OTM Myths

The impossible made possible

Eric van den Born

14th August 2012
 Myth: OTM not capable to support:

 Rail
 Air
 Street level routing
 Parcel
 Postal
 Transportation of people
Introduction

Eric van den Born

Director Business Development
OTM – Industries in 2002

Retail

LSP

Automotive

Manufacturing
 OTM – Industries

Heavy Industry
4% High Tech
4%
Chemicals CPG
3% 14%

Other Manufacturing
8% 21%

Retail
11%

LSP
35%
G-Log – January 2002
 OTM – History
Procurement,
Advanced Analytics,,
3D Load Configura-
Application Planning and SCEM, Reporting, tion, ITL APIs and
integration to the Settlement and optimisation for and Order Expand breadth Workflow, Document
web infrastructure content that close multi-tier Management and depth of the Management, Claims
(industry standard the loop on the full distribution functionality, and product footprint. Management, Appt First release post
XML). business cycle. networks. security. Enhanced usability Scheduling acquisition

Founded Release 2.0 Release 2.5 Release 3.0 Release 3.5 Release 4.0 Release 5.0 Release 5.5

May Mar July Aug Oct Mar Aug Nov June Oct June June Mar Nov May
1999 2000 2000 2000 2000 2001 2001 2001 2002 2002 2003 2004 2005 2005 2006

Release 1.0 Release 2.1 Release 2.6 Release 3.1 Release 3.7 Release 4.5 Acquisition
Focused on the Provided enhanced Reporting and Reporting, Order Enhancements to Network-based
global data model functionality related status Management, and Inventory Visibility, Planning
and Java code to to early adopter enhancements Visibility. and Optimisation International RIQ
provide the Web- implementation based on functionality. Pier Assignment
designed requirements. operational
QuotingJobs/Consol’s
infrastructure. feedback.
Vessel Management
Broadcast/Spot
Tender
 OTM – History

Release 5.5 Release 5.5 Release 5.5 Release 5.5 Release 5.5 Release 5.5 Release 6.0 Release 6.1 Release 6.2
CU 1 CU 2 CU 3 CU 4 CU 5
48 features 10 features 39 features 33 features 25 features 9 features

May Aug Dec May Jan June June Dec Dec

2006 2006 2006 2007 2008 2008 2009 2009 2010

Cooperative Routing, Container/Equipm Cooperative Route Fusion Fusion Dock Scheduling Fleet & Asset Global Trade Fleet Mngtmt
Product Name Change ent Visibility, Execution, Transportation Transportation Enhancements, Management, Management Global Trade
& Re-Branding Integration Enhanced Air Intelligence, Intelligence, Cumulative Multi-Tier Network Mobile LTL Sourcing
Integration with eBS, enhancements, Processing, Dock Scheduling Dock Scheduling Broadcast Tenders, Execution, Communications
Small Parcel
Consolidated Tender, Enhanced Help Simplified UI for mid- Enhancements, Enhancements, Sourcing Siebel Order
Load
Enhanced UI, including “Show- tier, Container Sourcing Enhancements, Capture Integration,
Configurator
Scalability & me” & Custom UI Enhancements, Optimization, Enhancements, Optimization eBS Integration
Help Shipment Cost Rail Transport
Performance Dock Scheduling Parcel CWT Enhancements, Phase II,
Enhancements, Merge-In-Transit Adjustment, Rating, GTM – eBS
Enhancements. Service Provider Small Parcel
ID Customer integration
Carrier Commitment Rail Assignment Record System Integration.
Management. Management Enhancements, Management. User interface
Cooperative Route
FF Enhancements, Optimization
Execution
RIQ with Show Enhancements.
Enhancements.
Routing.
Oracle Sales Course – 2006
OTM – High Tech Customers
 Logistics cost by Industry

8,0%

7,0% 0,9%

0,8%
0,9%
6,0% 0,7%
0,8%
0,7%
5,0% 1,6%
1,4% 0,5%
1,3% 0,5%
4,0% 0,5% 0,5%

3,0% 1,0% 1,0%

0,3%
2,0% 4,2% 0,3%
3,8% 3,5% 0,6%
2,6% 2,6%
1,0%
1,4%

0,0%
Manufacturing Process CPG Automotive Retail Pharma

Trans port Handling Inventory Adm inis tration

OTM – Street Level Routing
 Rail: Functionality

 Rule 11
 Block Trains
 Rail Schedules
 Rail – Rule 11 Example
Leg 1 Leg 3
BNSF (KCITY) NS (BELVU) WE BNSF (CHGO) CSXT (GRNWH) WE
Cost $1050 + $2100 + $1000 = $4150 Cost $2100 + $1500 + $1000 = $4600
Time 4 + 5 + 2 = 11 Days Time 6 + 3 + 2 = 11 Days
Distance 67.3 + 692.4 + 56.9 = 816.6 Miles Distance 506.5 + 281.2 + 38.7 = 826.4 Miles

Route 2
BNSF (ESTL) NS (BELVU) WE
Cost $1575 + $1800 + $1000 = $4375
Time 5 + 4 + 2 = 11 Days
Distance 489.6 + 462.2 + 56.9 = 1008.7 Miles

Leg 1 Leg 2 Leg 3

Topeka - KS Junction Junction Medina - OH
Rail – Block Trains
Rail – Block Trains & Fleet Management
 Rail – Schedules

Sighting Events
 Ocean: Functionality

 Transload Shipments
 Demurrage – Detention
 Consoles
 Ocean – Transload Shipments

POL POD

POL POD

Feeder Vessel Mother Vessel

Transload
Ocean – Transload Shipments
 Planning with Consols
 Consols provide the ability to manage defined capacity for a voyage.
 Consols may be created from an existing Schedule.
 Consol shipments can be created independent of orders. Once a consol
shipment exists, orders can be booked onto it.
 Available capacity for the shipment can be tracked.
 Air: Functionality

 TACT Rating & Chargeable weight

 Cut off and Recovery times
 Air Schedules
Functionality – Display Rating
 Chargeable weight & TACT Rting

Amsterdam to Singapore:
98 kg Actual weight
800,000 cm2

Chargeable Weight
KLM Minimum < 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric
charge factor
AMS - SIN € 410 € 24.50 per kg € 23.50 per kg € 19.50 per kg € 16.50 per kg 6,000

• Chargeable weight = 800,000 / 6,000 = 133.33 kg

• Chargeable weight > Actual weight => Use Chargeable weight
• 133.33 kg @ € 19.50 / kg = € 2,600.-
• Without chargeable weight : 98 kg @ €23.50 / kg = € 2,303,-
• Without chargeable weight but with deficit : 100 kg @ €19.50 / kg = € 1,950,-

Display Rate – TACT (The Air Cargo Tariff)

TACT Minimum < 45 kg 45 – 100 kg 100 – 300 kg 300 – 1,000 kg Volumetric
charge factor
AMS - SIN € 550 € 56,50 per kg € 53,00 per kg € 47,50 per kg € 37,50 per kg 6,000
Functionality – Cut off & Recovery time

Loading Unloading

Cuttoff Departure Arrival Recovery

aircraft aircraft
Functionality: Air Schedules
 Air freight: OTM Functionality
Functionality Covered Not covered
Order Validation
“Known” Shipper 
INCO Terms 
Routing
IATA Codes and Active / Inactive airports 
Air Schedules 
Agents and profit Splits 
Consol Management
Capacity Management 
Rating
Chargeable weight 
TACT / Display Rating 
Spot Costs 
Documentation
Airway bill – House & Master
- Rules for numbering and valid ranges 
Commercial Invoice
- Automatic assignment of item data 
- Automatic assignment of Hazmat item data 
- Validate Hazmat 
Customs submission 
 Other: Functionality

 Postal Industry
 Parcel Industry
 Shipping people
OTM in Postal service
 OTM in Postal service

National
Sorting Center

Regional
Regional
Sorting Center
Sorting Center
OTM in Postal service
OTM in Parcel Service
OTM in Parcel Service
 Life cycle of a Parcel Shipment

General tasks
• Network Control - Communications
• View and Update tariff adjustments
• Maintain master data

Visibility & Exception Management

Order taking Operations

Order Planning Pickup Terminal Hub Gateway Gateway Hub Terminal Delivery
capture location location

1. Booking 2. Dispatch 3. Pickup 4.Outbound 5. Export 6. Transfer 7. Import 9. Inbound 10. Delivery

• Rating Process • Shipment • Breakbulk • De- • Delivery

• Network Capacity
Pickup • Clearance Containerisation • POD Alert
management (air)
• Inventory management
• Containerisation
• Redim & Reweigh
8. Customs Clearance

• Manual AWB entry

• Correct Invoice
11. Billing
• Additional charges
OTM – Shipping People
 MavenWire: Conclusion

Turning the best …into the best …requires the best

product… solution… people
Thank-You!

www.MavenWire.com