TMS Star
Transportation Management Systems (TMS) are considered to be part of the Supply Chain Management (SCM) class, which, in turn, are part of Enterprise Resource Planning (ERP) systems. Although the question of the relationship of systems of different classes is rather complicated and ambiguous ...
It seems to us that the information systems market is an infinite universe, living by its own rules. Planets, stars, and entire systems appear and disappear in it, and constellations stand out for convenience of orientation. Right now we are considering the constellation SCM - systems (Fig. 1), intended for supply chain management, which are divided into SCE (supply chain execution systems) and SCP (supply chain planning systems). Supply chain planning includes solutions for forecasting, material flow planning and supply chain optimization, and supply chain execution includes warehouse management systems (WMS systems), global trade management systems (GTM systems) and transportation control systems (TMS- systems) - our brightest star in this constellation ... And somewhere far, far away, ERP shines, which in this, certainly convenient classification is actually a parallel universe (although in practice, of course, this is not so After all, the end-to-end business process leading to the bright goal of being # 1 or entering Top-10, runs through TMS and ERP, affecting CX and many other interesting points).
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What is a TMS system? This is a class of information systems that are responsible for planning and executing the physical movement of cargo through the entire supply chain. To get an idea of ​​the market for these systems, let's look at the so-called "magic quadrant" Gartner, dedicated to TMS-systems (Fig. 2).
The independent analytical agency Gartner focuses its research on those transportation management information systems that support the end-to-end management process of transport operations using various shipment schemes, including road, rail, intermodal transportation, air and sea transportation, multimodal transportation, transportation using its own or third-party vehicle fleet. In this case, the systems should work with both large and small loads, up to the level of parcels. We also note that, as a rule, companies-suppliers and consumers of transport services use TMS-solutions to manage the processes of purchasing transport services for the long-term period, planning and executing transportation and settlements with counterparties. Additional functionality is possible that can improve both planning efficiency by consolidating vehicle loading, routing, choosing the type of transportation and carrier, etc., and the quality of execution — for example, helping to carry out tenders for shipments, track shipments and reconcile calculations with counterparties.
In terms of functionality, Gartner divides TMS systems into five levels:
Interestingly, the Oracle Transportation Management system in its development went through most of the steps mentioned. Initially, at the time of its acquisition by Oracle, it was at about the third “extended” level, but by now it is already a platform for managing transportation on a global scale.
Gartner's “Magic Quadrant”, which this agency illustrates with its analytical reports on various classes of information systems, is such that niche players fall into the lower left segment, contenders for leadership are in the upper left segment, visionary players, so-called visionaries, fall into the upper left and in the upper right - the most complex systems in terms of functionality and completeness of the development strategy, i.e. market leaders. When analyzing TMS systems, Gartner explores such parameters as the “breadth” and “depth” of TMS solutions, their convenience and adaptability to the requirements of end users, the ability to support the end-to-end process of the SCE platform, the partner ecosystem, the quality and volume of implementations, the global strategy development of the decision and its conclusion to the market.
As you can see, it is Oracle Transportation Management from the point of view of Gartner that is the absolute market leader at the moment.
Each company, setting strategic business development goals for itself, sooner or later faces the challenge of choosing an information system to automate the company's activities in order to improve business efficiency, minimize costs and improve the quality of services provided. But is it enough just to automate business processes to get the expected result, or do you need to take into account other factors affecting the performance of each company?
When you choose an information system, the main customer is the company's business users, who will ultimately be the main users of the system. At the same time, it is necessary to involve the information systems department in order to understand how the future information system will be integrated into the company's integrated IT landscape.
The process of choosing an information system can be made one- or two-step. Some companies prefer to first choose a developer of an information system from the point of view of their business requirements, after which they consider its partner network to select a contractor. Other companies are trying to select both the information system provider and the contractor within the same process. There is a standard process of choosing information systems, consisting of eight stages and usually takes several months. Here are the steps.
It would seem that this is a classic process that everyone knows. Unfortunately, in practice, customers often miss the first two stages and turn directly to service providers without realizing their own requirements and analyzing the information systems market, which significantly impairs the quality of the selection process and lengthens its time frame.
But the above list would be better not to reduce, but, on the contrary, to expand. Firstly, so-called reference visits or reference calls to successful customers who have already implemented the solutions you are interested in can bring great benefit. Secondly, it makes sense to ask partners to develop demo examples according to the previously proposed scenario. But it is important to have a sense of proportion: it does not make sense to demand to include in the demo example all the functionality of the solution and all its processes. It is better to identify critical aspects for you and focus on them. The solution provider will not forget to show the most advantageous moments of its system in any demo process. You can also conduct a preliminary survey of the enterprise on its own or by partners / vendors. The result of such a survey, as a rule, is the definition of the target architecture of the information system taking into account the objectives and bottlenecks of the company's processes, the sequence of implementation and high-level evaluation of the benefits to the business. For example, Oracle has a special free pre-screening program (Oracle Insight).
Both for the preliminary market analysis and for the direct acquaintance with the decisions, you can use the “reference” list of TMS-solutions capabilities used by Gartner agency when preparing your report.
Needless to say, the Oracle solution is 100% compliant with this list, so it can be considered a list of Oracle Transportation Management functions.
Consider only the most interesting features. For example, the Oracle In-Memory Logistics Command Center tool — a strategic simulation of the transportation network — provides the means to perform quick simulations of alternative logistic network scenarios using real-world operational data, rules, and constraints. The Oracle In-Memory Logistics Command Center tool, fully integrated with Oracle Transportation Management, just allows you to optimize the performance of logistics operations, using what-if analysis (Fig. 3).
Oracle In-Memory Logistics Command Center and Oracle Transportation Management are built on a single data scheme — they manage the same regulatory and reference information, the same business objects, orders, and shipments. The Logistics Command Center loads the entire operating logistics network and loses the analysis of the “what if” scenario - for example: what if carrier rates go up by 20%.
Very nice functionality - load optimization using 3D modeling. Oracle Transportation Management contains load and orientation patterns in the trailer, allowing you to plan for optimal transport load. For example, the decision calculates how the vehicle will load, the percentage of vehicle utilization, taking into account the restrictions and rules for placing the cargo vertically or crosswise, horizontally along or across, wide or long (Fig. 4).
Tools of the basic settings of the solution allow you to configure different parameters of the user interface: language (16 languages ​​are supported), units of measure (weight, volume, length, width, speed, distance), data formats, currency, etc. The mobile version of the solution also supports local settings .
All these features are implemented by Oracle within a single platform, the solution is built on modern Internet technologies, ensuring maximum flexibility and scalability of the system.
Separately, we would like to note the availability of this solution as a cloud-based Oracle Transportation Management Cloud. In a highly competitive environment, companies are increasingly beginning to more thoroughly calculate the total cost of ownership of information systems, and many Oracle customers have already used the system subscription service, which eliminates large investments at the initial stage of system implementation, shortens the implementation cycle and minimizes the risks of system maintenance.
Attempting to begin market research already at the stage of presentation and demonstration is not the only mistake that is often encountered when making decisions. Another problem occurs when customers try to find a universal system that will solve all problems. For example, a customer may include in the list of requirements for a TMS system auxiliary functionality for the management of vehicle repairs, which is usually included in the ERP system, namely, the asset management unit of the company, maintenance and repairs.
Two more related errors are the lack of an IT strategy and the lack of coherence between the information system and the business. You cannot choose a business system — in this case, a TMS system — without involving the appropriate business unit, i.e., the logistics department. In addition, when choosing a business system, you need to understand what the IT landscape of the enterprise will be after the system is implemented and how it will change in its development; moreover, you need to understand where the business of this company goes.
It should also be remembered that transportation management is an end-to-end process, so the system must support industry standards and have open interfaces for easy integration with other company systems, such as sales order execution systems, financial systems, customer relationship management systems, etc. Insufficient the elaboration of integration issues before choosing a system is the reason that in many projects up to 30% of costs may be the costs of integrating systems.
And one more serious mistake is the wrong estimate of the term for choosing a system that can be either too optimistic or, on the contrary, “rubber”. The deadline should be clear and adequate.
We hope that now you are ready to choose a TMS system, you will not repeat the mistakes of others, and you will be able to choose and implement the TMS star that will shine on your IT horizon.
It seems to us that the information systems market is an infinite universe, living by its own rules. Planets, stars, and entire systems appear and disappear in it, and constellations stand out for convenience of orientation. Right now we are considering the constellation SCM - systems (Fig. 1), intended for supply chain management, which are divided into SCE (supply chain execution systems) and SCP (supply chain planning systems). Supply chain planning includes solutions for forecasting, material flow planning and supply chain optimization, and supply chain execution includes warehouse management systems (WMS systems), global trade management systems (GTM systems) and transportation control systems (TMS- systems) - our brightest star in this constellation ... And somewhere far, far away, ERP shines, which in this, certainly convenient classification is actually a parallel universe (although in practice, of course, this is not so After all, the end-to-end business process leading to the bright goal of being # 1 or entering Top-10, runs through TMS and ERP, affecting CX and many other interesting points).
')
Magic quadrant
What is a TMS system? This is a class of information systems that are responsible for planning and executing the physical movement of cargo through the entire supply chain. To get an idea of ​​the market for these systems, let's look at the so-called "magic quadrant" Gartner, dedicated to TMS-systems (Fig. 2).
The independent analytical agency Gartner focuses its research on those transportation management information systems that support the end-to-end management process of transport operations using various shipment schemes, including road, rail, intermodal transportation, air and sea transportation, multimodal transportation, transportation using its own or third-party vehicle fleet. In this case, the systems should work with both large and small loads, up to the level of parcels. We also note that, as a rule, companies-suppliers and consumers of transport services use TMS-solutions to manage the processes of purchasing transport services for the long-term period, planning and executing transportation and settlements with counterparties. Additional functionality is possible that can improve both planning efficiency by consolidating vehicle loading, routing, choosing the type of transportation and carrier, etc., and the quality of execution — for example, helping to carry out tenders for shipments, track shipments and reconcile calculations with counterparties.
In terms of functionality, Gartner divides TMS systems into five levels:
- auxiliary,
- performance oriented,
- extended
- refined
- world scale platforms.
Interestingly, the Oracle Transportation Management system in its development went through most of the steps mentioned. Initially, at the time of its acquisition by Oracle, it was at about the third “extended” level, but by now it is already a platform for managing transportation on a global scale.
Gartner's “Magic Quadrant”, which this agency illustrates with its analytical reports on various classes of information systems, is such that niche players fall into the lower left segment, contenders for leadership are in the upper left segment, visionary players, so-called visionaries, fall into the upper left and in the upper right - the most complex systems in terms of functionality and completeness of the development strategy, i.e. market leaders. When analyzing TMS systems, Gartner explores such parameters as the “breadth” and “depth” of TMS solutions, their convenience and adaptability to the requirements of end users, the ability to support the end-to-end process of the SCE platform, the partner ecosystem, the quality and volume of implementations, the global strategy development of the decision and its conclusion to the market.
As you can see, it is Oracle Transportation Management from the point of view of Gartner that is the absolute market leader at the moment.
Decision making
Each company, setting strategic business development goals for itself, sooner or later faces the challenge of choosing an information system to automate the company's activities in order to improve business efficiency, minimize costs and improve the quality of services provided. But is it enough just to automate business processes to get the expected result, or do you need to take into account other factors affecting the performance of each company?
When you choose an information system, the main customer is the company's business users, who will ultimately be the main users of the system. At the same time, it is necessary to involve the information systems department in order to understand how the future information system will be integrated into the company's integrated IT landscape.
The process of choosing an information system can be made one- or two-step. Some companies prefer to first choose a developer of an information system from the point of view of their business requirements, after which they consider its partner network to select a contractor. Other companies are trying to select both the information system provider and the contractor within the same process. There is a standard process of choosing information systems, consisting of eight stages and usually takes several months. Here are the steps.
- Collection of requirements for the information system in which the business customer should be involved. Result: a list of business requirements for an information system.
- Preliminary market analysis using reports from independent analytical agencies and other publicly available information. Result: a preliminary list of developers, approximately 5-7 companies.
- Request information from suppliers of information systems. Result: developer responses.
- Creating the final list of candidates. Result: a list of 3-4 companies.
- Direct acquaintance with solutions. Result: making presentations and demonstrations of solutions.
- Request for commercial proposals. Result: the receipt of commercial proposals with estimates of the budget and timing of projects.
- Negotiations on the terms of the contract with suppliers and partners. Result: information to make a decision in full.
- The final choice. Result: product acquisition and launch of the implementation process.
It would seem that this is a classic process that everyone knows. Unfortunately, in practice, customers often miss the first two stages and turn directly to service providers without realizing their own requirements and analyzing the information systems market, which significantly impairs the quality of the selection process and lengthens its time frame.
But the above list would be better not to reduce, but, on the contrary, to expand. Firstly, so-called reference visits or reference calls to successful customers who have already implemented the solutions you are interested in can bring great benefit. Secondly, it makes sense to ask partners to develop demo examples according to the previously proposed scenario. But it is important to have a sense of proportion: it does not make sense to demand to include in the demo example all the functionality of the solution and all its processes. It is better to identify critical aspects for you and focus on them. The solution provider will not forget to show the most advantageous moments of its system in any demo process. You can also conduct a preliminary survey of the enterprise on its own or by partners / vendors. The result of such a survey, as a rule, is the definition of the target architecture of the information system taking into account the objectives and bottlenecks of the company's processes, the sequence of implementation and high-level evaluation of the benefits to the business. For example, Oracle has a special free pre-screening program (Oracle Insight).
Oracle Transportation Management
Both for the preliminary market analysis and for the direct acquaintance with the decisions, you can use the “reference” list of TMS-solutions capabilities used by Gartner agency when preparing your report.
- Strategic modeling and planning of the transport network.
- Purchase of transport services, the choice of suppliers.
- Incoming, internal and outgoing logistics.
- Tactical planning.
- Operational planning and optimization of transportation.
- Optimizing carrier assignments and the ability to manage interactions.
- Execution of the transport plan, interaction and coordination with carriers.
- Interaction with carriers, suppliers and customers.
- 3D download modeling.
- Calculating the cost of transportation and tariff management.
- Small sending through postal operators.
- Planning and execution of rail and intermodal transport.
- Planning and execution of the route with multiple shoulders and modes of transport.
- Dispatching and routing own transport.
- Reconciliation of invoices for transportation services, payment and distribution of costs.
- Managing the schedule of transport supply and warehouse gates.
- Tracking transport orders, shipments and event management.
- Analytics, performance management, scorecards and dashboards.
- The ability to apply local settings for different countries.
- Technical architecture, system adaptability, flexibility, usability, deployment and scaling.
Needless to say, the Oracle solution is 100% compliant with this list, so it can be considered a list of Oracle Transportation Management functions.
Consider only the most interesting features. For example, the Oracle In-Memory Logistics Command Center tool — a strategic simulation of the transportation network — provides the means to perform quick simulations of alternative logistic network scenarios using real-world operational data, rules, and constraints. The Oracle In-Memory Logistics Command Center tool, fully integrated with Oracle Transportation Management, just allows you to optimize the performance of logistics operations, using what-if analysis (Fig. 3).
Oracle In-Memory Logistics Command Center and Oracle Transportation Management are built on a single data scheme — they manage the same regulatory and reference information, the same business objects, orders, and shipments. The Logistics Command Center loads the entire operating logistics network and loses the analysis of the “what if” scenario - for example: what if carrier rates go up by 20%.
Very nice functionality - load optimization using 3D modeling. Oracle Transportation Management contains load and orientation patterns in the trailer, allowing you to plan for optimal transport load. For example, the decision calculates how the vehicle will load, the percentage of vehicle utilization, taking into account the restrictions and rules for placing the cargo vertically or crosswise, horizontally along or across, wide or long (Fig. 4).
Tools of the basic settings of the solution allow you to configure different parameters of the user interface: language (16 languages ​​are supported), units of measure (weight, volume, length, width, speed, distance), data formats, currency, etc. The mobile version of the solution also supports local settings .
All these features are implemented by Oracle within a single platform, the solution is built on modern Internet technologies, ensuring maximum flexibility and scalability of the system.
Separately, we would like to note the availability of this solution as a cloud-based Oracle Transportation Management Cloud. In a highly competitive environment, companies are increasingly beginning to more thoroughly calculate the total cost of ownership of information systems, and many Oracle customers have already used the system subscription service, which eliminates large investments at the initial stage of system implementation, shortens the implementation cycle and minimizes the risks of system maintenance.
Bug work
Attempting to begin market research already at the stage of presentation and demonstration is not the only mistake that is often encountered when making decisions. Another problem occurs when customers try to find a universal system that will solve all problems. For example, a customer may include in the list of requirements for a TMS system auxiliary functionality for the management of vehicle repairs, which is usually included in the ERP system, namely, the asset management unit of the company, maintenance and repairs.
Two more related errors are the lack of an IT strategy and the lack of coherence between the information system and the business. You cannot choose a business system — in this case, a TMS system — without involving the appropriate business unit, i.e., the logistics department. In addition, when choosing a business system, you need to understand what the IT landscape of the enterprise will be after the system is implemented and how it will change in its development; moreover, you need to understand where the business of this company goes.
It should also be remembered that transportation management is an end-to-end process, so the system must support industry standards and have open interfaces for easy integration with other company systems, such as sales order execution systems, financial systems, customer relationship management systems, etc. Insufficient the elaboration of integration issues before choosing a system is the reason that in many projects up to 30% of costs may be the costs of integrating systems.
And one more serious mistake is the wrong estimate of the term for choosing a system that can be either too optimistic or, on the contrary, “rubber”. The deadline should be clear and adequate.
We hope that now you are ready to choose a TMS system, you will not repeat the mistakes of others, and you will be able to choose and implement the TMS star that will shine on your IT horizon.
Source: https://habr.com/ru/post/265207/
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