SILODISA

OTM Implementation

Strategy through Cloud

Computing

Our Holding Company• Grupo Fármacos Nacionales

• Over 32 years of service in all sectors of

health care, distribution services, medical

treatments, first aid and medicines.

• Capacity to deliver up to 360 Million pieces

per year.

• First in Mexico to have a refrigerated supply

chain dedicated fleet in the pharmaceutical

distribution industry

SilodisaVISION

“To became the referral company in Warehousing, Distribution

and Demand Forecasting for pharmaceutical products in Latin

America”

Our Motto,

“Deliver On Time and in Good Condition”

Silodisa main objective is to align the whole supply chain

according to the demand at our customer facilities, with timely

weekly deliveries, which allows inventory optimization and

increase flexibility to attend any change on the demand.

Silodisa primary focus on people, processes and best of breed

technology as a plan to win

Silodisa HighlightsOUR COMPANY

• 900 + Employees

• 808 Delivery Locations within México

• 210K + On shelve demand replenishment positions within México

• 200 Millions of Pieces per year

• 24/7 operation

• Annual revenue of 150 Millions USD

OUR MAIN CUSTOMER

• Federal Government Health System

• 1000 + Locations (Hospitals, Clinics, Pharmacies, etc.)

• 10 Million right holders with access to full health treatments

• Expends 1 + Billion Dollars in Medications

Distribution Locations

• 1 National Distribution Center ( 375K sq ft)

• 475K cu ft refrigerated Storage

• 18K OTF Pallet Positions

• 7 Cross Dock facilities strategically located

• 200 Millions of Pieces per year

Distribution Fleet

• Dedicated Vehicles: 100 +

• Refrigeration and Freezer Capabilities

• Standardized vehicles for space

optimization – 6 std pallets

• Fleet - Diesel 100% - Targeted to

compliance for EPA Clean Diesel Program

by 2012

SCOR Framework

Why Silodisa Needs a TMS?

• Silodisa want to became a 3pl referral in LA

• SCORE Deliver Best Practice to deploy

• Support Parcel, LTL, TL, Rail, Intermodal, Air Freight, Ocean and

Multimodal

• Logistic Event Visibility

• Over flow Carrier rate and contract management

• Multi leg, Multi stop, Right Routing

• Service level and cost efficient planning

• Consolidation and optimization across delivery locations

• Allocate transportation costs accordingly

• Access to Business Intelligence for better on going planning

OTM Services Located @ On

Demand Data Center

Why Oracle On Demand?

Accelerated Time to Value

Get Up and Running Faster

Run Most Current Software

Access Extended Value Add Services

Proactive patch and upgrade assessments and execution

ReducedRisk

Access to unmatched Oracle expertise

Certified configurations and audited ITIL processes (including SAS70 and ISO)

Security, Auditing, Governance, Standards

Lower, Predictable

Costs

Pay for What You Use

Global Sourcing Model to Optimize Costs

Reduce Complexity, Avoid Capital Expense

Scalability and Choice

Choice of Deployment Models

Scalable, Proven Cloud Infrastructure

Integration Platform

What’s Different About Oracle On

Demand?

Enterprise-Grade

Cloud: Flexible and

Secure

Oracle running Oracle: Deepest

Expertise in the Industry

Designed on Standard,

Best-practice Building

Blocks

Delivered with Proactive and

Incremental Change Management

CONTINUED

INNOVATION

DEMANTRA

ASCP

OBIEEOTM

PICK TO LIGTH

GL WMS

OM

PO

INVAP

AR

NICELABEL

Silodisa Project Approach

Silodisa

Operations

TeamEnd to End

Consulting Firm

Cloud Computing

Services

Silodisa IT Team

Silodisa Process Flow Before

OTM“AS IS “ Transportation Process -SILODISA-

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Sales Order Creation

Replenishment

Rules and Strategy

Sales Order Update

Receiving

At Customer

Delivery lines

Creation and Pick

Release in one step

Pick Release Pick Execution

Pick Confirm Trip Creation Ship Confirm Trip Closing Order InterfaceInventory

Interface

Silodisa Process Flow Before OTM

Replenishment

Interface

Sales Order

Interfase

Picked QTY

OTM Deployed Process“TO BE” –TRANSPORTATION PROCESS SILODISA-

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Pick

Released

Replenishment

Interface

Sal

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Inte

rfas

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Pick QTY

Sales Order

Update

Ship Complete

No

Yes

First Leg Trip

Approval

No

Planned Shipment

(Only First Leg)

Actual S

hipment

Updates

Delivery

lines

Creation

Delivery

Creation

Trip

Creation

Pick

Release

Pick

Confirm

Ship

ConfirmTrip Closing

Order

Interface

Inventory

Interface

Picking

Execution

Sales Order

Creation

Trip Execution /

Tracking

Planned

Shipment

Update

Planned

Shipment

accepted

Updates first leg

trip

Planned

Shipment

Rates / Routes /

PlansOrder Creation

Replenishment

Rules and Strategy

Receiving at

Customer

Split

Deliveries/

lines by $

Amount

exceed $

threshold

YesUnassigned

Orders

Sets Additional

Insurance

Flag On

Sets Additional

Insurance

Flag On

Silodisa Highlights Using OTM BEFORE OTM

• Static Weekly Routing

• Fixed Schedule Routing

• Fixed Distribution through Pool or XD Locations

• Only eBS level visibility order base level

• Hard to guess transportation cost accruals at end of month

• Un optimized equipment and routing

GOALS ACHIEVED WITH OTM

• Increase on equipment utilization 17%

• Increase on POF in 8%

• Decrease on Pool and XD locations flows in 20%

• Decrease 3rd Carriers shipments by 21%

• Total improvements impact of 9% on transportation cost

Silodisa OTM Next Steps

• GPS Event Management

• Milestone Monitors

• LTL Domain to mix new customer orders with actual yields

• Planning parameters to include pick locations in opportunistic backhauls

• Fleet Management

• Driver Payroll

• Financials

OTM Implementation Hints

Initiation Phase

• Define your Business Requirements thoroughly using your PM

methodology.

Planning Phase

• Bring on board PM and your IT Department as early as

possible.

• Build a solid Key User Team including subject matter experts.

• Identify and hire a proven, seasoned OTM end to end

Consultant firm.

• Team up with On Demand your OTM Consultant and your IT

Department to layout out completely all the configuration

components.

Planning Phase

• Don´t forget any component (i.e. PC Miler) in your configuration.

• Identify and verify compatibility amongst all components (versions

and patch level).

• Size your Test and Development instances as close as possible to

Production to ease project development and facilitate project

support.

• Identify your data structures and build them if needed.

• Identify and communicate the success criteria for every deliverable.

OTM Implementation Hints

Execution Phase

• Load data structures and build them if needed.

• Monitor and communicate the success criteria for every deliverable.

• Assess impact on components configuration with every Change

Control request along the whole project.

OTM Implementation Hints

Support Phase

• Develop a support strategy including OTM and SOA technical

support.

• Proactively Monitor and Control the OTM – SOA - EBS interfaces.

• Conduct Incident management and quick resolution.

• Build your Lessons Learned Log and be ready for your next OTM

deployment.

OTM Implementation Hints

Q & A