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SCM Transportation Management

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TRA2008 Ljubljana April 21-24, 2008 Intelligent Cargo for Efficient, Safe and Environment-Friendly Logistics Fulvio Sansone Business Development Director – PowerPoint PPT presentation

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Title: SCM Transportation Management


1
TRA2008 Ljubljana April 21-24, 2008
Intelligent Cargo for Efficient, Safe and
Environment-Friendly Logistics
Fulvio Sansone Business Development Director
2
Agenda
  • The Vision
  • The Need for Intelligent Cargo
  • EURIDICE Objectives
  • Concepts and Technologies
  • Progress on State of the Art
  • Conclusions

3
The Vision
  • In five years time, most of the goods flowing
    through European freight corridors will be
    intelligent, i.e. self-aware, context-aware
    and connected through a global telecommunication
    network to support a wide range of information
    services for logistic operators, industrial users
    and public authorities.
  • Self-awareness means the ability of cargo to
    interact with the surrounding environment to
    actively notify its presence, identity and
    requirements.
  • Context-awareness means intelligent ad hoc
    combination of information from all the involved
    stakeholders (shippers, logistic services
    providers, infrastructures and authorities),
    based on the current cargo position and status.
  • Connectivity of moving goods means their constant
    availability as service consumers or providers by
    exploiting at need the mobile and fixed network
    infrastructures available along the route.

4
The Need for Intelligent Cargo
  • Logistic processes show limited sharing of
    information on
  • Goods movements, status and authorisations
  • 62 of carriers handle call-off management
    manually
  • 90 of of communications on rush orders handled
    by fax/phone
  • Limited ICT support to predict and handle
    unexpected events
  • Information flow currently pushed by back-office
  • Limited relevant information at check,
    consolidation points
  • gt Inability to fully synchronise logistic
    planning and execution processes

5
EURIDICE ProjectEURopean Inter-Disciplinary
research on Intelligent Cargo for Efficient safe
and environment-friendly logistics
(FP7-ICT-2007-216271)
  • EURIDICE is an Integrated Project funded by EUs
    Seventh Framework Programme ICT for Transport
    Area
  • The basic concept of EURIDICE is to build an
    information services platform centered on the
    individual cargo item and on its interaction with
    the surrounding environment and the user

6
EURIDICE Objectives
  • Supporting the interaction of individual cargo
    items with the environment and users on the field
  • Fixed and mobile Web Service infrastructure
  • On-the-fly service orchestration
  • Distributed and centralised data analysis and
    trend detection
  • Interoperable platform to expose and use
    intelligent cargo information
  • Improving logistic performances
  • Developing collaborative business models for an
    intelligent cargo infrastructure
  • Realizing more secure and environment friendly
    transports

7
EURIDICE Architecture
8
The Platform
  • Address simultaneously the logistics, business
    and public policy aspects of freight
    transportation, by dynamically combining services
    at increasing levels of interaction
  • Immediate proximity servicesRFID-based and
    barcode-based identification services, mobile
    user services, vehicle services, site services
  • supply chain services shipper services, carrier
    and operators services, producer services
  • freight corridor services infrastructure
    services, public authorities services
  • Support, on the fly, combination of these
    different categories of services

9
How it works
10
EURIDICE Main Concepts
  • Cargo Connectivity
  • Identification through RFID or barcode
  • Positioning through GNSS (GPS or Galileo)
    devices, as well as GPRS-based localization.
  • Mobile devices embedded into a pan-European
    network infrastructure
  • Cargo Service Infrastructure
  • Mobile and fixed services support, allowing
    hybrid setup of mobile (field user) and fixed
    (back-office) use cases,
  • identification, context information and the
    related information services.
  • Orchestration, supporting the combination of
    services for specific cargo management scenarios.

11
EURIDICE Main Concepts
  • Cargo Intelligence
  • Semantic web and domain ontologies, for automated
    knowledge discovery and identification of
    services
  • Advanced context technologies, for combination of
    item, vehicle and user IDs with
    automatically-detected conditions
  • Distributed intelligent agents, for optimization,
    anomaly and threats detection (alerting) and
    distributed real-time decisions support.
  • Analysis of collected cargo data based on deep
    and shallow reasoning methods, query and
    reporting, online analytical processing (OLAP),
    statistical analysis, data, text and web mining,
    time series analysis

12
EURIDICE Partnership
  • The Euridice Consortium
  • The Consortium, coordinated by Insiel (Italy),
    brings together 22 partners from 9 countries
    among them
  • mobile and wireless technology
  • RFID
  • application software
  • ICT
  • business consultancy
  • logistics

13
Project Overview
14
Progress on State of the Art
  • Service Oriented Architecture for logistics based
    on a distributed computing environment
  • Mobile terminals invoke and host Web Services
  • Dynamic orchestration of services
  • Issues with small-footprint implementation,
    limited scalability, intermittent connection, QoS
  • Cargo Intelligence
  • Local decision making by use of mobile Agents
  • Distributed data mining
  • Anomaly detection based on context and problem
    knowledge

15
Conclusions How the Future will Look Like
16
and what will bring us
  • More flexible and efficient supply chains through
    the integration of intelligent cargo concepts
    into leading logistic operators and industrial
    organizations.
  • Increased efficiency, transparency and
    cost-effectiveness of inter-modal transport.
  • More secure and environmental friendly transport
    chains through the adoption of intelligent cargo
    to support modal shift, co-modality and
    door-to-door inter-modal services

17
Back up Slides
18
Introduction Oracle At-a-Glance
Largest enterprise software vendor, founded in
1977, HQ in Redwood Shores, CA with operations in
145 countries
  • 18 Billion Revenue, FY07
  • 275,000 total customers
  • 220,000 database customers
  • 37,500 applications customers
  • 19,500 partners
  • 74,000 employees
  • gt16,000 employees in Europe

19
Oracle Solutions Overview
Middleware
Applications
Database
  • Application Server
  • SOA/Integration
  • Business Intelligence
  • Content Management
  • Identity Management
  • Data Hubs
  • Collaboration Services
  • Java Development tools
  • Enterprise Performance
  • Management
  • E-Business Suite
  • PeopleSoft Enterprise
  • Siebel
  • JD Edwards
  • Oracle Retail
  • i-Flex
  • Communications Billing
  • Utilities
  • ProfitLogic
  • Transportation Mgm
  • Database
  • Real Application Clusters
  • Partitioning
  • OLAP and data mining
  • Security
  • Spatial
  • Oracle Lite
  • TimesTen

20
EURIDICE Technology
  • The project will integrate and further develop
    technological components and approaches in
    several ways
  • adapting and integrating state-of-the-art
    identification, communication and networking
    technology (i.e. RFID tags readers/writers
    barcode readers GPRS localization systems
    mobile devicers software defined radio
    technologies) into an Intelligent Cargo
    Integration Framework (ICIF)
  • realizing the Cargo Intelligence through a set of
    intelligent services, application programs and
    technologies (i.e. semantic web and domain
    ontologies advanced context technologies
    distributed intelligent agents time series
    analysis for forecasting and trend detection)
  • using interoperability standards and
    infrastructures to connect the data concerning a
    specified cargo item with back-office users and
    consumers

21
Transportation Management At-a-Glance
  • Load consolidation and route planning
  • Mode service provider selection

Planning Optimization
Book / Tender
Tracking
  • Real-time shipmentstatus checking
  • Exception managementand notifications
  • Full visibility to tender status
  • Direct link from system to carrier

Billing Settlement
  • Freight payment and audit
  • Cost allocation

76 of logistics managers at major companies
couldnt trace the products en route or get
updates.
22
Business Pressures
Shipper Pressures
Carrier Pressures
  • Capacity shortages of drivers, railcars, ocean
    slots, and ports
  • Increased regulation on hours of service
    rulesand security procedures
  • Escalating fuel costs
  • Shrinking margins dueto commoditization of basic
    services
  • Escalating end-customer expectations
  • Globalization driving complex global supply
    chains
  • Lean initiatives and increased volatility
    increasing supply risks
  • Shrinking margins dueto commoditization of basic
    services

Impact
  • Transportation costs (6 of GDP) growing at an
    increasing rate
  • Expansion, consolidation, and globalization of
    outsourcing suppliers

Increased Demand for Comprehensive Transportation
Mgmt Solutions
23
Operational Challenges
Carriers
3PLs
Customs Brokers
Forwarders
Transportation Providers
  • Lack of unified logistics process control and
    visibility
  • Long planning cycles with decisions based on
    outdated data
  • Paper and time intensive processes
  • Poor use of automation for exception recognition
    and resolution

Planning
Execution
Shipper
Manual Processes
Fragmented Organizations
TradingPartners
Contract Mfgrs
Suppliers
Customers
24
An Example of Existing State-of-the-Art Solution
Transportation Management
25
Oracle Transportation Management
26
Oracle Transportation Management
  • 100 Web-Based
  • Highly Configurable
  • Global Business Support

Oracle Transportation Mgmt
Continuous Planning
Consolidate Loads / Moves
SelectModes Carriers
Book / Tender
Track Trace
Audit / Settle
Event Management
  • Tender Offer
  • Tender Response
  • Ship Status
  • Invoice
  • Planned Shipment
  • Order Status
  • ASN
  • Order / Release Information

CarrierAnalysis
On-Time Performance
Customer Satisfaction
  • Orders
  • Product Location
  • Item Master
  • Planned Shipment
  • Confirmed Shipment
  • Payment Vouchers
  • Invoice Check and Match

OrderMgmt
Warehouse Inv Mgmt
Financials
Service Providers
Trading Partners
Internal Systems
27
Oracle Transportation ManagementProvides
High Performance TransportationOptimization
Global TransportationCollaboration and Execution
Global, Local, and Central Logistics Management
Logistics Automation with Exception Management
Complete Logistics Network Visibility
Currently re-implementing analytic capabilities
using Oracle technology
28
Oracle Transportation ManagementProvides
High Performance TransportationOptimization
Global TransportationCollaboration and Execution
Global, Local, and Central Logistics Management
Logistics Automation with Exception Management
Complete Logistics Network Visibility
Currently re-implementing analytic capabilities
using Oracle technology
29
Shipment Planning and OptimizationMaximize
Fulfillment Service, Minimize Transportation Costs
  • Consolidation
  • Service Provider

OptimizedDecisions
  • Timing
  • Equipment
  • Route
  • Mode

Engines Rules
Algorithms
  • Multi-Leg Multi-Mode Consolidation
  • Common Leg Consolidation
  • Multi Stop Consolidation
  • Multi-Tier Networks
  • LTL Consolidation
  • Continuous Moves
  • Service Time Calculation
  • 3-Dimensional Container Optimization
  • Itineraries Profiles
  • Carrier Capacity
  • Throughput
  • Rating

Support a Wide Range of Optimization Needs
  • Container and trailer optimization
    configuration
  • Shipment assignment, stringing continuous moves
  • Fleet sizing assignment (execution, strategic)
  • International shipping
  • Facility resource balancing
  • Bid collaboration and optimization

All capabilities and dates are for planning
purposes only and may not be used in any contract
30
Shipment Planning and Optimization
Example Multi-Tier Distribution
  • Dynamic Routing Consolidationthroughout
    Network
  • Intermediate Facilitiesfor Consolidation
  • Consolidation poolsand cross-docks
  • Dynamic Optimization
  • When to use pool vs. by-pass
  • Consolidation from pool

Supplier
Multiple Orders
Consolid Pool
Supplier
DC 1
DC 2
Consolidated Multi-Stop Shipment
Supplier
Example Multi-Leg, Multi-Mode
  • One order can involve multiple shipments,
    parties, and modes
  • Optimization can be performed for unlimitedlegs
    and modes

China US Order
Supplier
DC
Port
Port
(Guangzhou)
(Chicago)
(Hong Kong)
(Los Angeles)
31
Oracle Transportation ManagementProvides
High Performance TransportationOptimization
Global TransportationCollaboration and Execution
Global, Local, and Central Logistics Management
Logistics Automation with Exception Management
Complete Logistics Network Visibility
Currently re-implementing analytic capabilities
using Oracle technology
32
Transportation ExecutionTightly Link Your
Processes with Service Providers
YourCompany
ServiceProvider
Review Approve Shipment
Accept Tender
Tender
Pick-up
Transport
Deliver
EDI 204 Load Tender
Internet Picked-up
Wireless En route
Internet Delivered
  • Intermodal Support Ocean, Air, LTL, TL, Rail
  • Electronic (EDI), Internet, and wireless
    communication
  • Share forecast, tender shipments, shipment
    status, delivery confirmation
  • Automated dock scheduling and partner
    collaboration

33
Automated Payments and SettlementsImprove Cash
Flow and Accounting Accuracy
  • Allocate coststo orders order lines for
    billing
  • Apply appropriateGL codes based on order
    characteristics
  • Calculate profit margin for each shipment
  • VAT NFRC

Shippers /Customers
Carriers
Match, validate, and pay invoices flag exceptions
Match Pay
Invoices via webor integration
Billsvia webor integration
Pay based on actual shipment activity and
contract rates
Auto-Pay
  • AR AP Vouchers
  • Allocated costs
  • Intra-company cost transparency

Payments
Payments
Financial System
Support Settlements Payments Based on Plans
Generated in TM or Other System
Value-Added Tax and Non-Freight Related Charges
34
Seamless Trading Partner CollaborationExtend
Capabilities to Service Suppliers and Customers
  • Request pick-up
  • Raise supplementary PUS
  • View PUS status
  • Send pick confirmation
  • View PUS
  • Confirm ship quantity
  • Generate bar code labels

Supplier
Customer Materials Control
Ship confirmation à ß Route PUS data
Pickconfirmshortage Shipconfirmshortage
Alerts
Transportation Management
  • Maintain fixed route data
  • Plan daily fixed routes
  • Enter supplementary PUS
  • Append supplementary to plan

Customer Receiving
LSP Planner
  • Allocate equipment
  • Review shipment status
  • Control execution
  • Shipment management
  • Linehaul manifesting
  • Status updates
  • Review shipment status
  • Cross-dock manifesting
  • Status updates

LSP Cross-Dock
LSP Regional DC
Flow of information
PUS Pick-Up Schedule
Flow of goods
CONFIDENTIAL All capabilities and dates are for
planning purposes only and may not be used in any
contract
35
Oracle Transportation ManagementProvides
High Performance TransportationOptimization
Global TransportationCollaboration and Execution
Global, Local, and Central Logistics Management
Logistics Automation with Exception Management
Complete Logistics Network Visibility
Currently re-implementing analytic capabilities
using Oracle technology
36
Foundation Global Logistics IntegrationLeverage
Fusion Middleware
EBS OM / WMS / Inv Mgmt
EBS Financials
Web Services
Web Services
EBS Purchasing
BPEL
BPEL
Oracle TMS
XML / XSL
XML / XSL
Orders Shipments Events
Invoices Allocations Accruals
Oracle Retail
Other Financials
Other ERP / SCM
Standardized, Packaged Integrationsvia Web
Services Orchestrated by BPEL XSL
37
Example Vehicle Distribution Mgmt
OEM Plant
Dealer 1
A Simple Order
Order 1 VIN
Really Looks Like This
Dealer 1
Port
Port
OEMPlant
(Yokohama)
(Los Angeles)
Dealer 2
Alert! Dealer msg Partial Ship Automated
Action 1) Order and routing change2) Expedite
replenishment order
Alert! Delayed in customs Automated Action
Split shipment of vehicles
  • Receive Proactive Notifications and Rapidly
    Adjust to Unforeseen Delays
  • Utilize Event Management to Trigger Automated
    Corrective Action Flows

38
Oracle Transportation ManagementProvides
High Performance TransportationOptimization
Global TransportationCollaboration and Execution
Global, Local, and Central Logistics Management
Logistics Automation with Exception Management
Complete Logistics Network Visibility
Currently re-implementing analytic capabilities
using Oracle technology
39
Complete Logistics Network Visibility
Manufacturer
Planning Level
Shipper
Execution Level
Consolidator
Dashboard Level
Customer
Across the entire supply chain from raw
materials to point-of-sale all roles
suppliers, planners, service providers,
customers, management all phases before
(planning), during (execution), after
(improvement)
40
Multi-Tenant Configuration and Security
Provide SimpleAccess toContextualInformation
Top Level UsersFull Visibility
ParentCompany

Business 2
Business n
Business 1
DomainUsers PartitionedVisibility
  • Access role-based info, including specific views
    for trading partners
  • Prevent other users from accessing non-privileged
    info or takingnon-authorized actions via
    role-based security
  • Provides the ability to expand without having to
    buy another system

ConfigureSoftwarefor SpecificLook Feel
41
Global Logistics Network
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