Otm con8766 pdf_8766_0001

Inspiring Value Chain Advantage

Copyright © Inspirage 2012 Private and confidential. All rights reserved


Oracle Transportation Management (OTM)

Customer Panel Discussion CON8766

October 4, 2012


OTM Panelists

• Owen Parry – GE Appliances

– OTM Program Manager

• Colin MacDonald – Unilever

– Logistics Manager

• Esther Lavertu – Rona

– Director Logistics

Copyright © Inspirage LLC, 2012 Private and confidential. All rights reserved

GE Appliances

Implementation of Oracle Transportation Management

Owen Parry

OTM Program Manager

10/04/2012

4 GE Appliances – OTM

OTM for GE Appliances

• About GE Appliances

• Why OTM?

• Our OTM Journey

• Lessons Learned

• Next Steps


A little bit about GE Appliances

• Manufacturer of Household Appliances

• Lines: Refrigeration, Cooking, Laundry, Dish, Air Conditioning, Water

• Largest Business in GE H&BS

• Retail and Contract Sales Channels

• Headquarters in Louisville, KY

• Annual Revenues (2011) ~$5 Billion

www.geappliances.com

Enjoying the spotlight… Super bowl ad/digital campaign

GeoSpring launch

Front page on GE.com

Annual Report

Product

Factory

Culture

+ 11 New Platforms

+ Shorter Development Cycles

+ New Styles & Trends

+ Revamp Plants

+ New Assembly Lines

+ Expanded Labs

+ Lean Manufacturing

+ Co-Located Teams

+ Highest Quality

One Team - Reshaping our Future.

Mission 1 Transformation


Appliances ERP+

CRM CUSTOMER

RELATIONSHIP

MANAGEMENT

PLM PRODUCT

LIFECYCLE

MANAGEMENT

FRM FINANCIAL

RESOURCE

MANAGEMENT

OSB ORDER

SHIP

BILL

ERP

SCM SUPPLY

CHAIN

MANAGEMENT

Supply Chain Order Ship Bill Technology Commercial Finance

Proficy

ERP+

200+ Apps ~40 Apps


High Complexity & Opportunity

Appliances Supply Chain

Network • 11 NA Mfg. Plants

• 8 Distribution Centers

• 140+ Local Delv Agents

• 2 Cross-docks

• 30+ Sourced FG Suppliers

• 4500 US Supplier locations

• Stand-alone Parts business

Modes of Transport • Truckload

• Intermodal

• Rail

• LTL

• Small Package

• Ocean

• Air/Expedited

Bloomington

Louisville

Decatur

Los Angeles

Munster

Jacksonville Grand Prairie

Denver

Laredo

Montreal Seattle

ADC & Deployment Origin

Area Distribution Center

Factory

+ 6 Mexico locations

+ 1 Canada location

Roper

Baltimore

MRO


Why OTM? Legacy OTM

Single Global Instance

Fit with ERP+

Flexibility

Sustainability

Supportable

Area of Improvement Improvement % Improvement $

Route Decision (orders, sequence) 1.0% $377

Cube Utilization 1.0% $301

Sourcing mini-ebids 0.8% $318

Carrier Selection 0.5% $189

Business Intelligence 1.0% $377

$1,562

Advantage: OTM


Quantum Leap Change

OTM Load Planning

From… • Manual paper-based

• Tribal knowledge

• Load segmentation by user

• Homegrown Points system

To… • Rules based planning

• Scheduled Bulk Plan

• Auto segmentation solution

• 3D Load Configurator + Cube


Rollout Plan

Phase 1 – Pilot Phase 1A – Expand

Phase 2 – Inbound &

Settlement Phase 3 - International

• Master Data Gathering

• Configuration of Base Workflows

• Freight Rating/Routing

• Build Integration to Legacy

• 3D Load Configurator

• Complete process for Pilot Site

• Roll out all other ADCs (7)

• Stand up Trans Intelligence

• Develop Operational Reports

• Get it right for Logistics

• Ground Schedules/Workbench

• Factory Direct

• Factory Deployment

• Inbound Direct Materials

• Freight Audit and Pay

• Spot Bid

• EDI w/ carriers

• Transportation Sourcing

• Sourced Finished Goods

• Integrate with Oracle EBS

June 2011 Dec 2011 Oct 2012

Let’s Walk before We Run

April 2013


Our OTM Journey… so far June 2011

• Implementation partner and team assembled

• Phase 1 SOW finalized

• User stories gathered and prioritized

• Development began

December 2011

• Production Parallel

• Test Legacy integration

• Initial user training completed

January 2012

• Go Live for Pilot site

February – September 2012

Monthly Releases including…

• Increased functionality (User Stories)

• Additional Distribution Centers

• Upgrade from OTM v6.2.2 to v6.2.5


Impact of OTM

• Standardized Processes

• Points versus Cube

• Daily Operating Visibility

• Improved Cube Utilization


Building a Strategy/Lessons Learned

• Value Proposition

• External Factors

ERP system changes – dynamic or static

Competing for Funding /Resourcing

• Phased Approach

• Legacy Integration

• Custom versus Out of the Box

• Project Methodology


WATERFALL AGILE

How?

17 GE Title or job number

OTM Next Steps

• Transportation Intelligence

• Freight Audit & Pay

• Supplier Interface

• Integration to EBS

Confidential | For Unilever Internal Use Only

Unilever OTM Implementation –

Project Overview

October 2012

19

Agenda

Unilever Mission/Background

OTM Major Benefits for Unilever

Unilever NA OTM Scope

Project Timeline

Major Milestones & Activities

Key Challenges/Lessons Learned

Future Roadmap for OTM


20

Unilever’s Mission

• We work to create a better future every day.

• We help people feel good, look good and

get more out of life with brands and

services that are good for them and good

for others.

• We will inspire people to take small

everyday actions that can add up to a big

difference for the world.

• We will develop new ways of doing

business with the aim of doubling the size

of our company while reducing our

environmental impact.


21

Scale and geographical reach

THE AMERICAS

• €15.3 billion turnover

• 0.4% underlying

volume growth

• 33% of group turnover

WESTERN EUROPE

• €12.3 billion turnover

• -1.2% underlying

volume growth


ASIA, AFRICA, CENTRAL

& EASTERN EUROPE

• €19 billion turnover

• 4.5% underlying

volume growth


2011 turnover €46.5 billion

22

Big Global Brands

http://www.unilever.com/brands/personalcarebrands/Sunsilk.aspx

http://www.unilever.com/brands/personalcarebrands/Axe.aspx

23

Agenda




Project Timeline





24

OTM Overview

Major Benefits

• Rate integration means true cost is considered when OTM chooses order combinations, shipment mode, and carrier.

• Enables improved operational decision-making capabilities for transportation planners.

Enhanced Decision Making

• Standardized processes and information flow to optimize inbound and outbound transportation planning.

• Enhanced visibility and control enabled by new Unilever Inbound Logistics group.

Uniform Inbound and Outbound

Transportation Flow

• Unified international transportation flow across the Americas with cross-region support model

• Single repository for regional metrics/reporting

• UASCC visibility to control freight costs and promote standardized processes.

Regional Visibility and KPI Reporting


25

Agenda




Project Timeline





26 Confidential | For Unilever Internal Use Only

LEGEND

PLANT DC NA Center of Excellence (COE)

NA Rollout

- Trumbull (56 users)

- Englewood Cliffs (32 users)

- 29 Plants

- 25 in US

- 4 in Canada

- 29 DC’s

- 17 in US

- 12 in Canada

- 164 Co-Packers

- 203 Carriers

- 800+ Suppliers

Unilever NA OTM Project Scope

27

Unilever NA OTM – By The Numbers


37 Transportation

Planners 29 Plants

164 Co-Packers 8766 OB

shipments tendered (Week 1)

203 Carriers

Updated Master Data for 22,638

materials

$560M+ Annual Freight Spend

4,345 inbound orders (Week 1)

800+ Testing Hours

28

Agenda




Project Timeline





29

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …

Go live NA Pilot

Deploy NA

Roll Out NA

Deploy

Deploy

Test MX

Test BR

Build BR

2011 2012

Design BR

Analyze NA

Mobilize NA

Design MX Roll Out

Build MX

Test NA

R2+ Analyze

Design NA

Build NA

R1B OTM Pilot Apr 2012R1B OTM NA Aug 2012

R2 Mexico Oct 2012R3 Brazil Apr 2013R4+ ....

Roll out MX

Roll out BR

Cordillera Cross-Release Timeline


30

Agenda


Project Timeline





31


Analyze/Requirements ~ April – August 2011

OTM Design ~ August – November 2011

Integrated SAP and OTM Designs

Dock Scheduling

New Inbound Transportation Process

Build ~ September – January 2012

OTM Configuration

SAP/OTM, OTM/LBC, OTM/E2Open Interfaces

Testing ~ December – March 2012, June – July 2012

Assembly Test, Product Test, UAT, Regression Test

E2Open Carrier Testing

Training ~ March 2012, July 2012

Cutover/Deployment ~ April 2012, August 2012


32

Agenda




Project Timeline





33

Unilever NA OTM – Key Challenges

OTM Dock Scheduling Tool New tool takes longer to use; multiple screens required to

schedule an appointment

Issues scheduling appointments on-time for high-volume sites

Need additional restrictions/functionality between carriers and

sites to accommodate all dock scheduling scenarios

Carrier EDI Issues Connectivity and mapping issues that prevented some carriers

from receiving tenders via EDI in first weeks of go-live

Majority of issues encountered weeks 1-2 of go-live were resolved

Missing/Invalid Rates in OTM Rate set-up in OTM drives carrier selection in OTM so multiple

carrier selection issues on inbound/outbound sides

Incorrect or discrepancies with Transit Times – increased work for

carriers to validate dates on tenders

34

Unilever OTM NA – Benefits of Pilot

The Margarine, Spreads, and Toppings (MST) pilot

allowed the project team to:

Implement a full inbound and outbound network with a

dedicated refrigerated carrier base

Implement NA network with sites in US and Canada

Implement all system connectivity and interfaces prior to

major volume coming onto the system

Address MST exception process where transportation

planning is handled on-site (rather than in Trumbull)

Identify importance of master data to new inbound

processes and formulate comprehensive plan to complete

master data updates prior to August release

Run full cycle of training and validate where gaps in training

exist for end users


35

Agenda




Project Timeline





36

Current Focus Areas

System Integration and Performance (OTM/SAP) Automated bulk plan timing in OTM as expected

Systems are processing quickly with minimal errors

Enhancements have been made to the Outbound Bulk Plan

queries, Performance has improved as a result

Inbound Delivery Note errors from SAP to OTM continue to

decrease; 93.8% no touch rate compared to 87% the first week

PGLS team monitoring failed integration errors and resolving with

the impacted users

EDI Set-up for Ocean shipments

International OTM work shop hosted to identify and close GAPS

Testing on EDI 300-series messages will confirm ocean carrier

connectivity with OTM

37

Main differences between current TMS and OTM:


OTM Overview

As-Is and To-Be

As-is To-be

Optimization through routing guides

and weight-based rules

Optimization through Opt Jobs

Inbound orders entered manually in

TMS; shipment status cannot be

tracked in SAP

Shipment IDs generated directly in

TMS and sent to carrier and SAP

Electronic Data Interchange (EDI)

transactions are sent directly from

carriers to TMS

Optimization through actual carrier

rates and multiple combinations

Optimization through Bulk Plans

Inbound orders created as delivery

notes in SAP and sent to OTM;

shipment status can be tracked in

SAP

Shipment IDs generated in OTM and

SAP before sending to carrier

EDI transactions are managed by

E2Open before sending to OTM

RONA 2012 TMS Implementation

Esther Lavertu, Logistics Director

Titre

WHO IS RONA ?

• RONA was founded in 1939.

• RONA is the largest Canadian distributor and retailer of

hardware, renovation and gardening products.

• Selling to more than 800 corporate, franchise and

affiliated stores of various sizes under several banners

and 600 independent dealers.

• $6 billions of retail sales and 20 % of the Canadian

market shares.

40

Titre

THE RONA STORE NETWORK

CANADA 17 distribution centers

899 bannered retail stores

389 non-bannered distribution

customers

46 commercial and professional

branches

Nearly 30,000 employees

BRITISH COLUMBIA

Distribution center 1 Bannered stores 94 Non-bannered 41 Commercial & Prof. 6

ALBERTA


SASKATCHEWAN

Distribution Center 0 Bannered stores 31 Non-bannered 67 Commercial & Prof. 0

MANITOBA


ONTARIO


QUEBEC


NEWFOUNDLAND & LABRADOR Distribution center 0

Bannered stores 15 Non-bannered 5 Commercial & Prof. 0

PRINCE EDWARD ISL


NOVA SCOTIA


NEW BRUNSWICK


YUKON TERRITORY


NORTHWEST TERRITORIES


NUNAVUT


Titre

TRANSPORTATION CHALLENGES

• Using a dedicated fleet (Round trip) as well as common carriers (One way)

– Depending on costs, carrier capacity, destination and equipment type

• Using flat rates, rates in $/KM and rates in $/Hour. TL and LTL.

• Doing stores’ deliveries, stores’ pickups and vendors’ pickups – Multi drops and Multi pickups.

• Using of depot to consolidate store returns.

• Doing cross-docking and pooling with carriers and DCs.

Titre

OTHER CHALLENGES

• Working with stores’ and vendors’ calendar (delivery and

pickup window).

• Shipping from multiple Distribution Centers to the same

store, the same day.

• Having near than 1000 outside users of OTM Web

portal.

• Needing to develop interfaces with our other in-house

systems.

Titre

WHY IMPLEMENTING A TMS ?

• No existing transportation system except for an Excel/Access tool for static routing and a dispatch system.

• Volume is too big and too complex to be optimized manually (around 125 deliveries/day and 150 pickups)

• We relied on users’ knowledge and vigilance.

• Need to optimize inbound and outbound loads together to reduce costs.

• Need to manage volume growth and future acquisitions.

• Reduce manual processes for invoicing and data analysis.

Titre

OTM SOLUTION

OTM implementation includes the following modules :

– Oracle Transportation Management

– Oracle Transportation Operational Planning

– Oracle Fusion Transportation Intelligence

– Oracle Freight Payment, Billing and Claims

– Oracle Transportation Sourcing

– Oracle Fleet Management

Titre

PROJECT SCOPE (Phase 1)

- Planning inbound/outbound 2 DCs

- Reporting, KPIs

- Web portal for vendors and stores

- Planning inbound/outbound 1 DC

- Reporting, KPIs

- Web portal for vendors and stores

Titre

FUTURE PHASES

• Fleet Management Module

• Financials (interface with Oracle EBS)

-Invoice match

-Freight payments

-Billing

Titre

PROJECT STEPS

• Establish our business requirements (200)

• Select a TMS

• Do a Fit and Gap analysis

• Document “As is” and “To be” processes

• Hold design sessions and CRP (Conference Room Pilot)

• Develop interfaces with in-house systems

• Configure OTM – VANILLA SOLUTION

• Test solution

Titre

PROJECT STEPS

• Build training material.

• Communicate to external users Login and Password to

use OTM Web portal.

• Train internal and external users.

• Go Live with solution.

• Support users after Go Live.

• CHANGE MANAGEMENT

Titre

WHAT WENT WRONG

• Configuration of complex carriers’ rates

– Should have work on simplification before configuring them (Too much effort)

• Configuration of many different carriers used in different regions

– Had to use penalty factors to force carrier assignment in some region

• Performance – Need to trade optimization against time of execution because of constraints of operation

• Use of Web Portal for stores to send their pickup requests; a big change for them

Titre

WHAT WENT WELL

• Revision of processes is a good way to get improvement.

• Flawless Go-Live.

• Able to implement inbound and outbound planned together as well as continuous moves.

• Still VANILLA SOLUTION.

• Improvement of cubic meter / shipment by 20 to 30 % on day 1.

• Improvement on tracking of vendors’ performance.

• Improvement on skus dimensions.

• A lot of data available for further analysis and more opportunities for improvement to come.

Titre

LESSONS LEARNED

• OTM is a very sophisticated system to

configure and requires a lot of efforts

• Never underestimate the complexity

related to the integration of OTM with your

in-house systems.

• Vanilla solution still requires a lot of

configuration and parameters set up

Titre

LESSONS LEARNED

• Identify good business resources and

have them dedicated to the project…for a

long period of time.

• You will never communicate too much to

the different stakeholders about the

changes that they will go through.

53

THANK YOU!

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