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Inspirage OTM in the Cloud
1. INSPIRING VALUE CHAIN ADVANTAGE ®
Inspirage
OTM In the Cloud
Co-Presented by Inspirage and Oracle
December 4th, 2014
2. Introductions
Derek Gittoes, ORACLE, Vice President, Value Chain Execution Product Strategy
Derek Gittoes is vice president, value chain execution product strategy and leads the team responsible
for Oracle's portfolio of value chain execution products. Mr. Gittoes is responsible for defining the
go-to-market strategy and product road map for Oracle's solutions in transportation management,
warehouse management, global trade management, and order fulfillment.
Scott Pulczinski, INSPIRAGE, Director of Solution Architecture, Logistics Management Practice
Scott has been a solution architect on 100+ OTM business development opportunities and has
project-managed 5 OTM projects from end to end. He was a member of the original G-Log Consulting
team, serving as Consulting Solution Director, for both Oracle Corporation and G-Log prior to
acquisition. Prior to working with OTM, Scott has 5 years of consulting experience in process
re-engineering, software implementations, and business consulting for big four consulting firms.
Shauna Hillier, INSPIRAGE, Senior Consultant, Logistics Management Practice
Shauna is a functional consultant with a broad range of expertise in the delivery of high-quality business
solutions. With over 9 years’ experience managing domestic and international logistics operations for
road, rail, ocean and air shipments, she has an excellent grasp of industry best practices. Coming from
a dual role as Transport Manager and Oracle Transportation Management (OTM) Super User, she
brings in-depth understanding of the systems, personnel, and change management requirements for
successful software implementation.
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3. Discussion Topics
• OTM Overview
• Oracle Cloud Overview
• Inspirage’s OTM Cloud Solution
– OTM in the Cloud vs. On-Premise
– Inspirage’s Rapid Start Program
– OTM Demo
• Timeline and Cost
• Key Takeaways
• Q&A
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4. What is OTM?
Oracle Transportation Management (OTM) is the industry-leading
Transportation Management System with broad
and deep functionality to manage simple to very complex
logistics networks of corporate shippers and third party
logistics providers (3PLs) in an internet based solution.
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Founded in May 1999, Global Logistics Technologies
(G-Log) built OTM to be a standalone application. After
Oracle’s acquisition of G-Log in November 2005, OTM
was integrated to Oracle’s Enterprise Business Suite
v11.5.10.2 and greater. However, OTM can easily be
integrated to any ERP system using OTM’s standard APIs.
5. OTM Reduces Freight Costs
• 5 – 20% rate improvements from carrier bid optimization
• 5 – 10% reduction in current administrative costs
• 5 – 25% expedited shipment reductions
• 5 – 15% capacity increase
• 5 – 20% reduction in freight cost due to consolidation
• 5 – 30% productivity improvements (reduced errors,
increased loads per hour, automation)
• 1 – 3% decrease in transportation costs
• 2 – 5% reduction in inventory
• Lower transportation costs due to better analytics
• Better supplier and customer relationships
• 10 – 100% reduction in administration of freight pmt. costs
• 2 – 5% reduction in freight expense
Transportation Sourcing
and/or Contract Management
Shipment Planning &
Optimization
Shipment Execution
(Booking/Tendering and En Route Planning)
Supply Chain
(Visibility & Analytics)
Freight Payment and Billing
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17. Pros of Cloud vs. Traditional
Pros of Oracle Cloud
• Lower upfront costs for application
licenses, hardware and technology
(spread out monthly instead of all upfront)
• Quicker ROI
• Expensed vs. Capitalized
• Provides a catalyst to start the project
• No need for DBA/Sys Admin resources
• Good for companies who don’t have
Oracle expertise
• Can enable a quicker and less
expensive implementation
Pros of Traditional Approach
• Potentially lower longer term costs
(buy vs. lease analogy)
• Retain control of system
(system re-starts, database copies, new database
columns/tables, stored procedures, etc.)
• Enable database connections for data
extraction tools for data warehouses
and BI tools for reporting
• ERP / Integration / OTM all in same
locale
• Adhere to customer IT standards
• Customer takes “Ownership” of OTM
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18. 1. What version of OTM are you on?
– The Oracle Cloud will start on OTM v6.3.4.
– Mitigation: Migrate data via OTM promote to production functionality and csv files. Depending on the OTM version, it may be
preferable to first upgrade to the Cloud version.
2. Do you have any customizations on your on-premise instance of OTM?
– Examples include database stored procedures and custom tables. These cannot be migrated to the Cloud.
– Mitigation: Convert your stored procedures to workflow within OTM, and migrate custom tables to the integration layer, an
external OTM database, or to existing tables within OTM.
3. What is your integration approach?
– Web Services and htttp/https are supported for OTM in the Cloud; however, other integration approaches
(e.g. OAQ) are not supported in the Cloud and would need to be discussed.
– Mitigation: Convert to Web Services or http/https prior to migrating to the Cloud.
4. Do you have any direct database connections to your on premise instance of OTM?
– Direct database connections are not allowed in the Cloud (e.g. using a tool to pull data from the database for an
external data warehouse).
– Mitigation: Convert to the standard OTM APIs to extract data from OTM.
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On-Premise to Cloud Migrations
19. Cloud Deployment “Rapid Start”
Rapid Start Component Library
• Consists of a library of Inspirage-developed
building blocks that allow us to implement
OTM in a high quality, accelerated manner
including the following components:
– Documentation & Project Management
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– Pre-Configuration
– Master Data Management
– Integration
– Deployment & Migration
20. Rapid Start Component Library Specific Project
The baseline offering only uses components present in our RSC library
Our baseline offering is
a project designed for
Outbound Truckload
and LTL Transportation
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Cloud Deployment – Baseline
21. Custom
Custom
New
New
Cloud Deployment – Larger Project
Rapid Start Component Library Specific Project
Extended
A larger project will use components from our library, plus custom components, strategically added components,
and extended components as necessary
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22. Managed Services
• Start with the base offering
• We will develop a custom plan for each customer consisting of our base offering plus additional services
• Inspirage ticketing and tracking system
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Base Offering Additional Services
• Level 2 support
• Liaison to Oracle Support
and Oracle Development
• Level 1 support
• Rate loading
• Configuration modifications
(screen-sets, work flow, etc.)
• Custom reports
• Custom KPIs
• Performance tuning
• New interfaces or
modifications to existing
• Regression testing
after upgrades
• Training
• Ad hoc consulting
• (Flexible to expand further)
24. Timeline & Cost
• Baseline OTM projects start in the 8 – 10 week range.
• Projects can be up or down based on scope and customers’
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unique requirements.
• Implementation costs are half (or less) than that of a typical
implementation when adhering Inspirage’s Rapid Start program.
• Additional costs include carrier connectivity and third party
software providers.
– We work with a variety of connectivity partners for carrier integration.
– Inspirage is currently looking into the possibility of re-selling 3rd party
software licenses.
25. Key Takeaways
1. OTM is the #1 TMS in the industry
2. Oracle is the industry leader in Cloud technology
3. Customers can achieve the quickest ROI by implementing
OTM in the Oracle Cloud with Inspirage’s Rapid Start program
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4. Inspirage is the #1 OTM implementation partner
– Specialized Partner of the Year for North America ERP/Edge in 2014
– Leadership that started the G-Log consulting practice
– Implementation team that is second to none in the industry
– Inspirage can implement OTM in the Cloud for a fraction of the cost of typical implementation
through its Rapid Start program
26. Questions?
Scott Pulczinski
Director, Solution Architecture
scott.pulczinski@inspirage.com
Mike Beverlin
Practice Director
mike.beverlin@inspirage.com
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Notes de l'éditeur
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So with the current systems environment as a back-drop, let’s talk about what logistics challenges and opportunities are driving today’s businesses
From an IT perspective the challenges and opportunities to businesses are changing significantly. As mobile communications, mobile apps, upgrades and innovation are all high priority items on an IT executives agenda. From our perspective, the evolution to logistics in the cloud is a major enabler of innovation to the companies who can adapt how they see and utilize IT resources. Rather than working on upgrades and maintenance, IT resources will be able to address business challenges and consider innovative and transformative options for the business. It’s the liberation of IT to some degree as the very talented and valuable resources in that organization are once again free to do what they really want to do…make a difference for the business.
With the idea that cloud accelerates the entire application lifecycle for companies in terms of innovation and transformation so they can better service their customers.
Faster start, e.g., no need to buy and setup h/w and s/w
Faster go-live – packaged implementations, carrier connectivity
Quicker ROI – start benefit stream earlier
Transform
-Implement best practices in transportation & global trade mgmt
-Reduce freight costs
-Increase on-time delivery rates
-Reduce order cycle times
Benefits
Reduced one-time and ongoing IT costs
No h/w costs, no Admin costs
Most IT costs are spent on keeping the lights on
Supply chain benefits
Innovate
Dedicate IT resource/cost savings into supporting the business
Keep current with upgrades
Get the most out of new product capabilities
What is the net result of these Oracle VCE differentiators: solution completeness, architecture, innovation and ecosystem?
The answer is reliable delivery of substantial business benefits to our customers:
-Reduce freight costs
-Reduce material handling costs
-Reduce inventory levels
-Increase on-time delivery
-Increase fulfillment rates
Transforming your processes with Oracle VCE can have a large impact on the performance of your company. The example benefits listed on this slide are based on actual customer experience:
-Thermos increased their warehouse operator productivity by 30%
-Royal Appliances/TTI Floorcare and Enseval brought inventory accuracy to almost 100%
-Life fitness decreased handling cost/ unit by 30%
-Cisco reduced freight costs by 23%
-Giant Eagle reduced safety stock by 40%
-GE Healthcare reduced expedited air shipments by 95%