Benefits and Challenges with OTM, Kewill and eBusiness Suite

Carl Sandvik

About Beckman Coulter

• Founded by Dr. Arnold O. Beckman in 1935• Acquired Coulter Corporation in 1997• Clinical Diagnostics & Biomedical Research• Installed Base in more than 130 countries• Over 12,500 employees• Acquired by Danaher in June 2011

Patient Sample+ Reagent= Reaction = Number

RESULT

Beckman Coulter Sales

50% US50% Outside the U.S.

50%50%

85% Diagnostics15% Life Sciences 85%

15%

80% Recurring revenue20% Non-recurring revenue80%

20%

HQ: Brea, CA

Creating a Global Trade Platform

• Enable transportation & trade information “master”

• Global trade execution & collaboration

Electronic communications, (forwarders, regulatory agencies, etc…)

• Product registration life-cycle

• Global reporting and visibility

OM/SE MFGINVWMS & MSCAAP/AR PO &

iProcurement

OTMCore ModuleTransportation Planning ModuleFreight Financials, Settlement & Claims Module

GTMGlobal Trade Management Module

FedEx (Global)UPS (Global)DHL (Global)

Purolator (CA)TNT (EMEA)

eBusiness Suite

Parcel Manifesting

Oracle Transportation Management

Carrier Rates

Carrier Compliance

Carrier Manifesting (Parcel)

Service

To Oracle Shipping Execution (SE)Label Generation

Major Applications Implemented

• Oracle WMS v.11.5.10• OTM v.6.1.2 v.6.2.2 (prep. for GTM)

Modules: planning, freight payment & FTISMC3 Rateware (US/Canada) v.1.2.334PC Miler v.23Carrier Connect v.3

• Kewill Flagship v.4.0.007 v.4.0.011FedEx Ship Manager v.10.05 v.10.6.3

• Oracle SOA Suite (eBS:OTM)• Tibco Middleware (WMS:Kewill)

Process “before”

eBS: Order Management

• Create Order• Book Order

eBS: Shipping

(Inventory)

• Delivery Grouping• Inv. Reservations• Pick Release• Pick Confirm• Transact Move• Stage Inv. (for

shipping)

eBS: Shipping

(Inventory)

• Ship Confirmation

Automatically processed via Pick Release

program

Manual Process:Select carrier ship method at Packing Work Bench/Ship Confirm

Customization:Custom parcel integration for FedEx, UPS & Purolator (TNT in EMEA)

Process “after”

eBS: Order Management

•Create Order•Book Order

eBS: Shipping

•WMS Delivery Grouping

OTM: Planning

•Queue for “Start Time”

•“Plan” and “Tender”•“Secure Resources” (assign carrier)

•Send to eBS

eBS: Shipping (Inv)

•Inv. Reservations•Pick Release

eBS: WMS (Warehouse

Control Board)

•WMS “Tasks”•Pick Confirm task•Transact Move•“LPN” Drop – Pick Confirmed/Staged

eBS: Shipping (Inv)

•Ship Confirmation•Parcel @ “LPN Drop” (last box)

•Heavy Freight @ consolidation.•“LPN Ship”

SCM BSS Transportation Planning

(SCM BSS)

Distribution Management

(SCM BSS)

Watch outs:Buy Shipments/Trips sent back from OTM but not Pick ReleasedBuy Shipments not accepted by eBS: i.e. orphaned /closed deliveries

Watch outs:Orders “Pick Confirmed/Staged” but not “Ship Confirmed”Kewill• Hold for Label• 3rd Party freight accts• Address validation• Weights/volumes

Primary:

Secondary: ()

Watch outs:Orders not picked up from delivery grouping programOn Hand Hold release & applyAddress validationInternational/foreign characters

Watch outs:Orders with deliveries but not planning in OTMDeliveries not coming into OTM: i.e. null weight/volume and UOMIgnore for planning with floor denials

Functional Accountabilities

System Process Flow

2.1

Order is created

TMS

Create sales order

1.0

OM (EBS)

Planner reviews and tenders

shipment

4.0

Ora

cle

EB

S (W

MS)

E-B

usin

ess

Sui

teO

racl

e Tr

ansp

orta

tion

Man

agem

ent

SHIPMENT ACTUALS

Oth

er

4.0.1

EDI 204 is transmitted to

carriers

CARRIER

TMS

4.1.1

EDI 990 is transmitted by

carriers

CARRIER

TENDER RESPONSE

ORDER RELEASE

TENDER OFFER

Order Management

Reserve/pick release/carton

(QP)/carrier & LPN label printing

Inventory/Shipping Execution

Pick confirm/ship confirm (pack slips, DG doc)

6.1

WMS (EBS) Shipping (EBS)

SHIPMENT STATUS

PLANNED SHIPMENT

8.1

Provide shipment info for audit verification

CTSI

SHIPMENT ACTUALS

FREIGHTINVOICE

3.0

Bulk plan runs (OTM, Flagship, SMC, PC Miler)

3.1

Shipment planned

TMS

8.0

TMS rerates shipment

TMS

2.0

Create deliveries

Shipping (EBS)

1.1

Booked sales order

OM (EBS)

5.0

Trip create

Shipping (EBS)

7.0

Small parcel execution /

labeling

KEWILL

CSHIP

4.1

Shipment is finalized

TMS

9.0

EDI 214 is transmitted by

carriers

CARRIER

9.1

Shipment status is updated

TMS

8.0

TMS conducts post audit of

carrier invoice

TMS

8.1

Audits invoice and pays carrier

CTSI

7.1

Product leaves facility

WMS

3.0.1

Smal Parcel Rating

KEWILL

TMS

PSHIP

6.0

Critical Success Factors• Systems validation protocols (GAMP5)• Meetings with suppliers

SI, software, carriersOracle support: triage program

• Cross functional alignment (Order to Cash)• Executive support• Change management & training• Data management

Item attributesCustomer master (address validation)

• Customer modeling simulation

Lessons Learned• User community involvement

Drive for complete requirementsTraining is not enough – capability is key

• Value stream mappingLean it out!Lean out the future state process

• Site IT support• Mobile applications tuning• Exception processing

Effectivity checks on exception trainingLean out exceptions

Challenges/Gaps

• Require cartonization before transportation planning

• Dangerous goods processingWMS cartonizationCompliance documentation

• Oracle eBS vs. “Edge” Increased collaboration between WMS & OTM development requiredWarehouse Control Board gaps to standard “Trip” integration (Trip#, Planned departure date, etc.)

Challenges/GapsKewill Enhancements• Ability to rate past dates

Need to add historical data i.e. fuel surcharge• Optimize pickup date based on delivery requirement• Hazardous rating

Q Value• Carrier compliance vs. DOT/IATA

UN ClassificationGround DG shipments to AK & HI

• FedEx Server down/port exhaustion patch available• Custom Parcel rates

Support pricingSelf-load parcel rates solution available

Challenges/Gaps

EBS/Kewill• Interfaces between eBS and Flagship

PShip and CShip standard APIs • Ground hazmat reports (carrier compliance)• Purolator Canadians Customs Invoice

Consolidated invoice (zone skipping)• Documentation improvements in process

Benefits: Software

• Supported IntegrationsOTM KewillEBS OTMKewill strategy: Kewill WMS (miss on timing)

• Elimination of CustomizationsPacking Work BenchCarrier selection toolCarrier compliance (FSMS, UPS, Purolator)

• GTM (Future)StopShip (Regulatory/Quality)Research use only/radioactive licensingLicense controls

Benefits: Partners

• Oracle Strategic Alignments with eBS and OTM teamsExecutive involvementCommitment to evolve and improve!

• Kewill Transition to support from projectSupport well above expectationsExecutive commitment to improve

• Systems IntegratorTeam commitmentExperienceNew solutions: learn togetherTools and templates

Benefits: Operational

• Order fulfillment visibility• Manage two Customer SLAs

Contracts: delivery date specificOnline: “In today/out tomorrow” (ship specific)

• DataKPI: On time in fullShipment dataFreight metrics

• SavingsFreight Savings: Parcel to LTL shift of ~11%Support costs (longer term…)

ADDITIONAL INFORMATIONOTM/KEWILL CONFIGURATIONS: AUG 2010 PRESENTATION

OTM and Kewill Configuration

• Unique configuration needed in OTM to correctly call Kewill

LocationRate ServiceRate OfferingAccessorialRate RecordRemark Qualifier

OTM and Kewill Configuration• Location Setup

- Locations in OTM must have associated reference number in Kewill for source locations. Kewill ties available services to the source location.

OTM and Kewill Configuration• Rate Service Setup

- Rate Service ID must have the designated ID provided by Kewill and set to TIMEDEFINITESERVICE

OTM and Kewill Configuration• Rate Offering Setup

One Rate Offering per service type per carrierSelected External Rating Engine ID is KEWILL and Offering Type is PARCEL-EXTERNAL,

OTM and Kewill Configuration• Rate Offering Setup

Accessorial setup as usual on the Rate Offering, but same accessorial must be designated parameter sets for Rates menu.

OTM and Kewill Configuration• Rate Record Setup

One rate record is associated to each rate offering.Lane is country to country with the cost type setup to call Kewill

OTM and Kewill Configuration• Remark Qualifier Setup

Dangerous/hazardous goods has differences based on carrier and geographies for parcel. These values must be setup on the Order Release Line in the hazardous section as well as the Order Release Line Remarks

OTM and Kewill Rating• Rating Characteristics

1. OTM sends order release bundle interface call to Kewill2. Kewill rates using a ship date basis (a BCI gap, explained further in next slide)

3. Kewill responds to OTM with pickup and delivery time for each parcel carrier and service

4. OTM selects lowest cost parcel carrier that can meet date requirements

Note: Kewill does not do any consolidation

• Performance ResultsDirect Plan call: 1 order responds in less than a secondBulk Plan call: 500+ orders returns in less than 10 minutes

BCI Date Requirement

OTM Early Pickup Late Pickup Early Delivery Late Delivery

Jun 22 Jun 25

EBS Request Date

Jun 25

Kewill Ship Date

Jun 17

• Customer calls and places order on Jun 17• CSR quotes delivery no later than Jun 25

• Agent automation to populate Early Delivery date as 4 business days window• No Early Pickup/Late Pickup is populated to let OTM bulk plan create best options

• Kewill populates current date as ship date if no early pickup date is populated• This will cause a problem if no parcel carrier can deliver between the Early/Late Delivery Date in OTM

BCI Date Requirement

OTM Early Pickup Late Pickup Early Delivery Late Delivery

Jun 21 Jun 22 Jun 25

EBS Request Date

Jun 25

Kewill Ship Date

Jun 21

• Modified approach based on OTM-Kewill interface

• If order less than 150lbs, then interface queries database table for FedEx ground transit times• Query returns calculated Early Pickup Date to populate OTM

• Ship Date populated in Kew ill is now guaranteed to have a carrier to me the Early/Late Delivery window

DatabaseTable

Source Destination Days

91708 37917 5

TMS/WMS Status in eBSProcess step(Order life-cycle)

Process Description Order Status

Line status Delivery Status (Additional Line Information)

Trip

1. OM, Order Management – Order Import

Order is Booked Booked Awaiting Shipping

Ready to Release (No Delivery number)

Null

2. WSH, Delivery Grouping

Delivery created and sent to TMS for planning

Booked Awaiting Shipping

Ready to Release (Delivery Number populated)

Null

3. TMS, Transport Planning

Delivery is planned & sent to warehouse (from TMS to WMS)

Booked Awaiting Shipping

Ready to Release (Delivery number populated)

Trip Number populated

4. WMS, Pick Release Pick Release job runs to warehouse

Booked Awaiting Shipping

Released to Warehouse (Delivery Number populated)

Trip Number populated

5. WMS, Pick Drop (move product to shipping dock)

Delivery is picked and awaiting shipping transaction

Booked Picked or Partial Picked

Staged/Pick Confirm (Delivery Number populated)

Trip Number populated

6. WSH , Ship Confirm (create shipping docs)

Delivery is Shipped (product has left the warehouse)

Booked Shipped/Closed

Interfaced Trip Number populated

7. WMS, Backorder Before Delivery Groping

Order is backordered (not available for TMS and WMS)

Booked Awaiting Shipping

Backorder Null

8. WMS, Backorder Post Delivery Grouping

Available to be planned but inventory may not be available

Booked Awaiting Shipping

Backorder (Delivery Number populated)

Null

Processed together via the “Pick Release” Process in non

TMS/WMS locations