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Oracle Transportation Management Shipment Actuals Implementation Tips (SIG 2013)

Author: Dan Barrios

ORACLE Consulting

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Agenda

• Introduction • Shipment Actuals Definition • TMS vs. WMS Challenge • Key Success factors • OTM Actuals Implementation • Q & Eh?


Shipment Actuals: Definition

What are Shipment Actuals? The “Shipment Actuals” term is used to identify the

Interface that updates the Shipment Plan in a Transportation System with the Actual Shipping

Information from a WMS or other shipping system.

Shipment Plan: Shipment Actuals:

What Information is Updated • Weights • Volumes • Dimensions • Carrier • Transport Mode • Shipment Composition

• Product originally planned on shipment not shipped • Product moved from one planned shipment to another • Product on multiple planned shipments consolidated into one

Why implement Shipment Actuals?

Business Requirements: • Carrier/Shipper Reporting

• Is the plan being followed? • Are the Quantities used by Shipper accurate? • Are the Quantities used by the Carrier accurate? • Are the Rates being honored by the carrier?

• Freight Audit and Pay Implementation with carriers • Process Simplification (perhaps Auto Pay?)

• If Actual Weights and Dimensions are consistent • If Rates are being honored by Carrier


TMS vs. WMS Challenge

WMS Objective

• Provide a set of computerized procedures for management of warehouse inventory with the goal of minimizing cost and fulfillment times.

• This includes: Enabling a seamless link to order

processing and logistics management in order to pick, pack, and ship product out of the facility.

(Wikipedia)

TMS Objective

One of the main objectives of a TMS is: • Transportation Planning and Optimization: Evaluate

the transportation options for an order or a group of orders and provide a transportation plan with the least cost, within the constraints provided with the orders and the shipping constraints inherent to the services provided by Transportation Service Providers

TMS vs. WMS

TMS WMS Consolidates Orders into shipments to Optimize Transportation costs.

Picks, Packs and Loads Trucks with Orders in the most efficient way.

Optimizing the Transportation plan requires waiting to accumulate orders to plan together based on origin/destination.

Optimization of the process requires planning based on where the product is stored in the warehouse. Following a transportation plan is not always as efficient.

Select Shipment Carrier and Transport Mode based on available rates and service times.

Select Shipment Carrier and Transport Mode based on Repetitive Shipping, Prearranged Carrier Agreements and Daily Order Mix

Results: There is usually a conflict/competition between the WMS shipping plan and the transportation plan

Sample Shipment Actuals Flow 1

OMS

TMS

1. Orders

Notes: • WMS System is planning its Waves at the same time

as TMS is planning or waiting for plan to start planning its waves.

• Short Time to consolidate • Consolidation plan is typically difficult to follow

WMS

Sample Shipment Actuals Flow 2

OMS

WMS TMS

1. Orders

Notes: • WMS System is planning its Waves at the same time

as TMS is planning or waiting for plan to start planning its waves.

• Short Time to consolidate • Consolidation plan is typically difficult to follow

Key Success Factors

Key Success Factors

Integration Strategy Following the Transportation Plan

Actuals Scenarios Data Accuracy

Integration Strategy

• In engineering, system integration is the bringing together of the component subsystems into one system and ensuring that the subsystems function together as a system.

• In information technology, systems integration is the

process of linking together different computing systems and software applications physically or functionally, to act as a coordinated whole.

(Wikipedia)

What is Integration?


• A system is an aggregation of subsystems cooperating so that the system is able to deliver the overarching functionality. System integration involves integrating existing often disparate systems.

• System integration is also about adding value to the

system, capabilities that are possible because of interactions between subsystems.

(Wikipedia)

What is Integration?


• Integration is more of a means, rather than an objective with tangible benefits.

• “Integrate all you want, just do not ask for any changes to Legacy or current systems.”

• “We are going to use existing interfaces as much as possible.”

• “New system will receive keys and store them and return them when needed.”

• “Received keys should be available in the new system for reporting, analysis, etc.”

Actual Integration Implementation:

Typical Key Exchange

OMS/WMSOTM

Interface 1: OMS/WMS Order KEYS

Interface 2: Shipment KEY

Customer ID, Location ID, Order ID, Line ID,

PO Number, Customer Order Nr,

Other Refnums,Etc.

Ship ID

Interface 2: Actuals

OMS KEYS + Ship ID

Results:

Inflexibility Inefficiency Complexity

Integrated Key Exchange

OMS/WMSOTMInterface 1: OMS/WMS Order

Interface 2: Shipment

Customer ID, Location ID, Order ID, Line ID, Ship Unit ID, PO Nr, CO Nr,.

Shipment ID, SShipUnitIID

SShipUnitLineNo

Interface 3: Actuals

Shipment ID, SShipUnitIID

SShipUnitLineNo

Customer ID, Location ID, Order ID, Line ID, Ship Unit ID, PO Nr, CO Nr,.

Order Keys + Shipment Keys+ Data

Results:

Flexibility Efficiency Simplicity

1-2 Punch

Communication

• Not “System” Communication: Language Communication

• Not “Computer” Language: Transportation Language

What??? Que???

Transport Mode: PARCEL PAQUETERIA

Service Level : EXPRESS EXPRESSO

System A System B


DATA LOGIC

VS.

Change is inevitable when implementing Integration • What kind of changes do we want to Implement? • What kind of changes do we want to maintain? • What kind of changes are easier to train people on?

OTM Actuals Implementation

Ability to Follow a Transportation Plan

OMS

WMS TMS

1. Orders

Question to ask: How close will the Actuals match the Shipment

Plan?

How Close will the Actuals match the Shipment Plan

Questions to ask regarding the Shipping Process: • Can the suggested Carrier be followed? • Can the suggested Transport Mode be followed? • Can Orders be split? • Can planned Ship Dates be followed? • Can the Consolidation be followed? Will there be lots

of deviations from Consolidated plans? • Will there be a lot of Short/Over-Shipping?

Answers to these questions will give you an idea of the Actuals Scenarios you will have to implement

Following the Transportation Plan

Questions to ask regarding the Actuals Implementation: • What System changes are necessary to follow the

Transportation plan? • What Procedural changes are necessary to follow the

Transportation plan? • Will these changes affect shipping efficiency? • What has more priority, shipping efficiency or achieving

Transportation benefits?

Do we really want to implement Shipment Actuals?

Actuals Scenarios Actuals Scenarios: 1. Updating Ship Unit quantities on a Shipment 2. Adding Ship Units to a Shipment 3. Removing Ship Units from a Shipment 4. Replacing Ship Units on a Shipment 5. Moving Ship Units from one Shipment to another 6. Splitting Ship Units (Creating) 7. Consolidating Ship Units from multiple Shipments

into one

Accurate identification of all scenarios as part of the requirements gathering is important, as well as execution of test scenarios to address them.

Data Accuracy Data Elements, Carrier Data vs. TMS Data: • Weights (Box weights, Pallet Weights) • Volume (Box Volumes, Pallet Volumes) • Dimensions • Quantities • Rates (TMS Loaded vs. Carrier Rates)

How close is the Carrier Data vs. TMS Data? and what is being done to bring them closer. If Actuals objective is Freight Audit and Pay this is very important.

OTM Actuals Implementation • Identify Objectives and Requirements • Identify Scenarios • Design Solution (Integration and Workflows) • Implement Integration Messages • Create Workflows

OTM 6.2 Shipment Ship Unit Changes

Pre Rel. 6.2 Shipment Ship Units were shared by multi leg shipments.

Starting with Rel. 6.2 every OTM Shipment has its own set of Ship units

Advantages: • Independence between Ship Units • Each shipment can receive its own Actuals • Ship units could be different type of ship units

OTM 6.3 Shipment Modified Change

• Shipment Modified Persist Action: glog.integration.shipment.persistViaAgent = true When the property is set, a pre-persist agent for the shipment can be used to control the persisting of the shipment using the "PERSIST" and "DONT PERSIST" agent actions.

• Actual Received event still available

OTM Actuals Solution Design: SAWs vs. Actual Shipment

Actual Shipment SAW (Shipment as Work) Updates existing Planned Shipment Creates a brand new Shipment

All shipment functionality is available after shipment is updated

SAWs are shipments created externally, They can be rated by OTM, Dates can be updated by events, but no Date Recalculations

Shipment stays connected to all Order Releases the shipment was planned on

SAWs are typically not linked to Order Releases, but they can be

Requires a high level of integration between systems

Lower level of Integration between systems needed

Used where high level of integration is possible

Integration is very difficult between systems

As in all Solution Design, we need to balance priorities and choose the solution that more closely matches objectives

Shipment Ship Unit moves conditions

Ship Units can be moved from one shipment to another as long as Origin/Destination Locations are the same on the shipments.

Some cleanup may be required as Actuals may create

new links between Order Releases and Shipments and unlinking may be required.

Order/Shipment Structures

Order Release/Shipment Structures One to One Ship Units

Shipment: Shipment ID, Equipment ID


Order Release: Order Release ID

Order Release Line Line ID

Ship Unit: Ship Unit ID

Ship Unit Line: Line ID


S Ship Unit: S Ship Unit ID

S Ship Unit Line: S Ship Unit Line ID Order Release ID Release Ship Unit ID Release Line ID















Shipment: Shipment ID, Equipment IDS Ship Unit: S Ship Unit ID




Order Release/Shipment Structures Multiple Ship Units -> One Shipment















Ship Unit: Ship Unit IDShip Unit Line:

Line ID







Order Release/Shipment Structures Consolidated Orders



























Actuals Scenarios

Actuals Scenarios: Mixing Shipment: Shipment ID A, , Equip ID

S Ship Unit: S Ship Unit ID, Equip ID




Shipment: Shipment ID B, , Equip ID





Shipment: Shipment ID A





Shipment: Shipment ID B





Planned Shipment Actual Shipment

Actuals Scenarios: Consolidation Planned Shipment Actual Shipment

Shipment: Shipment ID A,, Equip ID





Shipment: Shipment ID C, Equip ID





Shipment: Shipment ID D







Shipment: Shipment ID CS Ship Unit: S Ship Unit ID




Actuals Scenarios: Splitting Planned Shipment Actual Shipment


Shipment: Shipment ID A, Equip ID



S Ship Unit: (New) S Ship Unit ID, Equip ID


Shipment: Shipment ID B, Equip ID



S Ship Unit: (New) S Ship Unit ID, Equip ID







Actuals/SAW Scenarios Planned Shipment Actual Shipment

SAW: Shipment ID SB, Equip ID

Shipment: Shipment ID A, Equip ID





Shipment: Shipment ID B, Equip ID















Q & Eh?

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