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
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Agenda

• The Vision
• The Need for Intelligent Cargo
• EURIDICE Objectives
• Concepts and Technologies
• Progress on State of the Art
• Conclusions

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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.

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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

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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

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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

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EURIDICE Architecture
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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

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How it works
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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.

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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

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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

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Project Overview
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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

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Conclusions How the Future will Look Like
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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

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Back up Slides
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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

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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

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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

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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.
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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
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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
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An Example of Existing State-of-the-Art Solution
Transportation Management
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Oracle Transportation Management
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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
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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
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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
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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
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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)
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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
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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

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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
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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
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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
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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
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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

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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
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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)
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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
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Global Logistics Network