Roseburg Builds Competitive Advantage with Oracle and ... - PC*Miler

OTM uses its rating “engine” to determine the least-cost mode of transportation
that meets customer service requirements. This engine requires accurate distances
and route data. Unless the rates in the system matched with the actual routes and
the attributes of rates from truck and rail transportation providers, the solution is
less than optimal.
OTM uses route codes, for instance, to identify the locations, or junctions, where rail
carriers have interchange agreements to extend their service areas. This feature is
only useful if the route codes in OTM match exacty with the actual junctions and
locations serviced by each railroad.
OTM already had an existing or seeded integration with J.D. Edwards EnterpriseOne
to capture order information. To realize the full capabilities of OTM, the project
team at Roseburg wanted real-time integration with industry-standard PC*MILER
distances and routes for both rail and truck.
Integrating PC*MILER and PC*MILER|Rail with the non-Windows OTM platform
would require a compatible protocol such as TCP/IP.
Solution
When OTM receives order information electronically from J.D. Edwards
EnterpriseOne, its rating engine provides instant visibility to salespeople for the
delivery costs of each order. OTM simultaneously calculates and records the
difference, or margin, between what Roseburg pays carriers and the revenue for
transportation associated with each order.
A real-time interface between OTM and PC*MILER was established using
PC*MILER|TCP/IP, a universal connectivity product. PC*MILER and PC*MILER|Rail
provide OTM with the capability to generate distances and validate rates. The integration
with PC*MILER|Rail, for example, verifies that rail shipments can
be serviced by one or more rail providers through interchange agreements.
The platform also contrasts the cost of service, and service time, for all modes and
uses its optimization engine to make a routing decision based on transportation
mode and carrier. By implementing the OTM platform with PC*MILER connectivity,
Roseburg Forest Products is able to be exact when quoting delivered pricing to
customers.
With this new capability, Roseburg has been able to restructure its rates to reflect
actual delivery costs at the time customers place an order and effectively manage
its salesforce based on profit margins, and not just by sales volume.
Benefits
In a competitive market where buyers want delivered
pricing, Roseburg now has real-time visibility of the
spread between transportation costs and revenues.
At the point an order is taken, salespeople know
immediately if they have covered the transportation
costs, except for any changes to the fuel surcharge.
The company also can provide customers with more
definite delivery times.
“You have to have good business practices. OTM and
PC*MILER are bringing those business practices to our
company,” Brandt said.
In the future, Roseburg expects to be able to use its integrated platform to quickly
bring on new shipping locations and add rates quickly, Brandt says. Also, as customers
demand more frequent shipments in smaller quantities, Roseburg will be able
to handle these needs without adding more staff, and to continue to use its rate
structure to plan shipments better and lower delivery costs.
For More Information Contact PC*MILER Sales
Tel: 800.377.6453 ext 1 Email: sales@alk.com Web: www.pcmiler.com
Hitachi
Consulting
081710