OTM & Transportation Financials

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#199 on the Fortune 500 ▪

Second largest U.S. Ag Cooperative ▪

Diversified Agribusiness Operations ▪

300+ Facilities ▪

10,000 Employees ▪

3,000 producer-members ▪

1,000 member co-ops Serving 300,000 producers

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Leading market positions in butter, deli cheese, and

refrigerated desserts

Leader in animal nutrition, livestock and lifestyle feed

Leading provider of agribusiness products, services, insights and

expertise

Understanding The Cost of Transportation

Transportation big driver in overall costs

– 100’s millions invested in transportation costs yearly

– Understanding and allocating these costs to a SKU level

Impacts to Business

– Budgeting and forecasting cost changes

– Visibility to cost

– Audit compliance

– Identify gaps in the process

The Tools for Measuring Costs

OTM (Oracle Transportation Management)

JDE (JD Edwards Enterprise One)

OBI (Oracle Business Intelligence)

FTI (Fusion Transportation Intelligence)

Data Warehouse

Other Business Intelligence platforms

6 6

OTM 6.2.7 Domains and Server Architecture

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Rates, Carriers, lanes, Menu, Role etc.

3 Physical Application and Web Servers

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Integration structure

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OTM 6.2 Winfield Domain

OTM 6.2 Kozy LOLK Domain

RTI

JDE Winfield 9.0

JDE Dairy8.12

RTI

OTM 6.2 Dairy LOLD Domain

OTM 6.2 LOL Corporate Domain

OTM 6.2 Feed Domain

RTI

JDE Feed XE

Strategies For Transformation

Optimize organization through systems and processes

– Implemented and standardized the Oracle Transportation

Management (OTM) system

– Develop and implement Transportation Financial Data Reporting

and next generation of KPI’s

– Standardize and consolidate business practices

Drive efficiencies and opportunities

– Leverage people, process, and tools

The Start of Our Journey..

Upgraded WinField to

OTM 6.2

Using new interface to

drive costs effectively

2010 2011

Our Transformation

Upgraded Purina

to OTM 6.2

Streamlined

Financial Reports

2010 2011 2013

Our Current State

Dairy Upgrade

FTI / BI Publisher

Measuring results

2010 2011 2013 2014

Where it starts in OTM

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Planned Transportation Cost

Allocation

General Ledger

$100 A

B

$100

Actuals Transportation Cost

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Staging Allocation

Z Table AP

AP

GL

Z Table GL

$125

$125

$125

$-100

Inquiry Tables between JDE and OTM

P560046A - Trigger Table

P560046H - Header Table

P560046D – Detail Table

P5642001 – Planned Shipment

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Financial Reports

OTM Accrual

Voucher Reports

Allocation Reports

Order Flow Reports

Out of Tolerance Report

Using OTM, BI Publisher, FTI, and

other data warehouse reports

Using BI Publisher

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FTI Dashboard for Financial Reporting

The 3 A’s

Access

Actionable

Accountable

Benefits and Challenges

Benefits

– Increase forecast accuracy

– Consistent cost measurement at SKU level

– Visibility to trends and gaps

Challenges

– Multiple reporting universes

– Business units vary on how they calculate costs

What is Next for OTM at Land O’Lakes

Leverage FTI and OBI more

Increase report functionality

– Standardize dashboards

– Use data to fix identified gaps (people, process, and tools)

Develop an upgrade strategy for future versions

– OTM

– FTI

– OBI

Photo Caption

Arial 18pt

Questions?