Fleet Management Initiative
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1 Fleet Initiative Project Overview August 13, 2012
2 Agenda Overview of Penske Logistics Operations Solution for Order Team Tom Foerster CSC Project Manager Rick Bowman Penske Logistics Operations Lead Chirag Patel Penske Logistics IT Lead John Parillo Penske Logistics Change Lead Tom Smiley Penske Logistics Operations SME Copyright 2012 All rights Reserved. Page 2
3 Penske is a strong, stable logistics provider based in the U.S., that operates globally Committed ownership Penske Transportation is a partnership between Penske Corporation & General Electric, and consists of both Penske Logistics and Penske Truck Leasing. $25B Penske Corp 2009 Revenue $5.3B 2009 Revenue Regional presence... Based in the U.S., Penske operates globally in Mexico, Canada, Europe, South America and Asia; Penske is a Customs-Trade Partnership Against Terrorism (C-TPAT) service provider. Regional Head Offices Proven experience... Penske Logistics provides comprehensive transportation, distribution, and related material support and border crossing services for complex, multinational companies. Copyright 2012 All rights Reserved. Page 3
4 Penske provides service elements in all areas of supply chain including as a Lead Logistics Provider Lead Logistics Provider Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can: > Optimize Transportation Operations > Coordinate All Suppliers > Integrate Supply Chain Technologies > Synchronize Inbound & Outbound Flows > Model and Manage Distribution Networks The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers. Copyright 2012 All rights Reserved. Page 4
5 Penske chose Oracle OTM to improve the efficiency of our Transportation business Lead Logistics Provider Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can: > Optimize Transportation Operations > Coordinate All Suppliers > Integrate Supply Chain Technologies > Synchronize Inbound & Outbound Flows > Model and Manage Distribution Networks The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers. Copyright 2012 All rights Reserved. Page 5
6 DCC Fleet Scope Generally, Penske Dedicated operations are diverse & decentralized Customer & Order Route Planning & Scheduling Fleet & Dispatching Onboard Communication Financial Performance 50 customers (22 order based) 17,000 orders / day 1-25 (avg. 4) lines / order 95% EDI orders 20% order changes 4,100 static routes 4,100 dynamic routes 1-30 (avg. 4) stops / route Many route types (i.e., single leg, multi-leg, crossdock, backhaul, continuous move). 135 operating locations (+15 remote) 2,500 power units 2,900 drivers 350 non-driver associates 2,500 Cellcomm units (total) 90 barcode scanners 480 signature capture < 2,900 activity based drivers 135+ customer invoices / week centralized billing associates 20,000 reports (40% printed) business object reports. Orders ready for processing. Executable route plans created. Resources & routes assigned & initiated appropriately. Resource & route information automated & timely. Associates paid & customers billed accurately & timely. Timely information availability. Copyright 2011 Penske. All rights Reserved. Page 6
7 DCC Processes Opportunity to standardize processes & create synergies as appropriate Customer & Order Route Planning & Scheduling Fleet & Dispatching Onboard Communication Financial Performance Order receipt Order validation Order changes Order & shipment information Account information Load configuration & building Static routing Dynamic routing Resource & appointment scheduling Resource visibility Resource validation & assignment Driver management Exception management Tracking, visibility & information Vehicles Drivers Routes, loads & shipments Payroll Billing Accounting Real-time data, queries & reports Drill-down metrics Performance dashboards Orders ready for processing & customers well informed. Executable route plans created. Resources & routes assigned & initiated appropriately. Resource & route information automated & timely. Associates paid & customers billed accurately & timely. Timely information availability. Copyright 2011 Penske. All rights Reserved. Page 7
8 How did we eat the apple? Copyright All rights Reserved. Page 8
9 Flexibility is a key differentiator for Penske Logistics Penske large and diverse customer base requires supporting various order management related options. Receive/create order options: EDI from customer or LLP Manual (spreadsheet) None (regularly scheduled route) Plan (route) order options: Routed by Penske Content of orders (weight, volume, pallet count, etc.) may not be known until pickup Routed by customer Flexible execution: Re-sequence, add, and delete stops Relay shipments Planned and un-planned backhauls Minimal impact on existing customers. Copyright All rights Reserved. Page 9
10 Specific order and planning examples No order from Customer/Simple Fixed Route Spreadsheet with Customer s Orders/Planning by Penske Manual Orders/Planning by Customer EDI Orders/Planning by Penske or Customer Copyright All rights Reserved. Page 10
11 No Order from customer/simple fixed route Overview: Same route is run 5 days a week. No orders from customer Solution: Order templates with order schedule Will evaluate agents in lieu of order schedule Benefits & Limitations: Straightforward, works well for just a few orders Impractical for creating large sets of orders for an interval of time. Alternate Solution: Adapt Penske s Master Schedule Program Easy to create and maintain a set of rules for creating orders: Origin and destination, pickup and delivery days and times Effective time period for rule set Benefits: Ease of configuration and maintenance Able to create the complete set of orders for a time interval at once. Copyright All rights Reserved. Page 11
12 Spreadsheet with customer s orders/planning by Penske Overview Customer provides a spreadsheet with all (typically 10-15) the orders. Penske dispatcher bulk plans the set of orders Solution Tool to convert the customer s order spreadsheet into an XML file and to automatically push this XML file into OTM. Benefit: Avoid effort and reduce risk of error during manual order entry. Copyright All rights Reserved. Page 12
13 Manual orders and planning by customer Overview Customer specifies route, which may be multi-stop (2 deliveries or less) Solution Upload orders using the tool described earlier and, if necessary, re-plan them. Rejected using multi-stop orders because of execution related limitations Copyright All rights Reserved. Page 13
14 EDI Orders Overview: Receive customer s orders via EDI. Orders may or may not routed. Planned Solution: For routed orders, the interface will convert the incoming orders into a SAWs with order releases For other orders, the interface will create OTM orders which are then planned into shipments Copyright All rights Reserved. Page 14
15 High-Level conceptual workflow Order Type OTM EDI Route/Order EDI Portal Route? Yes SAW with Order Releases No Fleet Manual Route/Order XML Conversion Tool Order Release Planning Planned Shipment Master Schedule No Order Fixed Route Order Release Template Same starting point for Fleet in all cases. Copyright All rights Reserved. Page 15
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