Oracle Advanced Planning Transportation Planning Roy Peterkofsky Product Director ORACLE CONFIDENTIAL This presentation does not reflect a commitment to

Oracle Advanced Planning Transportation Planning

Roy PeterkofskyProduct Director

ORACLE CONFIDENTIALThis presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.

Logistics Drivers

Time SensitivityIncreased Velocity/Visibility

Time SensitivityIncreased Velocity/Visibility

CustomerExpectations

CustomerExpectations

Internet Selling/Higher VolumeVolatilityInternet Selling/Higher VolumeVolatility

VariableDemandVariableDemand

Increased CompetitionCommoditizationIncreased CompetitionCommoditization

MarginPressureMargin

Pressure

Product ProliferationGlobal Supply and Demand

Product ProliferationGlobal Supply and Demand

IncreasedComplexityIncreased

Complexity

Your Company

Distribution CentersExecutionPlanning

Unreliable information – Constant re-planningMissed shipments – ExpeditingUnderutilization - Expensive contracts

x

Multiple,non-integrated

systems

Manual processes

Carriers

Traditional LogisticsCustomers/Suppliers

Traditional Logistics Shortcomings

Fragmented planning and execution processes

Decisions based on stale data

Poor collaboration – repetitive feedback loops

Long planning cycles

Limited performance results

Little support for global operations

A Better WayA Better Way

Your Company Customers/Suppliers


Reliable information - Fast planning cyclesStrongly reduced expeditingOptimal contract utilization - Reduced cost

V

Single,integrated

system

Carriers

Oracle’s Logistics Solution

Internet

Workflow-based Exceptions

Productivity enhancing UI

Integrated: load consolidation, tendering, tracking/tracing, wave planning, pick, pack

Portal Portal Portal Portal Portal

Global Customers

CustomerCustomerSatisfactionSatisfaction

Continuous ImprovementContinuous Improvement

CarrierCarrierAnalysisAnalysis

On-TimeOn-TimePerformancePerformance

Integrated Planning and Execution

Carriers / 3PLs

Collaboration

andEvents

InboundSupplyOrigin

OutboundDemandDestination

Oracle’s Logistics SolutionComplete and integrated!

PlanPlan Rate Rate Book /Tender Book /Tender

Pick,Pack,Ship

Pick,Pack,Ship

TrackTrack Replan Replan Settle Settle

Business Intelligence

ProcurementProcurement ManufacturingManufacturing FulfillmentFulfillment

ServiceService FinanceFinance PlanningPlanning

Oracle’s Logistics SolutionPart of complete enterprise solution

Integrated Planning and Execution

PlanPlan Rate Rate Book /Tender Book /Tender

Pick,Pack,Ship

Pick,Pack,Ship

TrackTrack Replan Replan Settle Settle

Business Intelligence

Oracle Transportation Planning

Provide comprehensive decision support tools that Provide comprehensive decision support tools that shrink the planning cycle for transportation managers in shrink the planning cycle for transportation managers in companies that control shipment of products:companies that control shipment of products:

- Manufacturers- Manufacturers

- Distributors- Distributors- Retailers- Retailers

Product vision

Oracle Transportation PlanningProduct vision: complete solution

Truck *

Rail

Air

Ocean

Truck *

Rail

Air

Ocean

ModeModePlacePlace

Facility

Local area

Continental

Intercontinental

Facility

Local area

Continental

Intercontinental

TimeTime

Dynamic

Operational

Tactical

Strategic

Dynamic

Operational

Tactical

Strategic

Outbound

Inbound

Intra-Company

Returns

Drop ships

Outbound

Inbound

Intra-Company

Returns

Drop ships

FlowFlow

* Truckload, Less than Truckload (LTL), and Parcel

Oracle Transportation PlanningScope for initial product release

Truck *

Rail

Air

Ocean

Truck *

Rail

Air

Ocean

ModeModePlacePlace

Facility

Local area

Continental

Interncontinental

Facility

Local area

Continental

Interncontinental

TimeTime

Dynamic

Operational

Tactical

Strategic

Dynamic

Operational

Tactical

Strategic

* Truckload, Less than Truckload (LTL), and Parcel

Outbound

Inbound

Intra-Company

Returns

Drop ships

Outbound

Inbound

Intra-Company

Returns

Drop ships

FlowFlow


Focus on greatest immediate cost savings

Shrink the operational planning cycle 5 ways– Fast optimization

– Better optimization results

– Fast detection & analysis of plan problems

– Fast simulation of incremental plan changes

– Smoother implementation of results

Plan closer to point of execution– Use most accurate input data

– Take advantage of all possible savings opportunities

Objectives for initial product release


Reduce transportation cost– Optimized load building– Built-in intelligence to find savings opportunities

Shrink planning cycle time– Closed-loop planning, execution, and collaboration

Improve on-time delivery– Realistic shipping and delivery windows– Integrated exception management

Drive continuous improvement– Integrated performance management

Enables you to:


Transportation planning and optimization– Multiple objectives– Multiple optimization strategies– Mode and carrier selection– Multiple “real world” constraints– Analyze planning decisions and exceptions

Seamless integration with Execution

Integrated performance management

Capabilities

Planning and OptimizationPlanning and Optimization

Transportation Planning and Optimization

Run in minutes instead of hours

Allow multiple optimizations per day

Quickly react to major changes– New orders– Expedite orders

Increase planner productivity through fast optimization


Cost minimization Carrier charges Private fleet costs Handling costs

cross docking consolidation/deconsolidation

Improves service quality On-time delivery Damage Billing performance

Improves inventory turns Minimize carrying costs

Balancing business trade-offs using multiple objectives


Load consolidation– Pooling– Multi-stop truckloads

Continuous moves

Optimal mode and carrier selection

Use multiple optimization strategies to achieve cost savings of 5-20%!

Load Consolidation – Pooling

Reduce costs by– Combining multiple LTLs to TL– Breaking TLs into multiple LTLs

for local delivery– Combinations

multi-tier cross-dock

Hubbing at consolidation / deconsolidation facilities

LTL

TL

LTL

TL

LTL LTL

TL

TL TL

Load Consolidation - Multi-stop TruckloadsMulti pick-up and multi drop-off

Local LTL deliveries

TL Line Haul

Pickup at plant

Pickup at DC

Pickup at supplier Delivery to plant

Delivery to

customer

Drop-off at

deconsolidation hub

Continuous Moves

Reduce costs by– Combining loads into

extended movements– Creating volume purchases– Aiding carrier logistics– Gaining discounted pricing

Combine shipments into loads, loads into continuous moves

Empty

move

Empty move

Load

Load

Load

Optimal Mode and Carrier Selection

Lane differences– One carrier’s head-haul = another’s back-haul

Parcel versus LTL versus TL– Parcel carrier cwt pricing– LTL carrier minimums– TL economies of scale

Same lane, different lowest-cost carriers– Higher per-mile rate, lower per-stop charge– Lower per-mile rate, higher per-stop charge

Reduce costs by examining every situation individually


Vehicle capacity

Pickup and delivery time windows

Preferred carriers and volume commitments

Commodity, equipment, and facility compatibility

Carrier multi-stop and continuous move rules

Transit times and lead-times

Days and hours of operations

Equipment availability

Facility handling and dock capacity

Merge in transit

Use real world constraints to guarantee an executable plan!

Real World ConstraintsModel real-world hard and soft constraints

Model soft constraints as linear, fixed, or step functions

Oracle Solution

Example: Flexible Equipment Capacity

4130 ft3

Won’t fit !

Success !

2850 ft3

2851 ft3

2851 ft3

Benefits of Real-World Constraints

Reduce need for rework of optimization results

Reduce feedback loops and re-planning

Avoid problems at execution time– Rejected load tenders– Unworkable carrier/equipment assignments

Get it right the first time!

Transportation Planning and OptimizationImprove planner’s productivity through quick analysis tools

Most expensive TLs without continuous moves

Candidates for release

TLs with most space

Built-in intelligence to find additional savings opportunities

Transportation Exception Management

Quickly identify issues and opportunities

Reduce non-value-added activities

– Automate planning decisions where appropriate

– Eliminate ‘repetitive’ planner tasks

Increase problem visibility– Send proactive notifications– Monitor escalated issues

Workflow-based planning exceptions

Manage Exceptions

Missed delivery deadline

Preferred carrier not used

Volume commitment not met

Premium option used

Early delivery

… and more

React quickly to issues in plans – before they become live issues

Advanced Interactive Graphical Interface

Analyze Planning Decisions and ExceptionsQuickly analyze plan savings and load composition

Quick drilldown from load to delivery details

Drill up to delivery lines and legs from delivery details

Seamless IntegrationSeamless Integration

With ExecutionWith Execution

Integrated Transportation ManagementMaximize value via interconnection and process automation

CONSOLIDATELOADS/MOVES

SELECT MODES/CARRIERS

TENDERLOADS

TRACK ANDTRACE

AUDIT/SETTLE

REAL-TIME REPLANNING

PERFORMANCE-BASED PLANNING

RESELECTION

Smooth plan implementation

Real-time feedback improves all processes

This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.

Automated Release of Planned Loads

Loads include stops and schedule– Stops – origins and destinations

– Schedule – planned arrival and departure times

– Carrier, service, and equipment assignments

Multiple release mechanisms– Manual

– Assisted tools to locate best candidates for release

integrated with graphical interface

– Fully automated (“Lights Out”)

Common data model – seamless connection to execution system

IntegratedIntegrated

Performance ManagementPerformance Management

Integrated Performance Management

Management by objective– Define key performance indicators– Setup business performance targets

Management by exception– Calculate KPIs and compare to plan– Notify decision-maker of exceptions

Management by fact– Analyze exceptions based on facts– Take immediate corrective action

Adaptive: drive continuous improvement

Define Define targetstargets

PerformPerformtransactionstransactions

MeasureMeasureperformanceperformance

Out ofOut oftolerance?tolerance?

Notify Notify

AdjustAdjusttargetstargets

Integrated Performance ManagementBuilt into the Planner Workbench

ReportingFor communications and decision support

Standard reports– Master summary report– Master or carrier load/shipment

report– Master order detail report– Facility load/shipment detailed

report– Pool activity detail report

Custom Report – Costs by Region

ArchitectureArchitecture

Integrated Supply Chain Solution

Common data model– “Single version of the truth”

Lanes Carriers Locations Equipment Products Rates Incompatibilities

– Yields faster, easier implementation of plans

Database centric planning– Scalable and reliable

Open, standards based

SecureWorkflows KPIsPlans

Carrier,Customer,SupplierPortals

RatingEngine

TransportationPlanner

Workbench

Open architecture

Transportation Planning and Execution

FutureFuture


International, multi-modal transportation

Fleet routing and scheduling (pickup and delivery)

Tactical simulation

Optimal load configuration

Private fleet management

Strategic planning– Transportation network design– Carrier relationship management– Private fleet planning

Product vision: complete solution - phased rollout

International/Multi-Modal Planning

Scheduled transportation– Ocean– Air– Rail

Extended rating engine – Commodity-based pricing– Route-dependent pricing

Overlaid vehicle trips– Containers on vessels– Trailers on trains

Extend applicability of operational planning tools

Fleet Routing and Scheduling

Manage multiple vehicles and routes

Pickup and delivery time windows

Vehicle capacity constraints

Minimize distance and driver time

Street-level detail

Pick-ups and deliveries – typically for localized area

Tactical Simulation

Capture periods of ‘low’ and ‘high’ demands

Define simulation rules– Increase demand by 10%– Replace carrier X by carrier Y– Increase specific rates by 15%

Use simulation studies to simulate the impact of future business changes

– Assess impact on top and bottom line performance

Increase visibility to future costs and potential costs savings

AdvisorsAdvisors

Guided by Our CustomersLogistics Customer Advisory Board

35 companies

Users of Oracle Transportation, Shipping, Warehouse Management

Variety of industries– Consumer Goods

– Automotive

– Metals

– High tech

– Pharmaceutical

– Transportation/Logistics

SummarySummary

Your Company


Unreliable information – Constant re-planningMissed shipments – ExpeditingUnderutilization - Expensive contracts

x

Multiple,non-integrated

systems

Manual processes

Carriers

Traditional LogisticsCustomers/Suppliers

Your Company Customers/Suppliers


Reliable information - Fast planning cyclesStrongly reduced expeditingOptimal contract utilization - Reduced cost

V

Single,integrated

system

Carriers

Oracle’s Logistics Solution

Internet

Workflow-based Exceptions

Productivity enhancing UI

Integrated: load consolidation, tracking/tracing, wave planning

Portal Portal Portal Portal Portal


Shrink the planning cycle

Rapidly consolidate loads and build continuous moves

Optimize mode and carrier selection

Drive continuous improvement

Enables you to:

Improve delivery performance up to 25%

Reduce transportation cost up to 20%

Reduce planning cycle time to minutes

Integrated planning, execution, and collaboration

For planners, not programmers

Integrated performance management

Superior architecture

Lowest total cost of ownership

Why Oracle!

AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S

Contacts

Roy Peterkofsky

Product Director

Transportation Planning

[email protected]

(650) 506-9362

Roger Goossens

Senior Director

Advanced Planning - Product Mgt, QA

[email protected]

(650) 506-0967

John Fichtner

Senior Director

Business Development

[email protected]

(503) 220-5193

Documents

Oracle Advanced Planning Transportation Planning Roy Peterkofsky Product Director ORACLE CONFIDENTIAL This presentation does not reflect a commitment to