OTM for Freight Forwarding and 3PL Industry

OTM for Freight Forwarding and 3PL Industry OTM SIG 2014, Philadelphia, USA, 11-13th Aug 2014

© KPIT Technologies Limited

Contents

• Introduction

• Major Challenges

• Leveraging OTM for Freight Forwarding

• Other Key Configurations

• Business Value Offered

• Customer Testimonial

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Introduction

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Introduction

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Client is Egypt’s largest freight forwarding company with wide and varied mix of services in the field of integrated

transport, with the ability to handle all the stages of any shipment - door-to-door from pick-up and transport to delivery.

Solution Offerings

Sea

Direct/Consol

Air

Consolidation

Customs

Clearance

Land

Transport

Chartering

Project Cargo

Exhibition

Management

General

Warehousing

Free Zone

Warehousing

Insurance

Packing

Customs

Transit

Sales

International

Overland


Major Challenges

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Operational Requirements

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• Design workflow for ‘Quote to Cash’ cycle spanning Primary operation along with various ancillary services

for Import and Export cases.

• Design robust solution for console management with House Bill (HBL) generation option or facility to upload

HBL details via excel.

• Require separate workflows for Trans-shipment, Re-export and Cross-Trade scenarios

• Ability to managing Airway bill stock and send alert when stock reaches threshold limit

• Manage complete data set for walk in (one time) customers

• Managing Project Cargo with a challenge of using Project specific contracts in all associated transactions and

mapping project’s reference in all objects


Operational Requirements

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• Propose accurate list of documents and formalities(clearance steps) for Customs Clearance process based

on customer’s Industry type and clearance type requirement.

• Calculation of Insurance Premium and Commission from insurance companies.

• Managing inventory stock in warehouses with an option to dispatch partial stock and billing for it.

• Requirement of dashboard for tracking container movement.

• Various operational reports like, HBL document, Shipping Instructions, Shipping declaration, HazMat

Certificate etc.

• Managing way bill details for Land operation.

• Manage complex rate structure which varies for each operation type. Maintain airline tariff card.


Financial Requirements

• Integrated Customer advance information and using it during bill calculation.

• Profit and Loss report at order or console level.

• Manage Multi Currency billing.

• Accurate cost allocation in case of Console where each order in console require separate ancillary services.

• Approval hierarchy for Bills and Invoices based on tolerance limit of each approver.

• Real time Customer credit check.

• Multiple bills to various bill to parties associated with single transaction.

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Financial Requirements

• Tax calculation based on tax exemption status of Customer or specific instance of order or specific charge head

in financial transaction.

• Capturing details of Payment made to custom authorities via official receipts and bill it back to customer

• Intercompany billing

• Managing commission for sales team v/s order booked directly at Branch

• Discharge fee calculation for Dangerous goods

• Map every cost line to accurately derive Ledger code

• Detention and Demurrage calculation

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User Accessibility Requirement

• Show/Hide data elements based on values selected in previous section

• Field level validation while data entry

• Data filtration based on role selected like Customer, supplier, Shipping Line, Customs agent etc.

• Fields to capture data in regional language

• On Screen Container Number Validation

• Bridge the communication gap between various stakeholders associated to single operations

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Leveraging OTM for Freight Forwarding

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© KPIT Technologies Limited 8/19/2014 12

PROCESS

Receive Quote Request

Get rates and Schedule

from Shipping Line

Prepare Quote and get

Customer Approval

Receive Shipping

Instructions

Send Booking Request to

Shipping Line(S/L)

Receive Booking

Confirmation Co-Ordinate with Customer

for Loading Date

Plan Shipment for Sea

Export and Land Movement

Arrange Empty container

pickup as per Loading Date

Cargo Stuffing and

Inspection

Receive Draft MBL from S/L

Confirm MBL details

Receive Final MBL after

issuing payment

On-Board Confirmation and

Vessel Departure from S/L

Surrender documents to

customer after payment

received

Sea Export Normal with Land Movement

Cargo Movement to Port

Release Cargo on board

Get Draft HBL approved

from Customer


Prepare Quote and Manage Customer Approval


Quote Screen : Shipping and Cargo Details


Quote Screen : Financials


Capture Shipping Instructions : Order Entry Screen


Order Entry Screen


Booking Request to Shipping Line

Email with Booking details will be sent to Shipping line. It is possible to replicate integration architecture with Maersk and INTTRA which is already Live for another client in India for Booking Request, Sailing Schedules and Shipping Events.


Plan Shipment for Primary Operation of Sea


Shipment for Sub Operation of Land Movement

Each Sub-Operation will have separate shipment which will get allocate back to associated order only.


Shipment Execution Events

Detailed Event management for Events related to Booking Request, MBL and various stages of execution


Receivable from Customer

Final Customer Bill should also consider Down payment (Advance) paid by customer while booking order.


Job Details

Profit and Loss details which can be calculated at single Order level or at Consol level.


Sea Import Consolidation with Customs Clearance

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PROCESS

Receive Pre-Alert from

Agent/Customer

Verify Supporting

Documents

Define Voyage and Consol

Update Vessel Details

Update MBL Details

Create HBLs as per HBL

Count on Pre-Alert Update HBL Details as per

Pre-Alert

Map HBLs to MBL

Follow up for Vessel Arrival

Send Arrival Note to

Involved Parties

Collect Delivery Order

(DO) from Shipping Line

after Payment

Get Cargo cleared from

Customs

Arrange Transport till port

warehouse

Unload Cargo and Return

Empty Container to

Shipping Line

Bill each Customer belongs

to Consol based on

payment Terms

Settle Clearance Expenses

with Delegates


Define Vessel, Voyage and Consol

Create Vessel

Create Voyage

Create Consol from Voyage


Generate MBL shipment

Generate Empty Shipment from Consol and update MBL details


Generate multiple HBL from MBL

Enter Number of HBL consolidated in specific MBL and OTM will Auto generate those many HBL and attach to MBL


Upload HBL details Via CSV

HBL Detail csv will

be loaded in OTM HBL Created in OTM

Rest all HBL sharing

same MBL number

will get Auto

Attached to MBL

Manually Attach First

HBL to MBL using

action

HBL Upload Process

HBL Details csv file


Send Arrival Note

Arrival Note as an attachment in email to all Involved parties


Shipment for Customs Clearance Sub-Operation

Clearance Shipment Screen


Customs Clearance : Formalities and Documents

List of Activities Required for executing a Clearance Process based on ‘Clearance Type’ Selected

List of Documents Required: Specific to Clearance Type and Customer’s Industry Type


Air Export Consolidation

PROCESS

Receive Rate Request from

Customer (ExW)

Create Quote

Confirm Quote with

Customer

Co-Ordinate for Booking

with Airline

Arrange to pick-up cargo/

Receive cargo Handover cargo to Airline

Issue AWB to Customer

Settle Expenses with

Airline/Agent

Issue Customer Bill and

Receive payment Maintain MAWB serial

number stock and Send

Notification if stock is

below threshold limit

defined.

Daily Process


Managing MAWB stock in Air

MAWB stock specific to Airline and Distributed across branches


PROCESS

Receive Quote Request/

Rate Request (import)

Define Project

Prepare Proposal with

reference to Project

Get Proposal Approved

from Customer

Sign MoU with Customer Define Exchange Rate

specific for project

Get Route Survey done and

Arrange for permissions

Create Order with

reference to Project

Use Project specific

contracts while planning

Settle Expenses with

Carrier

Issue Customer Bill

Repeat steps for each new

request to move cargo

against specific Project

Project Cargo Management

Receive Request to move

cargo against Project

Capture Execution Events

Execution of Project

Shipment


Managing Project Cargo

Project Definition

Project Reference on Quote

Project Reference on Order


Other Key Configurations

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Land Operation

Waybill Management

Container Tracking Module


Insurance Operation

Insurance Details : To calculate Insurance Premium and commission from job


Ease in User Interface

There are numerous features developed to ease data entry through UI for users. Below video will demonstrate some glimpse of it


Validations Some Examples of Validations to avoid errors in ‘data entry’ or in ‘end to end’ process.


Credit Limit Check

Integration Layer

Oracle EBS with Customer Master and associated Credit Limit value


Invoice Approval Hierarchy

Note:

- X1, X2, X3 are variables defined in absolute USD value

- Variable values varies for Project cargo and Non-Project cargo

Screensets with Filter Criteria are used to define approval hierarchy . Once Invoice fail Auto Approval process, it will be correctly routed to appropriate Authority for manual decision using various filter criteria.


Business Value

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• Replacement of Legacy system with more advanced Transportation Management

System

• Reduced operational cost, Improved customer service, Optimized asset utilization and

mainly, Increased profit margins.

• Automated, Streamlined and completely Integrated processes for client’s expanding

freight forwarding business

• Simplified and Accurate customer invoicing, Carrier payment and Claim management

processes with reduced ‘Service to Cash’ cycle

• Drastic cutback on labor cost and office overheads with shorten time for day to day

operations.

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Business Values


Customer Testimonials

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"Oracle Transportation Management supports our goal to become the preferred partner for integrated global transportation solutions in Egypt by providing best value for our customers’ complex global logistics requirements.

KPIT Technology had the expertise and experience to manage both the technical and business challenges involved in implementing a new business platform. The team was very skilled in helping our users adapt to the new processes, which helped ensure rapid adoption of Oracle Transportation Management and will deliver faster time to value.“

– Jalal Sulaiman, IT Manager, Egytrans

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Customer Quotes


Presenters

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Rohit D. Bhogate

Sr. Techno-Functional Consultant,

Value Chain Execution Practice

[email protected]

Karthik Venkataraman

Lead Consultant,

Value Chain Execution Practice

[email protected]

mailto:[email protected]

mailto:[email protected]


Thank You

www.kpit.com