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Logistics Innovation:
Oracle In-Memory
Logistics Command Center

Srinivas Rajagopal
Senior Director, Logistics Product Strategy

OTM-SIG, July 2013

  Driving Logistics Innovation
Agenda
 Oracle In-Memory Logistics Command
Center
 Summary

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 Driving Logistics
Innovation

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 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

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• Two-thirds (63%) of EMEA companies have experienced disruption to their value
chain due to unpredictable events beyond their control in the last 12 months.

• On average it has taken 2.1 months to get back to ‘business as usual’ following
such incidents.

• The average cost to date has been £449,525 per incident per company (or
€519,838); but this is as high as £17.6M in one company (or €20.4M).
Dr. Cherry Taylor (BSc, PhD)
“Managing the Value Chain in Turbulent Times” March 2013
Dynamic Markets Limited

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 Your Supply Chain Is Changing

Current Demands

 Cut costs

 Improve service

 Help other teams

 Do it faster

 Do it better

 Do it with less

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 Adaptation and Growth

How Do You…

 Respond to disruptions and

major changes
 Enable continuous improvement
processes
 Evaluate new market
opportunities

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 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

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 Speed and Flexibility

Why hasn’t it been done before?

 Big data constraints

 “Solver” constraints

 Ease of analysis

 Network optimizers: too high level

 TMS: need for speed

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 The Oracle Solution:
Oracle In-Memory Logistics
Command Center

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 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

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 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

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 Oracle In-Memory Logistics Command Center
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

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 Oracle In-Memory Logistics Command Center
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

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 How Does It Work?

Packaged Select data and Run

Integration
to OTM
create scenarios Scenarios

Operational
OTM

Take Action Analyze

Results

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 Oracle In-Memory Logistics Command Center
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

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 Oracle In-Memory Logistics Command Center
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

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 Oracle In-Memory Logistics Command Center
Key Capabilities
 Stand-alone application optimized for Oracle Engineered Systems
 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

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 Oracle In-Memory Logistics Command Center
Key Capabilities
 Support for unlimited number of projects and scenarios
 Specify key criteria such as order sets, time duration, etc. to constrain
and shape your scenarios
 Ability to drill to operational details underlying each scenario (orders,
shipments, rates, resources, etc) for detailed analysis
 Store scenario analyses indefinitely for future reference – full-feedback
loop allows for continuous learning and improvement of strategies

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 Types of Scenarios

 Strategic Scenarios
– Enable user to determine strategies to optimize their operations for the longer term
– Analysis will typically be conducted in a separate domain/environment from the operational one
– Ability to easily reflect changes on the operational domain would be nice to have
– Value:
 Longer term, but high value!
 May need larger changes to be executed, such as a change in the network, etc
 Operational Scenarios
– Enable user to examine multiple what-if scenarios to optimize current operations
– Analysis conducted against operational, and not aggregated, data
– Ability to easily execute decisions made is critical
– Value:
 Incremental, but immediate and could add up to a significant value over time
 Usually can be effected with less effort

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 Oracle In-Memory Logistics Command Center
Scenario Examples

Strategic Scenarios

 Network Disruptions
– Question: Hurricane, earthquake hits part of
the network – how will it impact me, how
should I respond?
– Question: Port/highway closure,
crossdock/DC closure - how will it impact me,
how should I respond?
 Fuel Risk Modeling, Rate Change Modeling
 Service Provider Risk Management

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 Oracle In-Memory Logistics Command Center
Scenario Examples

Strategic Scenarios
 Network Evolution: design your logistics network
for future evolution
– Forecast, capacities, spend budgeting
 Network Route Design
 New Customer Analysis
– Model and determine impact of adding new customer
or new line of business to network
– Identify synergies with existing flows
– Determine best way to service new customer/line of
business
 Sustainability Evaluation

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 Oracle In-Memory Logistics Command Center
Scenario Examples

Operational Scenarios

 Constraint Analysis: evaluate relaxation of

various bottleneck constraints on current plan
– Time windows, compatibilities, priorities
 Algorithm Tuning
– Run multiple plans with different settings
simultaneously and choose best solution to execute
 Evaluate different objective function settings
– Least cost v/s best service v/s min carbon footprint

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 Oracle In-Memory Logistics Command Center
Scenario Examples

Operational Scenarios
 Network Routing
– evaluate alternate routings and determine
impact on solution
– Questions: What if we used different ports?
What if we allowed Intermodal as an option on
certain legs? What is the impact of alternate
crossdock choices?
 Alternate Carrier Strategies
– Relax/Enforce Carrier
preferences/capacities/commitments

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 Summary

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 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

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 Innovation

Why Oracle?

 Proven track record in logistics

innovation
 Plans are feasible and
executable with direct link to
OTM
 Ease of use
 Speed

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 Q&A

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