complex logistics use cases - otm myths
DESCRIPTION
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.TRANSCRIPT
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OTM Myths The impossible made possible
Eric van den Born 14th August 2012
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Myth: OTM not capable to support:
Rail Air Street level routing Parcel Postal Transportation of people
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Introduction
Eric van den Born Director Business Development
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Manufacturing
Automotive
LSP
Retail
OTM – Industries in 2002
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OTM – Industries
Chemicals 3%
CPG 14%
Heavy Industry 4% High Tech
4%
Manufacturing 21%
LSP 35%
Retail 11%
Other 8%
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G-Log – January 2002
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Release 5.5 Release 5.0 Release 4.0
Acquisition Release 4.5 Release 3.7
Release 3.5 Release 3.0
Release 2.6
Release 2.5
OTM – History
May 1999
Mar 2000
July 2000
Aug 2000
Oct 2000
Mar 2001
Aug 2001
Nov 2001
June 2002
Oct 2002
June 2003
June 2004
Mar 2005
Nov 2005
May 2006
Founded
Release 1.0
Focused on the global data model and Java code to provide the Web-designed infrastructure.
Application integration to the web infrastructure (industry standard XML).
Release 2.0
Release 2.1
Provided enhanced functionality related to early adopter implementation requirements.
Settlement and content that close the loop on the full business cycle.
Reporting and status enhancements based on operational feedback.
Planning and optimisation for multi-tier distribution networks.
Release 3.1
Reporting, Order Management, and Visibility.
SCEM, Reporting, and Order Management functionality, and security.
Enhancements to Inventory Visibility, and Optimisation functionality.
Expand breadth and depth of the product footprint. Enhanced usability
Network-based Planning International RIQ Pier Assignment QuotingJobs/Consol’s Vessel Management Broadcast/Spot Tender
Procurement, Advanced Analytics,, 3D Load Configura-tion, ITL APIs and Workflow, Document Management, Claims Management, Appt Scheduling
First release post acquisition
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Release 6.1 Release 6.0 Release 5.5 CU 5
9 features
Release 5.5 CU 4
25 features
Release 5.5 CU 3
33 features
Release 5.5 CU 2
39 features
OTM – History
May 2006
Aug 2006
Dec 2006
May 2007
Jan 2008
June 2008
June 2009
Dec 2009
Release 5.5
48 features
Release 5.5 CU 1
10 features
Cooperative Routing, Product Name Change & Re-Branding Integration with eBS, Consolidated Tender, Enhanced UI, Scalability & Performance Enhancements, Carrier Commitment Management. FF Enhancements, RIQ with Show Routing.
Container/Equipment Visibility, Integration enhancements, Enhanced Help including “Show-me” & Custom Help Merge-In-Transit ID
Cooperative Route Execution, Enhanced Air Processing, Simplified UI for mid-tier, UI Enhancements, Dock Scheduling Enhancements.
Fusion Transportation Intelligence, Dock Scheduling Enhancements, Container Optimization, Shipment Cost Adjustment, Customer Management Cooperative Route Execution Enhancements.
Fusion Transportation Intelligence, Dock Scheduling Enhancements, Sourcing Enhancements, Parcel CWT Rating, Rail Enhancements, Optimization Enhancements.
Dock Scheduling Enhancements, Cumulative Broadcast Tenders, Sourcing Enhancements, Optimization Enhancements, Service Provider Assignment Record Management.
Fleet & Asset Management, Multi-Tier Network Execution, Siebel Order Capture Integration, eBS Integration Phase II, Small Parcel System Integration.
Global Trade Management Mobile Communications
Release 6.2
Dec 2010
Fleet Mngtmt Global Trade LTL Sourcing Small Parcel Load Configurator Rail Transport GTM – eBS integration User interface
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Oracle Sales Course – 2006
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Logistics cost by Industry
4,2% 3,8% 3,5%2,6% 2,6%
1,4%
1,6%1,4%
1,3%
1,0% 1,0%
0,6%
0,9%
0,8%0,7%
0,5% 0,5%
0,3%
0,9%
0,8%0,7%
0,5% 0,5%
0,3%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
Manufacturing Process CPG Automotive Retail Pharma
Transport Handling Inventory Administration
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OTM – Street Level Routing
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Rail: Functionality
Rule 11 Block Trains
Rail Schedules
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Rail – Rule 11 Example
Junction Junction Topeka - KS Medina - OH
Leg 1 Leg 2 Leg 3
Leg 1 BNSF (KCITY) NS (BELVU) WE Cost $1050 + $2100 + $1000 = $4150 Time 4 + 5 + 2 = 11 Days Distance 67.3 + 692.4 + 56.9 = 816.6 Miles
Leg 3 BNSF (CHGO) CSXT (GRNWH) WE Cost $2100 + $1500 + $1000 = $4600 Time 6 + 3 + 2 = 11 Days 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
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Rail – Block Trains
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Rail – Block Trains & Fleet Management
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Rail – Schedules
Sighting Events
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Ocean: Functionality
Transload Shipments Demurrage – Detention
Consoles
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Ocean – Transload Shipments
POL POD
POL POD
Mother Vessel Feeder Vessel
Transload
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Ocean – Transload Shipments
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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.
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Air: Functionality
TACT Rating & Chargeable weight Cut off and Recovery times
Air Schedules
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Functionality – Display Rating
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Chargeable weight & TACT Rting
KLM
Minimum charge
< 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric factor
AMS - SIN € 410 € 24.50 per kg € 23.50 per kg € 19.50 per kg € 16.50 per kg 6,000
TACT Minimum charge
< 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric factor
AMS - SIN € 550 € 56,50 per kg € 53,00 per kg € 47,50 per kg
€ 37,50 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,-
Chargeable Weight
Display Rate – TACT (The Air Cargo Tariff)
Amsterdam to Singapore: 98 kg Actual weight
800,000 cm2
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Functionality – Cut off & Recovery time
Departure aircraft
Arrival aircraft
Cuttoff Recovery
Loading Unloading
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Functionality: Air Schedules
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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
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Other: Functionality
Postal Industry Parcel Industry
Shipping people
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OTM in Postal service
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OTM in Postal service
Regional Sorting Center
Regional Sorting Center
National Sorting Center
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OTM in Postal service
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OTM in Parcel Service
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OTM in Parcel Service
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Order capture
Planning
Life cycle of a Parcel Shipment
Pickup location
Delivery location
Terminal Hub Gateway Gateway
1. Booking 2. Dispatch 3. Pickup 4.Outbound 5. Export 6. Transfer 7. Import 9. Inbound 10. Delivery
Hub Terminal
11. Billing
Operations Order taking
General tasks
8. Customs Clearance
Visibility & Exception Management
• Manual AWB entry • Correct Invoice • Additional charges
• Rating Process
• Shipment Pickup
• Containerisation • Redim & Reweigh
• Network Capacity management (air)
• Breakbulk • Clearance • Inventory
• De-Containerisation
• Delivery • POD Alert
management
• Network Control - Communications • View and Update tariff adjustments • Maintain master data
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OTM – Shipping People
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MavenWire: Conclusion
Turning the best product…
…into the best solution…
…requires the best people
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www.MavenWire.com
Thank-You!