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OracleTransportationManagement
Keith IpDirector of SCM & Logistics
Circus traditionally is a sunset industry but Cirque du Soleil has broken the tradition and emerged as an innovator
90 cities
40M audience
New Audience - High income
Rapid growth
Add Broadway-inspired Dramatic Themes
Musical & Dance
Eliminate Animal show
Reduce Humor
Blue OceanRedevelop Boundaries
Think Holistic
Go Beyond Existing Requirements
Innovation
Agenda
Introduction to Oracle Transportation Management
Customer Cases
Value to our Customers
SCMLogistics Event
Agenda
Introduction to Oracle Transportation Management
Customer Cases
Value to our Customers
SCMLogistics Event
• Over 50 customers using installations of the same product for leading:
• Logistics Service Providers• Manufacturers• Retailers
Who is G-Log?• Provider of Logistics
Software• Single Transportation
Product• 180 staff globally
• 48 Research & Development• 55 in EMEA & AsiaPac
November 2005 Bought By
G-Log Corporate
1999
65175
50+
Founded
Customers
Employees
Development Staff
1 Product
What Analysts are saying about acquisition
Oracle's G-Log emerges from the TMS Forrester Wave as a strong overall force to contend with. G-Log's offerings are functionally expansive and solid, posting competitive rankings across ground, ocean, parcel, and air transportation criteria. Additionally, the vendor's strong market presence, owing to its acquisition by Oracle, and strategy moving forward uniquely position it to have a more well-rounded presence than competitors that are more apt to be leaders based almost solely on current offering. Forrester predicts that Oracle's G-Log will appeal to the user clamor for full functionality and vendor longevity.
http://www.forrester.com/Research/Document/Excerpt/0,7211,38614,00.html
OTM - Global DeploymentUS:•Advantage•BDP•Big Lots!•Brown Shoe•Soda•CRST•Deringer•DuPont•Family Dollar•FedEx•GE•Giant Eagle
Canada:•Alcan•Progistix
Mexico:•TMM
UK:•Exel•Tesco
Norway:•Elkem
Sweden:•Volvo
Finland:•UPM
Germany:•Karstadt-Quelle / Optimus•Vector•VfW
Austria:•Quehenberger
Switzerland:•DHL Solutions•Kühne + Nagel
Australia:•Toll Solutions
•Halliburton•IBS•Land O’Lakes•Newell Rubbermaid•Ozburn-Hessey•Rohm & Haas•Retail •Spiegel Group•Smurfit Stone•Supervalu•TLC•XPL
Belgium:•DuPont
Singapore:•DuPont•Exel
Recent additions in SE Asia:MILSBAXBluescope Steel
Recent additions in NA:GE HealthcareGrief BrothersLivingston International
Sample of Customer Base
Retail
LogisticsService
Providers
Manufacturing
Customer Examples
Transportation of paper products from mills to end customers
Visibility of shipments between manufacturing and field locations on a global basis
Transportation of consumer products to retailers
Outsourced transportation and supply chain visibility services
Transportation of finished goods and internal transfers on a global basis for all divisions
Transportation of products from suppliers to their distribution centers
OTM Use CaseCustomer
Global Control and Visibility Local Planning and Execution
Centralized Single System, Single Instance Maintenance and Execution
Single Platform Solution with Best-in-Class Functionality
Oracle Transportation Management
Best-In-Class Solution Footprint
*Currently re-implementing analytic capabilities using Oracle technology
Transportation Order Capture
Global Visibility
Supply Chain Event Management
Business Intelligence (Analytics & Reporting)*
Freight Forwarding and Brokerage
Transportation Planning
Transportation Execution
Car
rier a
nd A
sset
Man
agem
ent
Coo
pera
tive
Rou
te P
lann
ing
Tran
spor
tatio
n So
urci
ngFreight
Payment, Billing and
Claims
PlanningLevel
ExecutionLevel
Dashboard Level
Across……the entire supply chain: from raw materials to point-of-sale…all roles: suppliers, planners, service providers, customers, management…all phases: before (planning), during (execution), after (improvement)
Manufacturer
Customer
Consolidator
Shipper
*Currently re-implementing analytic capabilities using Oracle technology
Complete Logistics Network Visibility
Agenda
Introduction to Oracle Transportation Management
Customer Cases
Value to our Customers
SCMLogistics Event
What Customers are Saying…“Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native
technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tescoto deploy the solution worldwide, whilst maintaining central controland administration.” -- Colin Cobain, IT Director
“We've enabled our buying organization to reduce the number of days between placing an order & receiving the order by 30%…Although I wouldn't say it's reduced
the number of exceptions in our supply chain, what it has done is made it easier to identify and manage exceptions.”
-- Bill Parry, Vice President of Logistics
“We’re able to take transportation information from Asia, move it all the way through to the US and trackit on the same system.”
-- Martin Neil, Chief Technology Officer
Corporate Details• 1802 Founding Year• 80,000 Employees• €20Bn Turnover (2003)• 18,000 Direct Customers• 135 Manufacture & Process Plants• 70 Countries• 15 ERP/OM systems. Multiple SAP’s and
Mainframe systems• $1.5B Annual Freight Spend• 1.2M Shipments per year, parcel to
FTL, multiple modes• 3kg-20T Order weights• >100 LSP No. of Logistics Service Provider
Challenges Before OTM:
• High transportation & logistics costs prevent margin improvement• High IT cost to maintain multiple mainframe logistics systems• Lack of real-time information for decision making• High safety stock inventory ($25M per day of inventory)• Lack of flexible system to support continuous changing logistics operations
DuPont Branding: Transoval
Facts about Transoval:• Selected OTM (formerly GC3) in May 2000• North American went live in Sept 2002• Followed by Go-Live in South America, Asia, and Europe• ~80% of DuPont logistics information resides in Transoval• Replace multiple legacy systems with 1 single, centralized, integrated
system• Collaborate with customer, suppliers, LSPs (>150)• Real-time visibility for proactive decision making (status, cost,
history)
DuPont: Benefits• Save tens of millions of dollars annually in transportation costs• Reduce inventory carrying cost by 5-10% (around 6 days of
inventory = $150M)• Replace multiple legacy mainframe systems with a Web-based
transportation mgmt systems which is less expensive to operate• 1% reduction in freight spend from optimization (~$15M/year)• Improve service level to customers and business units• Efficiency – handling 1500 shipment orders / weeks in Europe in
2004, doubling in 2005
“When we started we had 115 days of inventory. Today we have 109. We wanted to build a system that, when someone wanted to know something about logistics at
DuPont, there's only one place they can go.”
Jerry Reynolds, global manager logistics technology & processes, DuPont
’s Global LSP Network
Region Country LSPs Region Country LSPsAP Australia 1AP China 10 EU Europe 15AP Hong Kong 4AP India 7 LA Argentina 4AP Indonesia 3 LA Brazil 5AP Japan 15 LA Chile 1AP Korea 3 LA Colombia 2AP Malasya 3 LA Mexico 16AP New Zealand 1 LA Venezuela 1AP Pakistan 1 LA 29AP Phillipines 4AP Singapore 5 NA Canada 1AP Taiwan 2 NA USA 5AP Thailand 3 NA 6AP Vietnam 2AP 64
Challenges Before OTM
• Need to retire multiple legacy applications and replace with one single platform• No single view of goods in motion and goods at rest• Customers and supply chain partners on multiple systems• Need a single solution for existing customers, and cater for expanding customer base in U.S.
EMEA and Asia• Different customers, different business units, different modes and different systems. Challenges
in maintaining a standard system• Provide cost accounting for customers
Corporate Details• 74,000 Employees• €7.5Bn Turnover (2003)• 120 Countries• 1,600 Operating Locations• 70% Non-financial Global FTSE 250 Customers
• World’s #1 Contract Logistics Specialists• World’s #2 Airfreight Forwarder
Exel Branding: SCI2
Facts about SCI2:• 50+ customer contracts in a single global instance• 6,000 users in over 25 countries• 1m+ customer orders processed annually• 36m EDI messages processed annually• 56m shipment miles processed annually• 6.6m shipments processed annually• High availability
Exel: Benefits• Gain market share with more business as it now has the
functionalities to support various dynamic business models
• Replaced multiple legacy systems with one single platform
• All customers and supply chain partners now able to access through SCI2 – one single source that is web-native
• Visibility of goods in motion and goods at rest
“Powered by a single instance of the OTM software, Exel provides its customers with a consolidated view of freight flows and detailed stock-level inventory, as well as proactive supply chain event management alerts. With this unique ‘glass pipeline’
view of their entire logistics network, our customers are executing vendor-managed inventory programs with great success and making their respective supply chains
leaner than ever.”
Martin Neil, Vice President of Global Solutions
• €37B international retailer based in Cheshunt Hertfordshire, U.K.- 2,365 total stores throughout Europe and Asia selling 50K product lines
(food retailing comprises over 2,000 stores)- 367,000 employees throughout Europe and Asia- 5 years of consecutive earnings growth and profitability- Utilizes Oracle E-Business Suite for Financials and Procurement,
PeopleSoft Enterprise for HR, and Oracle Retail (Retek) for Merchandising
• Key Business Goals- Utilize factory gate pricing to reduce costs and gain complete control
of inventory from supplier to store shelf- Support the flexibility and scalability required by their expanding business
(e.g., 12.4% Revenue and 24.5% Profit Growth in 2004 alone)- Non-invasively integrate logistics management and key support systems to
minimise both internal and external IT resources- Utilize web-native technology to eliminate financial and technical adoption
barriers for supply chain partners- Deploy a “phase 1” solution within six weeks
“Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy the solution worldwide, whilst maintaining central control & admin. -- Colin Cobain, IT Dir.
• Live on Oracle Transportation Management (G-Log GC3)- Plans and executes factory gate pricing for 6,000 daily shipments (70% of
inbound freight) including the tracking of costs and performance service levels, order booking, and support for financial settlement
- Automated 95% of all inbound scheduling resulting in improved availability, reduced stockholding, and increased vehicle / trip utilization
- Automatically optimizes loads & manages communication with carriers- Eliminated EDI by enabling carriers and suppliers direct entry of shipment
details (e.g., appointment, pick-up, out-gate times)- Integrated demand (from order management system) and status (from
warehouse management system) with transportation logistics
Improved on-time deliveries by 14%Supports 24 / 7 shipping operation with 9 plannersReduced cost per case by 10-15% (£500M in distribution costs)
Challenges Before OTM
• > 1 million inbound shipments from more than 2,500 suppliers, with different systems, and Tescodid not have single view
• Their huge supplier base ranged from very small suppliers for whom technological implementation costs would be very high, to large suppliers who had their own legacy systems in place. Tesco needed one web-native solution that all of them could use.
• Logistics costs not optimized with multiple vendors sending small shipments using LTL – this resulted in very high transportation cost that was passed on to Tesco by the suppliers
• Tesco business was growing and they needed a single solution that was scalable for their expansion
Corporate Details• 296,000 Employees• €37bn Turnover (2003)• 2,291 Stores worldwide• > 50,000 Product lines• > 800 Convenience Stores• Largest UK retailer• Largest UK private employer
Tesco: Benefits• Improved on-time deliveries by 14%• Supports 24 / 7 shipping operation with only 9 planners• Reduced distribution cost per case by 10-15% (£500M in distribution
costs)• Automated 95% of all inbound scheduling resulting in improved
availability, reduced stockholding, and increased vehicle / trip utilization• Support the flexibility and scalability required by their expanding
business (e.g., 12.4% Revenue and 24.5% Profit Growth in 2004 alone)• Rapid deployment of solution for phase one – only 6 weeks – this
resulted in minimal disruptions to their business
“Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy
the solution worldwide, whilst maintaining central control & admin. --
Colin Cobain, IT Director, TESCO
Agenda
Introduction to Oracle Transportation Management
Customer Cases
Value to our Customers
SCMLogistics Event
RetailWarehouseManufacturing DistributionTransportation
Transportation Cost
10% 40%
Cost
BreakdownOn average, transportation cost accounts for 12-16% of cost of
goods sold
Manufacturing Cost vs. Transportation Cost
“Understanding Global Outsourcing” Dr. Joachim Jeller, Fujitsu Siemens Computers
Transportation Mgmt Opportunity
28.9%
42.1%
13.2% 13.2%
2.6%
0%
10%
20%
30%
40%
50%%
of C
ompa
nies
Res
earc
hed
1-5% 6-10% 11-20% 21-30% x > 30%
Companies with Annual Transportation Spend > $10 Million Source: The Logistics Institute at Georgia Tech
Savings Opportunity
Transportation Mgmt Solutions can Save Most
Companies 5-25%
What Customers are Gaining…Logistics Order Management
Shipment Planning & Optimization
Shipment Execution:Booking/Tendering, Status Updates, En Route Planning
Freight Payment/Billing
Supply Chain Event Management:Anticipate, Analyze, Resolve, Collaborate
Operational Reporting & Document Generation
Visibility:Global In-Transit Inventory Visibility
Analysis – Performance, Financial, Forecasting
• 5 – 50% Productivity Improvements• Reduced order processing costs & errors• 3 – 20% Transportation Cost Savings• 5 – 25% Expedited shipment reductions • 5 – 15% Capacity increase
• 5-50% Productivity Improvements• Reduced errors, increased loads per hour
• $0.20 per transaction vs. >$0.75• Improved cash-to-cash cycle times
• ½ – 5% Revenue Increase• Improved customer service• Improved customer retention
• 1 – 10 day inventory reduction• 5 – 25% safety stock reduction• 2 – 8% carrier contract reduction• Reduced IT development & support costs• Stronger supplier / customer relationships, improving margins
Critical to SuccessRegulation & Infrastructure
People
Management & Process
Transportation Management
Local Planning and Execution
Centralized Single System, Single Instance
Maintenance and ExecutionGlobal Control and Visibility
Executional
Transportation Logistics Solutions
Operational
Tactical
Strategic
Strategic Level:
Supply Chain Network Design
Logistics Modeling
Annual Bidding and Negotiation
With Logistics Service Providers
Transportation Planning
Scheduling
In-Bound & Out-Bound
Warehouse Management
Transportation Execution
Event Monitoring, Alerts
Optimize the entire network
For efficiency
Drive down the cost with
Strategic negotiation
Increase execution
Efficiency and
visibility
Optimize schedule for
Lower cost and feasible
plan
Impact of decisions
_
+
Length of Planning horizon
Num
ber o
f dec
isio
ns
+
_
Strategic Logistics Network Design
The solution: Strategic Network OptimizationModeled full truckload and LTL costs,
inventory handling and carrying costs, DC inventory capacity and loading dock capacity
The solution: Strategic Network OptimizationModeled full truckload and LTL costs,
inventory handling and carrying costs, DC inventory capacity and loading dock capacity
Decide the locations of DCDecide buying fleet or using LSPSelect the right Logistics Service ProvidersAnalyze the impact of currency appreciationIdentify the long term growth strategyCalculate ROI for new customers and new business models
Agenda
Introduction to Oracle Transportation Management
Customer Cases
Value to our Customers
SCMLogistics Event
16 – 19 October 2006, Singapore
Asia’s largest gathering of senior-level executives involved in global and regional supply chain issues
Is Proud To Be A Platinum Sponsor At
More than 50+ companies across the world will be sharing case studies on their supply chain challenges and issues at the event…including…
And of course…
Jon Chorley, Vice President, SCM Strategy, Oracle USA
Jasbir Singh, Senior Director, Supply Chain Applications, Oracle Asia Pacific
Saj Kumar, Director, SCM Product Solutions, Oracle ASEAN
John Murphy Director, Product StrategyOracle, USA
Keith IpDirector, SCM Product Solutions, Oracle Greater China
Maha Muzumdar Vice President, Global SCM,
Oracle USA
Eric van den Born
Solutions Architect,
Oracle EMEA
How To RegisterOracle will sponsor 25% of the cost of your
seat at the event. To register:
- Website: www.terrapinn.com/2006/scmlog
- Email: [email protected] and register <company name> - <oracle>
- Call: +65 6322-2701 and quote Oracle
WORLD’S TOP 5 CARGO AIRLINES
1)1) FedEx ExpressFedEx Express
2)2) UPSUPS
3)3) Korean AirKorean Air
4)4) LufthansaLufthansa
5)5) Singapore AirlinesSingapore Airlines
Sources: Air Cargo World, June. 2006.Sources: Air Cargo World, June. 2006.
WORLD’S TOP 5 AIRPORTS
1)1) MemphisMemphis
2)2) Hong KongHong Kong
3)3) Tokyo NaritaTokyo Narita
4)4) AnchorageAnchorage
5)5) Seoul Seoul IncheonIncheon
Sources: Air Cargo World, July. 2005.Sources: Air Cargo World, July. 2005.