Key Challenges and Lessons Learned from

Implementing OTM 6.4.1 within the Oracle

Stack for a Leading Steel Manufacturer

In collaboration with
Table of Contents

Introductions
• Speakers Transentric
• Nucor Steel
• NextGen

Key Challenges

• Multi-leg Shipping PC Miler Enhancement

• Rate Inquiry

RailInc Benefits & Considerations

• CSM and UMLER files
Questions
• CLM selection
• Demurrage

In collaboration with
Presenters
Donnie Spencer Cameron Gauntner
• Nucor Tuscaloosa – Traffic Supervisor • Capgemini Supply Chain Consultant

In collaboration with
Nucor Steel
A leading steel manufacturer that stands atop a competitive industry employs new
technology to gain the advantage.

Quick Facts
 On Fortune 500 List for 22 years
 Number 6 on Top Global Steel Manufacturers List
 Over $1.6 Billion in Revenue
 30 Steel Making Mills across the United States
 Capacity to Produce Over 28 Million Tons of Steel – 60% of U.S. Steel
Production
 Almost 20 million tons of Steel Shipped Annually

In collaboration with
NextGen – Oracle Transportation Management
A business transforming project that is changing the IT landscape of a Steel
industry leader.
People Process Technology

Business
Transformation

 Establish a scalable and robust logistics infrastructure to enable control of Logistics Operations
 Improve shipment visibility to gain more control of shipping operationally
 Accurate and robust rating capabilities
 Optimize and standardize logistics activities and resources across the enterprise
 Utilize seeded KPI reporting tools to gain visibility on areas of improvement
 Understand AP Freight Cost vs AR Freight Charges

In collaboration with
Table of Contents

Introductions
• Speakers Transentric
• Nucor Steel
• NextGen

Key Challenges

• Multi-leg Shipping PC Miler Enhancement

• Rate Inquiry

RailInc Benefits & Considerations

• CSM and UMLER files
Questions
• CLM selection
• Demurrage

In collaboration with
Multi-leg Shipping
Business Case
 Plan and execute multi-leg shipments in the case of Rule 11 and Multimodal
 Record freight costs for shipping legs individually in EBS
 On-time performance KPI reporting
Challenges
 The standard interface between EBS and OTM allows only one OTM Shipment per one
EBS Delivery
 When multiple OTM Shipments are sent for a single EBS Delivery, the existing Shipment
is overwritten by the next
Options Considered
 Only send one Shipment from OTM to EBS; first or last leg – use workflow to augment
shipment with all required information
 Enhance the standard interface to accommodate multi-leg shipping capabilities between
OTM and EBS

In collaboration with
Multi-leg Shipping
EBS OTM  One EBS Delivery creates one
OTM Order Release
Order
Delivery Trip Shipment  The OTM Order Release is
Release
planned into a multi-leg shipment

 OTM Shipments / Shipment

D1 OR1 Stops are sequenced so that
EBS knows which order to create
them in when interfaced

T1 Cost T1 S1  One EBS Trip is created for each

OTM Shipment

 Freight costs are captured

separately for each EBS Trip
T2 Cost T2 S2  Ship Confirmation is only
performed on the first Trip

In collaboration with
Multi-leg Shipping
Solution:
 Modify the standard package, WMS_TMS_RELEASE, to allow the integration of multiple
Trips for a single Delivery
 Sequence the OTM Shipment Stop numbers through workflow for multi-leg shipments
before interfacing to EBS
 EBS acknowledges the sequence of Trip Stops that are sent from OTM allowing Trips /
Trip Stops to be created in the correct sequence
Assumptions:
 EBS and OTM independently maintain intermediate shipping locations; Rail Junctions,
Transload Locations, etc.
 Ship Confirmation is only performed on the first Trip – OTM uses workflow to invoke ship
confirm processes for subsequent legs

In collaboration with
Rate Inquiry
Business Case
 Ability to estimate freight and fuel at the time of order entry to validate pre-pay credit check
scenarios and to include transportation costs at time of quote
 Estimated freight charges must be replaced with actual freight charges at the time of
shipping, except in Price Freeze scenarios
 In addition to total estimated freight cost, show contracted rate structure, specifically CWT,
as the estimated weight is subject to changes
 Ability to call Sell Side customer rates

In collaboration with
Rate Inquiry
Challenges
 The standard out-of-box API call between EBS and OTM to return freight charges is
configured from the Buy perspective, to only include Buy Side Rates and not customer Sell
Side rates.
 The charge amount returned is a sum amount of all charges, and does not break out the
base charges and accessorial charges
 The standard call does not contain contracted rate structure details, such as CWT

In collaboration with
Rate Inquiry
SO Line Details
Ship From.……..ORG-82-146
Ship To……....CUS-3043-767
EBS Weight……….……….20 TON OTM
(Order Management) Perspective………………….S
IncludeRefInfo……………....Y

Cost Details

Freight Charge Base Charge:

Charge
Amount………............................$2
Freight…..…………...$2 CWT Charge Multiplier.…………….CWT
WSH_OTM_RIQ_XML
Fuel…………………..…..25% Package Accessorial Charge:
Base Charge……...…….$400 Charge
Scalar…………….………………25%
FSC…………...…...…….$100 Charge Multiplier.......Shipment Cost

In collaboration with
Rate Inquiry
Solution: Develop a component to interpret contracted freight rates from OTM:
 Change the perspective in the RIQ RemoteQuery request from ‘B’ (BUY) to ‘S’ (SELL)
 Set the ‘IncludeRefInfo’ parameter to ‘Y’ on the RemoteQuery XML from EBS to OTM in
order to return the required data
• When this parameters is set to ‘Y’ the OTM Rate Record is also returned in the
response, which contain the Rate Cost details (e.g. $1.9 CWT)

In collaboration with
Rate Inquiry
Solution: Develop a component to interpret contracted freight rates from OTM:
 Modify the standard RIQ package, WSH_OTM_RIQ_XML, so that the data returned from
OTM in the RemoteQueryReply is staged in EBS to be used by a custom Form

In collaboration with
Rate Inquiry
Solution: Develop a component to interpret contracted freight rates from OTM:
 The custom form shows a line item breakout of the total estimated freight charges, charge
type, and the freight charge basis/rate

In collaboration with
Table of Contents

Introductions
• Speakers Transentric
• Nucor Steel
• NextGen

Key Challenges

• Multi-leg Shipping PC Miler Enhancement

• Rate Inquiry

RailInc Benefits & Considerations

• CSM and UMLER files
Questions
• CLM selection
• Demurrage

In collaboration with
Key Considerations & Benefits of
Railcar Tracking
The Rail intensive steel industry requires an integrated transportation platform for full
shipment visibility
 Centralized Station Master (CSM): contains data rail points through North
America and international areas
 UMLER Files: maintains data for more than two million pieces of equipment
used in rail service

 Car Locator Message – determining which events matter to your business

processes Rail
 Utilizing CLM events to drive process automation in OTM Shipment
Tracking
Events

 Leveraging CLM events for improved visibility into demurrage tracking

 Using OTM to manage demurrage costs

In collaboration with
Central Station Master Data
OTM requires data, such as CSM and UMLER information, in order to effectively plan
and execute rail shipments and communicate with rail carriers

Central Station Master Data

1. Railinc. provides a text file and instructions on how to parse the CSM and UMLER data
2. After formatting data into a spreadsheet, logically eliminate duplicate Standard Point Location
Codes (SPLC)
3. The file is then split into the respective OTM tables and formatted in CSV format for upload –
SPLC, Junction, Station, Junction Location, Station Location, Junction and Station Location Role
Profile
4. Collaborating with RailInc to receive data files in a more OTM friendly format

In collaboration with
Central Station Master Data
Application of CSM data
Once CSM data is loaded in OTM,
rail ship to locations must be
updated:
• Rail Station Code – for accurate
rating
• Rail SPLC – for transmitting
correct data on the EDI 404 (Bill
of lading)

In collaboration with
UMLER Data
UMLER – Universal Machine Language Equipment Register
• A full record of all railcar equipment in North America
• UMLER data is uploaded as Equipment with railcar initials, numbers, and other descriptive
details about the railcar
• Equipment is also sent as part of the EDI 404

In collaboration with
UMLER Data
Application of UMLER data
• Equipments are assigned an Equipment Type and Equipment Types are associated to Equipment
Groups
• Equipment Groups are associated to Equipment Group Profiles which are used for rating
• Car Location Messages are matched to shipments based on Equipment ID

In collaboration with
Car Locator Messages

 RailInc’s RailSight service provides tracking and tracing data, known as car
location messages (CLMs) – this data flows to OTM via XML integration. The
messages provide car locations to rail equipment owners and shippers.
 The data is used to track and trace the movement of freight and freight cars
throughout North America to ensure goods are delivered on-time or to track the
progress of their movement.
 Benefits:
 Visibility of expensive freight
 Ability to pinpoint an exact location
 Actual shipment data to increase accuracy of KPIs

In collaboration with
Using CLMs to Track Demurrage
OTM  RailInc transmits RailSight Car Locator
Message
Demurrage
Tracking Event
RailInc Created  The inbound CLM XML creates a
CLM Tracking Event in OTM

Agent Interprets  Agents in OTM interpret the Tracking

Tracking Event Event to determine if it is related to
Demurrage
Demurrage  Depending on the CLM, a Demurrage
Transaction Created/ transaction is either created or updated
Updated  Costs are calculated at the End of
Demurrage and a NFRC Shipment is
Calculate Costs at created
End of Demurrage
 An invoice is generated from the NFRC
Shipment for the Demurrage charges to
Demurrage Create and Approve be approved in OTM and then
AP Invoice Demurrage Invoice transmitted to AP

In collaboration with
Demurrage – OTM Key Components
 Also known as Car Locator Messages when it comes to the Mode of
Tracking Rail
Events  The source of data for visibility and demurrage

Agents  Agents listen for each event code and perform actions to match,
create, and/or update the demurrage transaction record

 A permanent car inventory record that is automatically created by

agents that listen to tracking events.
 The “inventory” record that is created that the business users will work
 Placement-Actual
Demurrage
with for details. • Starts Demurrage clock – depends on Rail
Transactions  The complete record of all applicable event times for the stay - the Carrier
record of dwell and free times as well as the costs associated with the
stay.  Placement-Constructive
• Starts Demurrage clock – depends on Rail
Demurrage  Set up and maintained for the business of calculating demurrage. Carrier
Rules
 Release Empty
NFRC • Ends Demurrage clock
 The “object” that is created to “hold” the charges.
Shipment  Release Load
• Ends Demurrage clock
Settlement  Invoicing and/or Reporting based on Demurrage information

In collaboration with
Table of Contents

Introductions
• Speakers Transentric
• Nucor Steel
• NextGen

Key Challenges

• Multi-leg Shipping PC Miler Enhancement

• Rate Inquiry

RailInc Benefits & Considerations

• CSM and UMLER files
Questions
• CLM selection
• Demurrage

In collaboration with
Transentric
 Transentric is a hosted service that serves as a
VAN (Value Added Network) for sending EDI
PlannedShipment EDI 404 Rail Carriers 404s to rail carriers and receiving EDI 997
acknowledgements

Transentric Electronic Data  Specific shipment details must be transmitted

OTM Interchange Value Added
Network (EDI VAN)
to rail carriers as a part of the 404 such as
Ship From, Ship To, BOL Number, Rail Car
Number, weight shipped, item description,
TrackingEvent EDI 997 etc.

 OTM Automation Agent performs validation

to ensure the 404 contains all required
information before transmission can occur

In collaboration with
Transentric
 OTM sends the information
needed to generate an EDI
404 transmission in XML
format to Transentric
 The Rail carrier will send the  A SOA program runs at a  Once the shipment is
EDI997 in EDI format to regular frequency to look for matched, OTM will update
Transentric a new XML file, process it the Shipment EDI404 status
and send it to OTM value

 Transentric converts the XML
file into EDI format and
sends the 404 to the Rail
Carrier
 Transentric converts that into
XML format, generates a
Tracking event XML and
stores
the XML file on the
FTP server
 OTM receives the Tracking
event and match it with the
related Shipment using the
OTM Shipment XID

In collaboration with
Table of Contents

Introductions
• Speakers Transentric
• Nucor Steel
• NextGen

Key Challenges

• Multi-leg Shipping PC Miler Enhancement

• Rate Inquiry

RailInc Benefits & Considerations

• CSM and UMLER files
Questions
• CLM selection
• Demurrage

In collaboration with
PC Miler Enhancement
Business Case
 Nucor uses PC Miler as its external distance engine
 Contracted freight rates with carriers are through the use PC Miler Version 25
Challenges
 If a version of PC Miler is not indicated as part of the distance call from OTM, PC Miler will
return the distance value from the latest version by default
 OTM did not have the ability to specify a specific PC Miler version when calling the distance
engine

In collaboration with
PC Miler Enhancement
Solution
 Oracle issues a patch for a service request raised by Nucor/Capgemini that enabled a new
property which allows the user to define the PC Miler Version that is required by the business

In collaboration with
Table of Contents

Introductions
• Speakers Transentric
• Nucor Steel
• NextGen

Key Challenges

• Multi-leg Shipping PC Miler Enhancement

• Rate Inquiry

RailInc Benefits & Considerations

• CSM and UMLER files
Questions
• CLM selection
• Demurrage

In collaboration with
Questions?

In collaboration with
About Capgemini
With more than 180,000 people in over 40 countries, Capgemini is
one of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2015 global revenues of
EUR 11.9 billion. Together with its clients, Capgemini creates and
delivers business, technology and digital solutions that fit their
needs, enabling them to achieve innovation and competitiveness.
A deeply multicultural organization, Capgemini has developed its
own way of working, the Collaborative Business Experience™, and
draws on Rightshore®, its worldwide delivery model. www.capgemini.com

The information contained in this presentation is proprietary. © 2016 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. 33