The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies
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Exel and MavenWire discuss lessons learned over 9 years while outsourcing the support for key applications, including OTM (Oracle Transportation Management). Presented by Samuel Levin (MavenWire).
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The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies
- 1. The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies Presented By Exel and MavenWire Terrell Brown and Samuel Levin June 22, 2009
- 2. Agenda • Exel Company Overview • Exel Glog/OTM History • Customer/Domain Structure Overview • 9 Years of Challenges • Success Criteria for Deployment of OTM • Outsourcing History • MavenWire Model • MavenWire Key Successes, Challenges, and Lessons Learned 2
- 3. DP DHL A global player with strongly placed divisions... 2008 € 54B Rev € 2.4B EBIT 220 Countries 500K Employees Germany Delivers mail to about 40mm households Global Business Services (GBS) Finance, Insurance/Risk, Claims Mgt, Legal, HR, Procurement, Real Estate, IT Services, Claims Mgt 3
- 4. Exel Supply Chain Americas $4.6 billion turnover in 2007 $186 million EBIT in 2007 41,000 employees Operations focused in six countries Over 90 million square feet operated Over 925 tractors, 3325 trailers and 370 straight trucks 4
- 5. Exel Supply Chain Americas Structure • Six Industry Verticals: Retail, Consumer, Life Sciences, Auto, Chemical/Industrial, Technology • Sector Leaders - Responsible for operations and sales in North America and market development in Latin America • Latin America operations and sales are delivered by country management working with Americas sector leaders • In addition, there are four product-based business units: • Exel Transportation – Managed Transportation, Truckload, Intermodal, LTL, and Brokerage • DHL Global Service Parts – service parts distribution • Express Logistics – time critical fulfillment • Exel Direct – an “in home” final mile delivery business 5
- 6. Exel Transportation Business Segments & Service Offerings • Network Brokerage Business – Network of over 90 Independent Business Owners (IBO’s) with national coverage (plus Canada) – Nationwide network of 250+ sales representatives – Ad-Hoc and Contract Customers • Managed Transportation – Classic 3PL Transportation Management – Customer Managed Operations – Customized solutions within multi-client Transportation Management Centers – Specialized Logistics (Hospitality Industry) • Modes – TL – LTL, LTL Consolidation and Pool Distribution – Intermodal – International • Canada & Mexico---domestic and cross border • Rail & Rail Car Management programs 6 • Temperature Controlled Intermodal Fleet
- 7. Exel’s North America Transportation Customers 7
- 8. Exel Supply Chain Americas OTM History • Exel Americas entered relationship with Glog in 2000 • First Customers implemented in 2001 – Started on version 2.5 – Upgraded to 3.1 in 2002 • OTM recognized as Global Strategic TMS Platform in 2004 – Upgraded to 4.0 in 2004 • Developed standard implementation model, processes, tools, and methodology • Implemented 4.5 for new customers in 2005 • Upgraded 4.5 to 5.5 in 2007 • Migrated remaining 4.0 customers to 5.5 in 2008 and 2009 • Currently running version 5.5 CU3 • Certification of 5.5 CU5 in progress • Exel Hosts OTM environment internally • Exel controls all integration internally 8
- 9. Customer Configurations Implemented • Customer 1 (Chemical) • Customer 3 (Consumer) – Bulk Planning (Buy no Sell) – Bulk Planning (Buy no Sell) – Rate Preferences, – Majority TL and Intermodal some LTL – Execution, Track & Trace, Milestones – Rate Preferences – Actuals – Execution, Track & Trace, Milestones – Freight Pay in Process – Freight Pay Integrated with Outsourced Audit – Integrated with External WM, Carriers, – Integrated with External WM, Carriers and and Freight Pay Audit Freight Pay Audit • Customer 2 (Retail) • Customer 4 (Chemical) – Bulk Planning (Buy No Sell) – Bulk Planning (Buy no Sell) – Cross-dock Planning – Outbound, Inbound, Returns – Schedule based planning – Dock Scheduling – LTL Trailer Building (Shipment Groups) – Rate Preferences – Integrated with Internal WM – Execution, Track & Trace, Milestones – Freight Pay Integrated with Outsourced Audit – Integrated with External WM, Carriers, and Freight Pay Audit 9
- 10. Customer Configurations Implemented • Customer 5 (Mexico Chemical) • Customer 7 (Home Delivery) – Bulk Planning (Buy and Sell) – Visibility Only (Shipment as Work SAW) – Cross-dock Planning – 10+ Customers, 10K+ Shipments/Consignees – Freight Pay with Internal Audit per month 160K+ Events per month – Integrated with Internal WM – VPD Profiles for Multi Customers – Public Track and Trace (Sign in based on Phone Number and Zip Code no Login) – Integrated with Internal Home Delivery • Customer 6 (Mexico Consumer Planning TMS Consolidation) – Parent/Child/Grandchild Domain Structure 40+ Domains – Bulk Planning (Buy and Sell) • Customer 8 (Chemical/Industrial) – Cross-dock Planning across 40 domains – No EDI – Manual Order Entry – 8 Cross-dock locations (4 more by end – BOL Creation and Auto Email of year) – Custom Dispatch with Drivers License – Radioactive, Explosives and Hazardous and License Plate verification – Freight Pay Integrated with Outsourced Audit – Order Level POD – Integrated with Internal WM – VPD Profiles for Planners 10
- 11. 9 Years of Challenges • Recruiting and retaining resources with: – OTM technical knowledge – Transportation Management Knowledge – Knowledge to translate business requirements into OTM functional design – Process knowledge to continuously improve • Implementing a one instance, scalable production environment • Maintain separate instances for testing current versions while certifying new versions • Clumsy, error prone process of migrating from test to production - base data, configurations, etc • Significant work to accommodate a release schedule with frequent updates (CUs) to features and functions 11
- 12. Success Criteria for Deployment of OTM • Implementation – Business Process knowledge – Application expertise – Design efficiency – Technical Administration – Quality Assurance – Project Management • Daily User Support Level 1 (answer phone/email) to Level 2 - diagnose/fix problem to Level 3 - Metalink“ – Detailed process and application knowledge – Standard application support procedures – Day to Day user interaction – Incident Management tools to support SLA’s and provide visibility to workflow and progress of incidents and requests • Continuous Improvement – Processes to certify and deploy new releases – Change Management Effectiveness – Improvement Action Plans by customer to ensure continuity of solution 12
- 13. Project Types • New Customers • Migration of existing customers from Legacy TMS (Non-OTM) • Upgrades to New releases • Continuous Improvement 13
- 14. Exel’s Objective to Outsourcing • The following slides will show the changes we’ve made in our implementation and support model throughout the course of 9 years to meet our ultimate objective to – Maximize our use of the OTM product to support our core competency of Supply Chain Management – Streamline Implementation timelines – Improve on-going Support Service Level Agreements – Keep costs as variable as possible 14
- 15. Project Team The specified roles of a project Project Sponsor team are the areas in which Exel has considered for Outsourcing. Business PM Solution Operations SC3 Support IT PM Carrier Management Financial Owner Delivery Owner Solution Delivery Solution Delivery Implementation Implementation Operations Operations Lead Integration Analyst Integration Mapper Financial Lead Financial Analyst Manager Analyst Systems Analyst Support Systems Analyst Operations Users Integration Mapper 15
- 16. Exel Outsourcing History 2000 – 2002 Glog Outsource Design Requirements Functional Gathering Configuration Project Technical Management Configuration Internal Ongoing Support Go Live Data Loading Support Migration Shared To Production Testing Training 16
- 17. Overview of Model 2000 – 2002 Glog cont… • Glog Project Manager Design • Glog Systems Consultants Requirements Functional • Exel Business Operations Gathering Configuration Project Technical Management Configuration Ongoing Support Go Live Data Loading Support Migration Benefits Testing To Production • Most knowledgeable Resources of the product Training • Direct communication to Glog developers through our Consultants Why we changed Outsource • Expensive • Resources knowledgeable of product, but not of our business and processes Internal • Resources changed often causing a learning curve of our business • Resources did not always have knowledge and experience in the functionality we use Shared 17
- 18. Exel Outsourcing History 2002 – 2004 Glog and CGEY Outsource Design Requirements Functional Gathering Configuration Project Technical Management Configuration Internal Ongoing Support Go Live Data Loading Support Migration Testing Shared To Production Training 18
- 19. Overview of Model 2002 – 2004 G-log & CGEY cont… Recap of Outsourced Model Design • CGEY Project Manager Requirements Functional Gathering Configuration Project Technical • Glog Systems Consultants Management Configuration Ongoing Go Live Support Data Loading • CGEY Consultants Support Migration To Production Testing • Exel Business Operations Training • Exel Support Benefits • Most knowledgeable Resources of the product • Direct communication to Glog developers through our Consultants • Experienced Consultants to help drive processes and documentation Outsource Why we changed • Expensive • Resources knowledgeable of product, but not of our business and processes Internal • Resources changed often causing a learning curve of our business • Resources did not always have knowledge and experience in the functionality we use Shared 19
- 20. Exel Outsourcing History 2004 – 2006 All Internal Resources Outsource Design Requirements Functional Gathering Configuration Project Technical Management Configuration Internal Ongoing Support Go Live Data Loading Support Migration Shared To Production Testing Training 20
- 21. Overview of Model 2004-2006 All Internal Resources cont… • Exel Support – Memphis, TN Requirements Design Configuration • Exel Solution Delivery – Varied Locations Gathering Project Management Data Loading • Exel Project Managers – Varied Locations Ongoing Support Go Live Testing Support Migration To Production Training Benefits • Knowledgeable Resources of the product, the business and the processes • Less expensive resources Why we changed • Turnover in Resources (Training Ground for Consultants) Outsource • Overloaded Resources • Difficult to maintain customer satisfaction and SLA’s Internal 21 Shared
- 22. Exel Outsourcing History 2006 – 2008 Cambridge Outsource Design Requirements Functional Gathering Configuration Project Technical Management Configuration Internal Ongoing Support Go Live Data Loading Support Migration Shared To Production Testing Training 22
- 23. Overview of Model 2006 – 2008 Cambridge cont… Cambridge Resources Exel Resources • Manager • Solution Delivery Design Requirements Functional Gathering Configuration • Onsite Analyst • Support Analyst Project Technical Management Configuration Ongoing Support • Offshore Support Analyst • Project Managers Go Live • Offshore Development Analyst Data Loading Support Migration Testing • Offshore Flexible Resources To Production Training Benefits • Bench strength of resources to leverage offshore Outsource Why we changed • Limited Knowledge of full functionality of OTM • Limited knowledge of business and processes Internal • Language Barrier • Time Difference 23 Shared
- 24. Exel Outsourcing History July 2008 – Present MavenWire Outsource Design Requirements Functional Gathering Configuration Project Technical Management Configuration Internal Ongoing Support Go Live Data Loading Support Migration Testing Shared To Production Training 24
- 25. Overview of Model July 2008 – Present MavenWire cont… MavenWire Resources Exel Resources Design • Manager • Solution Delivery Requirements Functional Gathering Configuration Project Technical • Support Resource • Support Management Configuration Ongoing Support • MavenWire Developers and Consultants • Project Management Go Live Data Loading Support Migration Testing To Production Training Benefits • Very strong product knowledge and relationship with Oracle • Mavenwire's hosting service provides technical insights that none of the other companies have • Great insights into future product direction Outsource • Good value for money spent • Smooth and rapid transition from implementation to Support Challenges to date Internal • 24x7 support for level 2 diagnosis and remedy within SLA has been challenging • Follow-up and continuous improvement to assess root cause and eliminate is still evolving 25 Shared
- 26. MavenWire Standard Engagement Model OTM OTM OTM Data OTM Support OTM Hosting Development Consulting Maintenance Application Business Rates, XSL, Configuration Process Environment Locations, Reports, PL Issues, Config, Assistance and Product SQL, ETC Stability Integration Updates Issues Functional / Development Technical Hosting Managed Technical Team Support Services Services Consulting 26
- 27. MavenWire / Exel Engagement Model Benefits OTM Development • A single point of contact into both MavenWire and Exel streamlines communication • Provides Management visibility into all work streams Consulting MavenWire Data • Easier to manage Services Support Maintenance • Expert OTM resources • Availability of MavenWire technical resources to assist with complex issues Support & Hosting 27 Services
- 28. Key Successes, Challenges, and Lessons Learned • MavenWire Support is based on Key Glog/Oracle Tech Support resources, that had prior knowledge of Exel business and processes • Resource Changes at the User and Management Level – Important to have buy-in and support at the executive level – As key team members change, re-defining roles and responsibilities is difficult • Proper Communication between Organizations – Schedule regular meetings to stay apprised of major milestones, challenges, and changes on the horizon – Set Expectation and Goals – Clearly define Roles and Responsibilities 28
- 29. Thank You!! 29