Today, Oracle released its Oracle Transportation Management Cloud and Oracle Global Trade Management Cloud applications to bring critical supply chain management data into a single platform. By consolidating transportation and trade information and automating these activities, organizations can reduce freight costs, ensure compliance with global trade regulations, and speed customer fulfillment.
“The global trade and logistics landscape is dramatically changing and organizations need to be able to accommodate a complex web of regulations and customer expectations for each shipment in order to be competitive,” said Derek Gittoes, vice president, SCM Product Strategy, Oracle.
For most organizations, direct materials costs represent the biggest cost for the organization, with transportation coming in second. By optimizing the shipment of goods, organizations can reduce costs while continuing to meet or exceed customer expectations. By implementing a transportation management system, organizations can generally expect to reduce freight costs an average of two to five percent although in some instances savings can be as much 10%, said Gittoes. “On the global trade side, it’s all about compliance, since no one wants to get caught shipping to people they shouldn’t be,” he added.
Users report similar results. “We now have greater visibility into shipment demands and delivery status, which means we have the flexibility to quickly re-do plans as new requirements arise,” said Sayed Al-Sayed, supply chain applications manager, at Nahdi Medical Company. “The accuracy of Oracle Transportation Management Cloud’s recommended plans and route optimizations has enabled us to increase truck utilization rates, which has allowed us to cut time on shipments, while also saving money.”
The transportation system provides real-time information on shipment routes as well as the ability to automate event handling. “If you are using our product to shipments. you can now monitor vehicles in real time and drive that visibility back into that system without any manual intervention,” Gittoes told EBN. The systems graphical diagnostics tool provides the ability to research and resolve shipping questions in real time using a visual diagnostic tool.
Using Oracle Transportation Management cloud and Oracle Global Trade Management Cloud, organizations can proactively route shipments in optimized ways considering a variety of factors including historic traffic patterns, hazardous materials, and tolls. Geofencing capabilities are also available. “People are very interesting in preventing theft and tracking chain of custody to make sure products are authentic and not tampered with,” said Gittoes. “We are able to track things even when multiple parties are involved in transportation.”
Further, it allows organizations to manage regulatory compliance from the moment an order is placed rather than allowing it to slow business during the transportation process. “When an order is taken from a customer, you can do all the trade compliance and export compliance checking up front rather than when it is going out the warehouse,” said Gittoes. The platform also supports a variety of regulatory content, including classification schemes from a variety of countries. This content allows for more accurate screening and customs declarations.
The transportation management system also includes the OTM Mobile App smart phone application to allow shift-based drivers to handle assignments while on the road.
These new applications closely integrate with Oracle Order Management Cloud and Oracle Inventory Management Cloud, the company said.
— Hailey Lynne McKeefry, Editor in Chief, EBN