OTM for Freight Forwarding and 3PL Industry. OTM SIG 2014, Philadelphia, USA, th Aug 2014

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1 OTM for Freight Forwarding and 3PL Industry OTM SIG 2014, Philadelphia, USA, th Aug 2014

2 Contents Introduction Major Challenges Leveraging OTM for Freight Forwarding Other Key Configurations Business Value Offered Customer Testimonial 2

3 Introduction 3

4 Introduction Client is Egypt s largest freight forwarding company with wide and varied mix of services in the field of integrated transport, with the ability to handle all the stages of any shipment - door-to-door from pick-up and transport to delivery. Solution Offerings Project Cargo Sea Direct/Consol Air Consolidation Customs Clearance Land Transport Chartering Exhibition Management General Warehousing Insurance Packing Customs Transit Sales International Overland Free Zone Warehousing 4

5 Major Challenges 5

6 Operational Requirements Design workflow for Quote to Cash cycle spanning Primary operation along with various ancillary services for Import and Export cases. Design robust solution for console management with House Bill (HBL) generation option or facility to upload HBL details via excel. Require separate workflows for Trans-shipment, Re-export and Cross-Trade scenarios Ability to managing Airway bill stock and send alert when stock reaches threshold limit Manage complete data set for walk in (one time) customers Managing Project Cargo with a challenge of using Project specific contracts in all associated transactions and mapping project s reference in all objects 6

7 Operational Requirements Propose accurate list of documents and formalities(clearance steps) for Customs Clearance process based on customer s Industry type and clearance type requirement. Calculation of Insurance Premium and Commission from insurance companies. Managing inventory stock in warehouses with an option to dispatch partial stock and billing for it. Requirement of dashboard for tracking container movement. Various operational reports like, HBL document, Shipping Instructions, Shipping declaration, HazMat Certificate etc. Managing way bill details for Land operation. Manage complex rate structure which varies for each operation type. Maintain airline tariff card. 7

8 Financial Requirements Integrated Customer advance information and using it during bill calculation. Profit and Loss report at order or console level. Manage Multi Currency billing. Accurate cost allocation in case of Console where each order in console require separate ancillary services. Approval hierarchy for Bills and Invoices based on tolerance limit of each approver. Real time Customer credit check. Multiple bills to various bill to parties associated with single transaction. 8

9 Financial Requirements Tax calculation based on tax exemption status of Customer or specific instance of order or specific charge head in financial transaction. Capturing details of Payment made to custom authorities via official receipts and bill it back to customer Intercompany billing Managing commission for sales team v/s order booked directly at Branch Discharge fee calculation for Dangerous goods Map every cost line to accurately derive Ledger code Detention and Demurrage calculation 9

10 User Accessibility Requirement Show/Hide data elements based on values selected in previous section Field level validation while data entry Data filtration based on role selected like Customer, supplier, Shipping Line, Customs agent etc. Fields to capture data in regional language On Screen Container Number Validation Bridge the communication gap between various stakeholders associated to single operations 10

11 Leveraging OTM for Freight Forwarding 11

12 Sea Export Normal with Land Movement PROCESS Receive Quote Request Release Cargo on board Receive Draft MBL from S/L Get rates and Schedule from Shipping Line Cargo Movement to Port Confirm MBL details Prepare Quote and get Customer Approval Cargo Stuffing and Inspection Receive Final MBL after issuing payment Receive Shipping Instructions Arrange Empty container pickup as per Loading Date On-Board Confirmation and Vessel Departure from S/L Send Booking Request to Shipping Line(S/L) Plan Shipment for Sea Export and Land Movement Get Draft HBL approved from Customer Receive Booking Confirmation Co-Ordinate with Customer for Loading Date Surrender documents to customer after payment received 12

13 Prepare Quote and Manage Customer Approval 13

14 Quote Screen : Shipping and Cargo Details 14

15 Quote Screen : Financials 15

16 Capture Shipping Instructions : Order Entry Screen 16

17 Order Entry Screen 17

18 Booking Request to Shipping Line with Booking details will be sent to Shipping line. It is possible to replicate integration architecture with Maersk and INTTRA which is already Live for another client in India for Booking Request, Sailing Schedules and Shipping Events. 18

19 Plan Shipment for Primary Operation of Sea 19

20 Shipment for Sub Operation of Land Movement Each Sub-Operation will have separate shipment which will get allocate back to associated order only. 20

21 Shipment Execution Events Detailed Event management for Events related to Booking Request, MBL and various stages of execution 21

22 Receivable from Customer Final Customer Bill should also consider Down payment (Advance) paid by customer while booking order. 22

23 Job Details Profit and Loss details which can be calculated at single Order level or at Consol level. 23

24 Sea Import Consolidation with Customs Clearance PROCESS Receive Pre-Alert from Agent/Customer Collect Delivery Order (DO) from Shipping Line after Payment Get Cargo cleared from Customs Verify Supporting Documents Define Voyage and Consol Update Vessel Details Update MBL Details Send Arrival Note to Involved Parties Follow up for Vessel Arrival Map HBLs to MBL Arrange Transport till port warehouse Unload Cargo and Return Empty Container to Shipping Line Bill each Customer belongs to Consol based on payment Terms Create HBLs as per HBL Count on Pre-Alert Update HBL Details as per Pre-Alert Settle Clearance Expenses with Delegates 24

25 Define Vessel, Voyage and Consol Create Vessel Create Consol from Voyage Create Voyage 25

26 Generate MBL shipment Generate Empty Shipment from Consol and update MBL details 26

27 Generate multiple HBL from MBL Enter Number of HBL consolidated in specific MBL and OTM will Auto generate those many HBL and attach to MBL 27

28 Upload HBL details Via CSV HBL Upload Process HBL Detail csv will be loaded in OTM HBL Created in OTM Manually Attach First HBL to MBL using action Rest all HBL sharing same MBL number will get Auto Attached to MBL HBL Details csv file 28

29 Send Arrival Note Arrival Note as an attachment in to all Involved parties 29

30 Shipment for Customs Clearance Sub-Operation Clearance Shipment Screen 30

31 Customs Clearance : Formalities and Documents List of Activities Required for executing a Clearance Process based on Clearance Type Selected List of Documents Required: Specific to Clearance Type and Customer s Industry Type 31

32 Air Export Consolidation PROCESS Receive Rate Request from Customer (ExW) Create Quote Confirm Quote with Customer Issue Customer Bill and Receive payment Settle Expenses with Airline/Agent Daily Process Maintain MAWB serial number stock and Send Notification if stock is below threshold limit defined. Co-Ordinate for Booking with Airline Issue AWB to Customer Arrange to pick-up cargo/ Receive cargo Handover cargo to Airline 32

33 Managing MAWB stock in Air MAWB stock specific to Airline and Distributed across branches 33

34 Project Cargo Management PROCESS Receive Quote Request/ Rate Request (import) Use Project specific contracts while planning Execution of Project Shipment Define Project Create Order with reference to Project Capture Execution Events Prepare Proposal with reference to Project Receive Request to move cargo against Project Settle Expenses with Carrier Get Proposal Approved from Customer Get Route Survey done and Arrange for permissions Issue Customer Bill Sign MoU with Customer Define Exchange Rate specific for project Repeat steps for each new request to move cargo against specific Project 34

35 Managing Project Cargo Project Definition Project Reference on Quote Project Reference on Order

36 Other Key Configurations 36

37 Land Operation Waybill Management Container Tracking Module 37

38 Insurance Operation Insurance Details : To calculate Insurance Premium and commission from job 38

39 Ease in User Interface There are numerous features developed to ease data entry through UI for users. Below video will demonstrate some glimpse of it 39

40 Validations Some Examples of Validations to avoid errors in data entry or in end to end process. 40

41 Credit Limit Check Integration Layer Oracle EBS with Customer Master and associated Credit Limit value 41

42 Invoice Approval Hierarchy Screensets with Filter Criteria are used to define approval hierarchy. Once Invoice fail Auto Approval process, it will be correctly routed to appropriate Authority for manual decision using various filter criteria. Note: - X1, X2, X3 are variables defined in absolute USD value - Variable values varies for Project cargo and Non-Project cargo 42

43 Business Value 43

44 Business Values Replacement of Legacy system with more advanced Transportation Management System Reduced operational cost, Improved customer service, Optimized asset utilization and mainly, Increased profit margins. Automated, Streamlined and completely Integrated processes for client s expanding freight forwarding business Simplified and Accurate customer invoicing, Carrier payment and Claim management processes with reduced Service to Cash cycle Drastic cutback on labor cost and office overheads with shorten time for day to day operations. 44

45 Customer Testimonials 45

46 Customer Quotes "Oracle Transportation Management supports our goal to become the preferred partner for integrated global transportation solutions in Egypt by providing best value for our customers complex global logistics requirements. KPIT Technology had the expertise and experience to manage both the technical and business challenges involved in implementing a new business platform. The team was very skilled in helping our users adapt to the new processes, which helped ensure rapid adoption of Oracle Transportation Management and will deliver faster time to value. Jalal Sulaiman, IT Manager, Egytrans 46

47 Presenters Rohit D. Bhogate Sr. Techno-Functional Consultant, Value Chain Execution Practice Karthik Venkataraman Lead Consultant, Value Chain Execution Practice 47

48 Thank You 48

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