OTM on Oracle Cloud powered by TechM L.E.A.P. Solution. Copyright 2015 Tech Mahindra. All rights reserved.
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1 OTM on Oracle Cloud powered by TechM L.E.A.P. Solution 1
2 Understanding Shippers Transportation (Inbound and Outbound) Supplier A Source X-Dock Local DC Manufacturing Plant Regional DC Supplier B Origin Port Distributors * representative supply chain for Consumer Goods / Mfg companies Some Key Logistics/Supply Chain Challenges o Supply Chain Visibility - Difficult to find integrated view of stock across the supply chain o Inbound: Need for more Supplier & Carrier integration to track raw material supplies during transit o Outbound: Shrinking product lifecycle demands on-time delivery of product o Competitive market forces product rightly priced and cost optimized o Need Resource Optimization to reduce cost o Managing multiple LSPs, Rate contracts with several LSPs o Performance Measurement including periodic review of LSPs o Lack of standard process /data exchange between different Suppliers and LSPs leading in pickup / delivery delays 2
3 Transportation Platform for Shippers Control of inbound shipments OTM as a Differentiator for Shipper Logistics Visibility, Optimization & Automation OTM Capability Order Management Benefits PO visibility to all stakeholders Plan, Optimize, and Execute with a Single Application Integration & Collaboration platform SC Visibility & Event Mgmt Proactive Monitoring of all shipment related activities Complete visibility & traceability of international shipments from supplier to DCs to stores Alerts and notifications for potential issues to concerned parties Turn Critical Information into Action Ability to respond quickly Carrier Performance Monitoring Shipment Consolidation Shipment Execution Visibility & Event Management Carrier Payment Cost Allocation Performance Improvement Consolidation of transportation orders can save on transportation cost Process Automation, Tendering, Fleet Management driver & truck allocation PO & Shipment Visibility across Inbound & Outbound and all modes Triggers actions based on specific events /status Arrest Freight pay leakage 100% Audit Better control on Profitability Analytics to drive improvements 3
4 OTM On Cloud Solution Offerings Standard Plan Process Scope OTM Modules Geography Implementation Timelines Master Data Management Transport Modes Business Volumes Integration Capabilities Distance Engine Rate Engine Out Bound Transportation Primary, Secondary & Multi-stop Freight Settlement Cost Allocation Core OTM Transportation Operational Planning Freight Payment, Billing and Claims Global Coverage 10 Weeks with 2 weeks of pre project preparation Locations Items Rates TL LTL Itinerary Calendar Contacts 3 Sites 30 Carriers (E2Open Carrier Connectivity) Mapping templates for Order, Item, Location, Planned Shipment, Voucher Oracle elocation (PC Miler for USA Customers) SMC3 for LTL Rating (USA Customers) 4
5 OTM On Cloud Solution Offerings Standard Plan Coverage Solution Workflows Pre configured workflow for standard processes User Roles & Access controls 4 User Roles Business Monitors 4 Business Monitors based on User Roles Screen Set Modifications Light Screen Set & Manager Layout Changes Testing Test scripts End-to-end Solution testing Training Super-User training material Pre Project Preparation 2 Weeks Post Go-Live Support 4 weeks 5
6 OTM On Cloud Solution Offerings Standard Plan Visibility Reports Coverage Order Visibility Shipment Visibility Buy shipment event Visibility 3 Custom Reports Solution Order Management Order Base Order Release Simple Constraints & Order Templates Item & Orders Upload Tool Shipment Planning Direct Multi-stops Multi Leg (LTL & TL) Shipment Execution Manually via OTM Screens Freight Settlement Freight Invoice upload or generation Process (Buy side) Match & Auto Pay processes (Buy side) Voucher Generation 6
7 Functionality Areas - Industry Coverage / Offering Silver (Standard) Gold Platinum Retail Replenishment (Inbound) : Domestic & International (Supplier to DC) SILVER + Outbound: Primary Distribution GOLD + Outbound: Secondary Distribution CPG (FMCG & Food) Outbound: Primary Domestic SILVER + Inbound Domestic: Suppliers to Plant GOLD + Inbound International: Suppliers to Plant Outbound: Secondary Domestic Manufacturing (Discrete) Outbound: Domestic SILVER + Inbound Domestic: Part Suppliers to MFG location GOLD + Inbound International: Suppliers to Plant Outbound: International Oil & Gas Overland Procurement for Upstream Logistics Hub: Supplies, Lubricants & Spares SILVER + Multi Mode Procurement GOLD + Upstream Logistics for Heavy Machinery / Capital Goods 7
8 High Level Business Process Supplier Xdock Factory Local DC Supplier Regional DC Inbound Process C&F Local DC Outbound Process Process Areas Covered Standard Plan Outbound Business Process Outbound Primary & Secondary Distribution Outbound Multi Stop 8
9 L.E.A.P Inbound Business Process Overview L.E.A.P Inbound Business Process Overview Purchase Dept. Supplier P O Creation OB Creation O R Lines Release Instructions trigger O R Notification O R Approved Shipment Status Notifications Planner OR Ready for Planning Bulk Plan Shi Shipments Created Shipment confirmed Shipment Execution Invoice received against the Shipment Carrier Tender Offer Sent Tender Offer Accecpted Shipment Events Pick-up En-route Shipment delivered, POD Received Invoice Creation Finance Dept. Invoice Matched Invoice Approved Vouched Generated Voucher Posted in AP 9
10 L.E.A.P Outbound Business Process Overview L.E.A.P Out Bound Business Process Overview Sales Dept. Customer S O Creation OB Creation Release Instructions Trigger O R Notification O R Approved O R Confirmed Shipment Status Notifications Planner OR Ready for Planning Bulk Plan Shi Shipments Created Shipment confirmed Shipment Execution Invoice received against the Shipment Carrier Tender Offer Sent Tender Offer Accecpted Shipment Events Pick-up En-route Shipment delivered, POD Received Invoice Creation Finance Dept. Invoice Matched Invoice Approved Vouched Generated Voucher Posted in AP 10
11 Reports Report Purpose User Access Delivery Receipt POD Receipt Planner Super User Purchase Manager Order Release Details Summary of Order Release Ship Unit / Line Items Planner Order Release Vs Shipment Details Shipment Pickup Status Collaborative visibility of Planned Orders with shipment details Shipment Pickup Time variance report Super User Purchase Manager Sales Manager Shipment Tracking Track & Trace report for selected shipments Planner Super User Purchase Manager Sales Manager Customer Supplier Truck Utilization Report Order / Shipment wise truck weight / volume utilization report Planner Super User Variance Cost Report Cost Variance Report between planned vs actual invoiced Finance User Super User Demurrage Charges Report Lists shipments where demurrage charges are incurred with Servprov details Planner Finance User 11
12 User Access Controls User Preference based Business Monitors 12
13 Ready to use Accelerators Master Data Item data upload tool Location data upload tool Contact data upload tool Calendar data upload tool Rate upload tool Itinerary upload Tool Transactional Data Order Release upload tool Order Release Event upload tool Shipment upload tool Tracking events upload tool Freight Invoice upload tool ADF based Order Release upload tool with location & item 13
14 Integration OTM-EBS Integration Oracle Standard Integration using BPEL / Oracle Fusion Middleware OTM-SAP Integration Integration using Oracle SOA or Customer pre-licensed middleware (SAP PI, WTX, etc..) Carrier Connectivity E2Open Network Pre-configured industry best practices templates can be used for other systems integration. Inbound Integration Order Release Tender Response Shipment Events SMC Rateware PcMiler Distance Engine Invoice Outbound Integration Order Release Planned Shipment Tender Offer Shipment Status Voucher 14
15 Operations Centric Model Manage Business Process Invoice upload / entry services Rates / Master Data Upload Services Audit & Exception Management Services Specific data fix issues Day to Day business process issues viz., Planning, Order Processing issues, etc.. Continuous Improvement Process Updating SOP basis change in business process New User Training / updates to User Guides Improvement to Shipment<>Invoice matching % Problem Management 15
16 Deliverables Phases Deliverable TechMahindra Customer Functional Training, Project planning & Instance Access Project Definition Document Owner SignOff Project Plan Owner Owner Vertical Solution Template Document Owner Master Data Collection Templates Owner Analysis, Plan & Design Transacton Data Collection Templates Owner Integration Data Flow Document Owner Business Process Mapping to Vertical Solution Owner SignOff Add-on Requirement / Design Document Owner SignOff Integration Mapping Document Owner Test Plan Owner Test Scripts Owner Configuration & Unit Testing Defects Report Owner Master Data Macros Owner Transaction Data Macros Owner Add-on Configuration Document Owner User Training Document Owner System Testing & UAT UAT Test Cases Owner UAT Defect Report Owner UAT Sign off Document Owner SignOff Deployment Production Check-list Report Owner Post Go-live Warranty Support Warranty Support Issues Document Owner SignOff * Indicative only 16
17 Deployment Process Based on customer order, oracle provisions the instance Customer gets instance grants and SI gets access from Customer Solution implementation on Stage environment User Acceptance in Stage environment Migration between environments using out of box Project Feature Promote to production 17
18 OTM On Cloud Solution Offerings Standard Package (Project Plan) Phase Pre Project Preparation & Project Planning Functional Training & Solution Workshops Analysis, Data Setups & Integration Configuration & Unit Testing System Testing, Training & UAT Deployment Post-Go Live Solution Warrenty Support Week - (-1) Week - (0) Week - 1 Week - 2 On-Site & Offshore Model 4 Weeks of Warranty Support Global Delivery Model, no geo restrictions Warranty Support can be provided 24 X 7 (optional) OTM Logistics express as A Platform Pearl ONE Week - 3 Week - 4 Week - 5 Week - 6 Week - 7 Week -8 Week - 9 Week - 10 Week - 11 Week - 12 Week - 13 Week
19 Key Assumptions The implementation will be based on standard processes and with no customizations Customer will provide the licenses of project specific software required by TechM project team Additional environments (besides Staging and Prod), if required, will be made available by Customer All approvals and sign-offs will be provided within 02 working days, any changes to the implementation timelines will have impact to the overall implementation cost. Implementation will be for one legal entity, One Domain with 3 Super Users, 10 end users. Solution is a stand alone solution, any integrations/customizations will be taken through a mutually agreed Change Management process File Based Loader will be used for Data upload for all modules in scope. Data (Master Data, Transaction) will be provided by customer in pre-defined templates for data migration. One Country, One Currency and One Language (English) considered in scope On-going administration support, 24X7 application monitoring, performance shall be provided by Oracle Distance Engine for basic plan is integrated with PC Miler for NA. License for PC Miler not included. Out of scope Business process reengineering Historical data migration Data Extraction and Cleansing Any other modules, other than mentioned in Scope/packages End user training is out of scope, key user training (Train-the-Trainer) is considered Single sign-on solution Multiple Legal Entity setup i.e., Multi Domain configurations 19
20 Tech Mahindra OTM on Cloud Differentiators Value for Money Innovative Pricing Models Multiple Packaged variants, with possible addons Start small, with incremental additions Speed and Scale Rapid Implementation Services Reliable, available anywhere Scale with use and additional subscriptions Positive Experiences Flexibility in Deployment Models, Delivery Models Responsiveness to Customer Issues Track Record Long History of successful OTM deployments Successful track record with Oracle Applications Successfully implemented OTM On AWS Cloud (Public Cloud) Tech M Experience to Value 20
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22 Annexures
23 Logistics Outlook for Shippers Logistics continues to play a pivotal role in the Supply Chain and with the current changes in industry landscape it has garnered greater importance Increase in distribution needs for electronics and computers as spending on consumer electronics continued. E-commerce, sheer dollar volume of online spending and its increasing share of customers businesses have shifted Industry participants focus on supply chains Steady and positive growth in housing and construction business. Cyclical recovery of Auto sales, boosting growth for auto and ancillary manufactures. Dynamic consumer buying behavior is forcing industries to adopt dynamic yet reliable logistics solutions The outlook for the growth of customer businesses and logistics demand is strong. Globally logistic cost account for 18-21% in overall product cost. Amongst logistics cost, 72% of the cost accounted for Transportation & Inventory.
24 TMS for Shippers Shippers are challenged with drastic changes in Consumer Behaviour shrinking Product Lifecycles and demanding expectations. Shippers are virtually squeezed at every step in Supply Chain right from raw material procurement, wholesales, retailers and end users. Quality and Value: Companies need to pursue cost-reduction strategies while offering increased service and variety Shippers are finding ways to deliver value, reduce cost and increase brand recognition. These strategies are forcing companies to tighten their Logistics costs from raw material procurement to finished goods distribution.
25 OTM - SAP High level Integration Architecture SAP WMS FUSION MIDDLE MIDDLEWARE OTM 1.Purchase/ Sales Order A)PO/SO IDOC A)PO/SO A)TransOrder Xml 1.Order Base 1.PO/SO 2.Ready to Ship B)ASN IDOC B)ASN B)Release Xml 2.Order Release 3.Accounts Payable CARRIER 1.Shipment 2.SHPT F) TENDER RESPONSE EDI990 G)SHIPMENT EVENT EDI214 C) PLANNED SHIPMEMT D)ACTUALS E) TENDER EDI204 I N T E G R A T I O N L A Y E R C)PlannedShipment Xml D)ActualShipment Xml E)TenderOffer Xml F) Tender Response Xml G) Shipment Status Xml Planning 3.Shipment z Matching 4.Invoice Allocation I) PAYMENT IDOC 2.Invoice H)INVOICE EDI210 H) Invoice Xml I) Voucher/ AllocationBase Xml Approved 5.Voucher
26 Carrier Connectivity E2Open Network <> OTM Cloud OTM XML B2B CARRIERS & LSPs Servlet HTTPs Transactions Gateway HTTPS Gateway LSP Protocols Key Features Web-based network visibility for transaction monitoring and troubleshooting Web-based on-boarding process management and document collaboration tools Built-in Connectivity capability Access to multiple carriers Supports Tendering & Shipments Status Events Quick carrier on-boarding Comprehensive solution available on-demand Re-usable trading partner integration
27 Thank you Visit us at Disclaimer Tech Mahindra Limited, herein referred to as TechM provide a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute an offer to buy or sell any securities mentioned therein. They do not purport to be a complete description of the markets conditions or developments referred to in the material. While utmost care has been taken in preparing the above, we claim no responsibility for their accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the viewers are requested to use the information contained herein at their own risk. These presentations and reports should not be reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of TechM or its subsidiaries. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. Unless specifically noted, TechM is not responsible for the content of these presentations and/or the opinions of the presenters. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. You may not repackage or sell the presentation. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by TechM. Information contained in a presentation hosted or promoted by TechM is provided as is without warranty of any kind, either expressed or implied, including any warranty of merchantability or fitness for a particular purpose. TechM assumes no liability or responsibility for the contents of a presentation or the opinions expressed by the presenters. All expressions of opinion are subject to change without notice. 27
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