Oracle SIG August 11 2014 Integrating OTM With...

DOW RESTRICTED – For Internal Use Only 1

Oracle SIG August 11th 2014

Integrating OTM With SAP

Architect Specialist: Akta Srivastava

Lead Architect Specialist: Alok Chandra

Sr. Supply Chain Expertise Manager: Laura Wilkinson

Freight Global Business Process Specialist: David Pavlik

DOW RESTRICTED – For Internal Use Only

Agenda

Project Background

OTM/SAP Background

High Level Architecture for Carrier Selection and

Freight Payment

Design Approach

Rate Management Utility

Lessons Learned

Questions

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Project Background

• Dow is migrating from the SAP R/2 System to SAP ECC

6.0

• OTM implementation became a part of the NEA project

in 2013

• OTM for Carrier Selection and Freight Payment

implementation:

• Europe on May 1st, 2014

• North America on August 5th, 2014


OTM/SAP Background

• Dow’s core ERP system is SAP ECC, including modules:

• Sales Order processing

• Purchase Order processing

• Standard SAP Route and Route Determination

• SAP Freight Rating (Latin and Pacific regions only)

• OTM provides the following advantages:

• Ability to calculate freight based on Load meter (amount of truck/trailer length used)

• Ability to allow for minimum and maximum prices in case of percentage surcharges

• Ability to settle shipment cost & post freight invoices at the condition level

• Ability to perform freight simulations, which provide all applicable freight components

for a given scenario

Integrating OTM with SAP ECC enables DOW to leverage the best of both systems.


High Level Architecture Carrier Selection

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Ship-From Location

Ship-To Location

Shipping Condition

Transportation Group

Material(s)

Material Freight Group(s)

Weight

Volume

Delivery Date

Carrier(s)

Transport Mode/ShippingType

Transportation Lead Time

Transit Time (including Calendar)

Rail Route ID

Rail Contract

Rail Itinerary

Rule 11 Route

SAP OTM Real-Time PI

Connectivity

• Sales Order Line

Item

• STO Purchase

Order Line Item

• Delivery

Rate Inquiry

(Routing)

• Rate Offering

• Rate Records

• Rate Service


High Level Architecture Freight Payment

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Ship-From Location

Ship-To Location

Shipping Type

Carrier

Equipment

Material(s)

Material Freight Group(s)

Weight

Volume

Ship Date

Accrual Amount - Cost Details by

Base/Accessorial Charges

SAP OTM IDoc processing via PI

Shipment

Rate Inquiry (Rating)

•Rate Offering

•Rate Records

Shipment

Cost

Document

SAW Shipment

ActualShipment XML

PlannedShipment XML

Invoice Invoice Billing XML


OTM Rate Structure – Carrier Selection and Transit

• RATE OFFERING - Represents Overall Carrier Selection/Transit

Contract by Mode (Shipping Condition/Shipping Type). Specifies

ROUTING Rate Group ID.

• RATE RECORD - Determines Carrier Selection, Transportation Arrange

Time and Rail Details (if applicable) by Geographical Hierarchy, Material

Freight Group, and/or Weight.

• RATE SERVICE - Determines Transit Time (with Calendar) by

Geographic Hierarchy.

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OTM Rate Structure – Shipment as Work (SAW)

• RATE OFFERING - Represents Overall rate offering by Mode

(Shipping Condition/Shipping Type) and Carrier. Specifies

RATING Rate Group ID.

• RATE RECORD - Determines rating by Carrier, Shipping Type,

Geographical Hierarchy, Material Freight Group, and/or

Weight/Volume.

8


SAP Activities – Carrier Selection and Transit

• Call to OTM Triggered by Company Code Using Custom Table

• Carrier Selection/Transit Exclusions by Shipping Condition Using Custom Table

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• Transport Mode for OTM Rate Inquiry Determined by Shipping Condition/Transportation

Group/Region.

• Limited Carrier Selection and Transit Records for Collect Orders Recommended Using

SAP Customer Pickup Routes. This can also be setup in OTM.

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Sales Order/STO/Delivery Updated with Following Information:

Route

Transit Time

Transportation Lead Time

Shipping Type

Text

510-Rail Contract

511-Rail Itinerary

512-Rail Route ID

999-TMS Support Information

Carrier

Partner Functions SP, YA, YB, YC, YD, YE, YF

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OTM Activities – Carrier Selection and Transit

• OTM Attempts to ‘Rate’ Order/Delivery Through Special ‘ROUTING’ Records.

• Carrier Selection/Transit Time Rates Segregated From Actual Carrier Rates Using Rate

Group ID (ROUTING vs. RATING)

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OTM Geographic Hierarchy

• United States and France Examples Shown Below. Low Rank Number (2) Indicates

Most Specific. Carrier Selection Records Can Be Loaded Using Various Address

Components.

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OTM Rate Offering - Carrier Selection and Transit

• Sample Rate Offering for Rail (Shipping Condition 07/Shipping Type 04)

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OTM Rate Record - Carrier Selection and Transit

• Sample Rate Record for Rail (Shipping Condition 07/Shipping Type 04)

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OTM Rate Service - Carrier Selection and Transit

• Sample Rate Service for Rail (Shipping Condition 07/Shipping Type 04)

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SAP/OTM Carrier Selection Interface

Real-time Rate Inquiry Through PI

Key SAP Fields Mapped to OTM RIQ XML

Interface Can Be Simulated Using OTM Rate Inquiry

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Why Rate Management Utility is Needed

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1. DOW has thousands of products shipping to various customers using

several different modes of transportation

2. Logistics Purchasing negotiates contracts and rates based upon the

mode of transportation

3. The business was only able to query large blocks of raw data in a

standard Oracle format

4. The business cannot use the data downloaded from Oracle as rate

formats are specific

5. Download/querying in OTM during production hours could potentially

impact performance, as Dow has millions of records

6. Need to execute the shipment simulations on mass level rather than

individually


What is Rate Management Utility?

Several Rate & Carrier Selection Templates were strategically developed and deployed to

the DOW business.

The Business Dream

These templates can be used to upload and download data in the OTM system.

Users will only need to fill out one front page, rather then several load files to upload rates

in the system.

In the reverse, Users will be able to download rates in the same format back from OTM

using our “Rate Management Utility” tool.

Sourcing now has more flexibility with freight rates and carrier

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Additional Rate Management Utility Tool Benefits

The Rate Management Tool has been used to migrate large data for Go-Live.

Approximately 2.1 million records were loaded in less than 10 hours.

The Rate Management Tool has been used to ensure that Selection are available

in OTM

The Rate Management was used before migration to ensure success

These Exercises have allowed us to be ready to run the business on

Day One!

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Sneak Peek of Rate Management Utility Tool

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1. Upload

2. Download

3. Rate Inquiry

All the functions utilize

the .csv format for the

output file.

We prefer to get the file

back in .txt format.


Example of front page template

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Rate Management Utility as a reporting tool

We are also using Rate Management Utility as a reporting tool. We built in

the capability to create custom reports.

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SAP/OTM Integration Challenges

Calls to OTM Rate Inquiry for Carrier Selection Captured in Transmission Manager only

as a shell. No physical document number is recorded in system.

Transmission has a status of PROCESSED or ERROR but it is difficult to trace it back to

SAP.

Need to perform Backward/Forward Scheduling in OTM (Deliver By versus Available By)

to keep in sync with SAP Available to Promise Scheduling

Multiple domain and integration user setups are needed to match various SAP ECC

clients (Development, Product Test, Staging, Performance Test, Emergency Fix,

Production)

Error reading during Rate and Carrier selection upload

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Q& A

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