Plan Transport Manage and Monitor Execution Approve Shipment Charges Monitor Transportation Performance Qualify Transportation Partners
Transportation Process Framework
Manage Transport Data Manage Orders for Transport Schedule Book Resources
CORE TMS VALUE TENANTS
•
Reduce transportation spend through optimized transportation sourcing, planning, execution and settlement.•
Gain operational efficiencies through automating manual transportation functions and managing by exception.•
Gain detailed visibility of in-transit inventory and all associated transportation costs.Global Transportation Platform
Execute Locally…
•
Accommodate line of business, geographic region, and supply chain flow-specific business practices - Workflows, business logic, reports, etc.•
Using multiple languages and currencies- User interface configuration by region / country, user groups
Control Globally…
•
Plan, execute, track and settle for all orders / shipments - All divisions- All product flows (inbound, outbound, internal)
- All modes: truck, ocean, air, rail, private / dedicated fleet
•
Visibility across the global networkManage Centrally…
•
All operational information in one location- Centralized visibility
- Centralized reporting
•
Single set of integration points for customers, carriers, partnersShared Service Logistics
Business 1
Business 2
Business n
•
Specific rules and data by domain provides single instance support
for multiple companies, divisions, or other business entities
•
Access role-based info, including specific views for trading partners
•
Prevent other users from accessing non-privileged info or actions
Configure
Software
for Specific
Look & Feel
Multiple Tenant Access
Parent
Company
Top Level Users
Full Visibility
Domain
Users
Trading Partner Collaboration Enablement
Transportation
Management
Supplier Planners Service Providers Cross-Docks Pool Points Ports Etc Receiving Customers Material Shortages Date Changes • Acknowledge PO / Sales Order• Confirm ship date • Confirm ship quantity
• Review shipment status
• Provide status updates
• Issue Purchase Order • Request pick-up • View Pick Up Status
• Receive and accept tenders/bookings • Shipment management • Review shipment status • Provide Status updates • Optimize shipments • Approve and Secure Resources • Monitor activities • Dynamic re-routing Alerts • Ship confirmation
Plan Transport Manage and Monitor Execution Approve Shipment Charges Monitor Transportation Performance Qualify Transportation Partners
Service Provider and Rate Management
Manage Transport Data Manage Orders for Transport Schedule Book Resources
•
Robust and flexible rating engine supporting all modes of transportation
•
Ability to model detailed accessorial charges
•
Ability to enable frequent rate updates to be used in optimization
•
Support for buy and sell rating
•
Management of service provider insurance compliance
Global Rating Engine
•
Support for all modes of transport
– Truck, rail, ocean, barge, air, parcel, etc.
•
Attribute based rate structures
– Attributes of Shipment, Order, Product, Location
• E.g., Lane, Commodity, equipment, distance, weight, volume, arbitraries, etc
– Bracket pricing (e.g., weight/distance breaks)
•
Accessorial Surcharges
– Fuel, special services, BAF, CAF, terminal fees, detention/demurrage, etc.
•
Multi-Currency
– E.g., Freight in Euros, terminal fee in Chinese Yuan
•
Carrier Commitments
– Minimum business levels: Percentage or absolute
•
Buy vs. Sell
– Buy – transportation cost – Sell – transportation revenue
Flexible Rate Models
Plan Transport Manage and Monitor Execution Approve Shipment Charges Monitor Transportation Performance Qualify Transportation Partners
Orders and Planning
Manage Transport Data Manage Orders for Transport Schedule Book Resources
•
Web based vendor portal enabling on-line booking request
•
Immediate Visibility of booking requests – internal and externally
•
Optimization of routing and consolidation of order releases
•
Easy modification/adjustment to carrier and routings as needed
Planning and Optimization
Optimizers
•
Route•
Mode•
Timing•
Equipment•
Consolidation•
Service ProviderOptimized Decisions
Engines and Rules
• Load Consolidation
• Multi-Stop Consolidation
• Multi-Leg Multi-Mode
• Common Leg Consolidation
• Pooling/Cross Dock
• Multi-Tier Network
• Continuous Moves
• Load Configuration
• Itineraries & Profiles
• Service Time Calculation
• Rating
• Resource Capacity and Commitments
• Container Optimization
Complex Multi-Mode Options
INCO Terms: EXW
SSL Service: PTP
INCO Terms: EXW
SSL Service: PTD
Multi-Tier Multi-Leg Planning
Example Multi-Leg & Multi-Mode Route
LTL/TLConsolidation Dray OceanDray RailDray
“What’s the optimalport of export? Port of import?”
“Consolidation: how to maximize container
utilization?” “Which voyage / vessel to book?”
Plan Transport Manage and Monitor Execution Approve Shipment Charges Monitor Transportation Performance Qualify Transportation Partners
Booking and Execution Monitoring
Manage Transport Data Manage Orders for Transport Schedule Book Resources
TMS Enabling Capabilities
•
Enable the automated carrier booking and tendering process
•
Real time shipment tracking via EDI integration
•
Proactively alert staff of key process exceptions
Manage
By
Exception
Automation
Controls
Visibility
Anticipate
Analyze
Resolve
Collaborate
•
Configure monitors
to track orders
against shipment
milestones
•
Confirm events or
identify missed,
abnormal, and
out-of-sequence events
•
Customize logic to
interrogate all
incoming events
•
Trigger follow-up
actions according
to pre- defined
conditions &
thresholds
•
Automatically
perform actions
(e.g., re-planning)
in response
to common
problems
•
Initiate resolution
workflow based on
changing conditions
•
Notify / alert
internal and
external users or IT
systems of an event
or action
•
Prompt users for
response and
process iteratively
until resolved
Notify Affected
Parties
Supply Chain Event Management
Execute Automatic
Response
Evaluate Conditions
Visibility = Adaptability
•
Visibility is a pre-requisite for Adaptability
Plan Transport Manage and Monitor Execution Approve Shipment Charges Monitor Transportation Performance Qualify Transportation Partners
Settlement and Performance Monitoring
Manage Transport Data Manage Orders for Transport Schedule Book Resources
TMS Enabling Capabilities
•
Invoices within tolerances automatically processed for payment
•
Cost visibility to PO line level for improved tracking of landed costs
•
Ability to measure and report on key internal and service provider
*Value-Added Tax and Non-Freight Related Charges
Transportation Settlement
Carriers Financial System Business Units/ Customers • Allocate coststo orders & order lines for billing
• Apply appropriate GL codes based on order characteristics
Detailed Freight Cost Allocation
•
Planned Costs
– Estimated freight charges per shipment – Allocate to order & line item level
– Rules/metric based allocation formulation
•
Actual Costs
– Invoiced freight costs
– Allocate to order & line item level – Compare to planned costs
•
Cost Analysis / Business Intelligence
– Attribute based G/L Coding
– Multi-dimensional views of freight costs: product, customer, location, lane, mode, carrier, etc
– Trends, targets, automated alerting
Freight costs allocated to each order & order
