The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies

The Right Collaboration, Leveraging Outsourcing Services to Focus on Core Competencies

Presented By Exel and MavenWire Terrell Brown and Samuel Levin

June 22, 2009

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•  Exel Company Overview

•  Exel Glog/OTM History

•  Customer/Domain Structure Overview

•  9 Years of Challenges

•  Success Criteria for Deployment of OTM

•  Outsourcing History

•  MavenWire Model

•  MavenWire Key Successes, Challenges, and Lessons Learned

Agenda

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A global player with strongly placed divisions...

Global Business Services (GBS) Finance, Insurance/Risk, Claims Mgt, Legal, HR, Procurement, Real Estate, IT Services, Claims Mgt

DP DHL 2008

€ 54B Rev € 2.4B EBIT

220 Countries 500K Employees

Germany  Delivers mail to about

40mm households

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  $4.6 billion turnover in 2007

  $186 million EBIT in 2007

  41,000 employees

  Operations focused in six countries

  Over 90 million square feet operated

  Over 925 tractors, 3325 trailers and 370 straight trucks

Exel Supply Chain Americas

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•  Six Industry Verticals: Retail, Consumer, Life Sciences, Auto, Chemical/Industrial, Technology

•  Sector Leaders - Responsible for operations and sales in North America and market development in Latin America

•  Latin America operations and sales are delivered by country management working with Americas sector leaders

•  In addition, there are four product-based business units:

•  Exel Transportation – Managed Transportation, Truckload, Intermodal, LTL, and Brokerage

•  DHL Global Service Parts – service parts distribution

•  Express Logistics – time critical fulfillment

•  Exel Direct – an “in home” final mile delivery business

Exel Supply Chain Americas Structure

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Exel Transportation Business Segments & Service Offerings

•  Network Brokerage Business –  Network of over 90 Independent Business Owners (IBO’s) with national

coverage (plus Canada) –  Nationwide network of 250+ sales representatives –  Ad-Hoc and Contract Customers

•  Managed Transportation –  Classic 3PL Transportation Management –  Customer Managed Operations –  Customized solutions within multi-client Transportation Management Centers –  Specialized Logistics (Hospitality Industry)

•  Modes –  TL –  LTL, LTL Consolidation and Pool Distribution –  Intermodal –  International

•  Canada & Mexico---domestic and cross border

•  Rail & Rail Car Management programs

•  Temperature Controlled Intermodal Fleet

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Exel’s North America Transportation Customers

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Exel Supply Chain Americas OTM History

•  Exel Americas entered relationship with Glog in 2000

•  First Customers implemented in 2001 –  Started on version 2.5 –  Upgraded to 3.1 in 2002

•  OTM recognized as Global Strategic TMS Platform in 2004 –  Upgraded to 4.0 in 2004

•  Developed standard implementation model, processes, tools, and methodology

•  Implemented 4.5 for new customers in 2005

•  Upgraded 4.5 to 5.5 in 2007

•  Migrated remaining 4.0 customers to 5.5 in 2008 and 2009

•  Currently running version 5.5 CU3

•  Certification of 5.5 CU5 in progress

•  Exel Hosts OTM environment internally

•  Exel controls all integration internally

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Customer Configurations Implemented

•  Customer 1 (Chemical) –  Bulk Planning (Buy no Sell) –  Rate Preferences, –  Execution, Track & Trace, Milestones –  Actuals –  Freight Pay in Process –  Integrated with External WM, Carriers,

and Freight Pay Audit

•  Customer 2 (Retail) –  Bulk Planning (Buy No Sell) –  Cross-dock Planning –  Schedule based planning –  LTL Trailer Building (Shipment Groups) –  Integrated with Internal WM

•  Customer 3 (Consumer) –  Bulk Planning (Buy no Sell) –  Majority TL and Intermodal some LTL –  Rate Preferences –  Execution, Track & Trace, Milestones –  Freight Pay Integrated with Outsourced Audit –  Integrated with External WM, Carriers and

Freight Pay Audit

•  Customer 4 (Chemical) –  Bulk Planning (Buy no Sell) –  Outbound, Inbound, Returns –  Dock Scheduling –  Rate Preferences –  Execution, Track & Trace, Milestones –  Freight Pay Integrated with Outsourced Audit –  Integrated with External WM, Carriers, and

Freight Pay Audit

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Customer Configurations Implemented

•  Customer 5 (Mexico Chemical) –  Bulk Planning (Buy and Sell) –  Cross-dock Planning –  Freight Pay with Internal Audit –  Integrated with Internal WM

•  Customer 6 (Mexico Consumer Consolidation)

–  Parent/Child/Grandchild Domain Structure 40+ Domains

–  Bulk Planning (Buy and Sell) –  Cross-dock Planning across 40 domains –  8 Cross-dock locations (4 more by end

of year) –  Custom Dispatch with Drivers License

and License Plate verification –  Order Level POD –  Integrated with Internal WM –  VPD Profiles for Planners

•  Customer 7 (Home Delivery) –  Visibility Only (Shipment as Work SAW) –  10+ Customers, 10K+ Shipments/Consignees

per month 160K+ Events per month –  VPD Profiles for Multi Customers –  Public Track and Trace (Sign in based on

Phone Number and Zip Code no Login) –  Integrated with Internal Home Delivery

Planning TMS

•  Customer 8 (Chemical/Industrial) –  No EDI – Manual Order Entry –  BOL Creation and Auto Email –  Radioactive, Explosives and Hazardous –  Freight Pay Integrated with Outsourced Audit

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9 Years of Challenges

•  Recruiting and retaining resources with: –  OTM technical knowledge –  Transportation Management Knowledge –  Knowledge to translate business requirements into OTM

functional design –  Process knowledge to continuously improve

•  Implementing a one instance, scalable production environment

•  Maintain separate instances for testing current versions while certifying new versions

•  Clumsy, error prone process of migrating from test to production - base data, configurations, etc

•  Significant work to accommodate a release schedule with frequent updates (CUs) to features and functions

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Success Criteria for Deployment of OTM

•  Implementation –  Business Process knowledge –  Application expertise –  Design efficiency –  Technical Administration –  Quality Assurance –  Project Management

•  Daily User Support Level 1 (answer phone/email) to Level 2 - diagnose/fix problem to Level 3 - Metalink“

–  Detailed process and application knowledge –  Standard application support procedures –  Day to Day user interaction –  Incident Management tools to support SLA’s and provide visibility to

workflow and progress of incidents and requests

•  Continuous Improvement –  Processes to certify and deploy new releases –  Change Management Effectiveness –  Improvement Action Plans by customer to ensure continuity of solution

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Project Types

•  New Customers

•  Migration of existing customers from Legacy TMS (Non-OTM)

•  Upgrades to New releases

•  Continuous Improvement

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Exel’s Objective to Outsourcing

•  The following slides will show the changes we’ve made in our implementation and support model throughout the course of 9 years to meet our ultimate objective to

–  Maximize our use of the OTM product to support our core competency of Supply Chain Management

–  Streamline Implementation timelines –  Improve on-going Support Service Level Agreements –  Keep costs as variable as possible

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Project Team Project Sponsor

Solution Delivery SC3 Support IT PM Operations

Owner

Integration Analyst Operations Lead

Business PM

Solution Delivery Manager

Solution Delivery Analyst

Implementation Systems Analyst

Implementation Support

Integration Mapper Operations Users

Operations Systems Analyst Integration Mapper

Carrier Management Financial Owner

Financial Lead Financial Analyst

The specified roles of a project team are the areas in which Exel has considered for Outsourcing.

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Exel Outsourcing History 2000 – 2002 Glog

Requirements Gathering

Project Management

Go Live Support

Migration To Production

Training

Testing

Data Loading

Technical Configuration

Functional Configuration

Design

Ongoing Support

Shared

Outsource

Internal

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Overview of Model 2000 – 2002 Glog cont…


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

• Glog Project Manager

• Glog Systems Consultants

• Exel Business Operations

Benefits

• Most knowledgeable Resources of the product

• Direct communication to Glog developers through our Consultants

Why we changed

• Expensive

• Resources knowledgeable of product, but not of our business and processes

• Resources changed often causing a learning curve of our business

• Resources did not always have knowledge and experience in the functionality we use

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Exel Outsourcing History 2002 – 2004 Glog and CGEY


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

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Overview of Model 2002 – 2004 G-log & CGEY cont…


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

Recap of Outsourced Model

• CGEY Project Manager

• Glog Systems Consultants

• CGEY Consultants

• Exel Business Operations

• Exel Support

Benefits • Most knowledgeable Resources of the product • Direct communication to Glog developers through our Consultants • Experienced Consultants to help drive processes and documentation

Why we changed • Expensive • Resources knowledgeable of product, but not of our business and processes • Resources changed often causing a learning curve of our business • Resources did not always have knowledge and experience in the functionality we use

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Exel Outsourcing History 2004 – 2006 All Internal Resources


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

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Overview of Model 2004-2006 All Internal Resources cont…


Project Management

Go Live Support


Training

Testing

Data Loading

Configuration

Design

Ongoing Support

Shared

Outsource

Internal

• Exel Support – Memphis, TN

• Exel Solution Delivery – Varied Locations

• Exel Project Managers – Varied Locations

Benefits

• Knowledgeable Resources of the product, the business and the processes

• Less expensive resources

Why we changed

• Turnover in Resources (Training Ground for Consultants)

• Overloaded Resources

• Difficult to maintain customer satisfaction and SLA’s

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Exel Outsourcing History 2006 – 2008 Cambridge


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

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Overview of Model 2006 – 2008 Cambridge cont…


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

Cambridge Resources

• Manager

• Onsite Analyst

• Offshore Support Analyst

• Offshore Development Analyst

• Offshore Flexible Resources

Benefits • Bench strength of resources to leverage offshore

Why we changed • Limited Knowledge of full functionality of OTM • Limited knowledge of business and processes • Language Barrier • Time Difference

Exel Resources

• Solution Delivery

• Support Analyst

• Project Managers

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Exel Outsourcing History July 2008 – Present MavenWire


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

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Overview of Model July 2008 – Present MavenWire cont…


Project Management

Go Live Support


Training

Testing

Data Loading



Design

Ongoing Support

Shared

Outsource

Internal

MavenWire Resources

• Manager

• Support Resource

• MavenWire Developers and Consultants

Benefits • Very strong product knowledge and relationship with Oracle • Mavenwire's hosting service provides technical insights that none of the other companies have • Great insights into future product direction • Good value for money spent • Smooth and rapid transition from implementation to Support

Challenges to date • 24x7 support for level 2 diagnosis and remedy within SLA has been challenging • Follow-up and continuous improvement to assess root cause and eliminate is still evolving

Exel Resources

• Solution Delivery

• Support

• Project Management

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MavenWire Standard Engagement Model

OTM Development

XSL, Reports, PL SQL, ETC

Development Team

OTM Consulting

Business Process Config,

Integration

Functional / Technical

Consulting

OTM Support

Application Configuration

Issues, Stability Issues

Technical Support

OTM Hosting

Environment Assistance

Hosting Services

OTM Data Maintenance

Rates, Locations,

and Product Updates

Managed Services

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MavenWire / Exel Engagement Model

MavenWire Support

OTM Development

Data Maintenance

Support & Hosting Services

Consulting Services

Benefits

•  A single point of contact into both MavenWire and Exel streamlines communication

•  Provides Management visibility into all work streams

• Easier to manage

• Expert OTM resources

• Availability of MavenWire technical resources to assist with complex issues

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Key Successes, Challenges, and Lessons Learned

•  MavenWire Support is based on Key Glog/Oracle Tech Support resources, that had prior knowledge of Exel business and processes

•  Resource Changes at the User and Management Level –  Important to have buy-in and support at the executive level –  As key team members change, re-defining roles and

responsibilities is difficult

•  Proper Communication between Organizations –  Schedule regular meetings to stay apprised of major

milestones, challenges, and changes on the horizon –  Set Expectation and Goals –  Clearly define Roles and Responsibilities

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Thank You!!