Solution ORTEC Inventory Routing

Inventory RoutingAn advanced solution for demand forecasting, stock replenishment and route planning and execution

Planners and Dispatchers KPIs and Planned vs actual

PDA/MDERP/TMS/WMS

TrackingTelemetryPlanning and optimization

Our solution delivers a competitive advantage that goes

beyond the capabilities of ERP, TMS or WMS systems.

Our solutionORTEC has years of experience working with a multitude of companies and

our commitment to delivering the best forecasting and routing solution

for the transport and logistics industry is unparalleled. Our client portfolio

includes a whole host of energy companies in the oil and gas sector, but also

chemical companies and logistics service providers (LSP). Our solutions are

extremely robust and different transportation methods are catered for: bulk/

liquid (compartmentalized and non-compartmentalized) and packed goods.

ORTEC’s demand planning and inventory routing solution is a powerful tool that

supports demand forecasting and route planning in a wide range of transport and

distribution planning sectors and distribution planning sectors where the number

of products is limited and the cost involved for the product or the delivery of the

product is high.

The challengeIn the dynamic environment of Energy logistics, punctuality, reliability and

customer focus are paramount. Businesses are faced with the ever-increasing

challenge of rising customer expectations, while safety regulations are becoming

stricter and customer loyalty is more and more difficult to retain. Furthermore,

there is a real need to combine forecasting, planning and execution so that

customers are delivered in time, transportation costs and drop sizes are balanced,

the workload is optimally spread across shifts and smart decisions can be made

for disturbances during the day based on real-time data. In order to stay ahead

of the game and meet these challenges full on, the use of advanced Transport

Management Systems and Advanced Planning and Scheduling applications is

essential. It is also extremely important to safeguard the cost effectiveness of

your operations given the competitive nature of the industry. Cooperation between

business units and within the supply chain and a centralized ICT philosophy

are vital in order to remain cost efficient. However, the most crucial factor is to

prioritize Return on Investment and to select a proven, fit-for-growth solution.

ORTEC Inventory Routing

ERP/TMS/WMS Real time feedback mobile devices

Actions

Actions

Status/Actual data

Invoicing

Customer historictransactions

Orders

Financial completion

ORTEC Inventory Routing

Online tracking application

Respin planning/completion

Planning/Dispatch

Actuals/Recalculation

Adapt to events

Reporting

Forecasting & order generation

Combine forecasting and route optimization with real-time execution and dispatch

Unique features • Combine demand forecasting, order generation and route

optimization with real-time execution and dispatch.

• Centralized, scalable architecture to support energy companies in the

oil and gas sector, but also chemical companies and logistics service

providers (LSP).

• Able to deal with requirements from all logistics areas: bulk/liquid

(compartmentalized and packed).

• Real-time event management with alerts for low inventory levels,

violated restrictions, data errors, issue/event messages and KPI

monitoring.

• A true multi-user, multi-environment,forecasting, real-time planning

and dispatch application in a 24/7 environment.

• Embedded forecasting and optimization techniques with multiple

options for decision support (pick up delivery, distribution rounds,

multi-product order generation, resource assignment, compartment

assignment and order adjustments to selected resource and

estimated time of arrival and optimal loading location).

• Flexible resource planning (i.e. truck, trailer, driver, axle weight,

compartment).

• Scheduler functionality to consider business variables, keep track of

customer status, resource locations and replenishment orders, and

to ensure that total multiday planning is responsive, while remaining

consistent.

• Trip reconciliation: possibility to reconcile finished trip and validate

actual trip details and deliveries made.

The scheduler and optimizers incorporate numerous business variables

Additional features• Integration facilities: ORTEC Inventory Routing (ORTEC IR)

is the dashboard of stock replenishment, trip planning

and execution. It combines all required data and is able

to integrate with mobile devices, telemetry, point of sales

data, ERP systems and and onsite equipment in order to

send and receive data relating to: historical and real-time

inventory levels, historical and real-time sales info, GPS

positions, address data, planned actions and confirmations

data.

• Congestion pattern data to ensure improved ETAs by taking

into account historic and real time traffic information.

• Flexible approach to time restrictions

(also incorporated in the optimization engine).

• Driving time regulations.

• Axle weight distribution.

• Hazardous routes, and length, width, height and weight

route restrictions.

• The ability to incorporate compartment planning within

capacity, ullage and axle restrictions.

• Product contamination and compartment flushing.

• Fleet cleaning and maintenance.

• Advanced forecasting algorithms (moving average,

seasonal profiles, degree days, exponential smoothing):

These methods are evaluated automatically and the best

method is chosen for the forecast, which enables the

dispatcher to be more proactive and look beyond the real-

time execution data. This leads to more accurate planned

delivery times and volumes and a more balanced workload.

Automated safety stock update based on the historical

usage of the product on the sites.

• Support several types of tank combinations like combined

usage, manifold and main-reserve.

• In order to facilitate a smooth integration between ORTEC

IR and your existing architecture / ICT environment, ORTEC

offers a separate integration layer - ORTEC Message Hub.

• Interface with several ERP systems.

• Road feature editor: This module eanbels you to block roads

and adjust road attributes like maximum allowed weights.

• Security levels and changes: System security levels can

be set in order to restrict multiple users from viewing and

changing certain data or planning information.

• Integration of the results of ORTEC Supply Chain Design

(ORTEC SCD): An unique feature is the integration of

ORTEC IR with our strategic solution ORTEC SCD. ORTEC

SCD can allocate customers to depots in the most efficient

way taking into account i.e. depot product stock, third party

supply contracts and customer usage. This solution uses

the customer and depot information from ORTEC IR and

the result of the customer assignment to depots is used

during routing in ORTEC IR.

ORTEC Inventory Routing enables us to deliver greater customer value and transparency,

while reducing overall costs.

Impression of the Inventory Routing user interface

• Subcontractor payments using deviation reports: ORTEC IR can store sub-

contractor agreements for planned routes as baselines and then use actual

execution information to produce reports that highlight any deviations.

• GPS-based tracking and ETA recalculation, as well as the comparison of

planned routes vs. actual routes driven.

• Customer Portal: Data from ORTEC IR can be seamlessly integrated with client’s

customer portal to show specific information such as order status (planned, due

for delivery etc), entering stock measurements or showing realised deliveries.

• Load assignment: Loading different products in compartmentalized vehicles is a

real challenge, especially when driving restrictions, such as axle weights, vehicle

stability and different compartment sizes, have to be respected. For this, ORTEC

developed a sophisticated load assignment algorithm that meets business

requirements and optimizes the volume assigned during route planning.

ORTEC offers a web client that receives pushed real-time data

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Your benefits

Results• Enhanced forecasting capabilities lead to improvements in average drop size,

an elimination of out-of-stock situations, a reduction in oversized deliveries and

product returns, and a reduction in long term distribution costs.

• Balancing (seasonal) demand, balancing workload and prioritizing of ‘must-go’ /

‘may-go’ orders.

• Horizontal cooperation increases because business units can share orders and

resources.

• Vertical cooperation increases because customers, dispatchers, customer service

and sales all have access to the same information, which can help to increase

efficiency.

• Centralized planning reduces the number of empty miles leading to a reduction in

CO2 emissions.

• Our solution approach ensures that clients will be up to date with the latest,

innovative IT trends, business features and optimizers.

• Centralized deployment brings cost savings because only one application is

maintained, with a single interface between ERP/TMS applications, in-vehicle

devices and onsite equipment.

• Transport costs decrease as a result of better planned delivery moments and

quantities, reduced distances, driving time and vehicle utilization.

• Reduction in time required to plan and dispatch.

• Route planning and vehicle costs are more transparent.

• Quick simulation of alternate planning scenarios and delivery strategies in order to

determine the best product mix, which results in lower stocks.

• Reporting and analytics module based on Microsoft SQL server reporting services.

• Improved customer service due to automatic inclusion of requests and limitations.

• Strong ROI cases and references from the US, Europe and Asia Pacific.

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