TMS star
Transportation Management Systems (TMS) are considered to be part of the Supply Chain Management (SCM) class of systems, which, in turn, are part of Enterprise Resource Planning (ERP) systems. Although the question of the relationship of systems of different classes is quite complex and ambiguous ...
It seems to us that the market for information systems is an endless universe that lives by its own rules. Planets, stars and entire systems appear and disappear in it, and constellations stand out for ease of orientation. Right now we are considering a constellation of SCM - systems (Fig. 1) designed for supply chain management, which are divided into SCE (supply chain execution system) and SCP (supply chain planning system). 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 trading operations management systems (GTM systems) and transportation management systems (TMS- systems) - our brightest star in this constellation ... And somewhere far, far away ERP shines,
What are TMS systems? This is a class of information systems that are responsible for planning and executing the physical movement of goods 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).
Gartner, an independent analytical agency, focuses in its research on those transportation management information systems that support the end-to-end transport management process using various shipping schemes, including road, rail, intermodal transport, air and sea transport, multimodal transport, transportation using our own or a third-party fleet of vehicles. At the same time, the systems should work with both large and small loads, up to the parcel level. We also note that, as a rule, suppliers and consumers of transport services use TMS-solutions to manage the processes for the purchase of transport services for the long term, planning and execution of transportation and settlements with contractors. Additional functionality is possible.
In terms of functionality, Gartner divides TMS systems into five levels:
Interestingly, the Oracle Transportation Management system in its development has gone through most of the steps mentioned. Initially, at the time of its acquisition by Oracle, it was at about the third “advanced” level, but by now it is already a platform for managing transportation on a global scale.
Gartner’s “Magic Quadrant,” which this agency illustrates its analytical reports on various classes of information systems, is designed so that niche players fall into the lower left segment, applicants for leadership fall into the upper left segment, and visionary players, the so-called visionaries, in the lower right one. and to the upper right - the most complex systems in terms of functionality and completeness of the development strategy, that is, market leaders. When analyzing TMS-systems, Gartner explores such parameters as the "breadth" and "depth" of TMS-solutions, their convenience and the ability to adapt to end-user requirements, the ability to support the end-to-end SCE platform process, the partner ecosystem, the quality and scope of implementation, global strategy developing a solution and putting it on the market.
As you can see, Oracle Transportation Management, from the point of view of Gartner, is the absolute market leader at the moment.
Each company, setting strategic goals for business development, sooner or later faces the task of choosing an information system to automate the activities of the company in order to increase 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 is it necessary 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 department of information systems in order to understand how the future information system will be integrated into a single IT landscape of the company.
The process of choosing an information system can be made one- or two-step. Some companies prefer to first choose an information system developer from the point of view of their business requirements, and then consider his partner network for the choice of a contractor. Other companies try, within the same process, to choose both the supplier of the information system and the contractor. There is a standard process for selecting information systems, consisting of eight stages and taking, as a rule, several months. These are the steps.
It would seem that this is a classic process that everyone knows. Unfortunately, in reality, customers often miss the first two stages and turn to service providers immediately, not realizing their own requirements and not analyzing the information systems market, which significantly worsens the quality of the selection process and lengthens its time.
But the above list would be better not to shorten, 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 be of great benefit. Secondly, it makes sense to ask partners to develop demos based on a previously proposed scenario. But here a sense of proportion is important: it makes no sense to require that all the solution functionality and all its processes be included in the demo example. It’s better to identify and focus on your critical aspects. The solution providers will not forget to show the most winning moments of their system in any demo process. You can also conduct a preliminary survey of the enterprise on your own or by partners / vendors. The result of such a survey is usually is to determine the target architecture of the information system, taking into account the tasks and bottlenecks of the company's processes, the sequence of implementation and a high-level assessment of the benefits for the business. For example, Oracle (Oracle Insight) has a special free preliminary examination program.
Both for preliminary market analysis and for direct acquaintance with solutions, you can adopt the “reference” list of TMS-solutions capabilities that Gartner used when compiling its report.
Needless to say, the Oracle solution is 100% consistent with this list, so it can be considered a list of Oracle Transportation Management features.
We will analyze only the most interesting features. For example, the Oracle In-Memory Logistics Command Center, a strategic transport network modeling tool, provides tools for quickly modeling alternative logistics network scenarios using real-time operational data, rules, and restrictions. The Oracle In-Memory Logistics Command Center tool, fully integrated with Oracle Transportation Management, allows you to optimize the operation of logistics operations using the “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 transportation. The Logistics Command Center downloads the entire scheme of the operating logistics network and loses the analysis of the “what if” scenario - for example: what if carriers increase their tariffs by 20%.
Very beautiful functionality - optimization of loading with the help of 3D-modeling. Oracle Transportation Management contains loading and orientation patterns for the cargo in the trailer, allowing you to plan the optimal loading of vehicles. For example, the solution calculates what the vehicle will be loaded, the percentage of utilization of the vehicle, taking into account the restrictions and rules for placing cargo vertically along or across, horizontally along or across, in width or in length (Fig. 4).
The basic solution settings tools allow you to configure different user interface parameters: language (16 languages are supported), units (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, providing maximum flexibility and scalability of the system.
I would also like to note the availability of this solution as an Oracle Transportation Management Cloud cloud service. 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 subscription system, which eliminates large investments at the initial stage of system implementation, shortens the implementation cycle and minimizes the risks of maintaining the system.
Trying to start market research already at the stage of presentation and demonstration is not the only mistake often encountered when choosing solutions. Another problem arises 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 managing vehicle repairs, which is usually included in an ERP-system, namely, in the enterprise asset management, maintenance and repair unit.
Two other 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 become after the introduction of the system and how it will change in its development, moreover, you need to understand where the business of this company is going.
It should also be remembered that transportation management is an end-to-end process, therefore the system must support industry standards and have open interfaces for ease of integration with other company systems, such as sales order execution systems, financial systems, customer relationship management systems, etc. the elaboration of integration issues before choosing a system is the reason that on many projects up to 30% of the costs can be the cost of integrating systems.
And one more serious mistake is an incorrect assessment of the term for choosing a system, which 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 can correctly choose and implement the TMS star, which will shine in your IT horizon.
It seems to us that the market for information systems is an endless universe that lives by its own rules. Planets, stars and entire systems appear and disappear in it, and constellations stand out for ease of orientation. Right now we are considering a constellation of SCM - systems (Fig. 1) designed for supply chain management, which are divided into SCE (supply chain execution system) and SCP (supply chain planning system). 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 trading operations management systems (GTM systems) and transportation management systems (TMS- systems) - our brightest star in this constellation ... And somewhere far, far away ERP shines,
Magic quadrant
What are TMS systems? This is a class of information systems that are responsible for planning and executing the physical movement of goods 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).
Gartner, an independent analytical agency, focuses in its research on those transportation management information systems that support the end-to-end transport management process using various shipping schemes, including road, rail, intermodal transport, air and sea transport, multimodal transport, transportation using our own or a third-party fleet of vehicles. At the same time, the systems should work with both large and small loads, up to the parcel level. We also note that, as a rule, suppliers and consumers of transport services use TMS-solutions to manage the processes for the purchase of transport services for the long term, planning and execution of transportation and settlements with contractors. Additional functionality is possible.
In terms of functionality, Gartner divides TMS systems into five levels:
- auxiliary
- performance oriented
- extended
- advanced
- global platforms.
Interestingly, the Oracle Transportation Management system in its development has gone through most of the steps mentioned. Initially, at the time of its acquisition by Oracle, it was at about the third “advanced” level, but by now it is already a platform for managing transportation on a global scale.
Gartner’s “Magic Quadrant,” which this agency illustrates its analytical reports on various classes of information systems, is designed so that niche players fall into the lower left segment, applicants for leadership fall into the upper left segment, and visionary players, the so-called visionaries, in the lower right one. and to the upper right - the most complex systems in terms of functionality and completeness of the development strategy, that is, market leaders. When analyzing TMS-systems, Gartner explores such parameters as the "breadth" and "depth" of TMS-solutions, their convenience and the ability to adapt to end-user requirements, the ability to support the end-to-end SCE platform process, the partner ecosystem, the quality and scope of implementation, global strategy developing a solution and putting it on the market.
As you can see, Oracle Transportation Management, from the point of view of Gartner, is the absolute market leader at the moment.
Decision selection
Each company, setting strategic goals for business development, sooner or later faces the task of choosing an information system to automate the activities of the company in order to increase 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 is it necessary 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 department of information systems in order to understand how the future information system will be integrated into a single IT landscape of the company.
The process of choosing an information system can be made one- or two-step. Some companies prefer to first choose an information system developer from the point of view of their business requirements, and then consider his partner network for the choice of a contractor. Other companies try, within the same process, to choose both the supplier of the information system and the contractor. There is a standard process for selecting information systems, consisting of eight stages and taking, as a rule, several months. These are the steps.
- Collection of requirements for the information system in which the business customer is to be involved. Result: a list of business requirements for the 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.
- Create a final list of candidates. Result: a list of 3-4 companies.
- Direct familiarization with solutions. Result: presentations and demonstrations of solutions.
- Request for commercial offers. Result: obtaining commercial offers with estimates of the budget and the timing of project implementation.
- Negotiations on the terms of the contract with suppliers and partners. Result: information for decision making 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 reality, customers often miss the first two stages and turn to service providers immediately, not realizing their own requirements and not analyzing the information systems market, which significantly worsens the quality of the selection process and lengthens its time.
But the above list would be better not to shorten, 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 be of great benefit. Secondly, it makes sense to ask partners to develop demos based on a previously proposed scenario. But here a sense of proportion is important: it makes no sense to require that all the solution functionality and all its processes be included in the demo example. It’s better to identify and focus on your critical aspects. The solution providers will not forget to show the most winning moments of their system in any demo process. You can also conduct a preliminary survey of the enterprise on your own or by partners / vendors. The result of such a survey is usually is to determine the target architecture of the information system, taking into account the tasks and bottlenecks of the company's processes, the sequence of implementation and a high-level assessment of the benefits for the business. For example, Oracle (Oracle Insight) has a special free preliminary examination program.
Oracle Transportation Management
Both for preliminary market analysis and for direct acquaintance with solutions, you can adopt the “reference” list of TMS-solutions capabilities that Gartner used when compiling its report.
- Strategic modeling and transport network planning.
- Purchase of transport services, selection of suppliers.
- Incoming, internal and outgoing logistics.
- Tactical planning.
- Operational planning and transportation optimization.
- Optimized carrier assignment and ability to manage interactions.
- Implementation of the transport plan, interaction and coordination with carriers.
- Interaction with carriers, suppliers and customers.
- 3D modeling of loading.
- Calculation of freight costs and tariff management.
- Small shipments through postal operators.
- Planning and execution of rail and intermodal transport.
- Planning and execution of a route with several shoulders and modes of transport.
- Dispatching and routing your own transport.
- Reconciliation of bills for transportation services, payment and distribution of costs.
- Management of the transport schedule and warehouse gates.
- Tracking transport orders, shipments and event management.
- Analytics, performance management, scorecards and dashboards.
- Ability to apply local settings for different countries.
- Technical architecture, system adaptation capabilities, flexibility, usability, deployment and scaling capabilities.
Needless to say, the Oracle solution is 100% consistent with this list, so it can be considered a list of Oracle Transportation Management features.
We will analyze only the most interesting features. For example, the Oracle In-Memory Logistics Command Center, a strategic transport network modeling tool, provides tools for quickly modeling alternative logistics network scenarios using real-time operational data, rules, and restrictions. The Oracle In-Memory Logistics Command Center tool, fully integrated with Oracle Transportation Management, allows you to optimize the operation of logistics operations using the “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 transportation. The Logistics Command Center downloads the entire scheme of the operating logistics network and loses the analysis of the “what if” scenario - for example: what if carriers increase their tariffs by 20%.
Very beautiful functionality - optimization of loading with the help of 3D-modeling. Oracle Transportation Management contains loading and orientation patterns for the cargo in the trailer, allowing you to plan the optimal loading of vehicles. For example, the solution calculates what the vehicle will be loaded, the percentage of utilization of the vehicle, taking into account the restrictions and rules for placing cargo vertically along or across, horizontally along or across, in width or in length (Fig. 4).
The basic solution settings tools allow you to configure different user interface parameters: language (16 languages are supported), units (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, providing maximum flexibility and scalability of the system.
I would also like to note the availability of this solution as an Oracle Transportation Management Cloud cloud service. 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 subscription system, which eliminates large investments at the initial stage of system implementation, shortens the implementation cycle and minimizes the risks of maintaining the system.
Error handling
Trying to start market research already at the stage of presentation and demonstration is not the only mistake often encountered when choosing solutions. Another problem arises 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 managing vehicle repairs, which is usually included in an ERP-system, namely, in the enterprise asset management, maintenance and repair unit.
Two other 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 become after the introduction of the system and how it will change in its development, moreover, you need to understand where the business of this company is going.
It should also be remembered that transportation management is an end-to-end process, therefore the system must support industry standards and have open interfaces for ease of integration with other company systems, such as sales order execution systems, financial systems, customer relationship management systems, etc. the elaboration of integration issues before choosing a system is the reason that on many projects up to 30% of the costs can be the cost of integrating systems.
And one more serious mistake is an incorrect assessment of the term for choosing a system, which 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 can correctly choose and implement the TMS star, which will shine in your IT horizon.