Oracle Transportation Management...
Transcript of Oracle Transportation Management...
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Oracle Transportation
Management Journey
28th October, 2014
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About Asian Paints Limited.
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About Asian Paints
5WORLD’S
LARGEST
th
DECORATIVE
PAINT COMPANY
$2GROUP REVENUE
BILLION
17OPERATIONS IN
COUNTRIES
23PAINT
MANUFACTURING
FACILITIES
9.8USD
MARKET CAP
BN 50FORBES ASIA’SFAB
MULTIPLE
BRANDS
60COUNTRIES
SERVICING CONSUMERS
+
7,000EMPLOYEES
WORLDWIDE+
NUMBER 1
INDIAPAINT COMPANY
IN
13LARGEST
th
PAINT COMPANY
3 times in a row
2XNEAREST
COMPETITOR
IN INDIA
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• Manufacturing to services (Painting/Consultancy)
• Plain colors to Textures
Asian Paints Confidential 4
From plain
colors…
…to Special Effects and Texture Surfaces
Organization is constantly innovating…
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• We are reaching out to customers in newer ways
Asian Paints Confidential 5
Organization is constantly innovating…
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Managing collaboration within the Enterprise and
extended enterprise
Customer centricity becoming a strategic differentiator
Managing Innovation while adding value to customers
Build Loyalty through top class customer experiences
Manage governance, risk and compliance
Increase operational efficiency
To become one of the top 5 Decorative Coatings companies world- wide
Leverage our expertise in the emerging markets
Strategic Imperatives of our Vision
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Presence in Singapore.
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Supply Chain Setup
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Finished Goods Supply Chain at Asian Paints
~ 12
~ 10
~ 120
~ 32000
PRIMARY FREIGHT
SECONDARY FREIGHT
TERTIARY FREIGHT
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Supply Chain.
12 Manufacturing Locations
10 Distribution Centers / Regional Distribution Centers
120 Depots
Approx. 3000 Stock Keeping Units
Approx. 32000 Dealers.
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OTM Journey
Started in 2011.
2 distinct scenarios.
Driven by both Control & Customer Centricity.
Evaluated solutions from SAP , i2 and Oracle.
(And Microsoft Excel)
OTM selected for both scenarios.
And so the journey began….
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OTM for Primary & Secondary Freight Negotiation
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Primary & Secondary Freight Negotiation
Approx. 70 Transporters across India.
Quarterly Bidding Process.
Excel Based System in use with no versioning, controls and auditable
processes.
Clear need for a Systems implementation.
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OTM Solution used.
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15
OverviewWhat is Sourcing?
Bid on
what?
Award
Bids
Carrier Bids
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High Level Process
Pre-Bid Phase
• Pull data from operations system
• Build lanes / shipments information
• Fine tune data using action utilities
Bid Phase
• Create Project, Bid Rounds
• Invite carriers, provide bid documentation and specify constraint sets
• Generate the carrier response template excel sheet
• Allow carriers to submit bids
Analysis Phase
• Create planning parameter set with required parameters
• Run Procurement Solver
• Generate Manual Negotiation Template
• Upload Negotiated rates and get carrier confirmation
Awards Phase• Finalize awards on each lane
• Set the awarded bid status
• Build rates and push to JDA Supplier Chain Planner using integration
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17
OverviewMajor Steps in Sourcing
Invite Carriers
- Project & Bid Round
Carrier Bids
- Carrier Response Template
Bid Analysis
- Scenario & Solution Detail
Build Rates
- Rates
Forecast Demand
- Lane Summary
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OTM Landscape at Asian Paints
SAP ECC INFORMATICA
JDA SUPPLY CHAIN
PLANNER
Web server
App Server 1
Oracle Transport Management
App Server 2
DB server
INFORMATICA
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Specific Developments Done
Informatica ETL based transforms for Forecast Aggregation as input to OTM
Custom Manual Negotiation Template implemented capturing previous data,
awarded business share, compare rates and % changes across lanes.
Integration triggers after Final Approval of Rates and Business Share. This
pushes data into the JDA Supply Chain Planning System.
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Current Usage and Challenges.
Usage:
In use for close to 8 Quarters ( 2 years ) for Primary and Secondary Freight
Negotiations.
Challenges:
Getting the transporters to connect via VPN and training them to use the
system for bid entering, upload and approval
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OTM is your friend !
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OTM for Tertiary Freight Planning and Execution
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Background
Complex tertiary network
•120 Depots
•30000 + Dealers
•300000 + Sites
Stringent SLAs
•OCT < 4 hours in the local markets
•OCT < 2 hours for privilege club customers
Significant costs
Complex business scenarios
•Re-dispatch
•Tracking needs
Background.
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Order punching at Centralized
Call Center
Delivery creation and OPD print at Godown
Physical picking and corrections
PGI and Invoice
Plan and form Log sheet
Find vehicle, arrange loading
No on-road visibility
Revalidation of picked material against Invoice
Communicate & create Log sheet
As-Is Process of Order execution in non-OTM Godowns
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Business Need for a Freight Planning and Execution
• Person dependency in planning and execution
• Lack of visibility of load and resources in each bucket / Stage
• Limitations in contract definition, administration & settlement
• Control gaps were to be plugged
• On-road visibility of orders
• Value Adds to Customers – Dispatch intimation, need based SMS
• To arrive at a strong engagement model for Transportation
With the overall objective of improved serviceability at optimized cost
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OTM Solution used.
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Optimized Shipments
Frozen shipments
Visibility of load and resource
Automations
Controlled process
Value added services
Enhanced serviceability
SAP
OTM
VTSTelephony
Order Taking System
Solution/Approach
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Order punching & auto delivery
Plan and form Shipment with vehicle
& transporter attachment
Physical picking and corrections
PGI and Invoice
Plan and form Log sheet
Find Instruct /see Vehicle [on LCD] which needs to be ready for
loading
Vehicle –Shipment
Dashboard
Complete on-road Visibility
Revalidation of picked material against Invoice
Communicate & create Log sheet
Find vehicle, arrange loading
Planning & Execution Cycle with OTM
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Business Monitor: Users’ single window
of execution
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Vehicle Tracking System – Novire Technologies
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Intended Impact
• No person dependency
• Real time visibility and automation
• Exceptional scenarios and approval mechanism and audit trails
Intended Benefits
• Reduction in freight spend
• Improvement in SLA compliance and servicing
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Major challenges that we had faced and overcome since go-live
• Multiple bulk plans running at the same time that lead to order locks
• Upcountry process introduction
• Capacity override for specific vehicles
• Freezing on vehicle reported at gate
• Introduction of Minimum Weight Utilization criteria at unit level
• Identifying and addressing corner cases in bulk plan runs
• Enabling partial MRV/re-dispatch of materials
• Optimize order creation time to minimize transmission failures
• Third party dispatches
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Current Challenges that we still need to address
• Creation of duplicate shipments – various scenarios
• Multiple base costs for same shipment
• Capacity based planning
• Issues with merging shipments
• Configuring complex rate contracts
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Path Ahead
• Reduction in the number of issues reported
• Currently live in 12 locations -> scale up to 120
• Call Center Integration/ Order Taking Integration
• Picking to be driven by OTM planned shipments
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We hope OTM becomes our friend.
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Thank you for the support.