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

Oracle Transportation Management

Roy PeterkofskyProduct DirectorTransportation Planning

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

Your Company

Distribution CentersExecutionPlanning

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

Multiple,non-integrated

systemsManual processes

Carriers

Traditional LogisticsCustomers/Suppliers

A Better WayA Better Way

Global Customers

CustomerCustomerSatisfactionSatisfaction

Continuous Improvement

CarrierCarrierAnalysisAnalysis

On-TimeOn-TimePerformancePerformance

Integrated Planning & Execution

Plan Book /Tender

Pick,Pack,Ship

Track Replan Rate Settle

Carriers / 3PLs

Collaboration&

SCEMInboundSupplySource

OutboundDemandDestination

Oracle Logistics Solution

Oracle Transportation Strategy

Provide comprehensive management tools that reduce Provide comprehensive management tools that reduce cost while shrinking the planning and execution cycle for cost while shrinking the planning and execution cycle for transportation managers in companies that control transportation managers in companies that control shipment of their products and materials:shipment of their products and materials:

- Manufacturers- Manufacturers- Distributors- Distributors- Retailers- Retailers

“Mission Statement”

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

Oracle Transportation ManagementProduct vision: complete solution

Truck * Rail Air Ocean

ModePlace

Facility Local area Continental Intercontinental

Time

Dynamic Operational Tactical Strategic

Outbound Inbound Intra-company Returns Drop ships

Flow

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

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


BenefitsOracle TMS enables you to:

Reduce freight costs

Reduce cycle time

Improve service quality

Increase process efficiency

28.9%

42.1%

13.2% 13.2%

2.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

% o

f Com

pani

es R

esea

rche

d

1-5% 6-10% 11-20% 21-30% x > 30%(Companies with Annual Transportation Spend > $10 Million)

Potential TMS Savings Opportunity

Source: The Logistics Institute at Georgia Tech


Oracle Transportation Management

Planning and optimization– Reduce freight cost through load consolidation and continuous moves– Reduce cycle time through fast optimization and streamlined workflows– Improve service quality by enforcing delivery deadlines

Booking and tendering– Reduce cycle time by direct collaboration with carriers– Increase process efficiency by automation of repetitive tasks

Visibility and exception management– Improve service quality by proactive notifications and replanning– Increase process efficiency by centralization of shipment tracking

Auditing and settlement– Reduce freight cost by detecting and resolving overcharges– Increase process efficiency by automation of routine payments

Performance measurement– Drive continuous improvement by monitoring logistics performance

Capabilities

Planning andPlanning andOptimizationOptimization

Transportation Planning and Optimization

Load consolidation– Pooling– Multi-stop truckloads

Continuous moves

Optimal mode and carrier selection

Use multiple optimization strategies to achieve cost savings of 5-25%!


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

LTLTL

LTLTL

LTL LTLTL

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

Emptymove

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


Fast Optimization

Run in minutes instead of hours

Allow multiple optimizations per day

Quickly react to major changes– New orders– Expedited orders

For increased planner productivity


Advanced Interactive Graphical Interface

Identify issuesvisually

Point and clickediting/repair

Quick Analysis and Improvement ToolsUncover hidden cost savings

Built-in intelligence seeks out plan improvements Identify where relaxation of constraints can pay off most


Real World Constraints

Extensive rule set

Flexible modeling– Consider various cases– Hard and soft constraints

Reduce need for rework of optimization results– Get it right the first time!

Reduce feedback loops and re-planning

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

Business rules for better, more executable plans

Real World Constraints

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

Business rules for better, more executable plans

Oracle Solution

Example: Flexible Equipment Capacity

4130 ft3

Won’t fit !

Success !

2850 ft3

2851 ft3

2851 ft3

Booking andBooking andTenderingTendering

Load Tendering

Booking RequestYou

Accept or Reject

Collaborate with carriers from within your enterprise system

Centralize information Maintain constant visibility Stop waiting for your calls to be returned

Carriers


Carrier Collaboration PortalReceive and respond to tenders


Visibility andVisibility andException ManagementException Management

Tracking and Tracing

Collaborate with carriers to provide single source of information – Eliminate multiple phone calls, e-mails, web site visits

Allow real-time visibility into delivery status

Improve customer service– Provide information immediately and conveniently – Relate shipment tracking information to orders– Record carrier performance

Pick Up Proof of DeliveryIn-Transit Status

Centralize visibility across all carriers

Workflow-Based Exception Management

Quickly identify issues and opportunities

– Send proactive notifications– Monitor escalated issues

Reduce non-value-added activities

– Spend time fixing problems, not finding them

– Eliminate repetitive tasks

Automate resolution of problems

Detect problems for immediate attention


Automated Problem ResolutionGenerate candidate solutions at the touch of a button

Problem: Underutilized truckloads

Solution: Shipments to fill them out with


The Need for Dynamic Planning

Customers andSuppliers

You

Carriers

Disruptions occur between plan runs – not on your schedule!

Last Scheduled Plan Run

Next Scheduled Plan Run

Outboundshipmentdelayed Material

for cross-docking is

lateMaterial doesn’t show up

Customerexpedites

order

! !!!

Filter to eliminate,Custom and seeded exceptions

Pegging

Demand-supply allocation,Simulation, Workflow

Business intelligence

Identify Disruption

Dynamically Update Plan Inputs

Re-Optimize Existing Plan

Evaluate New Plan

! !!!

Dynamic Planning and Re-OptimizationLast

Scheduled Plan Run

Next Scheduled Plan Run

Disruption

Re-Plan

Disruption

Re-Plan

Disruption

Re-Plan

Disruption

Re-Plan

Auditing andAuditing andSettlementSettlement

Freight Payment and Audit

Automatically pay bills within tolerance– Self-invoicing– Electronic payment

Flag exceptions for review– Resolve inconsistencies– Prevent overcharges

Track carrier performance– Who bills inaccurately?– Who bills late?

Automate handling of routine cases, catch problems


Claims Management

Record loss and damage of cargo

Monitor insurance or other repayment

Track carrier performance– Who damages or loses cargo?– Who settles claims quickly?

When loss or damage occurs


PerformancePerformanceMeasurementMeasurement

Integrated Performance Management

Track measures of activity– Quantity shipped– Order count, weight, cube

Calculate key ratios– Cost per unit weight shipped– Breakdown of movements by mode

Analyze carrier performance– On-time delivery– Claims– Billing

Measure enterprise and carrier results


Fulfillment Intelligence PortalDashboard for your distribution-related KPIs


RolloutRollout

Features Available Now

Tendering/booking Tracking/tracing Routing guides Manual load building and shipment planning Constraints and rule checking LTL/parcel rating and freight cost analysis Parcel manifesting

Key collaboration and execution functions


Features Available in 11.5.10Introduction of Transportation Planning and Freight Audit


Optimized load building (consolidation) Continuous moves Optimized carrier selection Freight audit and payment Truckload rating

Future Directions

Global, multi-modal transportation Fleet management, routing and scheduling Transportation procurement Load configuration/sequencing Bulk transportation

Strategic initiatives


SummarySummary

Your Company

Distribution CentersExecutionPlanning

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

Multiple,non-integrated

systemsManual processes

Carriers

Traditional LogisticsCustomers/Suppliers

Global Customers

CustomerCustomerSatisfactionSatisfaction

Continuous Improvement

CarrierCarrierAnalysisAnalysis

On-TimeOn-TimePerformancePerformance

Integrated Planning & Execution

Plan Book /Tender

Pick,Pack,Ship

Track Replan Rate Settle

Carriers / 3PLs

Collaboration&

SCEMInboundSupplySource

OutboundDemandDestination

Oracle Logistics Solution

Integrated planning, execution, and collaboration

Integrated performance management

For planners, not programmers

Productivity enhancing UI and process automation

Lowest total cost of ownership

Why Oracle!

Benefits

Reduce freight cost – Optimized load building and continuous moves– Built-in intelligence to find savings opportunities– Eliminate carrier overcharges

Improve service quality– On-time delivery– In-transit visibility

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

Increase process efficiency– Collaborative workflows

Drive continuous improvement– Integrated performance management

Oracle Transportation Management enables you to:

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

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