3PL Success Story: Oracle Cloud Supply Chain Solution

About the Customer

Customer is a 3rd Party Logistics provider that manages transportation logistics and warehouse inventory (receiving, picking, shipping). Their goal is to conquer the EMEA region with best practice methodologies and operations by servicing clients’ supply chain needs through a variety of outsourcing solutions.

Applications in Scope

1. Oracle Cloud Warehouse Management System (WMS)

2. Oracle Cloud Transportation Management (OTM)

3. Oracle Internet of Things (IoT) Fleet Monitoring

4. Oracle Integration Cloud Service (OICS)

All products were integrated with customer’s existing Oracle E-Business Suite (EBS)

About the Project​

Customer was facing four basic challenges and needed an overarching, integrated solution:

1.  Warehouse Management: Hidden costs of paper-driven warehouse operations; no visibility of specific location of inventory; uncaptured work and time costs for value-add services; and fractured workflows due to attempts to manage goods in client operating systems

2. Transportation Management: Manual transportation management process permitting super users to manage operations by themselves, allowing delays and errors in implementation timeline

3. Fleet Management: Outdated and inaccurate transportation visibility within the customer’s fleet and third-party carriers, resulting in late detection of transportation disruptions and no real-time tracking data accessible to shippers; fragmented systems unable to communicate data and business processes quickly and properly, negatively affecting fleet management and onboarding of new customers

4. Stovepipe Management Systems: Lack of integration among existing management systems, preventing shared communication of business processes, data, and operational management functions

ITOrizon Solutions and Results

Warehouse Management

ITOrizon modernized customer’s software ecosystem to include the “Best of Breed” software for each aspect of their business, including Oracle Cloud WMS, OTM, and OICS, to allow the framework in each system to respond to any future business challenges.

The implementation of Oracle Cloud WMS enables the execution of task-driven activities on RF scanning guns and improves product handling and management of inventory lot numbers and expiry dates. Robust validation of warehouse operations reduces user errors. Exact locations of inventory within the warehouse are visible in real time.

ITOrizon helped customer reach a major milestone with completion of a fully remote Go-Live of their Jeddah Warehouse, enabling expansion of their customer base and the addition of warehouses.

ITOrizon’s implementation of Oracle Cloud WMS streamlined customer’s business processes across systems, consolidated all warehouse operations within one WMS instance, and enhanced user experience for warehouse operations, providing startling improvements:

55% increase in warehouse operations

99.7% accurate inventory

79% reduction in expired products

15% reduction in lost sales

Transportation Management

ITOrizon designed transportation management services that meet customer demands for immediate timelines and provide cloud  services—all without major disruptions to customer’s business operations. Manual processes have been replaced with OTM’s automated transportation planning system that optimizes both inbound and outbound shipment plans using multiple transport modes, contract management, backhauls, eCommerce orders, reverse logistics, transportation intelligence KPIs and dashboards, driver management, and dispatch boards. The system includes the OTM Mobile app.

 Transportation management has enabled customer to integrate multiple warehouse sites on the OTM cloud services, and onboard new customers as part of their logistics operations.  Automation of transportation schedules and delivery has improved transparency, speed, and customer satisfaction, resulting in growth of customer base and savings in efficiencies on assets and resources.

Fleet Management

ITOrizon implemented Oracle’s Internet of Things (IoT) Fleet Monitoring solution with connection to the cloud, enabling customer’s DMC to track   the location of its private and dedicated fleet in real time, as well as monitor driver behavior regarding geofence violations, speeding, truck breakdowns, and idle time violations.  Using the IoT Mobile app, third party truck locations can also be tracked in real time.

The Fleet Monitoring, business-friendly dashboard highlights relevant KPIs for fleet and logistics performance and provides complete, real-time fleet visibility of shipment arrival and departure times, as well as ETAs of delays, including immediate notifications for changes due to traffic, vehicle problems, etc.

Transparency in fleet monitoring has improved efficiency in fleet management, created distribution cost savings with better managed delivery, and enhanced customer relations with more reliable service.

Systems Integration with Inversion of Control

ITOrizon recognized that the solution to customer’s stovepipe operations was the integration of their existing ERP (EBS) system with Oracle Cloud WMS and Oracle TM. A single platform was required to orchestrate data between systems and a method was needed to ease on-boarding of new customers. In addition, an entirely new fleet management system was needed.

It was imperative, however, that the implementation of these systems cause as little disruption to business operations as possible, and business functions needed to be passed to the applicable systems while maintaining and enhancing the existing business processes.

Meeting these challenges, ITOrizon installed and implemented the best-of-breed Oracle management systems (warehouse, transportation, and fleet) using a customized Oracle Integration Cloud Services (OICS) to enable harmonious communication among the systems and onboard future customers with ease.

ITOrizon first identified and vetted touch points to ensure that the correct data was mapped, then configured an OICS solution to act as orchestrator among the systems to ensure that data fed from one source is passed to all other systems in near real time.  As single-system business processes were enhanced to consider all systems in play, the ownership of warehousing and transportation management functions were shifted from EBS.  Functionality was transferred from EBS to the Oracle solutions with little disruption to ongoing business functions.

The specialized ITOrizon design philosophy avoids hard coding or rigid solutions, and provides scalable integration, easing on-boarding of new customers through configuration tables rather than hard coding of values.  The design also minimizes data touch points to allow clear delineation of processes between systems, with no overlapping of functionality from one system to another.

The transition from table-based integration to SOAP requests via OICS offers numerous ways to integrate the old and new. Since OICS is a Platform as a Solution (PaaS), new features can easily be added in the future, including automating functionality in WMS to simplify business operations across the distribution system.

With ITOrizon’s plan and implementation, customer now has a fully integrated Oracle EBS, Oracle Cloud WMS, Oracle OTM with IoT, and Fleet Management system, within which communication happens at great speed.  Customer has transitioned from a batch integration process to real-time messaging.

ITOrizon Win

Scalable Integration of Warehouse, Transportation, and Fleet Management with Complete Systems Communication

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ITOrizon is a Global Services Company that combines industry experience with technical innovation to enable our clients to achieve their Omni Channel, Digital Business, and IT Objectives. We have an exceptional understanding of both supply chain and technology challenges, and we carry great pride in resolving those problems in the right place with the right tools. 

Click here to view a related article about ITOrizon’s Supply Chain Programs’ Success Story.  

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