1. OTM as a Service Differentiator
OTM SIG Conference, Amsterdam 29th Jan 2013

2. Agenda
About APL Logistics
Sourcing a Solution
g
Bringing Value & Differentiation to Supply Chain Segments
– Land Transport
Land Transport Case Study
ShipmentOptimizer
ShipmentOptimizer™ Video
Bringing Value & Differentiation to Supply Chain Segments
– International
International Shipment Case Study
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3. APL Logistics - part of a global and integrated supply
chain provider
Terminal Operations Container Shipping Supply Chain Management
Top 10 global terminal operator World’s 7th largest container Top 25 Global 3PL
10 terminals in the U.S. and shipping line 15.8 million sq. ft. of
Asia. 153 vessels ship to 25,000 warehouse; operates in 260
Revenue: US$503M locations in 140 countries locations across 56 countries
Revenue: US$7 9B
R US$7.9B Revenue: US$1 4B
R US$1.4B
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4. NOL Value Chain
A key differentiator of the NOL Group is our market-leading ability to provide reliable and
time-definite services along the value chains we control
Origin Services Destination Services
Our Value Chain
Warehouse Land Consol Terminals Container Shipping Terminals Deconsol Land Warehouse
Visibility
As supply chains become more complex our “total value chain proposition offers strong
complex, total chain“
advantages for customers.
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5. Broad Product Suite and Strong Customer Base
APL Logistics has a broad product suite. With over 800 customers worldwide, we are a
preferred partner in managing supply chains.
Warehousing and distribution Global freight management Supply chain management OceanGuaranteed® LCL service
15.8m sq. ft. of warehouse space Freight delivery service with Supply chain management Guaranteed, door delivery of LCL
worldwide multimodal transportation solutions that reduce cycle time freight from key markets in Asia
and inventory levels to North America
Manufacturing support Consolidation and vendor APL Guaranteed™ Continental Asset management
On-time d li
O ti delivery and hi h quality
d high lit services FCL service A complete range of asset
l t f t
service with various process Consolidation of merchandise, Guaranteed, door delivery of management solutions to
management solutions information and documents with FCL freight from key markets in facilitate the global flow of goods
200 facilities worldwide Asia to North America
REPRESENTATIVE CUSTOMER SEGMENTS
Automotive Consumer Goods Chemical Fashion Hi-tech Industrial Retail
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6. Sourcing a Solution

7. Sourcing a Solution: Identifying Manual Work
APL Logistics Operations Customer Logistics Planner
1.
1 Receive b ki
R i bookings 8.
8 Receive approval request
R i l t
2. Refer to customer’s logistics emails from multiple origins
7. Approval email to customer (e.g. SHA, JKT, SIN, HKG)
procedure
3. Validate booking 9. Check if voyage meet delivery
dates
4.
4 Manually plan route
12. Approval email to APL Logistics 10. Any exceptions (e.g. urgent
5. Manually group bookings shipments, change mode)
6. Enter plan information in email 11. Enter shipping instructions via
email
Manual work via email, phone to collaborate bookings and shipments between LSP and customers
Difficult to track communication and instructions
APL Logistics’ customers are leaning their workforce in logistics department (same amount of work,
less people)
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8. Sourcing a Solution: Business Complexity
Planning is complicated!
Too many bus ess rules in a fast moving ope a g e
oo a y business u es as o g operating environment. Violations o bus ess rules b g
o e o a o s of business u es bring
customer dissatisfaction and may result in shipment delays or incur extra freight cost
Co-loading
Destination Delivery window Multiple store in 1
Launch Commodity
container
Jacksonville All able to co-load Allowed
Max 5 days before
delivery date Launch cannot be Footwear cannot be
Pittsburgh
Pitt b h Not ll
N t allowed
d
mixed with non-launch co-loaded with Garment
Max 10 days before Garment cannot be
San Antonio Not allowed
delivery date co-loaded with Equipment
Max 3 days before
Sacramento Ok to mix All able to co-load
co load Allowed
delivery date
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9. Product Selection Needs
Need for an “off the shelf” product
– Flexible
– Highly configurable
Must orchestrate between Logistics Service Provider and customer to
make shipping decisions
Must be able to streamline and standardize operational processes
Has advanced functionality to automate and comply with customers’
shipment planning process
– Co-loading and incompatibilities
– Routing guide
– Pl
Planning algorithm
i l ith
Audit trail capabilities
Repeatable deployment
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10. Why Oracle OTM
OTM offers many out of the box configurations, workflow and algorithms which allow
modeling of complex business rules
Configure Business Rules in OTM
Containers and specifications Bulk plan
Loadability approval rules per Selection criteria
customer Workflow
Equipment Equipment allocations Business Rules
Shipper locations Screenset
Consolidation Freight Station (CFS) Menu
Ocean ports Actions
Deconsolidation facility VPD
Container yard Business monitor
Customer DC / Store location Saved query
Locations Regions User Interface Traffic light indicator
Itineraries (Ocean, Land, Air) Optimization
Arbitrary algorithm
Transit-time
Voyage schedules
V h d l
Routes Shipments
Rate service Order base
Rate offer Order release
Rate record Buy / Sell shipments
y
Rates Arbitrary rates Operational Reports
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11. APL Logistics OTM Journey
Shipment Manager for a
major Sporting Apparel
and Accessories company
in North America
Shipment Manager for a
leading Sports Footwear
company in North America
Domestic Land Transport
Optimization for a large Chemical Domestic Land
company in North America Transport
Optimization in
Europe for a Key
Retailer
Shipment Manager
in Asia and Europe
p
2009 2010 2011 2012
APL Logistics
purchases International ShipmentOptimizer for Domestic Land Transport
Oracle OTM a Leader in Sports and Apparel in Optimization in China for a
software Asia, North America and Canada Key Retailer
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12. OTM: Bringing Value &
g g
Differentiation to Supply Chain
Segments – Land Transport
g p

13. Land Transport: Flexibility in Order Creation
Orders are received by APL Logistics from Customers’
ERPs via Integration
Orders can be created by users through the following
means:
– Mass Order Upload – via Excel spreadsheets
• Post-operations upload of orders for recording purposes
– Mass Order Entry – via UI
y
• Part of Mass Order Upload
• Manual entry and correction of orders
– C t N
Create New O d – U i order t
Order Using d templates
l t
• Capture of inbound orders over the phone
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14. Land Transport: Flexibility in Order Creation
Order Entry via Templates
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15. Land Transport: Flexibility in Shipment Planning
Planning Consolidated Shipments
Same ship point with one drop - simple consolidation – Can use SRO or BP
DNH1_SHIPPOINT_00001
DNH1 SHIPPOINT 00001 30297 162_55437756_SAPWP1_00001
30297-162 55437756 SAPWP1 00001
A B
Select Orders and click on Bulk Plan or Multi-Stop to plan the orders onto a consolidated shipment
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16. Land Transport: Flexibility in Shipment Planning
Planning Multi-stop Shipments
DNH1_SHIPPOINT_00001 70807_55364261_SAPWP1_00
DNH1_SHIPPOINT_00001 30297-162_55437756_SAPWP1_00001
Select orders for multi stop planning and click on Actions > Bulk Plan
multi-stop
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17. Land Transport: Flexibility in Shipment Planning
Planning Multi-stop Shipments
Orders
Order 1: Orange, TX to Wisconsin with 30,000 lbs. Order 4: Indiana
Order 2: Orange, TX to Illinois with 5,000 lbs.
Order 3: Orange, TX to Michigan with 8,000 lbs.
Order 4: Orange, TX to Indiana with 2,000 lbs.
LTL
Max TL load = 45,000 lbs.
Order 1: Wisconsin
TL + stop off at Channahon, Illinois LTL
Order 2: Illinois
Orange, TX Channahon, Illinois
Deconsolidation Pool
LTL
Order 3: Michigan
Cost of TL from Orange, TX to Wisconsin (with stop off): $1752.27
Cost of LTL from Channahon, Illinois to Indiana: $130.70
Cost of LTL from Channahon, Illinois to Illinois: $173.93
Cost of LTL from Channahon, Illinois to Michigan: $375.98
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18. Cost Savings Calculation for Direct,
Consolidation and Multi-stop Shipments
Cost Savings (at shipment level) are calculated from the difference between the Shipment Cost and
the sum of the Best Direct Cost for all the orders under the shipment
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19. Cost Savings Calculation for Direct,
Consolidation and Multi-stop Shipments
Cost Savings at the shipment level will be shown on all the shipment screens
Where Cost Savings are 0, this means that the shipment planned onto the same rate record as the
Best Direct Cost of the order. Shipment is likely a direct shipment with a single order.
Where Cost Savings are greater than 0, this means that there were positive cost savings for this
shipment
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20. Land Transport Case Study

21. Background: Customer and APL Logistics
Customer
– World Class Global Science and Engineering Products and Services Company
– Over US$38 Billion annual sales
– Serving Diverse Markets: Agriculture, Nutrition, Construction, Apparel, etc.
APL Logistics Transportation Management Operation for Customer
– Relationship since1995
– Manages transportation at 99% error-free, savings millions of dollars annually
– >190K loads managed annually
– Manage and administer client carrier contracts
– Services include:
• On-site personnel
• CSR functions
• FTE cost; gain share
t i h
• Outbound finished product distribution, inbound materials, optimization, returns and fleet
management
• All modes
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22. Business Challenge with Older OTM
APL Logistics managed Customer’s freight operations using
Customer’s OTM v4.0
– Limited freight planning
– Lacked newer functionality
– Offered limited opportunity for new transportation saving and operational
productivity gains
– Would soon no longer be supported by Oracle
Customer needed to either
1. Invest in an upgrade of OTM and continue to support it as an internal
solution
2. Seek alternative options
APL Logistics provided the Solution
Migrate to APL Logistics’ OTM on current version (V6.2.3), allowing customer
to focus on core competencies, not running and maintaining the TMS being
used by its Logistics Provider.
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23. Solution
Migrate and Upgrade TMS Solution OTM Supported Services
to APL Logistics – Manage and optimize daily order activities
across all modes of transportation
Improve North America Transport – B i
Business i t lli
intelligence metrics reporting i
ti ti in
Planning and Performance real-time mode
– Parcel freight management
Lower Operating Cost
– Carrier compliance, management and
Implementation scorecards
– Business continuity with existing – Claims management
operations – Continuous move planning
– Migration of operations to APL Logistics’
g p g – Consolidation and cost allocation across
OTM v6.2.3 multiple lines of business
– Management of APL Logistics’ OTM – Bulk planning for optimization and pool
solution distribution opportunities
– Project management & implementation
services
– Systems integration and testing services
– EDI between Customer and APL Logistics
– and 200+ customer carriers
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24. Benefits
More automated, less manual Extensive Ops. & Mgmt. Reporting
processes – KPI scorecards
Accessorials: CS s now have a full
ccesso a s CSR’s o a e u g g
– POD Mgmt: APL Logistics can now
picture of the total costs of shipments provide KPI reporting by mode, carrier, at
the Business Unit, segment level
Carrier Compliance: Compliance now
tracked at the shipment level Validation of carrier indemnification
Mass order uploads f
from Cost
C t savings reporting at Order,
i ti tOd
spreadsheets Business Segment and Business Unit
level
Strengthened Business Relationship Through Adding Value
Immediate Operational and Productivity Benefit
Strategic Strength through System Scalability
g g g y y
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25. ShipmentOptimizer™ Video

26. OTM: Bringing Value and
g g
Differentiation to Supply Chain
Segments - International
g

27. OTM as a Service Differentiator
Automated Shipment Planning which
Respects business rules
Dynamically select best route
y y
Propose equipment mix using innovative planning algorithm
Informative planning screens to guide transportation decisions
Booking exception
Booking authorization
Shipment proposal
Shipment collaboration and authorization
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28. Considers Incompatibilities During Bulk Planning
Example of business rule :
CFS load and Factory load not allowed in same container
Launch and Non-launch cannot be in same container
Mixed commodities can be co-loaded in same container
* Expect system to recommend 4 groups based on incompatibility
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29. Dynamically Decides Best Route on Various
Modes of Transportation
Decide on routes on various transport mode based on schedules and cost
Sea (Asia-USA / Asia-Europe / Inter-Asia)
Air
Sea-Air (Origin-Dubai-Destination)
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30. Optimization Algorithm for Best Container Mix
“Schedule-aware” con-ops in conjunction
“Traditional” Con-ops
with Column Generation algorithm
1. Orders with similar delivery date are grouped 1. Each order will do voyage evaluation to determine
potential voyages
2.
2 Each orders’ group will search for best voyage
orders
VS 2. Orders are sent to column generation algorithms which
are based on similar voyage determine best way to
group order based on similar voyage, best cost, load
maximization, earliest arrival
,
3. System may break group if no compatibility voyage can
be found for the order group
40FT
40FT
4. System assigns container to order group
20FT 20FT
3. System will compare the results and assign optimal
40FT solution
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31. Automated Exception Detection
System is configured with customer-specific exception rules
EBAs EBA Description
EBA AIR Ship Mode = “Air”
EBA FL Factory is not an Approved Factory load vendor
EBA SC Booked Style <> PO Style
EBA DSJS For all DSJS and DSJS-CAN ship-to, have to send for EBA
EBA EDOD21 Booking EDOD is 21 days earlier that UDD. For C division
Booking EDOD is 14 days past that UDD. Non-POE H&C orders beginning with ‘WS’. Reject if
EBA WS
EDOD is 14 days past UDD
Booking exceptions are marked with value “Y” in the respective EBA column on
the screen
Booking Exception
detected
No exception
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32. Recommends Optimal Shipment Proposal
Optimization result after automatic bulk planning
Recommends best Recommends best Order groupage
mode of transport voyage proposal with
display of cargo
characteristics
Maximize equipment Approval Status
utilization management
g monitoring
g
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33. Shipment Approval Screening
Request for Cargo Container
PO / CIR Booking Approval Approved Received Stuffing
GAC-X GAC-5D IDD ETD-2 ETD
System is configured with “Auto Release” rules based on Customer’s business requirement
Auto-Release Customer s
When system creates a shipment and assigns a container, it will evaluate the approval rules and
indicate in approval column either “Auto-Approved” or “Manual Approval Required”
Shipments under Auto-Approved does not need to be approved by Customer
Shipments under “Manual Approval Required” needs to be sent for approval by Customer
Type Of Exception Description Factory Load APL Logistics Load
y
eLoadability y
Minimum Loadability Size CBM Size CBM
20’ 24-28 20’ 24-28
40’ 50-58 40’ 50-58
40H’ 60-68 40H’ 60-68
45’ 70-78 45’ 70-78
53’ ?-100 53’ ?-100
All 20GP need approval All 20GP need approval
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34. Shipment Collaboration
After Reviewing shipment APL Logistics’ operations inputs Shipping
Instruction before triggering “Request For Approval”
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35. Shipment Collaboration – Approval Work Queue
Approval workflow
Approval actions
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36. Shipment Collaboration –
History of Shipping Instructions and Actions
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37. International Case Study

38. Volatile consumer demand and supply shifts, coupled with a huge number of
trade lane possibilities make delivering the right product on-time to
destinations – an uphill task.
ShipmentOptimizerTM was conceptualized to enable organizations to succeed in the midst of rising
complexities in shipment planning and global order fulfillment through rail, road, air, and ocean.
Natural disaster
changed spending
pattern
Manufacturing
Bases
Consumer Consumer
Social media Markets Markets Consumer
increases the pace
p a ets
Markets
of change in Stronger regional
lifestyle integration heightens Manufacturing
trade flow Bases
Consumer Rising income
Manufacturing Recession reduces Markets increases demand for
Bases spending and choice
luxury goods
of purchases
Manufacturing
M f t i
Bases
Manufacturing Manufacturing
Key Consumer Markets
Bases Bases
Key Manufacturing Bases
Raw Materials Flow
Finished Product Flow
Manufacturing
Bases
2010 global trade (TEU): 450 mil. Consumer
- Underlying product flow, are The impending World Flood impedes
production and supply Markets
information, documentation, and Cup and Olympics
financial flows. change the market to global market
demand of Brazil
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39. Case Study – Evolution of Value
Immediate Value Proposition
– Implementation
• Process yields better, more efficient network rules
– Origin Operations
• Planning is truly automated
• Decision time reduction from 48 hours to 1.5 hours
• Better equipment selection and mix
Emerging Value Proposition
– Dynamic Networks
• Ability to quickly and decisively change product flow across network
• Enables a rapid response to market conditions, volatility or
opportunities
pp
– Synchronization with ERP systems
• Interesting connection points with order planning, demand planning
• “New Era” in Demand Driven Networks
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