Oracle Shipping ExecutionMulti-leg Consolidated Deliveries

An Oracle Distribution Topical EssayMarch 2001.

Multi-Leg Consolidated Shipments

- TABLE OF CONTENTS

1. OVERVIEW ...................................................................................................................................................... 3

2. DEFINITIONS................................................................................................................................................... 4

3. BUSINESS SCENARIO.................................................................................................................................... 5

4. CREATING TRIPS........................................................................................................................................... 6

5. CREATING LOCATIONS AND STOPS........................................................................................................ 8

6. EXECUTING THE SHIPMENTS. ................................................................................................................ 12

6.1. PICK RELEASING THE TRIP............................................................................................................................. 126.2. SHIP CONFIRMING THE TRIP.......................................................................................................................... 146.3. CHANGING STOP STATUS............................................................................................................................... 15

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1. Overview

This topical essay presents a solution in support of a process where items on a customer order aresourced from different geographical locations. The shipments containing the items are to be mergedor consolidated at an intermediate location with the final delivery being made to the customersultimate ship to destination.Release 11i data model supports the ability for a user to create a multileg shipment and to managethe activities at each stop along the shipments journey. The graphic below depicts the conceptoutlined in this topical essay.

Diagram 1 Consolidated Multi-Leg shipments

OracleInventory

Organization

OracleInventory

Organization

Non OracleDistribution

Center

CustomerUltimate

Destination.

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2. Definitions

Consolidation The collection of packages to be either dropped-off in a set or to sharetransportation costs. Consolidations may include shipments for anindividual Ship to location or for multiple different customers withinthe same vicinity.

ship confirmation To enter shipped quantity and inventory controls for specific shippablelines. You can ship confirm the same delivery/trip repeatedly until youclose the delivery/trip. Once it is closed, no more changes can be madeinto a delivery/trip.

ship-to location The delivery point for consolidated shipments, gathered from multiplelocations, that will be shipped to an intermediate and/or ultimate ship-to location.

Delivery A set of order lines to be shipped to a customers ship-to location on agiven date in a given vehicle. Multiple deliveries can be grouped into asingle trip. A single delivery may include items from different salesorders and may include backorders as well as regular orders.

Ship Confirm A process in Shipping Execution which allows you to identify shippedquantities, assign inventory control information for released lines,assign freight charges, and specify whether or not to backorderunfulfilled quantities of released line items.

Trip planning The process of planning the necessary vehicles and grouping thescheduled shipments that will be included in a given trip. Planning thetrip requires consideration of vehicle load capacities, containercapacities and, in certain cases, the loading order for the customersspecified unload order.

Trip An instance of a specific Freight Carrier departing from a particularlocation containing deliveries. The carrier may make other stops on itsway from the starting point to its final destination. These stops may befor picking up or dropping off deliveries.

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Stop A location at which the trip is due for a pick-up or drop-off.

Shipment An individual package sent to a customer. Thus, a shipment mightcontain an entire order, if all items in that order are pick released andpacked together. A shipment might contain just part of an order that ispick released and packed. A shipment might also contain only part of areleased order line, where some of the items on the picking slip are notin stock.

ultimate ship-to location The final destination of a shipment.

3. Business Scenario

A sales order is placed for two items: a desktop CPU and a monitor. The order lines are booked andscheduled in Order Management. The inventory for the desktop CPU resides in the M1 inventoryorganization and the Monitor resides in V1 inventory organization.The objective is to create a plan that enables the shipments of the individual items to be made fromtheir respective inventory organizations, merge or consolidate at an intermediate distribution centerlocation, and deliver to the customers ultimate ship to location as a single shipment..

(Refer to figure and description below)

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Deliveries54565641

Trip 3

Trip 1

Trip 2

Customer

Chattanooga, TN.

Delivery5641

Delivery5456

Warehouse 1

M1Seattle, WA.

Warehouse 2

V1New York, NY.

DistributionCenter

Troy, MI.

Diagram 2 Consolidated Deliveries business scenario

4. Creating TripsOnce the order is booked, the order lines are imported into Shipping Execution where theTransportation Planner has visibility to the lines. At this point, the planner creates Trip 1(consisting of Carrier and vehicle information) for the desktop CPU located in Warehouse 1 inSeattle, WA. The key element depicting the Trip is the ship method. The creation of the Trip can bedone in a variety of ways depending on your business process.

1) Autocreate TripWhen a Trip is created using the Autocreate Trip functionality, 2 stops are created. The first stop

Query ManagerEnter criteria for

lines to shipMultiselect Lines

Click on Action,Select AutocteateTrips, Click on GO

ShippingTransaction Form

Creates trips Creates pick up and Drop off stops, Autocreates deliveries. Assignes Deliveries to Trip

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consists of the location where the shipment is picked up, (Ship From) and the second stop is thelocation where the shipment is dropped off (Ship To). In the business scenario were describing, anintermediate stop needs to be defined and assigned to the Trip 1.

2) Create Trip Manually

Trip Form

One of the two processes described above would need to be performed in order to create Trip 2 forthe Monitor originating from Warehouse V1 located in New York, and an ultimate destination ofChattanooga, TN. In the case of a manually created Trip, deliveries could either be auto created ormanually created and subsequently assigned to the Trip.

Double Click onTrip Data Entry

ShippingTransaction Form

Query TreeClick on Data

Entry to expandTree

Enter Name Ship Method Vehicle Info

Trip (New)Form

Click on Done

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5. Creating Locations and Stops

Creating Locations

In order to perform the merge or consolidation of the shipments originating from warehouse M1and M2, a stop must be defined to represent the Distribution Center in Troy Michigan. In thisscenario, this is a non-Oracle location. A stop is a location within your network where a shipmentcan be picked up or dropped off. The location of the Distribution Center also must be set up ininventory in order to be used when defining a stop. Navigation to Location definition is as follows.

Inventory>Set up>Organizations>Locations>

Location Definition Form

Enter a name description and inactive date if applicable. When you click in the Address field,another window will pop to allow the user to enter detail address information for the location.

Once the location is defined, the Distribution Center can be define as a stop and ultimately assignedas intermediate stops to Trip 1 and Trip 2

Creating Stops

Now that the Location for the Distribution Center is defined, it can be used when defining theintermediate stop for Trips 1 and 2.

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To create and assign Trip 1 with the intermediate Stop I.E. Distribution Center Location, thefollowing process can be followed.

Stop definition form

The same process should be followed for Trip 2.

At this point of the consolidation solution, a delivery has been created for the material beingsourced from Warehouse M1 and the delivery has been assigned to Trip 1. A delivery has also beencreated for the material being sourced from Warehouse V1 and the delivery has been assigned to

Double Click onStop Data Entry

ShippingTransaction Form

Query TreeClick on Data

Entry to expandTree

Select Locfrom LOV

Select Tripfrom LOV

Stop- (New)Form

Enter PlannedArrival &

Departure DatesClick on Done

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Trip 2. The intermediate stop I.E. Distribution Center Troy Michigan has also been defined andassigned to Trip 1 and Trip 2.

A Stop consisting of the Location of the distribution center has been assigned to Trip 1 and Trip 2.The data at this point is represented in the following table.

Trip Pick up DropoffTrip 1 M1 Seattle WA Troy DCTrip 2 V1 New York NY Troy DC

The screen below represents similar data to Trip 2 described in our business scenario. The Trip isawaiting pick up at M1 warehouse.

The solution at this point is represented by a Trip 1 originating at warehouse M1 and dropping offat the Troy distribution center and Trip 2 originating from warehouse V1 and dropping off at theTroy distribution center stop.

The final step is to create a Trip 3 that originates at the Troy Distribution center, assign thedeliveries that are on Trip 1 and 2 to Trip 3 and have the final drop off be the customers ultimateship to destination.

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Create Trip 3

Assign Deliveries from Trip 1 and Trip 2 to Trip 3

The following screen shot depicts what the delivery from warehouse V1 would look like in theplanned consolidation. At this point the entire process is just a plan. The execution steps aredescribed in the next section.

Double Click onTrip Data Entry

ShippingTransaction Form

Query TreeClick on Data

Entry to expandTree

Enter Name Ship Method Vehicle Info

Trip (New)Form

Click on Done

ShippingTransaction Form

Query ManagerQuery Deliveriesfrom Trip 1 & 2

Click on Actionthen select assign

to Trip.

Select Trip 3,check newlocation,

PU Location=DCDo Location= Cust

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6. Executing the Shipments.

6.1. Pick Releasing the Trip

Since the shipments are originating from two separate locations, it is assumed that theexecution processes would be performed independently. However it is possible for theprocesses to orchestrated synchronously by a single user. What has been done up to thispoint is just a plan. The plan cannot take effect until actual inventory is allocated to thedeliveries and Trips. At the highest level this can be accomplished by Pick releasing the Trip.The individual delivery can be pick released as well.

The same process is performed at warehouse V1 for Trip 2

Click on Action,Select Launch

Pick Release thenclick Go

Query ManagerQuery Trip 1

ShippingTransaction form

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Pick Slips will print at each of the warehouses indicating the items to be picked for theirrespective Trips.There are many options as part of the Shipping Execution set up steps to allow eachorganization to set up how picking is done. For example, Pick Slip Grouping Rules can beused to determine how released lines are grouped on to Pick Slips. (See ImplementationManual Setup Steps).Once the Trips from each warehouse are released, a bill of lading and Packing List can begenerated for each delivery in the Trip. The Bill of Lading can be generated at ShipConfirmation as part of the Ship Confirm Doc Set or it can be generated before ShipConfirm using the following process.

Note: Document Categories and Document Sequences must be Set up before Bills of Lading or PackingSlips can ge generated, (See Implementation Manual)

The Bill of Lading for Trip 1 and Trip 2 will indicate the Ship From Address as the M1 andV1 locations and the Ship To Address of the Distribution Center.

The actual intermediate ship to field has limited functionality in release 11i. In order to takefull advantage of it, the order line must already contain the intermediate ship to informationbefore being imported into shipping execution. I.E. If the Shipment from Warehouse M1had the intermediate ship to information on the line prior to its being imported intoshipping execution, and there wasnt an intermediate stop assigned to the M1 trip, the bill oflading would print with three addresses. 1) The Ship from Address of warehouse M1, Theintermediate address indicated on the shipment line, and the ultimate ship to of ChattanoogaTN.In the scenario were defining, if intermediate ship to was used, the bill of lading for Trip 1would print with the Ship from address of warehouse M1, an intermediate address of theTroy DC and the final ship to of the Troy DC. For Trip 1 the ultimate destination for Trip 1is the Troy DC.

A packing list can be generated prior to ship confirmation similar to the Bill of lading. Thefollowing process can be used to generate the Packing List.

Click on DetailsButton

ShippingTransaction form

Query ManagerQuery Delivery

Click on DeliveryLegs Tab

Click on GenerateBOL

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6.2. Ship Confirming the Trip

The next step in the consolidation process is to Ship Confirm Trip 1 andTrip 2. This must be done at inventory organization M1 and V1 in order torecognize revenue, decrement inventories, update Order Management andinitiate the receivables interface to generate invoices.

The following screen depicts how the Trip originating in the V1 warehousewould look prior to Ship Confirmation and closing the stop at V1. In thisexample the Trip is named Guys Trip

Closing the stop sets the trip to an Intransit status.

Click on DetailsButton

ShippingTransaction form

Query ManagerQuery Delivery

Click on PackingList Tab

Click on GeneratePacking List

Click on Action,Select Ship

Confirm click GoQuery Manager

Query Trip 1

Ship ConfirmDialog Box Select

close Stop

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6.3. Changing Stop Status

At this point in the process it is assumed that the delivery from the M1warehouse and the delivery from the V1 warehouse are on the carriers truckand intransit to the Troy Distribution Center.

In order to perform the next step in the process, a communicationmechanism must be in place that lets the Oracle user know that theshipment has reached the Troy Distribution Center.When the user is notified that the shipment has reached the DistributionCenter, The following process can be used to update the stop

The Same process should be performed for Trip 2 once it reaches the TroyDistribution Center.

The Arrive step indicates the Drop off of the Trip. The deliveries from M1Warehouse and V1 warehouse are now at The Troy Distribution Center.

Since the deliveries were assigned to Trip 3 in the planning process, All thathas to be done is print the new Bill of lading for the final leg from the TroyDC to Chattanooga TN. To Generate a Bill of Lading to The FinalDestination the following process can be used.

Once the Bill of Lading from the Troy Distribution Center to The FinalDrop off in Chattanooga is printed, the Troy Distribution Center Stop canbe closed . Updating the status of the stop closes the stop. Use the followingprocess to close the stop.

Click on Action,Select Update

Status click Go

Query ManagerQuery Stop

Distribution Center

Select Arrive thenOK

Click on ContentsBy Delivery

Query ManagerQuery Trip 3

Click on Click onDetail Tab Click on Legs Tab

Click on GenerateBOL

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Click on StopsQuery ManagerQuery Trip 3Select Stop Troy

Distribution Center

Click on Action,then select

Update Statusthen Go

Select close.

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Multi-Leg Consolidated DeliveriesMarch 2001Author: Michael Cummings

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OverviewDefinitionsBusiness ScenarioCreating TripsCreating Locations and StopsExecuting the Shipments.Pick Releasing the TripShip Confirming the TripChanging Stop Status