Complex Rate Configuration in OTM

Mohan Subramanian & Shreenivasan Sukumar

OTM SIG Conference, APAC
Dec 9-10, 2015
 Contents 2

Agenda
 Introduction

 Arbitrary Rates

 THU & Slab Rates

 Marginal Rates

 Discount Rates
 3

Infosys Overview
 4
Our Global Footprint to support Service Delivery across the world

Shanghai, China
Development Center
North America
17 sales offices, 18 Development Europe
Centers in North and South America Offices and Development Tokyo, Japan
Centers across 20 countries Development Center

Hangzhou, China
Delivery Center, Asian & Euro
Languages, Specialized Services
Monterrey, Mexico
Delivery Center
India Manila,
Offices and Delivery Centers Philippines
across 13 cities. Global HQ Customer Service

Belo Horizonte, Brazil

Development Center for IT &
Australia
Offices and
BPO Sales Office for LATAM
8 Development Centers

More than 160,000 employees from 98 nationalities

Operations across 40 countries
All numbers provided are for Infosys & its subsidiaries
& updated as of March 31, 2014
 Introduction 5
OTM – Our Competency & Solutions
 Pool of 150 consultants & Cloud
 End to end industry specific
Logistics SMEs with a Certified offerings Freight Forwarder,
combination of functional,
Shipper, Retail, CPG etc.
technical & integration experts
(Details in Appendix)
 Accelerators – pre built templates,
 Expertise in integration of OTM
questionnaires, videos, process
with 3rd party systems & Oracle
Solutions & maps/flows, Mass Upload Tool
EBS using EDI & SOA Competency
middleware Value Adds
 Custom Solutions –
 OTM 6.3.x installed on exa-data
machine & IBM AIX platform Google Map Integration
Shipping Controls
OTM Date Logic
 Services include OTM On the Move
implementation, upgrade, Customer
migration, Cloud assessments, Offerings Engagements
Support & Health Checks
 Multiple options in
Implementation and Extended
 Successfully engaged in multiple
Support based on Customer
OTM programs
needs
 Several papers presented in OTM
SIG & other forums (Details in
Appendix)
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
 Contents 7

Agenda
 Introduction

 Arbitrary Rates

 THU & Slab Rates

 Marginal Rates

 Discount Rates
 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

Beyond
Advance leg
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

• Single shipment
• Easy maintenance of rates
• Planning with desired carrier
The shipment cost shows the base cost value which is maincost
• Accurate leg cost from Port to port,
advance and beyond legs cost were displayed with the respective accessorial/special
• Cost optimization
service code
 Contents 16

Agenda
 Introduction

 Arbitrary Rates

 THU & Slab Rates

 Marginal Rates

 Discount Rates
 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) Rate

PALLET 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
 20

Setup: Rate unit break profile

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
 Contents 22

Agenda
 Introduction

 Arbitrary Rates

 THU & Slab Rates

 Marginal Rates

 Discount Rates
 Case study 3: Marginal unit cost rating

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

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

For example: Shipment weight = 150 kg • Normally, Store procedures and

Standard Cost = $10.45 refnum’s were used
Unit Cost = $0.13x 50 = $6.5 • Can be achieved easily using OTM
Total Cost = Standard Cost + Unit CostStandard functions
= $10.45 + $6.5 = $16.95
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

Total Cost = $10.45 +$ 6.5 = $16.95

The input weight is given as 150KG, the base rate is applied for 100kg and for additional
50kg marginal rate is applied as expected.
 Contents 27

Agenda
 Introduction

 Arbitrary Rates

 THU & Slab Rates

 Marginal Rates

 Discount Rates
 Case Study4: Applying multiple Discount
rates

Discount on Discount on
Service Customer Standard Freight
COU ABC 50% 45%

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% discount
from shipment weight for the customer
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 = 1kg

Discounted Standard Cost = Standard Cost – Discount@50% Total Cost = Discounted Standard Cost +
= $30-$15 Discounted Freight Cost
= $15 = $15 +$1.05
Discounted Freight Cost = Freight Cost – Discount@45% = $16.05 AUD
= $1.5 - $0.45
= $1.05
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

 Thank You

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