oracle transportation management...

Oracle Transportation

Management Journey

28th October, 2014

About Asian Paints Limited.

About Asian Paints

5WORLD’S

LARGEST

th

DECORATIVE

PAINT COMPANY

$2GROUP REVENUE

BILLION

17OPERATIONS IN

COUNTRIES

23PAINT

MANUFACTURING

FACILITIES

9.8USD

MARKET CAP

BN 50FORBES ASIA’SFAB

MULTIPLE

BRANDS

60COUNTRIES

SERVICING CONSUMERS

+

7,000EMPLOYEES

WORLDWIDE+

NUMBER 1

INDIAPAINT COMPANY

IN

13LARGEST

th

PAINT COMPANY

3 times in a row

2XNEAREST

COMPETITOR

IN INDIA

• Manufacturing to services (Painting/Consultancy)

• Plain colors to Textures

Asian Paints Confidential 4

From plain

colors…

…to Special Effects and Texture Surfaces

Organization is constantly innovating…

• We are reaching out to customers in newer ways

Asian Paints Confidential 5

Organization is constantly innovating…

Managing collaboration within the Enterprise and

extended enterprise

Customer centricity becoming a strategic differentiator

Managing Innovation while adding value to customers

Build Loyalty through top class customer experiences

Manage governance, risk and compliance

Increase operational efficiency

To become one of the top 5 Decorative Coatings companies world- wide

Leverage our expertise in the emerging markets

Strategic Imperatives of our Vision

Presence in Singapore.

Supply Chain Setup

Finished Goods Supply Chain at Asian Paints

~ 12

~ 10

~ 120

~ 32000

PRIMARY FREIGHT

SECONDARY FREIGHT

TERTIARY FREIGHT

Supply Chain.

12 Manufacturing Locations

10 Distribution Centers / Regional Distribution Centers

120 Depots

Approx. 3000 Stock Keeping Units

Approx. 32000 Dealers.

OTM Journey

Started in 2011.

2 distinct scenarios.

Driven by both Control & Customer Centricity.

Evaluated solutions from SAP , i2 and Oracle.

(And Microsoft Excel)

OTM selected for both scenarios.

And so the journey began….

OTM for Primary & Secondary Freight Negotiation

Primary & Secondary Freight Negotiation

Approx. 70 Transporters across India.

Quarterly Bidding Process.

Excel Based System in use with no versioning, controls and auditable

processes.

Clear need for a Systems implementation.

OTM Solution used.

15

OverviewWhat is Sourcing?

Bid on

what?

Award

Bids

Carrier Bids

High Level Process

Pre-Bid Phase

• Pull data from operations system

• Build lanes / shipments information

• Fine tune data using action utilities

Bid Phase

• Create Project, Bid Rounds

• Invite carriers, provide bid documentation and specify constraint sets

• Generate the carrier response template excel sheet

• Allow carriers to submit bids

Analysis Phase

• Create planning parameter set with required parameters

• Run Procurement Solver

• Generate Manual Negotiation Template

• Upload Negotiated rates and get carrier confirmation

Awards Phase• Finalize awards on each lane

• Set the awarded bid status

• Build rates and push to JDA Supplier Chain Planner using integration

17

OverviewMajor Steps in Sourcing

Invite Carriers

- Project & Bid Round

Carrier Bids

- Carrier Response Template

Bid Analysis

- Scenario & Solution Detail

Build Rates

- Rates

Forecast Demand

- Lane Summary

OTM Landscape at Asian Paints

SAP ECC INFORMATICA

JDA SUPPLY CHAIN

PLANNER

Web server

App Server 1

Oracle Transport Management

App Server 2

DB server

INFORMATICA

Specific Developments Done

Informatica ETL based transforms for Forecast Aggregation as input to OTM

Custom Manual Negotiation Template implemented capturing previous data,

awarded business share, compare rates and % changes across lanes.

Integration triggers after Final Approval of Rates and Business Share. This

pushes data into the JDA Supply Chain Planning System.

Current Usage and Challenges.

Usage:

In use for close to 8 Quarters ( 2 years ) for Primary and Secondary Freight

Negotiations.

Challenges:

Getting the transporters to connect via VPN and training them to use the

system for bid entering, upload and approval

OTM is your friend !

OTM for Tertiary Freight Planning and Execution

Background

Complex tertiary network

•120 Depots

•30000 + Dealers

•300000 + Sites

Stringent SLAs

•OCT < 4 hours in the local markets

•OCT < 2 hours for privilege club customers

Significant costs

Complex business scenarios

•Re-dispatch

•Tracking needs

Background.

Order punching at Centralized

Call Center

Delivery creation and OPD print at Godown

Physical picking and corrections

PGI and Invoice

Plan and form Log sheet

Find vehicle, arrange loading

No on-road visibility

Revalidation of picked material against Invoice

Communicate & create Log sheet

As-Is Process of Order execution in non-OTM Godowns

Business Need for a Freight Planning and Execution

• Person dependency in planning and execution

• Lack of visibility of load and resources in each bucket / Stage

• Limitations in contract definition, administration & settlement

• Control gaps were to be plugged

• On-road visibility of orders

• Value Adds to Customers – Dispatch intimation, need based SMS

• To arrive at a strong engagement model for Transportation

With the overall objective of improved serviceability at optimized cost

OTM Solution used.

Optimized Shipments

Frozen shipments

Visibility of load and resource

Automations

Controlled process

Value added services

Enhanced serviceability

SAP

OTM

VTSTelephony

Order Taking System

Solution/Approach

Order punching & auto delivery

Plan and form Shipment with vehicle

& transporter attachment

Physical picking and corrections

PGI and Invoice

Plan and form Log sheet

Find Instruct /see Vehicle [on LCD] which needs to be ready for

loading

Vehicle –Shipment

Dashboard

Complete on-road Visibility

Revalidation of picked material against Invoice

Communicate & create Log sheet

Find vehicle, arrange loading

Planning & Execution Cycle with OTM

Business Monitor: Users’ single window

of execution

Vehicle Tracking System – Novire Technologies

Intended Impact

• No person dependency

• Real time visibility and automation

• Exceptional scenarios and approval mechanism and audit trails

Intended Benefits

• Reduction in freight spend

• Improvement in SLA compliance and servicing

Major challenges that we had faced and overcome since go-live

• Multiple bulk plans running at the same time that lead to order locks

• Upcountry process introduction

• Capacity override for specific vehicles

• Freezing on vehicle reported at gate

• Introduction of Minimum Weight Utilization criteria at unit level

• Identifying and addressing corner cases in bulk plan runs

• Enabling partial MRV/re-dispatch of materials

• Optimize order creation time to minimize transmission failures

• Third party dispatches

Current Challenges that we still need to address

• Creation of duplicate shipments – various scenarios

• Multiple base costs for same shipment

• Capacity based planning

• Issues with merging shipments

• Configuring complex rate contracts

Path Ahead

• Reduction in the number of issues reported

• Currently live in 12 locations -> scale up to 120

• Call Center Integration/ Order Taking Integration

• Picking to be driven by OTM planned shipments

We hope OTM becomes our friend.

Thank you for the support.

Rajgopal Nayak

Chief Manager – Systems Development

rajgopal.nayak@asianpaints.com