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Unilever implemented Oracle Transportation Management (OTM) to standardize and optimize its North American inbound and outbound transportation processes. The multi-year project involved rolling out OTM to 29 plants, 29 distribution centers, 164 co-packers, and over 800 suppliers across the US and Canada. While the implementation faced some challenges around dock scheduling, carrier EDI connectivity, and rate data issues, the initial pilot helped address many of these. Current focus areas include improving system integration between OTM and SAP, setting up EDI for ocean shipments, and leveraging OTM's optimization capabilities.

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Inspiring Value Chain Advantage Oracle Transportation Management (OTM) Customer Panel Discussion CON8766 October 4, 2012 Copyright © Inspirage 2012 Private and confidential. All rights reserved Inspiring Value Chain Advantage
OTM Panelists • Owen Parry – GE Appliances – OTM Program Manager • Colin MacDonald – Unilever – Logistics Manager • Esther Lavertu – Rona – Director Logistics Copyright © Inspirage LLC, 2012 Private and confidential. All rights reserved Page 2 Inspiring Value Chain Advantage
GE Appliances Implementation of Oracle Transportation Management Owen Parry OTM Program Manager 10/04/2012
OTM for GE Appliances • About GE Appliances • Why OTM? • Our OTM Journey • Lessons Learned • Next Steps 4 GE Appliances – OTM
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
Enjoying the spotlight… Super bowl ad/digital campaign Annual Report GeoSpring launch Front page on GE.com
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.
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
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
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
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
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
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
Impact of OTM • Standardized Processes • Points versus Cube • Daily Operating Visibility • Improved Cube Utilization 14 GE Appliances – OTM
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
How? WATERFALL AGILE 16 GE Appliances – OTM
OTM Next Steps • Transportation Intelligence • Freight Audit & Pay • Supplier Interface • Integration to EBS 17 GE Title or job number
Unilever OTM Implementation – Project Overview October 2012 Confidential | For Unilever Internal Use Only
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
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
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
Big Global Brands 22
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
RONA 2012 TMS Implementation Esther Lavertu, Logistics Director
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.
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
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.
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.
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.
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
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
Titre FUTURE PHASES • Fleet Management Module • Financials (interface with Oracle EBS) -Invoice match -Freight payments -Billing
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
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
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
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.
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
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.
THANK YOU! 53
Quesitons? Copyright © Inspirage LLC, 2012 Private and confidential. All rights reserved Page 54 Inspiring Value Chain Advantage

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Otm con8766 pdf_8766_0001

  • 1. Inspiring Value Chain Advantage Oracle Transportation Management (OTM) Customer Panel Discussion CON8766 October 4, 2012 Copyright © Inspirage 2012 Private and confidential. All rights reserved Inspiring Value Chain Advantage
  • 2. OTM Panelists • Owen Parry – GE Appliances – OTM Program Manager • Colin MacDonald – Unilever – Logistics Manager • Esther Lavertu – Rona – Director Logistics Copyright © Inspirage LLC, 2012 Private and confidential. All rights reserved Page 2 Inspiring Value Chain Advantage
  • 3. GE Appliances Implementation of Oracle Transportation Management Owen Parry OTM Program Manager 10/04/2012
  • 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
  • 6. Enjoying the spotlight… Super bowl ad/digital campaign Annual Report GeoSpring launch Front page on GE.com
  • 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
  • 16. How? WATERFALL AGILE 16 GE Appliances – OTM
  • 17. OTM Next Steps • Transportation Intelligence • Freight Audit & Pay • Supplier Interface • Integration to EBS 17 GE Title or job number
  • 18. Unilever OTM Implementation – Project Overview October 2012 Confidential | For Unilever Internal Use Only
  • 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
  • 38. RONA 2012 TMS Implementation Esther Lavertu, Logistics Director
  • 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.
  • 54. Quesitons? Copyright © Inspirage LLC, 2012 Private and confidential. All rights reserved Page 54 Inspiring Value Chain Advantage