OTM’s Fleet Module: Integrating with On-Board Trip Computers (OBTCs)

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OTM’s Fleet Module: Integrating with On-Board Trip

Computers (OBTCs)

August 15, 2012Teresa Shull, OmniSource

Spencer Blackman, Hitachi Consulting

Introduction to OmniSource

• Founded in 1943

• HQ in Fort Wayne, IN

• Shipped over 6 million tons in 2010

• Acquired by Steel Dynamics (SDI) in 2007

• OmniSource buys and sells scrap metal, both ferrous and non-ferrous

• OmniSource places scrap containers in factories, buying the scrap from the factory; or buying the metal scrap from demolition sites

• The scrap is weighed, processed, shredded and sorted at OmniSource facilities

• OmniSource sells the ferrous scrap to its parent , Steel Dynamics, and other steel mills, where it is melted and converted into new steel

• The non-ferrous scrap, such as copper, is shredded and containerized and increasingly sent to China

Transportation at OmniSource

• 1000 Private Railcars

• 387 Outside Carriers

• Barge operations

• Export: 5000 TEUs/year

• 80000 Shipments/month

• Independent Operator

• 376 Drivers

• 439 Power Units

• 2143 Trailers

• 10000+ “Containers”

OTM Project Goals

• Unified transportation platform, intended to replace several legacy systems often divided by mode

• Proactive planning vs. post-activity recording

• Carrier cost savings, better rate management, automation and visibility/reporting company-wide

• Fleet-wise, ability to:

– Consolidate duties and enable regional dispatch

– Enable proactive dispatch while still allowing for dynamic additions/subtractions as driver activity changes through out the day

– Get more thorough equipment tracking and inventory

Integration Overview

• Compliance DB based on Oracle APEX

• 2 ERPs: JDE and SAI

• EDI Partner: RMI

• CarrierWeb links to In-Truck Units

Timeline

Phase 1:

2012 YTD

• JDE / OTM Go-Live in Toledo for TL and Rail

• Rail Go-Live in the rest of OH

Phase 2:

Q4 2012

• Transition to SAI

• Midwest Go-Lives: TL and Rail in OH, MI, IN

• CarrierWeb Go-Live

Phase 3:

2013

• Southeast Go-Lives: NC, VA, TN, GA, SC

• Barge and Domestic Multi-Leg Moves

• Nonferrous Division / Export Go-Live

CarrierWeb

• GPS tracking

• Two-way communication over cell and satellite

• Ability to receive and queue planned trips and report events

• 7” touchscreen units connected to Power Unit’s ECM

• E-log capabilities

• Polygonal Landmarks for more accurate location tracking

Key Fleet Challenges and Solutions

Challenge

Upcoming legislation will require Electronic Driver Logs. Moving away from paper logs saves money and processing time.

Solution

CarrierWeb records all Driver HOS activity electronically and in accordance with FMSCA

regulations.

Challenge

Reporting on the location of Trailers and Containers is paper-

based and unreliable.

Solution

CarrierWeb set up to require Equipment entry, with Events recorded and validated in OTM.

Challenge

Increase Driver productivity with real-time Location Reporting

Solution

CW offers Real-time GPS view, OTM records Sighting Locations

Driver Pay

Omni’s Driver Pay system is an incentive-based program designed to increase driver performance

• What is a “Rated Hour”?

• A Shipment’s Base Rated Hour value is calculated based on formula that incorporates fleet “cost” and distance

• OTM Rates used to track fleet cost per Shipment

• Override Rates established by adjusting Speed (Rate Service)

• Union contracts perpetuate inconsistent pay practices, like hourly and weight-based pay structures for some drivers

• Complex system of compensation for delays and detention –Activities recorded by CarrierWeb, interfaced to OTM, processed in Agents and stored as Special Services and Refnums

• Shipment refnums and Calendar Events summed weekly on Reports

End-to-End Process Flow

Dispatch Board

Planned Trips

Shipments sent to CarrierWebon Driver Commit

Shipments deleted from CarrierWeb on Driver Unassign

Event Summary

• At-Stop Events

– Stop Arrival / Departure

– “Delays” (Shipper, Consignee, Live Load)

– Errors: Rejected Load, “No Load”

• Inter-Stop Events

– Breakdowns

– Miscellaneous (DOT check, Inspection)

– Pre- and Post-Trip Inspections

– Fuel Stop

– Neutral Scale

– Stopoff

• Driver Calendar Events

– Safety Meetings, Training

– Vacation, Holiday, Jury Duty

At-Stop Flow Step 1: Arrive

Driver enters Arrival Event and is prompted for Equipment


PF_BEGIN_STOP Event entered in OTM

• Actualizes Stop Time


PF_DROP Event Entered in OTM

• Expired / Warning notifications for Drivers, Power Units and Equipment

• First Stop: Adds Power Unit ID to Shipment

• Updates Sighting

At-Stop Flow Step 2: Delay / Error (Optional)

At the Stop, Driver can go on “Customer Delay”


Delay Event entered in OTM

• Detention at Shipper (DSH), Consignee (DCO) or Live Load (LL)

• Delay Duration captured as Special Service, copied to Shipment

• An Agent calculates delay in Rated Hours and writes to Refnum

• Upon Recalc, an Accessorial based on the Refnum Value is applied


• No Load

– Notifies Dispatcher

– Driver moves on to next pickup

– Changes “Trip Type” Refnum

• Rejected Load

– Notifies Dispatcher

– Dispatcher works with Marketing to reconsign the material

– Dispatcher creates and commits a new Shipment to the Driver

– Driver “picks up” under new Shipment and delivers as normal

At-Stop Flow Step 3: Depart

Driver enters Depart Event and is prompted for Equipment


PF_END_STOP Event entered in OTM

• Actualizes Stop Time


PF_HOOK Event Entered in OTM

• Pickup Stop Departure: – Adds Equipment ID to Shipment Equipment

– Validates hooked Equipment against Planned Equipment Group

• Customer Notification (if required)

• Updates Sighting

Inter-Stop Delays

• Mechanical Breakdown (Box, Tire, Trailer, Power Unit, Misc)– Creates OTM Location record and adds an NFR stop

• Pre- and Post-Trip Inspections

• Fuel Stop

• Neutral Scale

• Stopoff

• Miscellaneous (DOT Inspection)

How Delays are Recorded

• DCO: 10 min

• DSH: 1 hour

• MB: 1 hour

Mechanical Breakdown: New Location & Stop

Error Handling

• Designated “Exception” Screen Set

• Codes for match fail, invalid location, missing data, etc.

Implementation Challenges

• Change Management

• 2 ERP systems

• Driver Payroll – need to match previous system

• Changing EOBR vendors

• Regional Fleet “Kingdoms”

• Timing of Assign and Commit

• “House” Carriers

Why we did what we did (and didn’t do what we didn’t do)

• Device

• Driver Dispatch / Message Hub

• Driver Work Invoice

• Copy Received Fields to Shipment

• Location Asset Inventory

• OTM HOS Rules

• Driver / Power Unit association

• Driver Optimization

• Load assignment strategy – Fleet first

Roadmap

• Location Asset Inventory

• Delays: Rating based on Special Service Durations

• Dynamic trip rearrangement

• Driver Optimization

• 2-way Driver Messaging

• Additional Interfaces

– Power Unit and Equipment maintenance with JDE and/or ODS

– Driver and Carrier management with ODS

– Fuel Tax

Thank you!

Spencer BlackmanManager – Supply Chain

www.hitachiconsulting.com

597 5th Ave, 11th Floor, New York, NY 10017

Phone: 716 308 8886

Email: [email protected]

Teresa ShullBusiness Analyst

www.omnisource.com

7575 W. Jefferson Blvd, Fort Wayne, IN 468-4

Phone: 260 969 3500

Email: [email protected]

Technology

OTM’s Fleet Module: Integrating with On-Board Trip Computers (OBTCs)