Utilizing FTI to Add Value with Minimal

Customization

OTM SIG Conference

2013

Russell Young
Averitt Express
Agenda
• Averitt overview
• Averitt OTM environment
• What is FTI?
• The ‘Averitt Method’
• Examples of value-add reports
• Lessons learned
• Q&A
Averitt Overview
• Privately-held company
• Corporate offices in Cookeville, TN
• More than 140 facilities
• More than 4,600 power units (including
pickup/delivery & over-the-road)
• More than 12,000 trailers
• Non-union
• LOB’s include LTL, TL Van, TL Flatbed, TL
brokerage, dedicated, warehousing,
expedite, international freight forwarding,
and transportation management
• $950 Million annual revenue
Averitt Express, Inc.

25th largest carrier (Transport Topics)

15st largest dedicated carrier (Transport Topics)

Less than Supply Chain Integrated

Truckload Solutions
International Expedited
Truckload Services
• LTL • Dry van and • Transportation • Truckload • Freight • Ground and air
• Consolidation flatbed services Management brokerage forwarding expedite services

• Deconsolidation • Automotive, • Dedicated • Dry van, flatbed, • Portside ™ • Internal and

retail, and Contract and reefer services external assets
• Customized local consumer Carriage
solutions • Intermodal • Customs
products • Warehousing brokerage
• Nationwide
partnerships
OTM Business Strategy
• Managed TMS as part of a wider array of services
• Provide the best transportation management
technology available
• Provide a menu of services (sourcing, optimization,
execution, visibility, freight payment, reporting,
analysis, etc.)
• Multi-customer platform

Standardized implementation footprint

Customized implementation where required
• Collaboration with Averitt asset-based operations
• Cross-customer collaboration
OTM Infrastructure

OTM
Supply Chain Solutions

• Program management • OTM hosting • Integration hosting

• Customer • Security • OTM Connectivity
management • Disaster recovery • Trading partner on-
on-
• Project management • Technical configuration boarding
• Functional • Functional • Data validation
configuration configuration support • Customer integration
• Operations • Post implementation support
support

Rapid Deployment Model

The Basics
FTI is…
• FTI is the business intelligence interface that
queries an OTM Historical Database(HD)

A separate, additional data set derived from OTM
master and transactional data

• The HD is populated via the Extract, Translate, and

Load(ETL) code

• User/Role specific Reports and Dashboards

The Basics
FTI is…

• Drag and drop ad hoc query tool for organizing and

analyzing historical OTM data
• Dashboard interface for updated trend and KPI
analysis

•Service Provider •Lane •Location •Transport Mode

•Order •Shipment Stop detail

•Order detail •Tender performance
•Shipment •Claims
•Shipment detail •Shipment Events
The Basics
FTI is not
not……

• All OTM transactional data

• Real time reporting option

• FTI does not contain the same level of attribute detail

as OTM
The Averitt method
• Research the Industry

• Learn about the organization

• Probe for expected TMS value opportunities and

results

• Under promise and over deliver

Industry and organization landscape
• Industry research

Understanding non-transportation metrics allows the
introduction of other business units into the value equation

Compiling a list of industry specific metrics provides an
instant pool of reporting options

Being current on industry trends puts you ahead of the
curve on cutting edge metrics
• Learning the organization

Knowing what reporting is currently available establishes a
baseline for success

Probe for current ‘blind spots’ in data
How is value defined?
Probing questions to determine value expectations and opportunities
• What is the history behind the TMS initiative?

Why OTM?
• Who are the major players involved in driving the
initiative?

What are the areas within transportation that they expect
value from the TMS?

Engage them in the process
• What processes are expected to change, post TMS
implementation?

Are there time and/or resource savings expected?
Deploy FTI and start adding value
• Throw a wide net

Presenting FTI options across business units provides many key
leaders with reporting, as well as, educates them on the tool’s
transportation specific value

Developing multiple reports displayed in different ways gives end
users options and empowers them with final input and approval
• Success first, then ‘oohs’ and ‘ahhhs’

Prioritize the reports by how they are utilized(Operational vs
Analysis)

Meet requirements across all business units, then move to
‘value-add’ opportunities
• Cultivate a consultative environment

Create numerous opportunities for communication between
report developers and end users
The Averitt method
Transportation Sales Manufacturing Finance

•Lead time
•Cost per •Order frequency •Cost to serve
•Order fulfillment
Industry (Weight/Volume) •Order size •Accruals
•Item
research •Zone Ship/Delv •Order value •Transportation
mix/forecast
•Pool distribution •Total Sales spend

•Order fulfillment •Transportation

•Cost per lb.* •Order size
Organization •Lead time spend
•Pool distribution •Total sales
research •Item •Accruals*
•Order frequency
mix/forecast •Cost to serve

Expected results •Order size & •Transportation

•Cost per lb.* •Order fulfillment
and value add value spend*
•Pool •Lead time
opportunities •Total sales •Accruals*
distribution •Item mix
•Order frequency •Cost to serve

*Operational reporting Not available prior to OTM/FTI Value-add opportunity

FTI ‘favorites’
• Custom SQL

The ability to alter and add SQL
increases the FTI horizon
exponentially (This can’t be
overstated)
• Choices and Filters

Utilizing Choices maximizes
the data sets available in a single
report by filtering the returned
results
• Pivot tables

Pivot tables, not only increase
report performance, but also
provide flexibility
Sample value-add reports (Sales and Distribution)
Cost to serve
Table breaks down the true costs of doing business with specific customers

•Filters for WH and shipment •Formatting to display values

dates correctly
•Formulas to calculate $/cwt •Custom SQL to exclude/include
by cost type cost types
Sample value-add reports (Service Provider)
On time pickup/delivery

•Arrival vs. Appointment

•Two target lines
•Conditional bar formatting
•Data tag for percentage
value

Shipment Event compliance

•Two data sources(Appointment and Arrival)

•Missing events per stop •Blended average
Sample value-add reports (Transportation)
General statistics
Total Shipments, weight and costs by Transportation Mode

•Pie graph for concise

presentation
•Data tags showing
percentage value

•Bar graph for distinction from

previous charts
•Gridlines and labels allow the
report to stand alone

Cost breakdown by type/mode

Sample value-add reports (Sales and Transportation)
Order size vs. Freight cost per hundredweight
Double axis chart shows a correlation
between order size and $/cwt

•Two types of charting in one •Custom SQL to generate

•Filtered by various ‘choices’ fiscal period vs. month
•Totals and formatting on •Drill down into data
columns
Lessons Learned
• Begin FTI preparations from ‘day 1’

Transactional data design, with FTI in mind, can enhance
the FTI solution and minimize gaps

Deploy Dashboards alongside OTM to build equity needed
to enrich the solution
• Validate results against OTM transactional data

There are many components of the ETL process that can
contribute to misleading reporting results
• Under promise and Over deliver

FTI is a very powerful tool, but the value can be greatly
discounted by not meeting expectations, even unrealistic
ones
Q&A
 Thank You
Russell Young
ryoung@averittexpress.com