Transportation Departments are typically seen as a cost center within the organization. This is true across many industries, whether utilizing one's own Fleet or using external Carriers. Innovative companies find ways to turn this necessary evil into an opportunity for efficiency and profit. In this session we will share one such success story.In this session you will see how Bob Evans, a leader in the restaurant and food service industry, has configured OTM to work in concert with Oracle EBS. See how OTM was used to better capture transportation costs and identify revenue opportunities. In this session we will share some of the details around the innovative strategies deployed by Bob Evans. We will examine how Bob Evans used OTM to minimize empty miles on inbound and outbound shipments, and maximized equipment utilization. Join us to see how Bob Evans everaged OTM to setup their Transportation Department to operate as a true Profit Center.
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Changing Transportation from a Cost Center
to a Profit Center: A Case Study at Bob Evans
Manu Gupta, Capgemini
August 16, 2016
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1 About Bob Evans
2 Implementation Scope
3 The Implementation
4 Benefits
4. In collaboration with
About Bob Evans
Bob Evans Farms, Inc. was founded in 1948 and is based in
New Albany, Ohio.
Bob Evans Farms, Inc. operates through two segments, Bob
Evans Restaurants and BEF Foods
The company owns and operates more than 500 full-service
restaurants under the Bob Evans Restaurants brand in the
United States, first restaurant opened in 1962
Leading producer and distributor of sausage and bacon
products, as well as complementary refrigerated and frozen
convenience foods, selling under the Bob Evans, Owens and
the Country Creek brand names.
Bob Evans Farms, Inc. was founded in 1948 and is based in
New Albany, Ohio.
Bob Evans Farms, Inc. operates through two segments, Bob
Evans Restaurants and BEF Foods
The company owns and operates more than 500 full-service
restaurants under the Bob Evans Restaurants brand in the
United States, first restaurant opened in 1962
Leading producer and distributor of sausage and bacon
products, as well as complementary refrigerated and frozen
convenience foods, selling under the Bob Evans, Owens and
the Country Creek brand names.
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Bob Evans Transportation dates back to the beginning of the
business in Southeastern Ohio
When Bob Evans began making his world famous sausage he
needed a way to distribute to grocery stores
Deliveries began out of his farm in Rio Grand Ohio using
small refrigerated route trucks
Today the Transportation business unit owns and operates a
private fleet of 125 Tractors and 150 Refrigerated Trailers
Last year this fleet drove over 12 million miles in 45 states
Bob Evans Transportation has two primary locations in
Springfield, OH and Dallas, TX
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About Bob Evans Transportation
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Bob Evans – the 3PL
Transportation is a separate Business Unit
Primarily uses own assets
• Small footprint of external carriers, selected mostly through spot bids
Serves as a “Freight Forwarder” for other Food products companies
Active Backhaul program to minimize empty miles
• Recurring customer base
• New customers from Load Boards and Brokers
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1 About Bob Evans
2 Implementation Scope
3 The Implementation
4 Benefits
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Implementation Scope
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General Ledger (GL)
Accounts Payable (AP)
Customer Data Hub (CDH)
Order Management (OM)
Accounts Receivables (AR)
Global Order Promising (GOP)
Advanced Supply Chain
Planning (ASCP)
Oracle EBS – Order-to-Cash
Predictive Trade Planning (PTP)
Deductions & Settlement
Management (DSM)
Demand Management (DM)
Demantra
Transportation Operational
Planning
• Outbound
• Inbound
Freight Payment, Billing & Claims
• Freight Settlement
• Billing for Transportation
Services
Oracle Transportation
Management (OTM)
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Implementation Footprint – System Landscape
8 Interfaces built between EBS and OTM
• Order Management – Sales Orders & Transfer Orders
• Purchasing – Purchase Orders
• Shipping Execution
• Shipments/Trips to EBS
• Shipment Actuals from EBS
• Customer Data Hub
• Accounts Payables
• Accounts Receivable
• General Ledger
Middleware - IBM MQ Series
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1 About Bob Evans
2 Implementation Scope
3 The Implementation
4 Benefits
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Bob Evans - Network
DC
Plant
Cross dock
Bob Evans Facility
Bob Evans Customer
Freight Forward Customer
Bob Evans & Freight
Forward Customer
Backhaul Customer
Vendors/Suppliers
Empty Truck
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Order Management
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Multiple Order Types
Integration with EBS Order Management
and Purchasing
Rapid Order Entry screens
Business Monitor to identify “Hot” orders
Commodity based Order “badging”
OTM Configuration
All orders are in one system!
Capture and record of orders, enables
analytics
Consolidated view of Orders
Reduces possibility of missed orders
Benefits
EBS Order
Management
EBS
Purchasing
OTM
Sales Orders
Transfer Orders
Purchase Orders
Shipments
Transportation
Dept.
Spreadsheet
AS400 System
Phone
Email
Paper
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Shipments – Planning & Execution
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Automatic planning of CPU orders
Multi-stop planning of orders, across order types
• Shipment to EBS only has Trip details for
EBS orders
Spot Bidding
Continuous moves
“Load Plan” Report
OTM Configuration
Visibility to all shipments in one system
Replaces manual planning
Access to historical data enables analytics
Single data repository replaces laborious manual
process of collecting data and analyzing
Streamlined process for communication to 3PL
Benefits
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Profit from – Freight Forward & Backhaul
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Integration with Customer Data Hub to enable creation of new
Customers & Ship To locations in OTM
Sell Rates configured in OTM
Bill creation
Integration with Accounts Receivable (AR) module
Recurring process to trigger interface to AR
OTM Configuration
Enables single repository of Customer master data, minimizes errors
and rework
Financial reconciliation across systems
Automation of Invoice creation
Reduction in cumbersome manual activities
Enables record of rate on the shipment, enables audit and analytics
Enables visibility to revenue through entire lifecycle
Benefits
Customer
Data Hub
Accounts
Receivables
OTM
Bills
Validate Customer
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Profit from - Bob Evans Food Services
Sell Rates configured in OTM, based on Buy shipment allocated costs
Bill creation and auto-approval
Integration with General Ledger (GL) module
Lookup table in GL, automation agents to create matching logic
Recurring process to trigger interface to GL
OTM Configuration
Recognize revenue for services provided for transportation of Bob
Evans products
Upcharge on cost to gain revenue for services
Streamlined financial processes to recognize costs for Intra-company
charges
Automated process
Analytics of historical transactions to determine “upcharge” amount
Benefits
OTM
General
Ledger
Module
Bills
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1 About Bob Evans
2 Implementation Scope
3 The Implementation
4 Benefits
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Benefits
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Automated system driven revenue recognition
Centralized order and shipment data
Increased ability for backend analytics
Reduction of manual reporting
Streamlined/Reduction of email/phone communication
Foundation for integration with future telematics system
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Questions?
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Manu Gupta
MOVE Practice Lead
Mobile: (404) 934-9643
manu.gupta@capgemini.com
Atlanta, GA
Collin Rowekamp
Financial Analyst
Mobile: (614) 497-4443
michael_rowekamp@bobevans.com
Columbus, OH