Download - OTM - Fleet Management Initiative
Fleet Management
Initiative Project Overview
August 13, 2012
Copyright © 2012 All rights Reserved. Page 2
Agenda
Overview of Penske Logistics Operations
Solution for Order Management
Team
Tom Foerster – CSC Project Manager
Rick Bowman – Penske Logistics Operations Lead
Chirag Patel – Penske Logistics IT Lead
John Parillo – Penske Logistics Change Management Lead
Tom Smiley – Penske Logistics Operations SME
Copyright © 2012 All rights Reserved. Page 3
Penske is a strong, stable logistics provider based in the U.S., that operates globally…
Penske Transportation is a partnership between Penske Corporation & General Electric, and consists of both Penske Logistics and Penske Truck Leasing.
Penske Logistics provides comprehensive transportation, distribution, and related material support and border crossing services for complex, multinational companies.
Based in the U.S., Penske operates globally in Mexico, Canada, Europe, South America and Asia; Penske is a Customs-Trade Partnership Against Terrorism (C-TPAT) service provider.
Committed ownership…
Proven experience...
Regional presence...
$5.3B 2009 Revenue
$25B Penske Corp 2009 Revenue
Regional Head Offices
Copyright © 2012 All rights Reserved. Page 4
Penske provides service elements in all areas of supply chain including as a Lead Logistics Provider…
Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can:
> Optimize Transportation Operations
> Coordinate All Suppliers
> Integrate Supply Chain Technologies
> Synchronize Inbound & Outbound Flows
> Model and Manage Distribution Networks
The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers.
Lead Logistics Provider
Copyright © 2012 All rights Reserved. Page 5
Penske chose Oracle OTM to improve the efficiency of our Transportation business…
Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can:
> Optimize Transportation Operations
> Coordinate All Suppliers
> Integrate Supply Chain Technologies
> Synchronize Inbound & Outbound Flows
> Model and Manage Distribution Networks
The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers.
Lead Logistics Provider
Copyright © 2011 Penske. All rights Reserved. Page 6
DCC Fleet Management Scope Generally, Penske Dedicated operations are diverse & decentralized
Executable route plans created.
Resources & routes assigned
& initiated appropriately.
Resource & route information
automated & timely.
Associates paid & customers
billed accurately & timely.
Route Planning & Scheduling
Fleet Management & Dispatching
Onboard Communication
Financial Management
4,100 static routes
4,100 dynamic routes
1-30 (avg. 4) stops / route
Many route types (i.e., single leg,
multi-leg, crossdock, backhaul,
continuous move).
135 operating locations (+15
remote)
2,500 power units
2,900 drivers
350 non-driver associates
2,500 Cellcomm units (total)
90 barcode scanners
480 signature capture
< 2,900 activity based drivers
135+ customer invoices / week
20-30 centralized billing associates
Timely information availability.
Performance Management
20,000 reports (40% printed).
250-500 business object reports.
Orders ready for processing.
Customer & Order Management
50 customers (22 order based)
17,000 orders / day
1-25 (avg. 4) lines / order
95% EDI orders
20% order changes
Copyright © 2011 Penske. All rights Reserved. Page 7
DCC Processes Opportunity to standardize processes & create synergies as appropriate
Executable route plans created.
Resources & routes assigned
& initiated appropriately.
Resource & route information
automated & timely.
Associates paid & customers
billed accurately & timely.
Route Planning & Scheduling
Fleet Management & Dispatching
Onboard Communication
Financial Management
Load configuration &
building
Static routing
Dynamic routing
Resource & appointment scheduling
Resource visibility
Resource validation & assignment
Driver management
Exception management
Tracking, visibility & information
Vehicles
Drivers
Routes, loads & shipments
Payroll
Billing
Accounting
Timely information availability.
Performance Management
Real-time data, queries & reports
Drill-down metrics
Performance dashboards
Orders ready for processing &
customers well informed.
Customer & Order Management
Order receipt
Order validation
Order changes
Order & shipment information
Account information
Copyright © 2012. All rights Reserved. Page 8
How did we eat the apple?
Copyright © 2012. All rights Reserved. Page 9
Flexibility is a key differentiator for Penske Logistics
Penske large and diverse customer base requires supporting various order management related options.
•Receive/create order options:
• EDI from customer or LLP
• Manual (spreadsheet)
• None (regularly scheduled route)
•Plan (route) order options:
• Routed by Penske
• Content of orders (weight, volume, pallet count, etc.) may not be known until pickup
• Routed by customer
•Flexible execution:
• Re-sequence, add, and delete stops
• Relay shipments
• Planned and un-planned backhauls
•Minimal impact on existing customers.
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Specific order and planning examples
•No order from Customer/Simple Fixed Route
•Spreadsheet with Customer’s Orders/Planning by Penske
•Manual Orders/Planning by Customer
•EDI Orders/Planning by Penske or Customer
Copyright © 2012. All rights Reserved. Page 11
No Order from customer/simple fixed route
•Overview:
• Same route is run 5 days a week.
• No orders from customer
•Solution: Order templates with order schedule
• Will evaluate agents in lieu of order schedule
• Benefits & Limitations:
• Straightforward, works well for just a few orders
• Impractical for creating large sets of orders for an interval of time.
•Alternate Solution: Adapt Penske’s Master Schedule Program
• Easy to create and maintain a set of rules for creating orders:
• Origin and destination, pickup and delivery days and times
• Effective time period for rule set
• Benefits:
• Ease of configuration and maintenance
• Able to create the complete set of orders for a time interval at once.
Copyright © 2012. All rights Reserved. Page 12
Spreadsheet with customer’s orders/planning by Penske
•Overview
• Customer provides a spreadsheet with all (typically 10-15) the orders.
• Penske dispatcher bulk plans the set of orders
•Solution
• Tool to convert the customer’s order spreadsheet into an XML file and to automatically push this XML file into OTM.
• Benefit:
• Avoid effort and reduce risk of error during manual order entry.
Copyright © 2012. All rights Reserved. Page 13
Manual orders and planning by customer
•Overview
• Customer specifies route, which may be multi-stop (2 deliveries or less)
•Solution
• Upload orders using the tool described earlier and, if necessary, re-plan them.
• Rejected using multi-stop orders because of execution related limitations
Copyright © 2012. All rights Reserved. Page 14
EDI Orders
•Overview:
• Receive customer’s orders via EDI.
• Orders may or may not routed.
•Planned Solution:
• For routed orders, the interface will convert the incoming orders into a SAWs with order releases
• For other orders, the interface will create OTM orders which are then planned into shipments
Copyright © 2012. All rights Reserved. Page 15
High-Level conceptual workflow
EDI
Route/Order
Manual
Route/Order
No Order
Fixed Route
EDI Portal
XML Conversion
Tool
Order
Release PlanningPlanned Shipment
SAW with
Order Releases
Order Release
Template
Route? Yes
No Fleet Management
Order Type OTM
“Master Schedule”
Same starting point for Fleet Management in all cases.