OTM Promoted Lenovo NA TM - Oracle · 2014 LENOVO INTERNAL. ALL RIGHTS RESERVED. US domestics shipping Parcel Heavy weight ... cloud product • It’s a method of implementing OTM

2016 Lenovo Restricted. All rights reserved.

OTM Promoted Lenovo NA TM

2 2016 Lenovo Restricted. All rights reserved.

Agenda

2

Business Background

NA TMS Solution

Achievement

Cloud Solution Experience

3 2014 LENOVO INTERNAL. ALL RIGHTS

RESERVED.

US domestics

shipping

Parcel

Heavy weight

Deconsolidation hub

DC

First leg shipment

Last mile

XPO XPO

XPO

Ship method:

1, E2E direct ship

2, USFC Zone skip

- TL from USFC to ORD

- Parcel / LTL from ORD to local market

3. WCDC zone skip

- LTL / TL from WCDC to ORD

- Parcel / LTL from ORD to local market

Carrier Service MOT

UPS Multiple PARCEL

services

Truck/

AIR

CEVA Multiple LTL services

TL

Truck

Conway TL Truck


Agenda

4

Business Background

NA TMS Solution

Achievement


5

US TMS Solutions Approach


OTM OTM Cloud OTM Express Solution

• Oracle Transpiration Mgmt.

• It’s a Transportation

management system, and

application

• OTM installed on Oracle Cloud

(instead of you data center)

• It’s the same OTM, It’s not

OTM “lite”

• OTM is highly configurable

cloud product

• It’s a method of implementing

OTM

• A pre-defined configuration that

can be used to implement OTM

faster

2015

Q1 Q2 Q3 Q4

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Wave 2 (13w)

10/12 – 1/8

PPS (8w)

1/11 – 3/4

BP (4w)

7/7 – 7/31

Kickoff 7/7

Wave 1 (10w)

8/3 – 10/9

Prep (5w)

6/1-7/3

ISR 7/31

GRR 0926

BSR 7/20

SIT (2w)

8/17 –

8/28

SIT Prep

(1w)

Dev (2w)

8/3 –

8/14

Biz

Solution

Design

IT

Solution

Design

Dev (3w)

10/12 –

10/30

SIT (5w)

11/2 – 12/4

SIT Prep

(2w)

UAT (4w)

8/31 – 9/25

UAT (6w)

11/23 – 1/1 UAT Prep

(2w)

UAT Prep

(2w)

Wave 1 Go-live 10/12

Wave 2 Go-live 2016/1/11

RT/PT (3w)

9/21 – 10/9

MTP (2w)

9/28 – 10/9

MTP (1w)

1/4 – 1/8


OTM Process Overview

Is carrier/mode set up for Auto Accept ?

Order Release

Created in OTM

Auto Plan

Scheduled Plan

Manual Plan

Auto Tender/ Booking

Manual Tender or Booking Request

Auto Accept Tender

Carrier Tender or Booking

Response Urgent? Parcel? Etc Parcel ?

Wgt/Vol Util >90% Etc

Order Entry Planner

Administrator, Business Data Management, & Visibility

Consolidate Route Assign Carrier

Least Cost Transit time Capacity

Commitment Equipment Etc

NO TOUCH

Service Provider

SAP Delivery Planned shipment to SAP Tender

Response

Master data

Confirmed Shipment

Status Updates

Actual Shipment Events

7

AS-IS vs. TO-BE Process

AS-IS TO-BE

SO Creation

DN Creation

TO Creation

Packing

Loading

Convert

shipment

PGI

Route in the delivery

is pre-assigned by

ECC.

Grouping rule is pre-

defined in SAP. This

is done manually.

LTG / BOL shipment

manually creation

with pre-define rules

SO Creation

DN Creation Order

management

Planning

Shipment

Creation Shipment

Creation

Packing

PGI Shipment

Completion

SAP OTM

TO Creation

Manage DDL list

Create TO

With PHT, grouping

delivery by HUs

HAWB assigned

Kanban mode

Based on planned

shipment to group

In background

Picking by batch of

shipment

Planning mode


8

High Level IT Solution

Lenovo TMS solutions Lenovo ECC ERP External partners



Agenda

9

Business Background

NA TMS Solution

Achievement


10

Benefits As OTM

• Better way to manage freight cost

- Optimized MOT

- Pick up best rate for shipment

- Minimum charge reduction

- Improving the mix/use of carriers

- Consider constrain factors

• Better customer satisfaction

- Flexible delivery window control

- Flexible date management function

• Improving visibility and insight

- Flexible reporting

- More logistics visibility

• Cost Saving

- 3M USD cost saving annually

Benefit Of TO-BE Model


SO Generation Planning Shipment

GT nexus Carrier

V2 System Sci-Quest

SAP ECC

SO1

SO3

SO2

SO4

MOT A Route A Service Level A Carrier A

MOT B Route B Service Level B Carrier B

MOT B Route B Service Level B Carrier B MOT C Route C Service Level C Carrier C

SO1

SO2 SO3

SO4

• Plan by individual SOS • Plan per fix master data • Consolidation is handled by 3PL

SAP ECC

SO Generation Shipment

Planning OTM

PTP Carrier

SO1

SO3

SO2

SO4 • Plan by multiple SOS • Plan per dynamic/optimization

rule • Auto operation for planning

SO2 SO3

SO4

SO1 Group

Group

AS-

IS

TO-B

E

Group

CRAD

Service Level Route MOT

Rate

Parcel

Weight volume

+++

SCCT

11

Planning Use Case – Mode Shifting

Orders Origin Destination Weight SAP grouping Late Delivery date Original Cost

5212117186 USFC VERNON HILLS 5853.64 LB LTL CEVA Dec.5 1,201.46 USD

5212119163 USFC VERNON HILLS 28.66 LB LTL CEVA Nov.30

5212118353 USFC VERNON HILLS 9.26 LB PARCEL UPS Dec.5 4.96 USD

OTM Shipment Origin Destination Weight OTM planned result Shipment end time Optimized cost

800037598 USFC VERNON HILLS 5891.46 LB TL CONWAY Nov.30 1111.20 USD


12

Planning Use Case – Multi Stops Orders Origin Destination Weight SAP grouping Late Delivery date Original Cost

5212786184 USFC CAROL STREAM 607.57 LB LTL CEVA 02/15/2016

1,199.67 USD 5212786538 USFC CAROL STREAM 926.37 LB LTL CEVA 02/15/2016

5212787100 USFC CAROL STREAM 625.67 LB LTL CEVA 02/15/2016

5212787799 USFC HANOVER PARK 2633.85 LB LTL CEVA 02/15/2016 1,213.70 USD

5212786257 USFC HANOVER PARK 2256.34 LB LTL CEVA 02/15/2016

5212788231 USFC HANOVER PARK 22.59 LB PARCEL UPS 02/15/2016 6.39 USD

OTM Shipment Origin Destination Weight OTM planned result Shipment end time Optimized cost

0800175155 USFC Multi stops 5702.62 LB TL Conway 02/11/2016 1365.75 USD


13

AS-IS VS TO-BE



Agenda

14

Business Background

NA TMS Solution

Achievement


15

Cloud Solution Experience Sharing

Cloud Solution

Contract

Integration

SOW

Flexible Solution

Supportability

Security Evaluation

Network Architecture

Monitor Knowledge Transfer

Change Management


Documents

OTM Promoted Lenovo NA TM - Oracle · 2014 LENOVO INTERNAL. ALL RIGHTS RESERVED. US domestics shipping Parcel Heavy weight ... cloud product • It’s a method of implementing OTM