2014 02 Oracle in Memory Logistics Command Center SIG Call

1 Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
#ovcs
Logistics Innovation:
Oracle In-Memory
Logistics Command Center
Srini Rajagopal
Senior Director, Logistics Product Strategy
#ovcs
 Driving Logistics Innovation
Agenda
 Oracle In-Memory Logistics Command
Center
 Use Case: Rates Change Analysis
 Summary
3 Copyright © 2014, Oracle and/or its affiliates. All rights reserved. #ovcs
Driving Logistics
Innovation
Recent Headlines
NTSB says Washington state bridge collapse is wake-up call for entire
country
•May 26, 2013
Hours of Service Restart Changes to Cost Industry $189 Million a Year

•June 18, 2013
In 2012, …1/3rd of U.S.-based manufacturing executives with sales greater than

$1 billion are planning to bring production back to the United States from China
•January 2013
Three of the largest LTL carriers recently announced 5.9% rate increases,
continuing a trend of accelerating the timing of rate adjustments
•June 10, 2013
Panama Canal's Trickle-Down Port Impact

•January 2013
Your Supply Chain Is Changing
Current Demands
 Cut costs
 Improve service
 Help other teams
 Do it faster
 Do it better
 Do it with less
Adaptation and Growth
How Do You…
 Respond to disruptions and

major changes
 Enable continuous improvement
processes
 Evaluate new market
opportunities
Agility
What if you could….
 Create scenarios using real-
world data and constraints
 Quickly perform what-if analysis
 Compare results side-by-side
with meaningful metrics
Speed and Flexibility
Why hasn’t it been done before?
 Big data constraints
 “Solver” constraints
 Ease of analysis
 Network optimizers: too high level
The Oracle Solution:
Oracle In-Memory Logistics
Command Center
Innovative Applications
 Oracle’s traditional Value Chain products gain
performance benefits from Oracle Engineered
Systems
 Oracle’s In-Memory applications go beyond running
value chain applications on Engineered Systems
1. Optimized performance for better speed and scale
2. Real-time analytics
3. Transformative business processes
 Oracle In-Memory Logistics Command Center: An
innovative “In-Memory” application for transportation
management
Oracle In-Memory Logistics Command Center
What-If Planning & Simulations on Oracle Engineered Systems
Speed and
Challenges Analyze your scenarios using detailed and Solution
Simulate your operations over long horizons
Scalability accurate operational data with “big data” capabilities
Real-Time New visualization capabilities and low latency Side-by-side comparison across scenarios
Analytics ad-hoc analytics with ability to drill to complete details
Transformative Analysis of strategic scenarios with high- Multiple, parallel, near real-time planning
Business fidelity operational detail – no aggregation, enables operational what-if scenarios in the
estimation or inaccuracies involved daily business context
Process
How Does It Work?
Packaged Select data and Run

Integration
to OTM
create scenarios Scenarios
Operational
OTM
Take Action Analyze

Results
Project & Scenario Management
Scenario Management
 Create and manage multiple projects,
each with multiple scenarios
 Scenario management functions: create
new scenario, copy, apply data rules,
create and remove data
 Define associated scenario data: orders,
carriers, planning parameters, etc
 Launch planning engine and scenario
analysis dashboard
Packaged Analytics
Scenario Analysis
 Analyze plan results for each scenario
(e.g., cost metrics, utilization, network
efficiencies)
 Compare results side-by-side between
scenarios to determine which plan to
execute
 Pre-built dashboards
 Slice-dice, create your own ad-hoc
queries, dashboards
What-If Planning & Simulations
Use Cases
 Network disruptions (e.g. closed ports)
 Freight cost changes (e.g. fuel charges)
 Service provider/mode changes
 Network design (e.g. new cross-dock)
 Sustainability impacts
 Capacity forecasting
 Sensitivity analysis
 Optimization parameter tuning
 New customer profitability analysis
What-If Planning & Scenario Management
Benefit Drivers
 Reduce supply chain costs
 Increase supply chain resiliency
 Improve corporate sustainability
 Optimize network evolution
 Increase supply chain agility
 Drive new revenue and improve top-line
 Lower Total Cost of Ownership
Key Capabilities
 Stand-alone application optimized for Oracle Engineered Systems
 Ease of Use
 Support for both strategic and operational scenarios
 Packaged integration to your operational OTM environment
 Pre-built scenarios – ready for analysis
 Ability to create your own custom scenarios
 Pre-built analytics – packaged metrics and dashboards
 Ability to create your own analytics
Use Case:
Rates Change Analysis
Use Case: Rate Change Analysis
Description
 Scenario: LTL Carrier proposes increase in Rates

 Objective: Analyze impact to network and consider alternate strategies
 Action:
– Use results to negotiate with Carrier.
– Potentially implement alternate strategies to reduce impact to spend.
Approach
1. Create and run Baseline scenario to capture metrics for current

operations
2. Create and analyze second scenario to model rate increase for LTL
carrier
3. Show how OTM minimizes impact by shifting shipments to other
alternate carriers and mode (LTL to TL Stopoff, for example)
4. Create and analyze third scenario to show impact of additional capacity
from core TL carrier
5. Show that savings can be even greater if more capacity is available
from TL carrier
Results
 YFSY (LTL Carrier) has proposed 25% increase
in rates!
 Results:
– Spend on YFSY in Baseline: $192,222.43
– No change implies increase in total Transportation

spend of: $48,055.60 (~5% of total spend)
– Actual increase in operational Transportation
Spend (due to OTM optimization): $39,807.54 (4%)
– Orders shift from YFSY (LTL) to SCNN (TL) and
DELV (TL)
– Spend on YFSY decreases from $192,222.43 to
$117,298.83 (~40% decrease!)
Results
 Results:
– Most orders shift to DELV since SCNN is at
limits
– Relaxing capacity limits on SCNN causes
spend increase to drop to: $23,152.29 (2.4%)
 Action Plan
– Show YFSY that he loses market share and
revenue with rate increase to negotiate
increase down
– Procure additional capacity from SCNN on key
lanes to maximize savings
Summary
Key Differentiators
 Unlike typical “Network” solvers, Oracle In-Memory Logistics

Command Center analyzes scenarios with high-fidelity operational
detail – no aggregation, estimation or inaccuracies involved
 Simulation of operations over long horizons with “big data” capabilities
 Support for both Strategic and Operational Scenarios
 Packaged integration to operational OTM environment
Innovation
Why Oracle?
 Proven track record in logistics

innovation
 Plans are feasible and
executable with direct link to
OTM
 Ease of use
 Speed
Q&A
The preceding is intended to outline our general product direction. It is intended
for information purposes only, and may not be incorporated into any contract.
It is not a commitment to deliver any material, code, or functionality, and should
not be relied upon in making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.

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1 Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Hours of Service Restart Changes to Cost Industry $189 Million a Year

In 2012, …1/3rd of U.S.-based manufacturing executives with sales greater than

Panama Canal's Trickle-Down Port Impact

 Respond to disruptions and

What if you could….

 Create scenarios using real-

world data and constraints

 Quickly perform what-if analysis

 Compare results side-by-side

with meaningful metrics

Why hasn’t it been done before?

 Big data constraints

 Network optimizers: too high level

Packaged Select data and Run

Take Action Analyze

 Scenario: LTL Carrier proposes increase in Rates

1. Create and run Baseline scenario to capture metrics for current

– No change implies increase in total Transportation

 Unlike typical “Network” solvers, Oracle In-Memory Logistics

 Proven track record in logistics

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