management of static routes, driver pay & billing · management of static routes, driver pay...

Management of Static Routes, Driver

Pay & Billing

July 2013

ClearChain™ Fleet Manager

Presented by:

Chirag Patel, OTM Program Manager, Penske Logistics Sanju Sethumadhavan, Senior OTM Consultant, Computer Science Corporation

Copyright © 2012 All rights Reserved.

Agenda

About Penske Logistics

Current Status of ClearChain™ Fleet Manager

Static Route Management • Key Challenges

• Introduction to ‘Master Schedule’

• Overview – Master Schedule Solution

• Key Features - Master Schedule Solution

Driver Pay Management • Introduction

• Overview – Driver Pay Solution

Customer Billing Management • Introduction

• Overview – Customer Billing Solution

Introduction

• Penske Logistics • ClearChain™ Fleet Manager


Penske is a strong, stable logistics provider based in the U.S., that operates globally…

Penske Transportation is a partnership between Penske Corporation & General Electric, and consists of both Penske Logistics and Penske Truck Leasing.

Penske Logistics provides comprehensive transportation, distribution, and related material support and border crossing services for complex, multinational companies.

Based in the U.S., Penske operates globally in Mexico, Canada, Europe, South America and Asia; Penske is a Customs-Trade Partnership Against Terrorism (C-TPAT) service provider.

Committed ownership…

Proven experience...

Regional presence...

$5.3B 2009 Revenue

$25B Penske Corp 2009 Revenue

Regional Head Offices


Penske provides service elements in all areas of supply chain including as a Lead Logistics Provider…

Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can:

> Optimize Transportation Operations

> Coordinate All Suppliers

> Integrate Supply Chain Technologies

> Synchronize Inbound & Outbound Flows

> Model and Manage Distribution Networks

The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers.

Lead Logistics Provider


Penske chose OTM to improve the efficiency of our Transportation business…

Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can:

> Optimize Transportation Operations

> Coordinate All Suppliers

> Integrate Supply Chain Technologies

> Synchronize Inbound & Outbound Flows

> Model and Manage Distribution Networks

The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers.

Lead Logistics Provider

Copyright © 2011 Penske. All rights Reserved.

ClearChain™ Fleet Manager - Scope Generally, Penske Dedicated operations are diverse & decentralized

Executable route plans created.

Resources & routes assigned

& initiated appropriately.

Resource & route information

automated & timely.

Associates paid & customers

billed accurately & timely.

Route Planning & Scheduling

Fleet Management & Dispatching

Onboard Communication

Financial Management

4,100 static routes

4,100 dynamic routes

1-30 (avg. 4) stops / route

Many route types (i.e., single leg,

multi-leg, crossdock, backhaul,

continuous move).

135 operating locations (+15

remote)

2,500 power units

2,900 drivers

350 non-driver associates

2,500 Cellcomm units (total)

90 barcode scanners

480 signature capture

< 2,900 activity based drivers

135+ customer invoices / week

20-30 centralized billing associates

Timely information availability.

Performance Management

20,000 reports (40% printed).

250-500 business object reports.

Orders ready for processing.

Customer & Order Management

50 customers (22 order based)

17,000 orders / day

1-25 (avg. 4) lines / order

95% EDI orders

20% order changes

http://web.penske.com/brand_central/images/imagery/logistics/images/sharpened_pencil.jpg


ClearChain™ Fleet Manager – Processes Opportunity to standardize processes & create synergies as appropriate

Executable route plans created.

Resources & routes assigned

& initiated appropriately.

Resource & route information

automated & timely.

Associates paid & customers

billed accurately & timely.

Route Planning & Scheduling

Fleet Management & Dispatching

Onboard Communication

Financial Management

Load configuration &

building

Static routing

Dynamic routing

Resource & appointment scheduling

Resource visibility

Resource validation & assignment

Driver management

Exception management

Tracking, visibility & information

Vehicles

Drivers

Routes, loads & shipments

Payroll

Billing

Accounting

Timely information availability.

Performance Management

Real-time data, queries & reports

Drill-down metrics

Performance dashboards

Orders ready for processing &

customers well informed.

Customer & Order Management

Order receipt

Order validation

Order changes

Order & shipment information

Account information

http://web.penske.com/brand_central/images/imagery/logistics/images/sharpened_pencil.jpg


ClearChain™ Fleet Manager – Current Status

Implementation Highlights:

• Successfully implemented OTM for 3 customers.

• Planned to implement 6 more customers by end of 2013.

• Focused on continuous design and solution improvements.

• Migrated OTM from 6.2.8 to 6.3.1 to leverage new functionalities.


ClearChain™ Fleet Manager - Ecosystem

Management of Static Routes

• Challenges • Introduction - Master Schedule • System Overview – Master Schedule • Key features – Master Schedule

Copyright © 2012. All rights Reserved.

Flexibility is a key differentiator for Penske Logistics

Penske large and diverse customer base requires supporting various order management related options.

• Receive/create order options:

• EDI from customer or LLP

• Manual (spreadsheet)

• None (regularly scheduled route)

• Plan (route) order options:

• Routed by Penske

• Content of orders (weight, volume, pallet count, etc.)

may not be known until pickup

• Routed by customer

• Flexible execution:

• Re-sequence, add, and delete stops

• Relay shipments

• Planned and un-planned backhauls

• Minimal impact on existing customers.

Master Schedule

was designed and

developed to

manage these

challenges /

requirements


Introduction to “Master Schedule”

• Master Schedule is a web-based proprietary application designed and developed by Penske to create and manage static routes.

• Using Master Schedule, the user can create ‘Static Route Templates’ and release it to generate Order Releases and Shipments (SAW) in OTM.

• To achieve more flexibility, SAW (Shipment As Work) are generated for execution and settlement purpose.

• Master Schedule is designed to accept inputs in various formats to create order templates:

•Manual Entry. •Spreadsheet Upload. •EDI / Interfaces.


System overview – Master Schedule


Key features – Master Schedule

Order / SAW shipment details captured in one place.

•Order / Shipment Headers.

•Consolidate multiple orders into one shipment.

•Add Special Services to Orders / Shipments.

•Build Multi-stop shipments.

•Define Pickup / Delivery / NFR stop types.

•Define Equipment Group etc.,

Static Route with ‘flexible’ schedule options.

•Flexibility to have weekly schedule with different dates.

Build “Quick Routes”

•Adhoc Shipments

Scheduler functionalities

•Run Scheduler to create Orders and Shipments

•Update / Delete / Deactivate / Copy – Schedules


Master Schedule - Template Creation Process

Shipment ID in OTM

Equipment Group ID

Stop Types Schedule for the week


Master Schedule - Order / Shipment Creation Process

Options to change the times

Driver Pay Management

• Introduction • Overview of the solution



• Penske’s driver settlement is managed using OTM & Oracle Incentive Compensation (OIC) applications.

• Driver Work Invoices are generated in OTM after the delivery of the shipment and after the completion of the validation workflows which involves Drivers and Dispatchers.

• Upon completion of the shipment; the Driver can validate and authorize the shipment details using the mobile device.

• Closely controlled automated / manual workflow processes are set in place to avoid data and shipment related issues.

• Penske has built its proprietary integration processes to integrate Driver Work Invoices from OTM to OIC.

• The custom interface is designed to manage work invoice revisions, cancellations and deletions.



• Penske has got complex driver payroll structures which are configured as part of OIC application.

• The solution is designed to capture most of the information as part of the shipment to facilitate error free payroll processing like:

•Driver Type •Customer / Location / DCC classifications •Backhaul information •Yard Works •Reposition tasks etc.,

• Shipment Special Services play a vital role in Driver Pay management and are managed more efficiently using ‘Customer Billing Portal’.


Overview – Driver Pay Solution

Customer Billing Management

• Introduction • Overview of the solution


Customer Billing Management

• Penske’s customer billing requirements are met using OTM’s SELL side shipment functionality.

• The solution is designed to manage the financial requirements of fixed & variable customer billing rates.

• The customer billing rates are based on BUY side ACTUALS & SPECIAL SERVICES and hence Penske follows an unique design to generate SELL Side Shipments.

• SELL Shipments are not planned from Order Releases. There are workflows and integration processes which converts the BUY shipment into a SELL Shipment.

• The solution is also designed to manage updates happening on BUY side after the SELL is generated and integrated with external systems.

• Penske has also developed ‘Customer Billing Portal’ by which the user adds, updates and removes special services on BUY Shipments which will be later propagated to SELL Shipments.


Overview – Customer Billing Solution


Q&A

Presenters: Chirag Patel, OTM Program Manager, Penske Logistics [email protected] Mobile: +1.216.288.6040

Sanju Sethumadhavan, Senior OTM Consultant, CSC [email protected] Mobile: +1.920.819.2117

mailto:[email protected]

mailto:[email protected]

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