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Implementing OTM as a Third Party with Complex Customer Business Rules
OTM SIG Conference2011
Clint EdenNick Fields
Agenda
• Averitt Overview
• OTM Infrastructure & Design
• Customer Overview
• ‘As Is’ & ‘To Be’
• Implementation Overview
• Results
• Lessons Learned
Averitt Overview
• Privately-held company
• Corporate offices in Cookeville, TN
• More than 140 facilities
• More than 4,600 power units (including pickup/delivery & over-the-road)
• More than 12,000 trailers
• Non-union
• LOB’s include LTL, TL Van, TL Flatbed, TL brokerage, dedicated, warehousing , expedite, international freight forwarding, and transportation management
• $950 Million annual revenue
Averitt Express, Inc.
26th largest carrier (Transport Topics)21st largest dedicated carrier (Transport Topics)Inbound Logistics Top 100 3PL
Less than Truckload
TruckloadSupply Chain
SolutionsIntegrated Services
International Expedited
• Dry van and flatbed services
• Automotive, retail, and consumer products
• LTL
• Consolidation
• Deconsolidation
• Customized local solutions
• Nationwide partnerships
• Transportation Management
• Dedicated Contract Carriage
• Warehousing
• Truckload brokerage
• Dry van, flatbed, and reefer
• Intermodal
• Freight forwarding
• Portside ™ services
• Customs brokerage
• Ground and air expedite services
• Internal and external assets
OTM Business Strategy
• Managed TMS as part of a wider array of services
• Provide the best transportation management technology available
• Provide a menu of services (sourcing, optimization, execution, visibility, freight payment, etc.)
• Multi-customer platform
Standardized implementation footprint
Customized implementation where required
• Collaboration with Averitt asset-based operations
• Cross-customer collaboration
OTM Infrastructure
Supply Chain Solutions
• Program management
• Customer management
• Project management
• Functional configuration
• Operations
OTM
• OTM hosting
• Security
• Disaster recovery
• Technical configuration
• Functional configuration support
• Post implementation support
• Integration hosting
• OTM Connectivity
• Trading partner on-boarding
• Data validation
• Customer integration support
Rapid Deployment Model
Leveraging ELN for Rapid Integration
Logistics Network(ELN)
Customers
OTM
Carriers
•Item Master• Locations Master Data•Order Release•Shipment Events• ASN• Invoices• Payment Voucher
OTM integration with customer systems
• ERP
• Other internal applications
• Other external SaaS offerings
A Unique OTM Solution
• AN OTM solution with Multiple customers sharing a single OTM instance requires a unique overall design
Data privacy & security, stability of existing customers when on-boarding new customers, maximize the re-use of common objects while isolating of customer-specific objects
• Multi-customer approach with the collaborative concept requires a unique rates setup. (Corporation Profile on Rate Offerings)
• Customers may require unique planning parameters and/or itineraries (Itinerary Profiles and Planning Parameters)
• Equipment capacity may be defined differently by different customers for common equipment (Equipment Group Profiles)
A Unique OTM Solution (continued)
• Multi-customer approach required additional configuration in FTI
Create a custom Role in FTI for each customer to secure the customer-specific reports and dashboards.
Create a dashboard preference for each customer to connect the user’s default dashboard to the customer-specific dashboard.
• Pre-defined naming conventions for all business objects
• Business Monitor as the main operational dashboard significantly simplified the operational process
• Advance Delivery Notification – custom logic to handle dynamic LTL delivery appointment lead times
Domain Design
Customer-SpecificDomains
• Locations• Items• Order Base• Order Release• Agents
Planning Domain• Business Monitors• Service Providers & Equipment• Itineraries• Rate Offerings & Records• Rate Distance and Service• Commitment Allocation• Shipments• Invoices & Vouchers
Customer Overview – Diamond Crystal Brands
• Leading producer of food products and additives (Splenda® and Dixie Crystals® among others) for consumer and commercial markets
• Part of a multi-national manufacturer and marketer of meat and food products
• Logistics management operations based in Savannah, Georgia
• Six domestic plants / distribution centers with global distribution of an array of products
Customer Overview – Diamond Crystal Brands
• Global distribution
• 31,000 annual shipments (LTL, TL, Dedicated Fleet, and Ocean)
• 17,962 customer locations
• 3,664 items
• 48 Carriers
Tenders (fax)
As-Is (Pre-OTM)
ERP
-B
PC
S
TM Ops
Legacy TM
S
Orders
Shipments
Carriers
Invoices and Remittance (Paper)
ftp
Manual Entry
Paper
Legend
Revised TMS Business Requirements
• Complete integration with BPCS
• Leverage OTM optimization algorithms
• Orders updated in OTM
Can change until the trailer doors are closed
• Shipment planning across all facilities
Including dedicated fleet
Multi-stops with multiple pickups and deliveries
Pool deconsol
Inbound & continuous moves
Accessorial costs
Reverse logistics
• Tenders and event management (EDI and/or SERVPROV portal)
Revised TMS Business Requirements continued
• Audit and approve freight charges
• Claims management
• Reporting, KPI’s, and carrier scorecards
• Truckload RFQ
Primary, Secondary, and Backup TL carriers
• 70%, 20%, and 10% of business by lane
• Requires commitment allocation
Due to the TL RFQ, production rates not available until late in the project
OTM Components In Scope
• Base OTM (6.1.5)
• Operational Planning
• Freight Payment, Billing, & Claims
• Fusion Transportation Intelligence
• Transportation Sourcing
• Cooperative Routing
• Third party software
SMC3 Czarlite
SMC3 CarrierConnect
ALK PCMiler
To-Be (Post-OTM)
ERP
-B
PC
S
TM Ops
Oracle Tran
spo
rtation
Man
ageme
nt
Orders (dynamic)
Shipments
Shipment Actuals
Carriers
Tenders
Event Updates
Invoices
Voucher
Check Numbers
Remittance (paper checks)
sftp
Manual Entry
EDI
Legend
Project Overview - Team
• Averitt Project Manager / Functional
Functional (sourcing project)
Existing operations management personnel
• Diamond Crystal Brands Logistics Director
IT Director
IT Manager
Programmer (2)
• MavenWire Functional Consultant
Technical Consultant
• E2open Project Manager
Development resources
Project Overview – Implementation Methodology
Plan Configure Transition ManageAssessDefine
Project Overview – Timeline
OTM Program Results
• Platform and design will support our business goals and customer business requirements
• Able to achieve standardized workflow across customers
• Design works well
Domains
Rates & Itineraries
Operation data security
• Successful go live
• Projects within budget
• Able to plan against Averitt assets (CMs with SAWs)
Lessons Learned
• Implementation success relies upon the quality of the initial plan
• Prior to go live, a detailed testing plan must be developed to ensure new customer configuration does not interfere with existing customers
• Effective communication across project teams ensures continuity
• Must leverage external expertise (consultants, OTM community) when needed
• Agents are your friends
• Executive support is critical
Q & A
