4. OTM for GE Appliances
• About GE Appliances
• Why OTM?
• Our OTM Journey
• Lessons Learned
• Next Steps
4
GE Appliances – OTM
5. A little bit about GE Appliances
• Manufacturer of Household Appliances
• Lines: Refrigeration, Cooking, Laundry, Dish, Air Conditioning, Water
• Largest Business in GE H&BS
• Retail and Contract Sales Channels
• Headquarters in Louisville, KY
• Annual Revenues (2011) ~$5 Billion
www.geappliances.com
5
GE Appliances – OTM
7. Mission 1 Transformation
+ 11 New Platforms
Product + Shorter Development Cycles
+ New Styles & Trends
+ Revamp Plants
Factory + New Assembly Lines
+ Expanded Labs
+ Lean Manufacturing
Culture + Co-Located Teams
+ Highest Quality
One Team - Reshaping our Future.
8. Appliances ERP+
Supply Chain Order Ship Bill Finance Technology Commercial
SCM OSB FRM PLM CRM
SUPPLY ORDER FINANCIAL PRODUCT CUSTOMER
CHAIN SHIP RESOURCE LIFECYCLE RELATIONSHIP
MANAGEMENT BILL MANAGEMENT MANAGEMENT MANAGEMENT
Proficy
ERP
ERP+
200+ Apps ~40 Apps
8
GE Appliances – OTM
9. Appliances Supply Chain
Network
• 11 NA Mfg. Plants Seattle Montreal
• 8 Distribution Centers
• 140+ Local Delv Agents
• 2 Cross-docks
• 30+ Sourced FG Suppliers
Munster
• 4500 US Supplier locations
Bloomington Baltimore
• Stand-alone Parts business Denver
Louisville
Modes of Transport Los Angeles
• Truckload
• Intermodal
ADC & Deployment Origin Grand Prairie Jacksonville
• Rail Roper
• LTL Area Distribution Center MRO
Decatur
• Small Package Factory
• Ocean + 6 Mexico locations Laredo
+ 1 Canada location
• Air/Expedited
High Complexity & Opportunity
9
GE Appliances – OTM
10. Why OTM?
Legacy OTM
Single Global Instance
Fit with ERP+
Flexibility
Sustainability
Supportable
Area of Improvement Improvement % Improvement $
Route Decision (orders, sequence) 1.0% $377
Cube Utilization 1.0% $301
Sourcing mini-ebids 0.8% $318
Carrier Selection 0.5% $189
Business Intelligence 1.0% $377
$1,562
Advantage: OTM
10
GE Appliances – OTM
11. OTM Load Planning
From… To…
• Manual paper-based • Rules based planning
• Tribal knowledge • Scheduled Bulk Plan
• Load segmentation by user • Auto segmentation solution
• Homegrown Points system • 3D Load Configurator + Cube
Quantum Leap Change
11
GE Appliances – OTM
12. Rollout Plan
June 2011 Dec 2011 Oct 2012 April 2013
Phase 1 – Pilot Phase 1A – Expand
Phase 2 – Inbound &
Settlement
Phase 3 - International
• Master Data Gathering • Roll out all other ADCs (7) • Factory Direct • EDI w/ carriers
• Configuration of Base Workflows • Stand up Trans Intelligence • Factory Deployment • Transportation Sourcing
• Freight Rating/Routing • Develop Operational Reports • Inbound Direct Materials • Sourced Finished Goods
• Build Integration to Legacy • Get it right for Logistics • Freight Audit and Pay • Integrate with Oracle EBS
• 3D Load Configurator • Ground Schedules/Workbench • Spot Bid
• Complete process for Pilot Site
Let’s Walk before We Run
12
GE Appliances – OTM
13. Our OTM Journey… so far
June 2011
• Implementation partner and team assembled
• Phase 1 SOW finalized
• User stories gathered and prioritized
• Development began
December 2011
• Production Parallel
• Test Legacy integration
• Initial user training completed
January 2012
• Go Live for Pilot site
February – September 2012
Monthly Releases including…
• Increased functionality (User Stories)
• Additional Distribution Centers
• Upgrade from OTM v6.2.2 to v6.2.5
13
GE Appliances – OTM
14. Impact of OTM
• Standardized Processes
• Points versus Cube
• Daily Operating Visibility
• Improved Cube Utilization
14
GE Appliances – OTM
15. Building a Strategy/Lessons Learned
• Value Proposition
• External Factors
ERP system changes – dynamic or static
Competing for Funding /Resourcing
• Phased Approach
• Legacy Integration
• Custom versus Out of the Box
• Project Methodology
15
GE Appliances – OTM
19. Agenda
Unilever Mission/Background
OTM Major Benefits for Unilever
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 19
20. Unilever’s Mission
• We work to create a better future every day.
• We help people feel good, look good and
get more out of life with brands and
services that are good for them and good
for others.
• We will inspire people to take small
everyday actions that can add up to a big
difference for the world.
• We will develop new ways of doing
business with the aim of doubling the size
of our company while reducing our
environmental impact.
Confidential | For Unilever Internal Use Only 20
21. Scale and geographical reach
THE AMERICAS WESTERN EUROPE ASIA, AFRICA, CENTRAL
& EASTERN EUROPE
• €15.3 billion turnover • €12.3 billion turnover • €19 billion turnover
• 0.4% underlying • -1.2% underlying • 4.5% underlying
volume growth volume growth volume growth
• 33% of group turnover • 26% of group turnover • 41% of group turnover
2011 turnover €46.5 billion
21
23. Agenda
Unilever Mission/Background
OTM Major Benefits for Unilever
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 23
24. OTM Overview
Major Benefits
• Rate integration means true cost is considered
when OTM chooses order combinations,
Enhanced Decision shipment mode, and carrier.
Making • Enables improved operational decision-making
capabilities for transportation planners.
• Standardized processes and information flow
Uniform Inbound to optimize inbound and outbound
and Outbound transportation planning.
Transportation Flow • Enhanced visibility and control enabled by new
Unilever Inbound Logistics group.
• Unified international transportation flow across
the Americas with cross-region support model
Regional Visibility • Single repository for regional metrics/reporting
and KPI Reporting • UASCC visibility to control freight costs and
promote standardized processes.
Confidential | For Unilever Internal Use Only 24
25. Agenda
Unilever Mission/Background
OTM Major Benefits for Unilever
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 25
26. Unilever NA OTM Project Scope
NA Rollout
- Trumbull (56 users)
- Englewood Cliffs (32 users)
- 29 Plants
- 25 in US
- 4 in Canada
- 29 DC’s
- 17 in US
- 12 in Canada
- 164 Co-Packers
- 203 Carriers
- 800+ Suppliers
LEGEND
PLANT
DC
NA Center of Excellence (COE)
Confidential | For Unilever Internal Use Only 26
27. Unilever NA OTM – By The Numbers
37
Transportation 29 Plants
Planners
8766 OB
164 Co-Packers shipments 203 Carriers
tendered (Week 1)
Updated Master
$560M+ Annual
Data for 22,638
Freight Spend
materials
4,345 inbound 800+ Testing
orders (Week 1) Hours
Confidential | For Unilever Internal Use Only 27
28. Agenda
Unilever Mission/Background
OTM Major Benefits for Unilever
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 28
29. Cordillera Cross-Release Timeline
2011 2012
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan …
Mobilize NA
Analyze NA R1B OTM Pilot Apr 2012
Design NA R1B OTM NA Aug 2012
R2 Mexico Oct 2012
Build NA
R3 Brazil Apr 2013
Test NA Go live NA Pilot
R4+ ....
Deploy NA
R2+ Analyze
Design MX Roll Out Roll Out NA
Build MX
Test MX
Deploy
Design BR Roll out MX
Build BR
Test BR
Deploy
Roll out BR
Confidential | For Unilever Internal Use Only 29
30. Agenda
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 30
31. Major Milestones & Activities
Analyze/Requirements ~ April – August 2011
OTM Design ~ August – November 2011
Integrated SAP and OTM Designs
Dock Scheduling
New Inbound Transportation Process
Build ~ September – January 2012
OTM Configuration
SAP/OTM, OTM/LBC, OTM/E2Open Interfaces
Testing ~ December – March 2012, June – July 2012
Assembly Test, Product Test, UAT, Regression Test
E2Open Carrier Testing
Training ~ March 2012, July 2012
Cutover/Deployment ~ April 2012, August 2012
Confidential | For Unilever Internal Use Only 31
32. Agenda
Unilever Mission/Background
OTM Major Benefits for Unilever
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 32
33. Unilever NA OTM – Key Challenges
OTM Dock Scheduling Tool
New tool takes longer to use; multiple screens required to
schedule an appointment
Issues scheduling appointments on-time for high-volume sites
Need additional restrictions/functionality between carriers and
sites to accommodate all dock scheduling scenarios
Carrier EDI Issues
Connectivity and mapping issues that prevented some carriers
from receiving tenders via EDI in first weeks of go-live
Majority of issues encountered weeks 1-2 of go-live were resolved
Missing/Invalid Rates in OTM
Rate set-up in OTM drives carrier selection in OTM so multiple
carrier selection issues on inbound/outbound sides
Incorrect or discrepancies with Transit Times – increased work for
carriers to validate dates on tenders
33
34. Unilever OTM NA – Benefits of Pilot
The Margarine, Spreads, and Toppings (MST) pilot
allowed the project team to:
Implement a full inbound and outbound network with a
dedicated refrigerated carrier base
Implement NA network with sites in US and Canada
Implement all system connectivity and interfaces prior to
major volume coming onto the system
Address MST exception process where transportation
planning is handled on-site (rather than in Trumbull)
Identify importance of master data to new inbound
processes and formulate comprehensive plan to complete
master data updates prior to August release
Run full cycle of training and validate where gaps in training
exist for end users
Confidential | For Unilever Internal Use Only 34
35. Agenda
Unilever Mission/Background
OTM Major Benefits for Unilever
Unilever NA OTM Scope
Project Timeline
Major Milestones & Activities
Key Challenges/Lessons Learned
Future Roadmap for OTM
Confidential | For Unilever Internal Use Only 35
36. Current Focus Areas
System Integration and Performance (OTM/SAP)
Automated bulk plan timing in OTM as expected
Systems are processing quickly with minimal errors
Enhancements have been made to the Outbound Bulk Plan
queries, Performance has improved as a result
Inbound Delivery Note errors from SAP to OTM continue to
decrease; 93.8% no touch rate compared to 87% the first week
PGLS team monitoring failed integration errors and resolving with
the impacted users
EDI Set-up for Ocean shipments
International OTM work shop hosted to identify and close GAPS
Testing on EDI 300-series messages will confirm ocean carrier
connectivity with OTM
36
37. OTM Overview
As-Is and To-Be
Main differences between current TMS and OTM:
As-is To-be
Optimization through routing guides Optimization through actual carrier
and weight-based rules rates and multiple combinations
Optimization through Opt Jobs Optimization through Bulk Plans
Inbound orders entered manually in Inbound orders created as delivery
TMS; shipment status cannot be notes in SAP and sent to OTM;
tracked in SAP shipment status can be tracked in
Shipment IDs generated directly in SAP
TMS and sent to carrier and SAP Shipment IDs generated in OTM and
Electronic Data Interchange (EDI) SAP before sending to carrier
transactions are sent directly from EDI transactions are managed by
carriers to TMS E2Open before sending to OTM
Confidential | For Unilever Internal Use Only
37
39. Titre
WHO IS RONA ?
• RONA was founded in 1939.
• RONA is the largest Canadian distributor and retailer of
hardware, renovation and gardening products.
• Selling to more than 800 corporate, franchise and
affiliated stores of various sizes under several banners
and 600 independent dealers.
• $6 billions of retail sales and 20 % of the Canadian
market shares.
40. Titre
THE RONA STORE NETWORK
CANADA
17 distribution centers
899 bannered retail stores
YUKON TERRITORY 389 non-bannered distribution
Distribution center 0
Bannered stores 2
customers
NUNAVUT
Non-bannered 5 Distribution center 0 46 commercial and professional
Commercial & Prof. 0 Bannered stores 3 branches
Non-bannered 6 Nearly 30,000 employees
NORTHWEST TERRITORIES Commercial & Prof. 0
Distribution center 0
Bannered stores 4 NEWFOUNDLAND &
Non-bannered 4 LABRADOR
Commercial & Prof. 0 Distribution center 0
Bannered stores 15
Non-bannered 5
BRITISH COLUMBIA Commercial & Prof. 0
Distribution center 1
Bannered stores 94 SASKATCHEWAN
Distribution Center 0 PRINCE EDWARD ISL
Non-bannered 41
Commercial & Prof. 6 Bannered stores 31 Distribution center 0
Non-bannered 67 Bannered stores 4
Commercial & Prof. 0 Non-bannered 4
QUEBEC Commercial & Prof. 0
ALBERTA Distribution center 5
Distribution center 7 ONTARIO NOVA SCOTIA
MANITOBA Bannered stores 320
Bannered stores 93 Distribution center 3 Distribution center 0
Distribution center 1 Non-bannered 42
Non-bannered 49 Bannered stores 255 Bannered stores 20
Bannered stores 50 Commercial & Prof. 3
Commercial & Prof. 0 Non-bannered 91 Non-bannered 6
Non-bannered 65 Commercial & Prof. 37 Commercial & Prof. 0
Commercial & Prof. 0
NEW BRUNSWICK
Distribution center 0
Bannered stores 8
Non-bannered 4
Commercial & Prof. 0
40
41. Titre
TRANSPORTATION CHALLENGES
• Using a dedicated fleet (Round trip) as well as common
carriers (One way)
– Depending on costs, carrier capacity, destination and equipment
type
• Using flat rates, rates in $/KM and rates in $/Hour. TL
and LTL.
• Doing stores’ deliveries, stores’ pickups and vendors’
pickups – Multi drops and Multi pickups.
• Using of depot to consolidate store returns.
• Doing cross-docking and pooling with carriers and DCs.
42. Titre
OTHER CHALLENGES
• Working with stores’ and vendors’ calendar (delivery and
pickup window).
• Shipping from multiple Distribution Centers to the same
store, the same day.
• Having near than 1000 outside users of OTM Web
portal.
• Needing to develop interfaces with our other in-house
systems.
43. Titre
WHY IMPLEMENTING A TMS ?
• No existing transportation system except for an
Excel/Access tool for static routing and a dispatch
system.
• Volume is too big and too complex to be optimized
manually (around 125 deliveries/day and 150 pickups)
• We relied on users’ knowledge and vigilance.
• Need to optimize inbound and outbound loads together
to reduce costs.
• Need to manage volume growth and future acquisitions.
• Reduce manual processes for invoicing and data
analysis.
44. Titre
OTM SOLUTION
OTM implementation includes the following modules :
– Oracle Transportation Management
– Oracle Transportation Operational Planning
– Oracle Fusion Transportation Intelligence
– Oracle Freight Payment, Billing and Claims
– Oracle Transportation Sourcing
– Oracle Fleet Management
45. Titre
PROJECT SCOPE (Phase 1)
- Planning inbound/outbound 2 DCs
- Reporting, KPIs
- Web portal for vendors and stores
- Planning inbound/outbound 1 DC
- Reporting, KPIs
- Web portal for vendors and stores
46. Titre
FUTURE PHASES
• Fleet Management Module
• Financials (interface with Oracle EBS)
-Invoice match
-Freight payments
-Billing
47. Titre
PROJECT STEPS
• Establish our business requirements (200)
• Select a TMS
• Do a Fit and Gap analysis
• Document “As is” and “To be” processes
• Hold design sessions and CRP (Conference Room Pilot)
• Develop interfaces with in-house systems
• Configure OTM – VANILLA SOLUTION
• Test solution
48. Titre
PROJECT STEPS
• Build training material.
• Communicate to external users Login and Password to
use OTM Web portal.
• Train internal and external users.
• Go Live with solution.
• Support users after Go Live.
• CHANGE MANAGEMENT
49. Titre
WHAT WENT WRONG
• Configuration of complex carriers’ rates
– Should have work on simplification before configuring them (Too
much effort)
• Configuration of many different carriers used in different
regions
– Had to use penalty factors to force carrier assignment in some
region
• Performance – Need to trade optimization against time
of execution because of constraints of operation
• Use of Web Portal for stores to send their pickup
requests; a big change for them
50. Titre
WHAT WENT WELL
• Revision of processes is a good way to get improvement.
• Flawless Go-Live.
• Able to implement inbound and outbound planned together as well as
continuous moves.
• Still VANILLA SOLUTION.
• Improvement of cubic meter / shipment by 20 to 30 % on day 1.
• Improvement on tracking of vendors’ performance.
• Improvement on skus dimensions.
• A lot of data available for further analysis and more opportunities for
improvement to come.
51. Titre
LESSONS LEARNED
• OTM is a very sophisticated system to
configure and requires a lot of efforts
• Never underestimate the complexity
related to the integration of OTM with your
in-house systems.
• Vanilla solution still requires a lot of
configuration and parameters set up
52. Titre
LESSONS LEARNED
• Identify good business resources and
have them dedicated to the project…for a
long period of time.
• You will never communicate too much to
the different stakeholders about the
changes that they will go through.
