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1 CARRIER&CONNECTIVITY&& WITH&TRANSPOREON&AT& OTM$and$TRANSPOREON$a$perfect$fit$5$ "plug$and$play"$carrier$connec=vity.$ How$to$combine$the$exper=se$ of$both$systems.$ $ European$OTM$SIG$Conference$2014,$ 20th%of%March%2014$$
2 Agenda&! Who&is&UPM&! LSP$connec)vity$in$UPM$and$objec)ves$for$TRANSPOREON$integra)on$$(UPM)$! Presenta)on$of$the$solu)on$(UPM$and$TRANSPOREON)&! LiveCDemo$(UPM$and$TRANSPOREON)$! Benefits$(UPM)$! Who$is$TRANSPOREON$! Q&A$(UPM$and$TRANSPOREON)$
3 UPM THE BIOFORE COMPANY 2014
4 UPM today Global operator - Sales operations in 65 countries, production in 15 countries Sales 10,4 billion euros in ,000 employees Listed in the NASDAQ OMX Helsinki stock exchange UPM Biorefining UPM Energy UPM Raflatac UPM Paper Asia UPM Paper ENA UPM Plywood Biofuels Pulp Plantation operations Timber Wood sourcing Hydro, nuclear and condensing power (incl. shareholdings in energy companies) Physical and derivatives trading Self-adhesive label materials for product and information labeling Fine papers in China Label paper business Magazine papers Europe and NA Newsprint and fine papers Europe RCP and wood sourcing Plywood and veneer products Other operations: Forests (over 850,000 hectares) and wood sourcing, New Business Development and Group services UPM
5 Sales network and production plants Global sales network 67 production plants in 17 countries: - Europe: 55 - USA 5 - Brazil 1 - Uruguay 1 - China 2 - Australia 1 - Malaysia 1 - South-Africa 1 UPMU
6 Agenda&! Who$is$UPM$! Challenges&&and&objec?ves&(UPM)&&! Presenta)on$of$the$solu)on$(UPM$and$TRANSPOREON)$! LiveCDemo$(UPM$and$TRANSPOREON)$! Implementa)on$&$Benefits$(UPM)$! Who$is$TRANSPOREON$! Q&A$(UPM$and$TRANSPOREON)$ $
7 We had high demands on the project Implement our carrier connectivity strategy All new LSP interfaces are build via an integration platforms Existing direct EDI interfaces with LSPs are maintained; new direct EDI interfaces are not built Consider the different IT capabilities of the carriers - EDI connections to each carrier not feasible, a web-platform is needed Manage and daily support of 300+ carriers with an accepted and widespread solution Process optimization Reduction of truck waiting time and associated costs Streamline transport assignment process: no more fax, phone and Harmonized process for all mills Decrease TCO UPMU
8 ...and our targets were ambitious One interface from OTM to reach all carriers UPM dispatchers/users should just work with OTM user interface (no additional software, seamless integration) Usage of a plug and play -carrier connectivity portal Avoid carrier support tasks by UPM (no budget, no personnel) Highly available and robust solution UPMU
9 Agenda&! Who$is$UPM$! Challenges$$and$objec)ves$(UPM)$$! Presenta?on&of&the&solu?on&(UPM&and&TRANSPOREON)&! LiveCDemo$(UPM$and$TRANSPOREON)$! Implementa)on$&$Benefits$(UPM)$! Who$is$TRANSPOREON$! Q&A$(UPM$and$TRANSPOREON)$
10 TRANSPOREON s&innova?on:&& Networking,&integra?on&and&transparency& unlimited$pool$of$carriers$ defined$by$shipper$ TRANSPOREON& & central& webnbased& plaoorm& transport$data$ response$
11 Integrated&coverage&of&supply&chain&processes&provided&by& TRANSPOREON&Group&solu?ons&& " Paperless$and$ automa)c$ processes$ " Improve$customer$ service$ TICONTRACT TRANSPOREON TRANSPORT SOURCING TRANSPORT ORDER ASSIGNMENT TIME SLOT MANAGEMENT STATUS MANAGEMENT/ MOBILE APP REPORTING " Much$faster$ tendering$process$ " Reduce$rates$ " Op)mise$loading/ unloading$process$$ " Reduce$truck$ cycle$)me$ " Carrier$ performance$ measurement$$
12 Highly&automated,&no&touch&transport&assignment&process& OTM& TRANSPOREON&noNtouch&order& Transport$order$ on$plaporm$ indica?ng&carrier& Transport& order& &!" X& Accept$ transport$order$ Reject$transport$ order/$ no$response$ Confirma)on$ EDI$to$ carriers$erp$ Daily$transport$order$ assignment$
13 Transport&assignment&by&finding&the&best&truck& with&less&empty&mileage&& OTM& TRANSPOREON&best&carrier& Transport$ on$plaporm$ Reference$ price$ Select$ offer$ Transport& order& & & & &!" Submit$$ offers$ x& x& Export$carrier$$ (and$transport$price)$$ to$erp/tms$ Allocate$ order$!"
14 Do&you&recognise&long&wai?ng&?mes?&
15 Truck&wai?ng&periods an& eternal &problem& current&situa?on&in&shipping:&! no$informa)on$on$what$)me$which$vehicles$/$orders$have$to$be$shipped$! rushchours$in$shipping$(late$morning,$early$auernoon)$! limited$shipping$capaci)es$! cri)cal$traffic$situa)on$in$the$plants$! high$risk$of$workcrelated$accidents$! problem$of$compensa)ng$wai)ng$)me$! missing$informa)on$and$peak$load$(loading,$driver,$plant$security)$! difficult$staff$employment$planning$
16 TRANSPOREON&Time&Slot&Management&& Higher&efficiency&due&to&transparency&for&all&par?es& OTM&Dock&Manager&! books$/reserves$slots$in$ OTM$! Plans$capaci)es$in$OTM$! RealN?me& synchroniza?on&in&place& 7:00$ 8:00$ 9:00$ 10:00$ 11:00$ 1$ carrier& Time&Slot&Management& 2$! books$slots$with$reference$! transport$order$! customer$order$! receives$informa)on$about$the$ dispatch$status$! op)onal:$manages$trailers$ 3$ 4$ 5$ SelfNcollector/& supplier&! books$slots$with$ reference$to$a$ (customer)$order$! receives$informa)on$ about$the$dispatch$ status$
17 OTM TRANSPOREON process flow UPM users run bulk plans secure resources OTM accept tender transport order transport order confirmation booked time slot No-touch order transport order accept transport order Service providers loading instructions (including pick-up appointment time) MES & other WMS Timeslotmanagement book time slot AVERAGE MONTHLY MESSAGE COUNTS Load Tender Load tender response Timeslot booking UPM
18 Agenda&! Who$is$UPM$! Challenges$and$objec)ves$(UPM)$$! Presenta)on$of$the$solu)on$(UPM$and$TRANSPOREON)&! LiveNDemo&(UPM&and&TRANSPOREON)&! Implementa)on$&$Benefits$(UPM)$! Who$is$TRANSPOREON$! Q&A$(UPM$and$TRANSPOREON)$
19 LiveNDemo&of&the&OTM&and&TRANSPOREON&integra?on&
20 Agenda&! Who$is$UPM$! Challenges$and$objec)ves$(UPM)$$! The$solu)on$in$Detail$(UPM$and$TRANSPOREON)$! LiveCDemo$(UPM$and$TRANSPOREON)$! Implementa?on&&&Benefits&(UPM)&! Who$is$TRANSPOREON$! Q&A$(UPM$and$TRANSPOREON)$
21 TRANSPOREON implementation plan All carriers for one source location at the same time - Solution activation in OTM per carrier and source location In OTM TRANSPOREON interface is activated is on a service provider and source location level UPM
22 Benefits for carriers Carriers are also benefitting from integration and integration related developments have been done in a very collaborative way The carrier just works within one application, not a large number of different individual shipper portals Carriers have options for a EDI message interface with TRANSPOREON or use of TRANSPOREON web client for processing transport orders from multiple shippers - Small carriers usually don t have own systems with integration capabilities - Carrier only has to set up ONE interface to TRANSPOREON in order to receive ALL transport orders of his TRANSPOREON-shippers EDI message interface with UPM carriers - 10% of all UPM carriers are EDI connected to TRANSPOREON - 30% of the UPM transport orders go via TRANSPOREON EDI to their IT systems 22 UPM
23 Benefits for UPM High project speed we were able to concentrate on the processes in OTM Integration with TRANSPOREON has improved our agility in logistics sourcing: UPM only has ONE interface to connect new carriers thus we are able to on board new carriers very quickly Harmonized and highly automated and efficient transport order and timeslot management processes - Reduces need for manual communication with carriers (phone calls, s, etc.) - Reduces errors Carrier Support out of the box - All carriers get trained and supported by the TRANSPOREON customer care team (21 different languages offered), no UPM involvement; High carrier acceptance UPM
24 Agenda&! Who$is$UPM$! Challenges$$and$objec)ves$(UPM)$$! The$solu)on$in$Detail$(UPM$and$TRANSPOREON)$! LiveCDemo$(UPM$and$TRANSPOREON)$! Implementa)on$&$Benefits$(UPM)$! Who&is&TRANSPOREON&! Q&A$(UPM$and$TRANSPOREON)$
25 TRANSPOREON&Group&key&facts&2013& TRANSPOREON&Group& Americas&Inc.& TRANSPOREON&GmbH& TICONTRACT&GmbH& MERCAREON&GmbH& TRANSPOREON&OOO& TRANSPOREON&Sp.&z&o.o& TRANSPOREON&Group& Asia&Pacific&Pte&Ltd& &13&years&experience&in$developing$solu)ons$for$transport$logis)cs:$ $>&330&employees$ >&850&shippers&&from$industry$&$retail& >&40.000&connected&carriers& >& &users&in$more$than$80&countries& Support$and$plaPorms$in$21&languages&
26 Geographical&distribu?on&of&40.000&connected&carriers& 2.500& 350& 900& & 8.200& 9.100& 550& 900&
27 TRANSPOREON&is&proud&to&say&that&our&customers&rely&on& us& BUILDING& MATERIALS& METAL/& PLASTICS& AUTOMOTIVE/& ELECTRONICS& TIMBER& PAPER/CARDN& BOARD/PRINTING& BEVERAGES/& CONSUMER& MISCELLANEOUS&
28 The&TRANSPOREON&business&model& Sojware&as&a&Service& Transac?ons& based&price& model& Carriers& benefit&from& the&plaoorm& tremenn& dously& No& separate& costs&for& trainings& 100%& variable& costs& Carrier&pays& transac?on& fees& No&separate& costs&for& support& TRANSPOREON&& Sojware&as&a& Service& Business&Model& Shipper&only& pays&low& project&costs& Transparent,& usage&based&and& fair&price&model& No&running& charges&for& the&shipper& Fast&ROI&
29 Any&ques?ons?&
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