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2 Logistics Innovation: Oracle In-Memory Logistics Command Center Srinivas Rajagopal Senior Director, Logistics Product Strategy OTM-SIG, July 2013
3 Agenda Driving Logistics Innovation Oracle In-Memory Logistics Command Center Summary 3
4 Driving Logistics Innovation 4
5 Recent Headlines NTSB says Washington state bridge collapse is wake-up call for entire country May 26, 2013 Hours of Service Restart Changes to Cost Industry $189 Million a Year June 18, 2013 In 2012, 1/3rd of U.S.-based manufacturing executives with sales greater than $1 billion are planning to bring production back to the United States from China January 2013 Three of the largest LTL carriers recently announced 5.9% rate increases, continuing a trend of accelerating the timing of rate adjustments June 10, 2013 Panama Canal's Trickle-Down Port Impact January
6 Two-thirds (63%) of EMEA companies have experienced disruption to their value chain due to unpredictable events beyond their control in the last 12 months. On average it has taken 2.1 months to get back to business as usual following such incidents. The average cost to date has been 449,525 per incident per company (or 519,838); but this is as high as 17.6M in one company (or 20.4M). Dr. Cherry Taylor (BSc, PhD) Managing the Value Chain in Turbulent Times March 2013 Dynamic Markets Limited 6
7 Your Supply Chain Is Changing Current Demands Cut costs Improve service Help other teams Do it faster Do it better Do it with less 7
8 Adaptation and Growth How Do You Respond to disruptions and major changes Enable continuous improvement processes Evaluate new market opportunities 8
9 Agility What if you could. Create scenarios using realworld data and constraints Quickly perform what-if analysis Compare results side-by-side with meaningful metrics 9
10 Speed and Flexibility Why hasn t it been done before? Big data constraints Solver constraints Ease of analysis Network optimizers: too high level TMS: need for speed 10
11 The Oracle Solution: Oracle In-Memory Logistics Command Center 11
12 Innovative Applications Oracle s traditional Value Chain products gain performance benefits from Oracle Engineered Systems Oracle s In-Memory applications go beyond running value chain applications on Engineered Systems 1. Optimized performance for better speed and scale 2. Real-time analytics 3. Transformative business processes Oracle In-Memory Logistics Command Center: An innovative In-Memory application for transportation management 12
13 Oracle In-Memory Logistics Command Center What-If Planning & Simulations on Oracle Engineered Systems Speed Challenges and Scalability Analyze your scenarios using detailed and accurate operational data Solution Simulate your operations over long horizons with big data capabilities Real-Time Analytics New visualization capabilities and low latency ad-hoc analytics Side-by-side comparison across scenarios with ability to drill to complete details Transformative Business Process Analysis of strategic scenarios with highfidelity operational detail no aggregation, estimation or inaccuracies involved Multiple, parallel, near real-time planning enables operational what-if scenarios in the daily business context 13
14 Oracle In-Memory Logistics Command Center What-If Planning & Simulations Use Cases Network disruptions (e.g. closed ports) Freight cost changes (e.g. fuel charges) Service provider/mode changes Network design (e.g. new cross-dock) Sustainability impacts Capacity forecasting Sensitivity analysis Optimization parameter tuning New customer profitability analysis 14
15 Oracle In-Memory Logistics Command Center What-If Planning & Scenario Management Benefit Drivers Reduce supply chain costs Increase supply chain resiliency Improve corporate sustainability Optimize network evolution Increase supply chain agility Drive new revenue and improve top-line Lower Total Cost of Ownership 15
16 How Does It Work? Packaged Integration to OTM Select data and create scenarios Run Scenarios Operational OTM Take Action Analyze Results 16
17 Oracle In-Memory Logistics Command Center Project & Scenario Management Scenario Management Create and manage multiple projects, each with multiple scenarios Scenario management functions: create new scenario, copy, apply data rules, create and remove data Define associated scenario data: orders, carriers, planning parameters, etc Launch planning engine and scenario analysis dashboard 17
18 Oracle In-Memory Logistics Command Center Packaged Analytics Scenario Analysis Analyze plan results for each scenario (e.g., cost metrics, utilization, network efficiencies) Compare results side-by-side between scenarios to determine which plan to execute Pre-built dashboards Slice-dice, create your own ad-hoc queries, dashboards 18
19 Oracle In-Memory Logistics Command Center Key Capabilities Stand-alone application optimized for Oracle Engineered Systems Support for both strategic and operational scenarios Packaged integration to your operational OTM environment Pre-built scenarios ready for analysis Ability to create your own custom scenarios Pre-built analytics packaged metrics and dashboards Ability to create your own analytics 19
20 Oracle In-Memory Logistics Command Center Key Capabilities Support for unlimited number of projects and scenarios Specify key criteria such as order sets, time duration, etc. to constrain and shape your scenarios Ability to drill to operational details underlying each scenario (orders, shipments, rates, resources, etc) for detailed analysis Store scenario analyses indefinitely for future reference full-feedback loop allows for continuous learning and improvement of strategies 20
21 Types of Scenarios Strategic Scenarios Enable user to determine strategies to optimize their operations for the longer term Analysis will typically be conducted in a separate domain/environment from the operational one Ability to easily reflect changes on the operational domain would be nice to have Value: Longer term, but high value! May need larger changes to be executed, such as a change in the network, etc Operational Scenarios Enable user to examine multiple what-if scenarios to optimize current operations Analysis conducted against operational, and not aggregated, data Ability to easily execute decisions made is critical Value: Incremental, but immediate and could add up to a significant value over time Usually can be effected with less effort 21
22 Oracle In-Memory Logistics Command Center Scenario Examples Strategic Scenarios Network Disruptions Question: Hurricane, earthquake hits part of the network how will it impact me, how should I respond? Question: Port/highway closure, crossdock/dc closure - how will it impact me, how should I respond? Fuel Risk Modeling, Rate Change Modeling Service Provider Risk Management 22
23 Oracle In-Memory Logistics Command Center Scenario Examples Strategic Scenarios Network Evolution: design your logistics network for future evolution Forecast, capacities, spend budgeting Network Route Design New Customer Analysis Model and determine impact of adding new customer or new line of business to network Identify synergies with existing flows Determine best way to service new customer/line of business Sustainability Evaluation 23
24 Oracle In-Memory Logistics Command Center Scenario Examples Operational Scenarios Constraint Analysis: evaluate relaxation of various bottleneck constraints on current plan Time windows, compatibilities, priorities Algorithm Tuning Run multiple plans with different settings simultaneously and choose best solution to execute Evaluate different objective function settings Least cost v/s best service v/s min carbon footprint 24
25 Oracle In-Memory Logistics Command Center Scenario Examples Operational Scenarios Network Routing evaluate alternate routings and determine impact on solution Questions: What if we used different ports? What if we allowed Intermodal as an option on certain legs? What is the impact of alternate crossdock choices? Alternate Carrier Strategies Relax/Enforce Carrier preferences/capacities/commitments 25
26 Summary 26
27 Key Differentiators Unlike typical Network solvers, Oracle In-Memory Logistics Command Center analyzes scenarios with high-fidelity operational detail no aggregation, estimation or inaccuracies involved Simulation of operations over long horizons with big data capabilities Support for both Strategic and Operational Scenarios Packaged integration to operational OTM environment 27
28 Innovation Why Oracle? Proven track record in logistics innovation Plans are feasible and executable with direct link to OTM Ease of use Speed 28
29 Q&A 29
30 30
31 31
Copyright 2014, Oracle and/or its affiliates. All rights reserved.
1 Oracle In-Memory Logistics Command Center (LCC) Ignas Ponsioen Principal Sales Consultant Derek Gittoes Vice President, Value Chain Execution Product Strategy 20 March 2014 Agenda LCC Product Overview
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