Complex Rate Configuration in OTM
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Transcript of Complex Rate Configuration in OTM
Complex Rate Configuration in OTM
Mohan Subramanian & Shreenivasan Sukumar
OTM SIG Conference, APAC
Dec 9-10, 2015
Agenda
Contents 2
Arbitrary Rates
THU & Slab Rates
Marginal Rates
Discount Rates
Introduction
Infosys Overview
3
4
More than 160,000 employees from 98 nationalities
Operations across 40 countries
North America17 sales offices, 18 Development
Centers in North and South AmericaEuropeOffices and Development
Centers across 20 countries
Monterrey, MexicoDelivery Center
Belo Horizonte, BrazilDevelopment Center for IT &
BPO Sales Office for LATAM
Shanghai, ChinaDevelopment Center
IndiaOffices and Delivery Centers
across 13 cities. Global HQ
Tokyo, Japan
Development Center
AustraliaOffices and
8 Development Centers
Hangzhou, ChinaDelivery Center, Asian & Euro
Languages, Specialized Services
Manila,
PhilippinesCustomer Service
All numbers provided are for Infosys & its subsidiaries
& updated as of March 31, 2014
Our Global Footprint to support Service Delivery across the world
5
OTM – Our Competency & Solutions
OTM
Offerings
CompetencySolutions & Value Adds
Customer Engagements
End to end industry specific
offerings Freight Forwarder,
Shipper, Retail, CPG etc.
Accelerators – pre built templates,
questionnaires, videos, process
maps/flows, Mass Upload Tool
Custom Solutions –
Google Map Integration
Shipping Controls
Date Logic
OTM On the Move
Successfully engaged in multiple
OTM programs
Several papers presented in OTM
SIG & other forums (Details in
Appendix)
Pool of 150 consultants &
Logistics SMEs with a
combination of functional,
technical & integration experts
(Details in Appendix)
Expertise in integration of OTM
with 3rd party systems & Oracle
EBS using EDI & SOA
middleware
OTM 6.3.x installed on exa-data
machine & IBM AIX platform
Services include
implementation, upgrade,
migration, Cloud assessments,
Support & Health Checks
Multiple options in
Implementation and Extended
Support based on Customer
needs
Introduction
Cloud Certified
Rating Session
• We all know OTM is quite robust in rating
• During /After planning
• Single leg to Multi-legs
• Multiple Modes all the way from Ocean/Air to Parcel
• Any Value added service
• Box to multiple equipments
Objective of this session is to showcase How ‘out of box’ rate configurations can be effectively used thus avoiding complex store procedures or any work around
Agenda
Contents 7
Arbitrary Rates
THU & Slab Rates
Marginal Rates
Discount Rates
Introduction
Case Study1 : Arbitrary Rating
• From OTM parlance, it is one rate all the way from source to definition, even
though it is multimodal
Source Destination
Advance leg
Beyond leg
Primary leg
Case Study1 : Arbitrary Rating
• Freight forwarder takes ownership Door to Door
• Freight forward executes the shipment multimodal
• Shipper is interested in calculating right cost end to end
• Challenge is to have one rate record covering all the legs• Normally Complex Store procedures were used to handle the rates after planning
• Can be easily achieved using standard configuration
Setup : Rate offering lane special service
• Advance and Beyond leg rates were captured using Rate offering lane special
service which is linked to respective rate offering
Setup : Special Service
• Advance and Beyond leg cost is defined in special service as accessorials and linked using rate offering lane special service
Setup : Primary rate
Rate record is created for the main leg with the primary cost
Order release Created Source to Destination
Order is create from source to destination location (Chennai to Sydney)
Shipment stops 1 to 4
Shipment Created with Stops Chennai -> Port of Chennai ->Port of Australia ->Sydney
Shipment cost for Arbitrary rates
The shipment cost shows the base cost value which is main leg cost from Port to port, advance and beyond legs cost were displayed with the respective accessorial/special service code
• Single shipment
• Easy maintenance of rates
• Planning with desired carrier
• Accurate cost
• Cost optimization
Agenda
Contents 16
Arbitrary Rates
THU & Slab Rates
Marginal Rates
Discount Rates
Introduction
Case Study 2: Rating based on THU & Slab
• Rates based on Transport handling unit Example:
Pallet, Carton, Box etc.,
• Carriers charge rates based on THU count
• Normally, Store procedures and refnums were used
• Can be achieved easily using OTM Standard
Configurations
Contract negotiations of Pallets with Slabs
Item type Count( From ) Count (To) RatePALLET 0 15 $1,150.00 PALLET 16 30 $1,700.00 PALLET 31 45 $2,800.00 PALLET 46 60 $4,200.00 PALLET 61 75 $5,000.00
Setup: Rate Record for THU
The condition for THU with Total number of ship unit helps rating engine to give the expected cost
Setup: Rate unit break profile
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Rate unit break profile defined for Pallet count and the cost is defined for the
respective slab
Output : THU + Slab rate cost calculation
For a shipment having say 30 pallets, the cost is calculated @$1700 based on the slab
Agenda
Contents 22
Arbitrary Rates
THU & Slab Rates
Marginal Rates
Discount Rates
Introduction
Case study 3: Marginal unit cost rating
Marginal rating : Need ability to add unit cost along with slabs beyond certain limit
For example: Shipment weight = 150 kgStandard Cost = $10.45
Unit Cost = $0.13x 50 = $6.5Total Cost = Standard Cost + Unit Cost
= $10.45 + $6.5 = $16.95
Standard rate Slab rate
(0-500) 101-500Kg 501-1000kg 1001-5000kg 5001-7000kg 7001-9000kg 9001-12000Kg
$10.45 $0.13 $23.35 $41.34 $61.55 $108.00 $130.00
• Normally, Store procedures and refnum’s were used
• Can be achieved easily using OTM Standard functions
Setup : Rate Record – Marginal Cost
The marginal rates setup is explained with ‘Calculate as marginal cost’ check box enabled
Setup of weight break for Marginal rate
All the conditions were applied in a single rate Record to meet the expectation
Output of Marginal rate calculation
The input weight is given as 150KG, the base rate is applied for 100kg and for additional 50kg marginal rate is applied as expected.
Total Cost = $10.45 +$ 6.5 = $16.95
Agenda
Contents 27
Arbitrary Rates
THU & Slab Rates
Marginal Rates
Discount Rates
Introduction
Case Study4: Applying multiple Discount
rates
The requirement is to apply multiple discounts for a given service customer with different rate condition.
For Example: Cost of Shipment = Discount of 50% to be applied from base cost and additional 45% discountfrom shipment weight for the customer
Service CustomerDiscount on Standard
Discount on Freight
COU ABC 50% 45%
Setup of rate cost condition
The rate cost is configured in a sequence of base cost+50% Discount+$1.5 per shipment Weight, apply 45% discount alone in shipment weight
Output of Discount rate calculation
Input Value = 1kgDiscounted Standard Cost = Standard Cost – Discount@50%
= $30-$15= $15
Discounted Freight Cost = Freight Cost – Discount@45%= $1.5 - $0.45= $1.05
Total Cost = Discounted Standard Cost + Discounted Freight Cost
= $15 +$1.05= $16.05 AUD
Summary
Handling Various Scenarios of Complex rate configurations can be done using standard rate configurations itself
Use of Planning engine for calculation of rate cost and hence right Carrier
Accurate Calculation of Costs
Scalable and Simple Configurations
Business Configurable and No IT intervention
Easy to troubleshoot the rate issues if any.
Prevents performance issue like objects locks
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