Driving Operational Excellence

In Inbound Logistics Using OTM

Today’s Speakers

Andrew Weiderman Ashish Verma Vamshi Mowgili

Program Manager– Logistics Senior Engineer – IT Engineering, Senior Consultant – Oracle Practice,
Cisco Systems, Inc. Cisco Systems, Inc. Infosys
Contents
 Introduction

 Inbound Logistics System Flow

 OTM Capabilities Leveraged

 Business Benefits

 Q&A
About Cisco

Broad portfolio of integrated

products, solutions and services

• Worldwide leader in networking

• Founded in 1984
• FY15 revenue ~ $49.2B
• ~71,500 employees
• >380 Global Sites in165+ countries
• >180 acquisitions
• >60 Manufacturing and Fulfillment locations
• #7 in Gartner’s Top25 Supply Chain Companies in 2016 report
 Cisco Supply Chain Overview
Inbound Moves Outbound Moves
Managed in OTM
Configure-To-Order

Not Managed in OTM

PO
PCBAs Interplant
PO
DRAY
Raw Origin Destination Port/
Interplant DRAY Factory Customer
Material Warehouse Warehouse Gateway

PO Spare DRAY
Parts
Hub
Build-To-Stock

PCBA/ BTS
Raw Destination Port/
OEM/ Node Customer
Material PO PO
Warehouse Gateway
ODM
OTM System Landscape
Oracle Transportation Management External Rating Engine

Deliveries/ Bulk / Rate Inquiry

Route Transit Move Orders Shipping Load /Response
Expedite Instant
Selection Pads (Interplant) Control Consolidation
Request Plan

Review &
Mode Rate Shipment Ship Track & Audit &
Approve
Selection Shopping Creation Confirm Trace Settle
shipment
Fusion Transportation

ETL
• Order Intelligence
• Shipment
• Invoice
Web Services
• Items, • Route • Planned • Ship • Invoice
Location Inquiry Shipments confirm
• Customers • Transit • Shipment • Shipment
• Delivery Time Ack Events
• Move order • Order Mods
• PO • Actuals Value Chain
• RTS Partners

Shipping
Order Mgmt. ASCP Inventory Purchasing Financials
Execution
Inbound Logistics Business Overview
As Is +
Supplier Shipment ID
Factory Carrier
(PCBA)

Supplier Scope:

• Ready to ship signal

• Receive shipment instruction
PO Ready to Ship
Shipment ASN & External
Instruction Milestones • Prepare shipments as per
Freight Audit instruction
• Pass data to carrier with
shipment ID
Supplier Collaboration Portal & • Send ASN to Cisco
E2Open Gateway

Carrier Scope:

• Receive shipment instruction

• Send Milestone Messaging
OTM/Oracle Order • Shipment ID on Invoice to
Management External Freight Audit
Contents
 Introduction

 Inbound Logistics System Flow

 OTM Capabilities Leveraged

 Business Benefits

 Q&A
 Inbound Shipping Process
Inbound Interplant Move – Standard/Expedite
• Shipping from PCBA site to Spare Parts Hub/Factory is termed as Interplant move.
• This shipping can happen either through Standard service or Expedite service.
• There is a possibility to raise PO for Standard service and later can be requested for expedite service to
move faster in below cases:
Any item numbers that are on the ocean list would require an expedite request to move via air
Any shipment that needs to use express air
Ship methods can be constrained by PF, BU and Item number
• Factory based on request, can raise Bulk Expedite service request for a PF/BU before ‘Ready To Ship’
signal is received from PCBA

Inbound PO Move – Expedite

• Shipping from Supplier site to PCBA’s/Spare Parts Hub is termed as PO move.
• Currently, OTM is managing only expedite service for PO move’s

9
Process flow for Interplant Moves – STANDARD
1. Forecast
POs are raised
by Factory 4. Truck loaded and
sites & shipped from PCBA
3. Based on shipment Site. PCBA sites
communicated
plan, PCBA handover to handover goods to 7. Handover goods
to PCBAs
PO Carrier carrier to the Factory sites

6. Carriers send event messages

2. Based on Factory sites based on the shipping document or
Web enabled, PCBA sites would Web 5. PCBA sends the Web refer shipment plan if partners receive
Web
Service send RTS on eligible POs Service Ship confirmation to Service Carrier delivers the good to
Service
Cisco Factory/Spare part hub Site

Ready Shipment Ship Tracking

To Ship Error Plan Error Confirmation Error Events
Ack Ack Ack
Validate PO Info
& Locations. Load/Trip Planned with
Post Validation Carrier
Sent to OTM for Sent to partners via
Shipment Shipping Instruction
Planning
Ship Confirmation details sent to OTM for Tracking

Carrier events sent to OTM for Tracking

Factory/
PCBA Spare part Carrier
hubs
Process flow for Interplant Moves – EXPEDITE
1. Associate an
existing PO for
sending the Expedite
PO PO based on
Approval Id 4. Truck loaded and
shipped from PCBA 5.Carrier
3. Based on shipment Handover goods
Site. PCBA sites
plan, PCBA handover to to the Factory
handover goods to
Carrier. sites
carrier.

6. Carriers send milestone

2.Based on Factory sites enabled,
Web
messages based on the shipping
PCBA sites would send 3B2RTS . Web
Web Web Web
Service Service document or refer 3B18 if partners
Expedite Flag, Approval Id, PF &BU Service
Service Service
receive Carrier delivers the good to
is Mandatory as part of 3RTS
Factory/Spare Part Hub site

Ready Shipment Ship Tracking

To Ship Plan Confirmation Error Events
Error
Ack Ack

Validate PO Info &

Locations
Factory based Post Validation Load/Trip Planned with Carrier
on request, raise Sent to OTM for Sent to partners via 3B18
Bulk Approval Shipment Shipping Instruction
for a PF/BU. Planning
Factory
Communicates
the Approval Id
to PCBAs Ship Confirmation details sent to OTM for Tracking
Factory/
Carrier milestone is sent to OTM for Tracking PCBA Spare part Carrier
hubs
Process flow for PO Moves – EXPEDITE

4. Carrier
Handover goods to
the Factory sites
3. PCBAs Process the Expedite Delivery and Handover the
shipping doc to Carrier with delivery Id.
PCBAs handover the goods to Carrier. 5. Carriers send milestone messages
No SC is involved to be sent to Cisco for expedite process. based on the shipping document or
refer 3B18 if partners receive Carrier
delivers the good to Factory/Spare
part hub site

Tracking
1. Factories 2. Load/Trip Planned with Carrier Events
based on the PF, Sent to partners via email
BU, PCBA site
raises an
Expedite PO in
the Expedite UI.
Then
Communicates
the Expedite PO
/Delivery Id to
PCBAs to
process.

Carrier milestone is sent to OTM for Tracking

Factory/
PCBA Spare part Carrier
hubs
Contents
 Introduction

 Inbound Logistics System Flow

 OTM Capabilities Leveraged

 Business Benefits

 Q&A
OTM Capabilities Leveraged
Inbound Logistics
Domain Management Domain Management
Order Management

Shipment Management New Domain is created for handling inbound

movement
Contract and Rate Management

Tracking Events

Financials

Agent/Workflows
OTM Capabilities Leveraged
Inbound Logistics
Domain Management Order base Order Release
Order Management
Blanket/Standard PO’s are created Ready to Ship (RTS) instructions
Shipment Management as order bases in OTM which are (often called as Delivery) from
received from Order Management Order Management system are
system created as Order Releases in OTM
Contract and Rate Management
Best direct Cost is calculated for
Tracking Events every order release to capture the
standard cost (used to compare the
with expedite cost)
Financials

Agent/Workflows
OTM Capabilities Leveraged
Expedite
Inbound Logistics Shipments
Request
Domain Management Order Releases are instant An existing order can be
planned in OTM based on the requested for expedite or new
delivery date that is requested request can be raised
Order Management
An expedite approval id can be
Approved shipment plans are created for prior approval
Shipment Management sent to suppliers & carriers for approvals of future expedite
execution requests
Contract and Rate Management
Custom form was developed for
raising an expedite request
Tracking Events
Multi-level Expedite Approval
Financials Process based on expedite
cost, product and business unit

Agent/Workflows Email notification to approvers

to approve/ reject the expedite
request
Expedite Request Custom Form
Expedite Request form will be
used by Factory PM’s to raise
expedite request

An existing order can be

requested for expedite by
searching for required order
release using Search Form

New expedite request can be

raised using the custom form by
clicking ‘NEW’

Best Direct cost will be performed

on every new expedite request in
OTM by which the difference of
the cost will be send for approval
Expedite Approval Process in OTM
Expedite Request L1 Expedite Approval
 The user will use a  Approvers will be defined for
web based form to each BU, PF and receiving org
enter the request combination
 A Cisco ID is  Approvers will receive an
required to submit automated email with a link to a
requests web based approval process.
 The approval request will
provide the standard cost,
expedite cost, and cost
difference
 An auto approval threshold can
be set for each approver as well
Execution Approval
L2 Expedite Approval
Email Sent
 The L2 approval loop  The expedite request form
can be used to has a place to enter email
automate the director addresses. When an
level approval expedite request is
requirements based on approved, the system will
regional process automatically send an
 There is a threshold to approval email with full
shipment details to the
enable or bypass the
need for a second level email addresses that were
submitted with the request
approval
 For supplier (PO)
shipments the requestor is
responsible for making
sure that the delivery ID is
passed to the shipper and
carrier for allocation and
tracking purposes
Expedite Requests Lifecycle in OTM
OTM Capabilities Leveraged
Inbound Logistics Rates
Domain Management
Ocean and Air rates are created
& managed in OTM
Order Management
Special Services on Rate
Shipment Management offering defines the rates as
expedite/standard rate

Contract and Rate Management

Tracking Events

Financials

Agent/Workflows
OTM Capabilities Leveraged
Inbound Logistics
Domain Management
Order Management
Shipment Tracking
Carrier sends events to OTM
based on which shipments are
tracked till final destination

Shipment Management Sequence of events/Missing

events are tracked use milestone
monitors in OTM
Contract and Rate Management

Tracking Events

Financials

Agent/Workflows
OTM Capabilities Leveraged
Inbound Logistics
Domain Management Invoice
Order Management
Invoices are sent to OTM by
carriers which in turn matched
Shipment Management with shipments in OTM

Contract and Rate Management

Tracking Events

Financials

Agent/Workflows
OTM Capabilities Leveraged
Inbound Logistics Agents
Domain Management
Agents are used to drive the end
to end workflow in OTM
Order Management
Standard Cost and Expedite Cost
Shipment Management for an expedite request is
calculated by Agent
Contract and Rate Management

Tracking Events

Financials

Agent/Workflows
Contents
 Introduction

 Inbound Logistics System Flow

 OTM Capabilities Leveraged

 Business Benefits

 Q&A
Business Benefits

Cisco Benefits
• Shipment tracking
visibility (reliable ETA)
• Proactive cost
management visibility
• Enhanced direct freight
cost allocation
Factory/Supplier
Benefits
• Shipment tracking
visibility (reliable ETA)
• Streamlined and
integrated expedite
process
• Proactive management of
transportation
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 Thank You
Contact:

Andrew Weiderman : aweiderm@cisco.com

Ashish Verma : averma2@cisco.com

Vamshi Mowgili : vamshi_m@infosys.com