Transportation Quote to Cash Cycle in OTM - Better Collaboration with global supply chain partners 13 th August 2014 Nagappan Gandhiramanathan & Subrahmanyam Veeturi 1
Agenda 1 Introduction Logistics Service Provider(LSP) Overview Logistics Service Provider Environment Logistics Service Provider Emerging Trends LSPs Current IT landscape Challenges/Pain points in Current LSPs Q2C process 2 How OTM Solution helps LSP s Transportation Quote to Cash Cycle 3 Key Business Advantages From an OTM perspective 4 Cognizant's OTM/GTM Practice & Service Offerings 2
Logistics Service Provider(LSP) Overview
Logistics Service Provider Environment 4
Logistics Service Provider Emerging Trends Emerging Trends Big Data era : Shippers and LSP s feel strongly that improved, data-driven decision-making is essential to the future success of their supply chain activities and processes. Enhancing 3PL-Shipper Relationships Shippers agree that 3PLs provide new and innovative ways to improve logistics effectiveness, and that they are sufficiently agile and flexible to accommodate future business needs and future business challenges. Global Trade Management becomes necessity - Automated global trade management to transform LSP s global operations into a competitive advantage Mobility: Mobility Solutions to Shippers 5
IT Expectation/Performance Gap From last 12 years the difference between shipper s opinions on whether they feel information technologies are a necessary element of 3PL expertise, and whether they are satisfied with their 3PLs IT capabilities. Source: 2014 18th Annual Third- Party Logistics Study 6
LSPs Current IT landscape Current State of IT at LSPs IT systems in the LSP industry have predominantly evolved as custom home-grown applications LSPs today have a complex technology environment with a mix of enterprise resource planning, best-of-breed, and many custom-developed applications, multiple hardware platforms, point-to-point integrations and multiple data repositories. Not capable enough to determine profit margins for all products and services as well as providing all stakeholders with a single version of the truth. Instead of business requirements driving IT, at most LSPs, IT drives what the business can or cannot do. This is a key limitation for LSPs who want to change their business process or bring a new product or service to market. Simply stated, IT has become an inhibitor to innovation and agility. 7
Challenges/Pain points in Current LSPs Q2C process Challenges/Pain points Insignificant collaboration between the various supply chain stakeholders (Freight agents, Customers, Sellers, Buyers etc.) during the LSPs Quote to Cash (Q2C) process Many LSPs are using various business systems that are not integrated and this process is almost siloed Less efficiency and accuracy of logistics information flow in LSPs Q2C process Highly dependent on manual interventions/manual processes which causes revenue leakage Quotes manual calculation of Pricing, Emailing quotes and expiry dates are being monitored manually Need of Single End to End ERP system to manage all the processes in Q2C cycle Execution is the lack of a centralized data repository that links quotes to customer orders, shipment planning and shipment status/ monitoring Adhering to Compliance with standard operating procedures for each customer is a challenge for LSP s More often this is driven by operations managers and no automated work flow to ensure compliance Difficult to track accessorial costs or any additional charges incurred for each customer for accurate billing 8
How OTM Solution helps LSP s Transportation Quote to Cash Cycle
Quote to Cash Cycle Business Process Overview Shipper/Customer Information Shipper/Customer 1 Inquiry for transportation cost (email/fax/phone/edi) 6 Confirmation of Quote 11 Customer Invoice LSP - Freight Forwarding Services 2 3 Rate Algorithm Carrier Tariffs (Own Database of Rates) LTL Rates Ocean & Air rates Rate Inquiry 5 Quote Sell rate to Customer 4 Determine Buy Rate & Sell Rate Tender Load 2 Transportation cost 3 10 Inquiry for transportation cost 7 Email or EDI Tender Track Loads Tracking Info / POD 8 9 Shipping Agent/Carrier 12 Accounts Payable BI & Analytics Integration Load Pickup & Documentation 10
OTM Transportation Quote to Cash Cycle Overview 11
Transportation Quote Management
Quote Request to Acceptance Transportation Quote request by Customer Quote Request Entry by Customer/Customer Representative Quote. Review and request for Rate from Shipping Agent RFQ Review by LSP Forward request to Shipping Agent for price/buy Rate Email notification to Agent for Quote/Rates Shipping Agent enters rate details in OTM /emails the rates to LSP Email Notification to LSP representative to Review rates entered by shipping Agent. Rate Creation and Quote review by Customer Buy and Sell rate entry by LSP Email Notification to Customer for approval. Quote/Price Review by Customer and accepts/declines the quote Email Notification to LSP for Quote Acceptance/Decline 13
Transportation Quote request by Customer Quote Request Entry by Customer/Customer Representative at LSP 14
Quote Review and request for Rate from Shipping Agent RFQ Review by LSP Forward request to Shipping Agent for price/buy Rate Email notification to Agent for Quote/Rates Shipping Agent enters rate details in OTM /emails the rates to LSP Buy Rates 15
Rate Creation and Quote review by Customer Buy and Sell rate entry by LSP, Spot Rate (add mark-up on buy rate) and forward to customer. OTM provides Quote cost options for Equipment and Shipping. Quote/Price Review by Customer and accepts/declines the quote Buy & Sell rates are tagged to the quote 16
Quote to Order and Planning
Order Booking/Order Management LSP converts the quote to order. All the details from the quote will be copied to Order release LSP plans the orders into Buy side shipments.- Automatic/Manual 18
Buy & Sell Shipments Buy Shipment Sell Shipment 19
Execution and Monitoring
Shipment Status - Monitoring and Visibility 21
Job Creation and Settlement Process
Job Creation Process What is a Job A Job is a wrapper, to tie the Order Release, Sell Shipment, Buy Shipment, BOL Back, Non Freight Related Charges and Documents together Jobs provide visibility to all revenue and expenses associated with the Job Ability to manage buy and sell charges via NFRCs 23
Invoice Approval & Bill Creation process Approving Invoice Bill Creation 24
Dashboard - Revenue/Expenses/Profit 25
Key Business Advantages From an OTM perspective Increased Agility Reduced Costs Increased service levels Single Source of Truth Information Driven Decision Making Accelerated Time to Market Management Simplicity Better Governance Reduced Billing Errors 26
Cognizant OTM/GTM Solution Offerings Consulting/Advisory Implementation/Upgrade /Support Process Harmonization Global Design Customer Centric Labs OTM Solution Fitment/Demos Business Case Development Detailed process design Solution Blueprint System Configuration OTM Implementation Business Readiness and Data Strategy OTM Implementation/Roll outs Offshore Delivery Center Factory OTM Upgrade Functional / Technical Application Development Application Support OTM Testing/QA Specific Product Trainings (In Premise/web based) Proprietary Solutions Capabilities Process Harmonization a Structured logistics Best Practice Framework Questionnaire/ Process Flows /solution fitment OTM Fast Tool Kit Master Data Upload Utility Pre Built Agents Ready Made Business Scenarios 70 + Specific Demos OTM Upgrade Framework Test case repository 1000 test cases for base product Agent Monitoring Tool Structured E mail Notifications Manage, Build a Complex and Composite Logistics Landscape 10 + Applications with OTM 200 + Interfaces 150 + Agents Configured Build Central Logistics Hub for Data Publishing Build common services Automation Testing 1000 person hours time reduction Build 50 + Custom Screens Mobile Comms Integration OTM Upgrade Customized Standard Migration to reduce Migration time by 40 % SAP to OTM Implementation Key Experiences Process Harmonization Multi-country Logistics Across Europe, Asia & Africa Implementation for a US Logistics Service Provider Upgrade OTM 5.5 to 6.2.x for US Automotive Giant Application Support for US manufacturing & Entertainment Company 27
Questions? Key Contacts OTM Sales - North America Sukumar Srivatsan Srivatsan.Sukumar@cognizant.com Mobile: +1 503-706-7272 OTM Competency Head & Global Sales Support Hemalatha Vema Hemalatha.Vema@cognizant.com Mobile: +91-9989642171 OTM Global Delivery Head Senthilnathan Loganathan Senthilnathan.Loganathan@cognizant.com Mobile:+91-9962515453 28