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2 Agenda Today’s Challenges Best In Class Performance Achieve Best-In-Class Capability with OTM Questions.

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Presentation on theme: "2 Agenda Today’s Challenges Best In Class Performance Achieve Best-In-Class Capability with OTM Questions."— Presentation transcript:

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2 2 Agenda Today’s Challenges Best In Class Performance Achieve Best-In-Class Capability with OTM Questions

3 3 Supply Chain Disruptions Global outsourcing, less predictable lead times, and vulnerability to supply chain shocks are the top challenges to manufacturers Other possible supply chain disruptions –Security threats to airports, ports and critical supply chain nodes –Natural Disasters –Port Disruptions –Aging and congested transportation infrastructure Accenture study found 73% of companies have experienced a disruption in the last 6 years RSAG Research How Do You Respond? Increase agility needed for flexible execution Utilize intelligent alerts that provide notification to adverse events Perform what if analysis to evaluate alternate shipment methods, routes and develop contingency plans for supply chain disruptions

4 4 Limited Visibility & Manual Processes Shippers Carriers Customers / Suppliers ExecutionPlanning Multiple, Non-Integrated Systems Manual Processes Warehouses / 3PLs Fragmented Communication and Visibility Fragmented Visibility to Shipments and Manual Labor Intensive Processes Results in reactive issue resolution that increases the need for expedited shipments How Do You Respond? Automate manual tasks and proactively monitor shipments and manage by exception

5 5 Increasing Customer Expectations “Effective transportation management involves overcoming a host of real challenges and ever increasing customer expectations for smaller and more frequent delivery times.” Aberdeen Customers want increased global order promise accuracy How Do You Respond? Utilize a Transportation Management System to manage more frequent deliveries with consolidated shipments Increase visibility to shipments in order to improve lead time reliability and reduce inventory levels Allocate freight costs to orders to gain visibility to customer profitability

6 6 Volatile Fuel Costs Primary component of freight cost has more than quadrupled in the last 6 years and nearly doubled in the last year How Do You Respond? Consolidate and optimize freight Mode shift and consider alternative routings Re-evaluate your supply chain network

7 7 Green Initiatives Impact How Do You Respond? Institute sustainable transport policies Measure and Reduce your Emissions Use more environmentally friendly logistics providers Optimize your routing and consolidate freight to reduce miles driven Automate tasks and communications to reduce paper consumption Enact energy conservation strategies ( Reduce, Re-use and Recycle) Key Drivers of Green Initiatives (2008 eyefortransport Green Transportation Report) Desire to Improve Customer and Public Relations Want to Decrease Fuel Costs Part of their Corporate Responsibility Agenda Financial Return on Investment (ROI) “Both competitive pressure and marketplace perceptions will drive every major company to factor sustainability into their supply chain equations” Inbound Logistics

8 8 Impact of Challenges Supply chain disruptions Limited visibility and manual processes Increasing customer expectations Volatile fuel costs Green initiatives Supply chain disruptions Limited visibility and manual processes Increasing customer expectations Volatile fuel costs Green initiatives Suppliers Customers Your Company Margin Pressure Where can I reduce costs? How do I differentiate my logistics offerings?

9 9 Best in Class Performance

10 10 What Are Industry Leaders Doing? Focus on maximizing profitability rather than just minimizing costs Make transportation decisions with overall supply chain performance in mind Access to timely and accurate data concerning their performance Utilize a Transportation Management System such as Oracle Transportation Management (OTM)

11 11 Industry Leaders Performance Definition of Best in Class Top 20% of companies Reduce freight spend relative to revenues year- over-year Greater than 97% on-time delivery performance Achieve higher earnings (EBIT) averaging 14% versus 6% for industry laggards Possess a holistic view of their end-to-end processes Achieve better performance at lower costs Aberdeen Group - Integrated Transportation Mgmt.

12 12 Achieve Best-In-Class Shipment Lifecycle Capability with OTM

13 13 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

14 14 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility Procurement Collaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

15 15 Procurement Collaboration and Optimization Oracle Global Logistics Load Execution Environment Electronically send out bid packages using real history, forecasts and actual orders Assess the financial impact of proposed rate changes before rates are awarded Evaluate multiple award scenarios based on cost, service and performance Automate transportation rate uploads into OTM Your Company Receive Demand Orders Lane Forecasts Bid Initiation Quotes Award Notice Selected Carrier Optimized Award Recommendation Bid Packet Quote Analysis Accept Contract Carriers Solicit carrier bids, Optimize awards, Issue contracts

16 16 Procurement Collaboration Bidding Results

17 17 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

18 18 Plan both Purchase Orders for pick up & Sales Orders for delivery Quote freight options during order capture process Accurately promise deliveries based on inventory & transit times Allow routing guides to select carrier based on rules Allocate costs of complex routings to order lines & determine customer freight charges based on the allocations React quickly to changes in order sizes, cancellations, or delivery dates with rapid, continuous re-planning capabilities Order Entry Freight Choices Transit Time Routing Guides Logistics Order Management

19 19 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

20 20 Inputs optimized for lowest delivered cost while accommodating business rules and constraints Shipment Planning & Optimization Consolidate loads by leveraging pooling, cross-docking, or multi-stop routes Streamline carrier selection & route optimization from item availability to final delivery

21 21 Shipment Planning Results Planning results capture statistics such as total cost, weight, volume and distance Graphical view of results broken down by carrier and mode.

22 22 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

23 23 Shipment Execution Automatically tender shipments eliminating delays from manual processes Receive shipment status and delivery confirmation Communicate with carriers through the internet, wireless device or electronically Review & Approve Shipment Message: Picked-up Tender Accept Tender Pick-upTransportDeliver Message: En route Message: Delivered Your Company Service Provider

24 24 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

25 25 Global In-Transit Inventory On hand as well as in-transit inventory visibility and management down to the SKU level Facilitates Vendor Managed Inventory (VMI) Inventory data by supplier, owner, warehouse, quantity on hand, aging and description Employee, supplier and customer notifications for changes in quantity on-hand or re-order points Increases inventory reliability and reduces the days of inventory on hand

26 26 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

27 27 Supply Chain Event Management Agents automate business processes and notify involved parties to events Reduce non-value-added manual activities React to potential issues - before they occur Automate decisions where appropriate Send proactive notifications Monitor escalated issues Utilize role based alerting so the right people are notified of exceptions

28 28 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

29 29 OTM Reports and Documents Reports Activity Carrier Delivery Carrier Capacity Carrier Commitment Cost Savings Event Reason Freight Payment In Transit Inventory Inventory Visibility LTL Trailer Building Order Financial Planned versus Actual Projected Late Orders Purchase Order Shipments by Carrier Tenders Declined by Lane Documents Bill of Lading Commercial Invoice Packing List Transmittal Letter

30 30 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Order-Shipment Lifecycle Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement

31 31 Freight Payment & Billing Carriers Financial System Shippers / Customers Allocate costs to orders & order lines for billing Calculate profit margin for each shipment AR & AP Vouchers Allocated costs Invoices only for additional charges Pay based on actual shipment activity and contract rates Auto-Pay Payments Bills via web or integration Intra-company cost transparency Automate Freight Settlement

32 32 Streamline Processes Shipment Shipment Planning & Planning &Optimization ShipmentExecution Global In-Transit Inventory Visibility ProcurementCollaboration & Optimization Reporting & DocumentGeneration Freight Payment, Billing & Claims Performance & Financial Analysis Supply Chain Event Mgmt Achieve Best-In-Class Shipment Lifecycle Capability with OTM Logistics Logistics Order OrderManagement Order-Shipment Lifecycle

33 33 Performance & Financial Analysis Key Performance Indicators based reporting Quick visual status of performance such as: freight cost per mode, cost per mile, trailer utilization and on-time arrival rates Drill-down into graphs for trend and variability Monitor carrier performance and EPA SmartWay progress Analyze lanes that have high costs and target them for improvement Drives Continuous Improvement

34 34 Monitor Goals & Improve Performance

35 Multiple dashboards Drill to transaction shipment details Weight shipped by mode of transport Drill Into Details to Identify Trends and Variability

36 36 TMS Value Proposition

37 37 Transportation Cost Savings Forrester Research reports TMS savings of 8% year over year from the following benefits:

38 38 OTM Sole Leader “Oracle scored the highest relative to its competitors across ground transportation planning, freight payment, multimodal transportation, product strategy and vision."

39 39 OTM Leader in Gartner Report “OTM balances deep functionality with ease of use, which appeals to a broad array of customers.” “OTM provides credible and powerful capabilities across the TMS functional spectrum, with notable depth of functionality in international logistics for which global visibility is important.”

40 40 COMPANY OVERVIEW World leader in the agricultural and construction equipment businesses $13B in revenues with 30 manufacturing sites and over 25k employees Products sold in 160 countries through more than 11k dealers and distributors Brought transportation operations in-house to reduce costs and increase visibility SOLUTION Live on Oracle Transportation Management, future integration to SAP RESULTS Lowered transaction, headcount, and carrier selection costs Improved visibility to suppliers, shipment data, freight rates & payments, damage claims, and dealer destination charges Retired legacy system in Europe Live in United States and Europe less than 6 months after selection Case New Holland CUSTOMER PERSPECTIVE “CNH embraced an aggressive plan to insource its N. American logistics operation and gain control of its global inbound transportation within a year. With the partnership of Oracle and the implementation of Oracle Transportation Mgmt, this plan was successfully executed.” -- Kathy Acker, IT Director

41 41 In Summary: Transforming Transportation In Your Organization Optimize and automate transportation processes utilizing OTM Collaborate with carriers, suppliers and customers to create more economical processes Benchmark metrics, establish objectives for success and monitor with OTM’s Transportation Intelligence

42 42 Complimentary Assessment  Contact Emerging Solutions for a complimentary Transportation Value Assessment  Utilizes proven analytical tools and our extensive industry expertise to identify quantifiable improvements in your transportation operations and to your bottom line.

43 Questions and Answers

44 44 Additional Questions? Contact Brian Hamrock


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