Navigation Master Data Order Management Transportation Planning Transportation Execution Freight Settlement

Business Intelligence Lessons Learned Q & A

Agenda

Introduction

Business Model

Landstar

Capacity

Agents Customers

Capacity 8,000 BCOs 31,500 Approved Carriers All Major U.S. Rail Lines Ocean Cargo Carriers Air Cargo Carriers WCO Network Foreign Correspondent Networks

Agents Independent Business Owners Customer Service Capacity Sourcing/Dispatching NVOCC/IATA Agents

Landstar is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services to a broad range of customers utilizing a network of agents, third party capacity owners and employees.

Presenter

Presentation Notes

How does choosing Landstar as your transportation provider benefit you? That’s simple. It’s the strength of our unique business model. A model that provides your company with the best of two distinct worlds. A large, well respected, financially stable, publicly traded corporation, as well as a local entrepreneur with years of experience working day in and day out to satisfy the needs of customers just like you. From Landstar capacity, to your Landstar agent, to Landstar Transportation Services, Inc., we all have one goal…….satisfying your supply chain needs safely, consistently, and for a price you can afford.

Transportation Market

Cost Reduction • Shipment optimization • Carrier sourcing • Performance measurement

Operational Efficiency • Process centralization • Process standardization • Process automation

Carriers Shippers Customers

Service Improvement • Service / lead time optimization • Supply chain visibility • Event management

Logistics Service

Providers

Business Growth • Global operations platform • Process enablement & flexibility • Scalability

Transportation Management Benefits

6 Oracle and OTM are registered trademarks of Oracle ® and its affiliates

Transportation Management

Transportation Management

Transportation Operational Planning

Freight Payment, Billing & Claims

Forwarding & Brokerage Operations

Fleet Management

Transportation Cooperative Routing

Transportation Sourcing

Fusion Transportation Intelligence

Logistics Inventory Visibility

Global Trade Management

Oracle Transportation Management (OTM) 12+ Years of Evolution into a Broad and Deep Platform

Oracle and OTM are registered trademarks of Oracle ® and its affiliates

• Business Logic: User interface, workflow, reports, integrations • Security: Segmented data and functional security • “Customization” via configuration • Expand without having to buy another system

Business 2

Business n

Business 1

Top Level Full Visibility

Domains Partitioned Visibility &

Functionality

Parent Company

Configure Software

for Specific Divisions / Lines

of Business

…

Multi-Domain Architecture Supports Multiple Divisions/Lines of Business


User Role/Preferences


Navigation

OTM Login

• All OTM logins are in the form DOMAIN.USER – Ex. DEMO.CHRIS – User name should be entered this way on the login screen – OTM will automatically capitalize user name


OTM Home Screen


OTM Help


Business Monitor


FLVN Buttons

• Many OTM fields feature a box of the letters F, L, V and N besides the data entry field – F = Find or Search – L = List – V = View – N = New

• These fields contain data that themselves are OTM objects (i.e. contacts, shipments, locations) – The buttons allow you to either find or create new objects

for your use


Search Options


Presenter

Presentation Notes

For results, use “same as” operator

Actions


Master Data

OTM Configuration Flow


Presenter

Presentation Notes

You can set up OTM in a way that makes sense for your business. Each organization has their own process and way of doing things. You can determine the best way to set up OTM for your organization and then customize the system as you need it. Let’s discuss a few ways you can format OTM based on your business process.

•A place where freight is picked up from, shipped to, or shipped via

• Customers, Suppliers, Warehouses, Pools, Cross Docks, Ports

Location

• Corporations are used to group and Organize locations Corporation

• Anyone that needs to be able to communicate with OTM • OTM may be configured to automatically notify contacts when

an event occurs (i.e. shipment delay) Contact

• A company that provides transportation services for freight in OTM • UPS, LTL/TL carriers, airlines, shipping lines, customs agents

Service Provider

General Master Data


A location is a fixed node or point where cargo is shipping to, shipping from, or flowing through

Locations


Presenter

Presentation Notes

A location is a fixed node or point where cargo is shipping to, shipping from or flowing through. You should include as much geographical information as possible in a location so that OTM can effectively use them in orders, rates, and shipments. Examples of locations are: distribution centers, airports, plants, cross-docks. Location Demonstration (Transportation Planning and Execution > Location Management > Location Manager) Identification Tab Each location you create must also have a corporation. Corporations are used to group locations for a company. Note the Address information. Time zone is used when calculating shipment start and end times. OTM can pre-populate time zone based on city, state/province, postal code, and country. OTM may calculate distance using latitude and longitude.

A contact is a person or system to which you want to send notifications or tenders

Contact


Presenter

Presentation Notes

A contact is a person or system to which you want to send notifications or tenders. Contact Demonstration (Business Process Automation > Communication Management > Contacts) On a location, you assign a contact on the Communication and Remarks tab. You can indicate the communication method including email and message center. Language spoken indicates the language in which the tender notification is sent. Each location can have multiple contacts associated with it and these contacts can be notified when an event occurs within OTM. Contacts can also be assigned in other areas of OTM including on service providers.

Service Provider

• A Service Provider is a company that provides transportation services for freight in OTM

• OTM retains information such as rates, schedules, and equipment for all service providers so that it may choose the best way to transport goods

• OTM is also able to communicate with service providers so that they may receive from/feed information to OTM regarding their service offerings – New Rates – Schedules – Tender requests/acceptances


Transportation Rate Management Manage All Service Provider Information

Division 1 Division 2 Division “n”

OTM – Contract and Rate Management

Rules and Regulations

Contract Commitments

Rates and Contracts

• Electronic Transfer via CSV • Available Manual Edit and

Entry Screens

External Data Sources

• Manage Detailed Rate Structures

• Track Commitments

• Accurate Service Time Estimates

• Integrated with OTM Sourcing

Accurate Freight Settlement

Better Carrier Retention

Improved Shipment Optimization

Increased Equipment Utilization

Results

Equipment Types


Rates -Rates are used by service providers to define the cost of a

transportation based service Rate Service

-Origin & Destination - Mode

Rate Offering -Origin & Destination

-Mode -Carrier

Rate Record $$

Rate Record $$

Rate Record $$


Presenter

Presentation Notes

Rates are used by service providers to define the cost of a transportation based service. Rates are comprised of four key components: Rate distance determines the distance from one location to another location. Rate service determines the time required to transport goods from one location to another location. Rate offering contains the contract level data specific to a service provider. Rate record contains specific costing data from one location to another.

Rate Inquiry


Equipment Groups & Equipment Group Profiles


Items, Commodities & Packaged Items


Items, Commodities & Packaged Items Example


Itinerary


An itinerary determines the specific route for a shipment

32

Itinerary


Presenter

Presentation Notes

An itinerary determines a specific route for a shipment. Itineraries are used as a filter by narrowing down the options for OTM to consider when building shipments. When planning the shipments, OTM looks for valid itineraries early in the planning process. To determine if an itinerary is valid, OTM looks at geography, weight/volume, equipment data, mode profile and other data. If multiple itineraries can be used for a shipment, OTM picks the least cost itinerary. Itinerary Demonstration (Transportation Planning and Execution > Itinerary Management > Itinerary Manager) You can define the lane based on geography or region. The multi-stop itinerary checkbox let’s you indicate if this itinerary can be used to build multi-stop shipments. You can set a minimum and a maximum for different factors such as weight and volume. The Lane Definition tab is generated based on the lane selected on the previous tab. The Legs tab lists all the legs in an itinerary. Within legs, you define the order in which the legs occur, which leg is the primary leg, equipment information, and mode information.

Order Management

Order Management

Order

Orders represent the requirement to move freight from one point to another


Transportation Order Management Manage All Transportation Orders

Planning & Execution

Outbound Orders

Orders Received

Inbound Orders

Purchase Orders

EDI

Batch

Manual

BPEL XSL

Transport Orders

Sales Orders

Interfacility Orders

Notice! … Ready to Ship

• Integrate with any ERP, Order Management, Purchasing and other systems to manage transportation orders

• Oracle Integrations: E-Business Suite, JD Edwards EnterpriseOne, Siebel CRM 35 Oracle and OTM are registered trademarks of Oracle ® and its affiliates

Transportation Planning

Transportation Operational Planning Maximize Fulfillment Service, Minimize Transportation Costs

Support a Wide Range of Optimization Needs –

Simple Rules Based Planning to Complex Cost & Constraint Based Optimization

• Route • Mode

Optimized Decisions

• Timing • Equipment

• Multi-Leg Multi-Mode Consolidation

• Common Leg Consolidation

• Multi Stop Consolidation

• Multi-Tier Networks • LTL Consolidation • Continuous Moves

Algorithms

• Consolidation • Service Provider

Engines & Rules

• Service Time Calculation

• 3-Dimensional Container Optimization

• Itineraries & Profiles • Carrier Capacity • Throughput • Rating


Areas of Optimization • LTL Consolidation

– Multiple orders to single shipments • Multi-Stop Consolidation

– Multiple pick-ups or deliveries per shipment • Multi-Tier Networks

– Dynamic Routing and Consolidation (Pool Points & Cross-docks) • Multi-Leg, Multi-Mode

– Multiple modes of shipments for single order – Multiple modes of shipments for multiple orders

• Continuous Moves – Existing en-route shipments tied with newly planned shipments

• DC/Warehouse Planning – Dock Door and Warehouse picking balancing


Planning: Shipment Optimization – Minimize Costs

Route Optimization

3-Dimensional Load Configurator Consolidation

Multi-Leg, Multi-Mode Itineraries


Bulk Plan • Plan multiple orders together to achieve optimal

transportation solutions and consolidation opportunities • Planner has option to execute on shipments or re-plan orders

in a future bulk plan


Planning: Dock Appointment Scheduling Improve Facility Efficiency & Carrier / Supplier Collaboration

• Automate the dock appointment scheduling process

• Account for facility operations constraints – dock availability, operating hours, throughput

• Partner collaboration – carriers & suppliers can manage their appointments online

• User productivity – intuitive user interface with drag & drop appointment setting

• Integrate with Warehouse Management System to optimize operating efficiency 41 Oracle and OTM are registered trademarks of Oracle ® and its affiliates

Transportation Execution

Transportation Execution Your Company Service Providers

• Support for all modes: • Ocean, Air, LTL, TL, Rail

• Electronic (EDI), Internet, and wireless communication

• Automated dock scheduling and partner collaboration

EDI 204: Load Tender

Review & Approve Shipment

Tender Accept Tender Transport Deliver Pick-up Sched

Appt

Internet: Delivered

Wireless: Picked-up

EDI 214: Delayed


Shipment Execution • Support for manual intervention before and after planning, as well as

during execution • Change carriers • Split / merge shipments • Divert / re-route en-route

• Tendering / Booking • Bulk, Individually, or Automated • Electronically (XML/EDI), E-mail / Web, or Manually • Response required or notification only • Considers office hours, time-outs, re-tenders, and dispatch locations

• Shipment Status Updates • Electronically or via web user interface. • Automatically “re-drive” shipment to determine new ETAs • Alerts users of new dates • Trigger customized workflow to implement your specific business rules


Secure Resources – Many Options

Tenders can be blasted out to several carriers for bidding or expedited service

Carriers Can be notified via Email, EDI, or Fax

45

Tender Decline or time-out will automatically tender to the next carrier


Visibility & Event Management Alert!

Shipment is 12 hours behind schedule

Alert: Shipment arrived late at HK Port Kansas City

DC 1

US Port Vessel Carrier China Factory HK Port Shipment to HK

• Planned vs. actual milestone tracking

• Proactive monitoring and notifications

• Automated, event-driven processes

• Track & Trace history


Freight Settlement

Support Settlements & Payments Based on Plans Generated in TM or Other System *Value-Added Tax and Non-Freight Related Charges

Freight Payment, Billing and Claims

Carriers

Financial System

Shippers / Customers

• Allocate costs to orders & order lines for billing

• Apply appropriate GL codes based on order characteristics

• Calculate profit margin for each shipment

• VAT & NFRC*

• AR & AP Vouchers • Allocated costs

Invoices via web

or integration

Pay based on actual shipment activity and contract rates A

uto-

Pay

Payments

Mat

ch &

Pay

Match, validate, and pay invoices; flag exceptions

Payments

Bills via web

or integration

• Intra-company cost transparency


Business Intelligence

Transportation Business Intelligence Real-Time, Embedded, Actionable Information

• Embedded within OTM – not a separate data warehouse

• Business intelligence for managers & operational users – BI workflows

• Create user specific reports and dashboards

• Perform ad hoc analysis

• Proactive alerts


Transportation Business Intelligence Measure Performance, Take Action

Drill to Transaction

Level

KPI Dashboard

Drill to Additional

Detail

Measure Against

Targets and Benchmarks 51


Transportation Business Intelligence Embedded Analytics for Improved Decision Making

1. Change Service Provider

2. View Carrier Scorecard


Lessons Learned

Lessons Learned ♠ OTM is highly configurable and can be tailored to fit your business processes.

While this flexibility is beneficial, custom configuration can add complexity and hinder system performance.

♠ Domain management – carefully layout a domain structure before beginning

configuration and set clear standards on what data will be housed in each domain.

♠ Know your master data – only load what you need. This will save you processing time, and will help to keep your database clean.

♠ Leverage Oracle resources – Oracle posts a lot of useful information on their support site and there are numerous OTM wikis/blogs that also have lots of helpful tips.


Useful Links • Learn more about OTM at the following sites:

– http://www.oracle.com/us/products/applications/ebusiness/logistics/018756.htm

– www.otmwiki.com – http://otmfaq.com


http://www.oracle.com/us/products/applications/ebusiness/logistics/018756.htm

http://www.oracle.com/us/products/applications/ebusiness/logistics/018756.htm

http://www.otmwiki.com/

http://otmfaq.com/

Q & A

56

Documents

OTM 101 Chris Gumz can set up OTM in a way that makes sense for your business. Each organization has their own process and way of doing thin\൧s. You can determine the best way to