Complex Rate Configuration in OTM

Mohan Subramanian & Shreenivasan Sukumar

OTM SIG Conference, APAC

Dec 9-10, 2015

Agenda

Contents 2

Arbitrary Rates

THU & Slab Rates

Marginal Rates

Discount Rates

Introduction

Infosys Overview

3

4

More than 160,000 employees from 98 nationalities

Operations across 40 countries

North America17 sales offices, 18 Development

Centers in North and South AmericaEuropeOffices and Development

Centers across 20 countries

Monterrey, MexicoDelivery Center

Belo Horizonte, BrazilDevelopment Center for IT &

BPO Sales Office for LATAM

Shanghai, ChinaDevelopment Center

IndiaOffices and Delivery Centers

across 13 cities. Global HQ

Tokyo, Japan

Development Center

AustraliaOffices and

8 Development Centers

Hangzhou, ChinaDelivery Center, Asian & Euro

Languages, Specialized Services

Manila,

PhilippinesCustomer Service

All numbers provided are for Infosys & its subsidiaries

& updated as of March 31, 2014

Our Global Footprint to support Service Delivery across the world

5

OTM – Our Competency & Solutions

OTM

Offerings

CompetencySolutions & Value Adds

Customer Engagements

End to end industry specific

offerings Freight Forwarder,

Shipper, Retail, CPG etc.

Accelerators – pre built templates,

questionnaires, videos, process

maps/flows, Mass Upload Tool

Custom Solutions –

Google Map Integration

Shipping Controls

Date Logic

OTM On the Move

Successfully engaged in multiple

OTM programs

Several papers presented in OTM

SIG & other forums (Details in

Appendix)

Pool of 150 consultants &

Logistics SMEs with a

combination of functional,

technical & integration experts

(Details in Appendix)

Expertise in integration of OTM

with 3rd party systems & Oracle

EBS using EDI & SOA

middleware

OTM 6.3.x installed on exa-data

machine & IBM AIX platform

Services include

implementation, upgrade,

migration, Cloud assessments,

Support & Health Checks

Multiple options in

Implementation and Extended

Support based on Customer

needs

Introduction

Cloud Certified

Rating Session

• We all know OTM is quite robust in rating

• During /After planning

• Single leg to Multi-legs

• Multiple Modes all the way from Ocean/Air to Parcel

• Any Value added service

• Box to multiple equipments

Objective of this session is to showcase How ‘out of box’ rate configurations can be effectively used thus avoiding complex store procedures or any work around

Agenda

Contents 7

Arbitrary Rates

THU & Slab Rates

Marginal Rates

Discount Rates

Introduction

Case Study1 : Arbitrary Rating

• From OTM parlance, it is one rate all the way from source to definition, even

though it is multimodal

Source Destination

Advance leg

Beyond leg

Primary leg

Case Study1 : Arbitrary Rating

• Freight forwarder takes ownership Door to Door

• Freight forward executes the shipment multimodal

• Shipper is interested in calculating right cost end to end

• Challenge is to have one rate record covering all the legs• Normally Complex Store procedures were used to handle the rates after planning

• Can be easily achieved using standard configuration

Setup : Rate offering lane special service

• Advance and Beyond leg rates were captured using Rate offering lane special

service which is linked to respective rate offering

Setup : Special Service

• Advance and Beyond leg cost is defined in special service as accessorials and linked using rate offering lane special service

Setup : Primary rate

Rate record is created for the main leg with the primary cost

Order release Created Source to Destination

Order is create from source to destination location (Chennai to Sydney)

Shipment stops 1 to 4

Shipment Created with Stops Chennai -> Port of Chennai ->Port of Australia ->Sydney

Shipment cost for Arbitrary rates

The shipment cost shows the base cost value which is main leg cost from Port to port, advance and beyond legs cost were displayed with the respective accessorial/special service code

• Single shipment

• Easy maintenance of rates

• Planning with desired carrier

• Accurate cost

• Cost optimization

Agenda

Contents 16

Arbitrary Rates

THU & Slab Rates

Marginal Rates

Discount Rates

Introduction

Case Study 2: Rating based on THU & Slab

• Rates based on Transport handling unit Example:

Pallet, Carton, Box etc.,

• Carriers charge rates based on THU count

• Normally, Store procedures and refnums were used

• Can be achieved easily using OTM Standard

Configurations

Contract negotiations of Pallets with Slabs

Item type Count( From ) Count (To) RatePALLET 0 15 $1,150.00 PALLET 16 30 $1,700.00 PALLET 31 45 $2,800.00 PALLET 46 60 $4,200.00 PALLET 61 75 $5,000.00

Setup: Rate Record for THU

The condition for THU with Total number of ship unit helps rating engine to give the expected cost

Setup: Rate unit break profile

20

Rate unit break profile defined for Pallet count and the cost is defined for the

respective slab

Output : THU + Slab rate cost calculation

For a shipment having say 30 pallets, the cost is calculated @$1700 based on the slab

Agenda

Contents 22

Arbitrary Rates

THU & Slab Rates

Marginal Rates

Discount Rates

Introduction

Case study 3: Marginal unit cost rating

Marginal rating : Need ability to add unit cost along with slabs beyond certain limit

For example: Shipment weight = 150 kgStandard Cost = $10.45

Unit Cost = $0.13x 50 = $6.5Total Cost = Standard Cost + Unit Cost

= $10.45 + $6.5 = $16.95

Standard rate Slab rate

(0-500) 101-500Kg 501-1000kg 1001-5000kg 5001-7000kg 7001-9000kg 9001-12000Kg

$10.45 $0.13 $23.35 $41.34 $61.55 $108.00 $130.00

• Normally, Store procedures and refnum’s were used

• Can be achieved easily using OTM Standard functions

Setup : Rate Record – Marginal Cost

The marginal rates setup is explained with ‘Calculate as marginal cost’ check box enabled

Setup of weight break for Marginal rate

All the conditions were applied in a single rate Record to meet the expectation

Output of Marginal rate calculation

The input weight is given as 150KG, the base rate is applied for 100kg and for additional 50kg marginal rate is applied as expected.

Total Cost = $10.45 +$ 6.5 = $16.95

Agenda

Contents 27

Arbitrary Rates

THU & Slab Rates

Marginal Rates

Discount Rates

Introduction

Case Study4: Applying multiple Discount

rates

The requirement is to apply multiple discounts for a given service customer with different rate condition.

For Example: Cost of Shipment = Discount of 50% to be applied from base cost and additional 45% discountfrom shipment weight for the customer

Service CustomerDiscount on Standard

Discount on Freight

COU ABC 50% 45%

Setup of rate cost condition

The rate cost is configured in a sequence of base cost+50% Discount+$1.5 per shipment Weight, apply 45% discount alone in shipment weight

Output of Discount rate calculation

Input Value = 1kgDiscounted Standard Cost = Standard Cost – Discount@50%

= $30-$15= $15

Discounted Freight Cost = Freight Cost – Discount@45%= $1.5 - $0.45= $1.05

Total Cost = Discounted Standard Cost + Discounted Freight Cost

= $15 +$1.05= $16.05 AUD

Summary

Handling Various Scenarios of Complex rate configurations can be done using standard rate configurations itself

Use of Planning engine for calculation of rate cost and hence right Carrier

Accurate Calculation of Costs

Scalable and Simple Configurations

Business Configurable and No IT intervention

Easy to troubleshoot the rate issues if any.

Prevents performance issue like objects locks

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