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Oracle SIG August 11th 2014
Integrating OTM With SAP
Architect Specialist: Akta Srivastava
Lead Architect Specialist: Alok Chandra
Sr. Supply Chain Expertise Manager: Laura Wilkinson
Freight Global Business Process Specialist: David Pavlik
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Agenda
Project Background
OTM/SAP Background
High Level Architecture for Carrier Selection and
Freight Payment
Design Approach
Rate Management Utility
Lessons Learned
Questions
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Project Background
• Dow is migrating from the SAP R/2 System to SAP ECC
6.0
• OTM implementation became a part of the NEA project
in 2013
• OTM for Carrier Selection and Freight Payment
implementation:
• Europe on May 1st, 2014
• North America on August 5th, 2014
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OTM/SAP Background
• Dow’s core ERP system is SAP ECC, including modules:
• Sales Order processing
• Purchase Order processing
• Standard SAP Route and Route Determination
• SAP Freight Rating (Latin and Pacific regions only)
• OTM provides the following advantages:
• Ability to calculate freight based on Load meter (amount of truck/trailer length used)
• Ability to allow for minimum and maximum prices in case of percentage surcharges
• Ability to settle shipment cost & post freight invoices at the condition level
• Ability to perform freight simulations, which provide all applicable freight components
for a given scenario
Integrating OTM with SAP ECC enables DOW to leverage the best of both systems.
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High Level Architecture Carrier Selection
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Ship-From Location
Ship-To Location
Shipping Condition
Transportation Group
Material(s)
Material Freight Group(s)
Weight
Volume
Delivery Date
Carrier(s)
Transport Mode/ShippingType
Transportation Lead Time
Transit Time (including Calendar)
Rail Route ID
Rail Contract
Rail Itinerary
Rule 11 Route
SAP OTM Real-Time PI
Connectivity
• Sales Order Line
Item
• STO Purchase
Order Line Item
• Delivery
Rate Inquiry
(Routing)
• Rate Offering
• Rate Records
• Rate Service
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High Level Architecture Freight Payment
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Ship-From Location
Ship-To Location
Shipping Type
Carrier
Equipment
Material(s)
Material Freight Group(s)
Weight
Volume
Ship Date
Accrual Amount - Cost Details by
Base/Accessorial Charges
SAP OTM IDoc processing via PI
Shipment
Rate Inquiry (Rating)
•Rate Offering
•Rate Records
Shipment
Cost
Document
SAW Shipment
ActualShipment XML
PlannedShipment XML
Invoice Invoice Billing XML
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OTM Rate Structure – Carrier Selection and Transit
• RATE OFFERING - Represents Overall Carrier Selection/Transit
Contract by Mode (Shipping Condition/Shipping Type). Specifies
ROUTING Rate Group ID.
• RATE RECORD - Determines Carrier Selection, Transportation Arrange
Time and Rail Details (if applicable) by Geographical Hierarchy, Material
Freight Group, and/or Weight.
• RATE SERVICE - Determines Transit Time (with Calendar) by
Geographic Hierarchy.
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OTM Rate Structure – Shipment as Work (SAW)
• RATE OFFERING - Represents Overall rate offering by Mode
(Shipping Condition/Shipping Type) and Carrier. Specifies
RATING Rate Group ID.
• RATE RECORD - Determines rating by Carrier, Shipping Type,
Geographical Hierarchy, Material Freight Group, and/or
Weight/Volume.
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SAP Activities – Carrier Selection and Transit
• Call to OTM Triggered by Company Code Using Custom Table
• Carrier Selection/Transit Exclusions by Shipping Condition Using Custom Table
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SAP Activities – Carrier Selection and Transit
• Transport Mode for OTM Rate Inquiry Determined by Shipping Condition/Transportation
Group/Region.
• Limited Carrier Selection and Transit Records for Collect Orders Recommended Using
SAP Customer Pickup Routes. This can also be setup in OTM.
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SAP Activities – Carrier Selection and Transit
Sales Order/STO/Delivery Updated with Following Information:
Route
Transit Time
Transportation Lead Time
Shipping Type
Text
510-Rail Contract
511-Rail Itinerary
512-Rail Route ID
999-TMS Support Information
Carrier
Partner Functions SP, YA, YB, YC, YD, YE, YF
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OTM Activities – Carrier Selection and Transit
• OTM Attempts to ‘Rate’ Order/Delivery Through Special ‘ROUTING’ Records.
• Carrier Selection/Transit Time Rates Segregated From Actual Carrier Rates Using Rate
Group ID (ROUTING vs. RATING)
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OTM Geographic Hierarchy
• United States and France Examples Shown Below. Low Rank Number (2) Indicates
Most Specific. Carrier Selection Records Can Be Loaded Using Various Address
Components.
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OTM Rate Offering - Carrier Selection and Transit
• Sample Rate Offering for Rail (Shipping Condition 07/Shipping Type 04)
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OTM Rate Record - Carrier Selection and Transit
• Sample Rate Record for Rail (Shipping Condition 07/Shipping Type 04)
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OTM Rate Record - Carrier Selection and Transit
• Sample Rate Record for Rail (Shipping Condition 07/Shipping Type 04)
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OTM Rate Record - Carrier Selection and Transit
• Sample Rate Record for Rail (Shipping Condition 07/Shipping Type 04)
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OTM Rate Service - Carrier Selection and Transit
• Sample Rate Service for Rail (Shipping Condition 07/Shipping Type 04)
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SAP/OTM Carrier Selection Interface
Real-time Rate Inquiry Through PI
Key SAP Fields Mapped to OTM RIQ XML
Interface Can Be Simulated Using OTM Rate Inquiry
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Why Rate Management Utility is Needed
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1. DOW has thousands of products shipping to various customers using
several different modes of transportation
2. Logistics Purchasing negotiates contracts and rates based upon the
mode of transportation
3. The business was only able to query large blocks of raw data in a
standard Oracle format
4. The business cannot use the data downloaded from Oracle as rate
formats are specific
5. Download/querying in OTM during production hours could potentially
impact performance, as Dow has millions of records
6. Need to execute the shipment simulations on mass level rather than
individually
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What is Rate Management Utility?
Several Rate & Carrier Selection Templates were strategically developed and deployed to
the DOW business.
The Business Dream
These templates can be used to upload and download data in the OTM system.
Users will only need to fill out one front page, rather then several load files to upload rates
in the system.
In the reverse, Users will be able to download rates in the same format back from OTM
using our “Rate Management Utility” tool.
Sourcing now has more flexibility with freight rates and carrier
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Additional Rate Management Utility Tool Benefits
The Rate Management Tool has been used to migrate large data for Go-Live.
Approximately 2.1 million records were loaded in less than 10 hours.
The Rate Management Tool has been used to ensure that Selection are available
in OTM
The Rate Management was used before migration to ensure success
These Exercises have allowed us to be ready to run the business on
Day One!
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Sneak Peek of Rate Management Utility Tool
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1. Upload
2. Download
3. Rate Inquiry
All the functions utilize
the .csv format for the
output file.
We prefer to get the file
back in .txt format.
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Example of front page template
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Rate Management Utility as a reporting tool
We are also using Rate Management Utility as a reporting tool. We built in
the capability to create custom reports.
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SAP/OTM Integration Challenges
Calls to OTM Rate Inquiry for Carrier Selection Captured in Transmission Manager only
as a shell. No physical document number is recorded in system.
Transmission has a status of PROCESSED or ERROR but it is difficult to trace it back to
SAP.
Need to perform Backward/Forward Scheduling in OTM (Deliver By versus Available By)
to keep in sync with SAP Available to Promise Scheduling
Multiple domain and integration user setups are needed to match various SAP ECC
clients (Development, Product Test, Staging, Performance Test, Emergency Fix,
Production)
Error reading during Rate and Carrier selection upload
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Q& A
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