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2007

Company Profile & Solutions Portfolio

ORTECP.O. Box 4902800 AL GoudaGroningenweg 6kThe NetherlandsTel. +31 (0)182 540 500info@ortec.comwww.ortec.com

ORTEC Transport & Distribution

November 2007 - Moscow

ORTEC International http://www.ortec.com

Georgios Sarigiannidis & Daan Boon

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ORTEC company profileORTEC company profile

Independent Dutch company founded in 1981

Offices: Netherlands (HQ)GermanyFrance BelgiumUSAUK

Partners: Mantis/SAP/Business integrators etcCustomers: International and domestic private companies

GovernmentsBusiness to business

Number of employees: ~ 600skilled in econometrics, mathematics, IT and business specialists

Revenues 2006: Euro ~ 40 million

Company profile

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Core competence ORTEC: Planning and OptimizationCore competence ORTEC: Planning and Optimization

ITProfessional and easy to use systems for

strategic, tactical and operationalprocesses

Operations ResearchPowerful, intelligent decision support and

process optimization

BusinessUnderstanding the customer

Company profile

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LogisticsTransportation and Distribution

Coca Cola, BP, Mobil, Q8, DHL, TNT, Yellow Freight, Interbrew, Philips

Human Resource ManagementVUmc, Exxon, Maersk, Nedlloyd, TNT, Securicor

Production PlanningShell, ABNA, Corus, Boliden, Naval Dockyard

Packing and LoadingBASF, Colgate, Henkel, Kuhne & Nagel, Mercedes, Siemens, VW

Aviation, Public TransportKLM, SN Brussels Airlines, Amsterdam Airport Schiphol, Airbus, VLM airlines, Aero Groundservices, Dutch Railways

FinancialWorld Bank, ING, ABN Amro, RABO, IBM, Shell, BelgaCom, ABP, PGGM

Company profile

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Company profile

Transport Industry Trade Finance Aviation

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Product Portfolio

ORTEC Advanced Planning & Scheduling

Integrated Solutions with Back office applications

(CRM / ERP / TMS / WMS / etc.)

Advanced Planning Solutions, based upon a common development platform. Knowledge and R&D

applicable in multiple industries.

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Partner Framework

Completely independent Implementation by Partner

ORTEC as subcontractor for implementation

ORTEC is main contractor for implementation

Implementation Partnership (IP)

Completely Independent Sales Cycle

Partner Sales; Limited ORTEC support

Lead generationSales Partnership (SP)

OEM Agreement Joint Product Market Combination

Standard Interface realized

Product Partnership (PP)

Gold (1)Silver (2)Bronze (3)

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Industries

Professional & Public ServicesWorkforce management, professional services scheduling

Consumer Packaged GoodsTransportation & logistics, packing & loading

Trade, Transportation & LogisticsTransportation & logistics, packing & loading

Oil, Gas & ChemicalsVMI, transportation & logistics, production planning

Manufacturing & ConstructionTransportation & logistics, production planning, packing & loading

HealthcareWorkforce management, professional services scheduling

Levels of PlanningStrategic (BOSS)

Quantitative investment justificationTender supportSupply Chain (Re)Design

Tactical (SHORTREC)Periodically optimize C/D route plansWhat-if scenario’sSemi-dynamic planning

Execution (OTD/OSP)Multi-user / multi-site planningReal-time execution and event managementTracking / PoB / PoD / CoDManagement reportingContinuous insight in costs

Management / KPI reporting atall levels

OTD / OSPSystem

DivisionA DivisionB Division C

DepartmentsDepartmentsDepartments DepartmentsDepartmentsDepartmentsDepartmentsDepartmentsDepartments

DepartmentsDepartmentsUsers DepartmentsDepartmentsUsers DepartmentsDepartmentsUsers

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Cost savings achieved throughLess planning time and effortBetter quality of planReduction in (empty) mileageReduction in working timeImproved capacity use of fleetSelf billing of subcontractorsContinuous costs awarenessTransparency of operation, easier and earlier exceptions managementLarger span of control per plannerLess penalties (sub-contractors, government regulations, service-level)

NEA estimate of savings: 5% - 9%. Examples up to 20%.Pay-back period of investment within 3 - 12 months.

ORTEC ROI

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ORTEC Logistics

Complexity due to growthMore ordersMore trucks and drivers

Higher costs, lower pricesStrong competition, low ratesIncreasing costs of fuel, personnel

Changing marketNew developments

new kind of shipments, modalities, areas and customers

Customer requirementshigher service level, more info and reliability, shorter time between pickup and delivery

Tighter legislationEU-laws, driving time directive

To cope with these challenges, the ideal Transport & Distribution company is:Scaleable - FlexibleEfficient – EffectiveTransparent – Controllable

Current challenges in DistributionCurrent challenges in Distribution

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ORTEC Logistics

Tactical PlanningMedium term. Can not be changed overnight. Necessary for future.

Number of central and regional warehousesAssignment of customers to regions / warehousesPartially fixed daily routes

Operational PlanningCan be applied on short term

Planning of transports from central to regional warehousesPlanning of distribution from regional warehouses to customer

Order-assignmentRoute-planningLoading optimization

High level requirements:Multiple different IT-systems are currently usedFuture possibility to integrate with SAPDe-central, multi-site planning

Current NeedsCurrent Needs

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ORTEC Logistics

Medium term planningTypically once or twice a year

Different needs for different customersA, B, C customers. Different order quantitiesDifferent frequencies of delivery (once a week, twice a day, etc)

GeocodingTranslate address data (street, number, zipcode, city) in GPS-positionDependent on quality of data and detail-level of mapsFor example: 80% automatic geocoding, 20% manual ‘picking’ on map

Assign to regions/warehousesDetermine which customers should be delivered from which warehouses

Scenario analysisDetermine number of warehousesDetermine location of warehousesKey Performance Indicators (KPI’s)Compare different scenarios based on these KPI’s

Tactical PlanningTactical Planning

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Computing optimal number and size of depots, hubs, trucksTaking primary / secondary transportand production / storage into accountRestrictions on service, capacities, costsDetailed calculation modelApplied in large number of markets, including trade, retail, food, logistic service provider, oil & gas industry

Answers to questions:Calculation of optimal number and size of depotsAllocation of trucks, customers and products to depots (region allocation)Transhipment / consolidation of customers / products / ordersCentral / de-central planning Influence of higher service, increasing market, new customers

Tactical PlanningTactical Planning

ORTEC Logistics

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ORTEC Logistics

Short term planningTypically plan today for tomorrowFixed trips combined with daily flexible trips

DistributionOrder assignment: optimal combination of ordersRoutes: minimize total number of kms drivenLoading: optimize total loading space. Calculate order of (un)loading.

Warehouse handlingOrder picking in warehouseBuilding pallets and further optimize truck space

Track and controlPossibility to integrate with onboard GPS / BoardcomputerPlanned km/costs Vs. Actual km/costs

Operational PlanningOperational Planning

ORTEC LoadDesigner

Optimization of volume usageCartons, boxes, pallets, cages, containers, trucks, trailersFull-Truck Loads / Full Container Loads

Order picking / pallet buildingTracing (badges, RFID)Simultaneous orderpicking

Feasibility checkStackability, Load & Unload sequence

Operational PlanningOperational Planning

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Load Optimization – process

1 . Items in cartons ‘Cartonization’

2. Cartons, cylindres and items on pallets. ‘Palletization’

3. Pallets in container or truck

Mixed pallets Stock pallets

Based on all kinds of consolidation rules and customer restrictions

Selection of the right box

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Stackability taken into account

Load & Unload sequence taken into account

No intelligence on work floor needed any more

Simultaneous orderpicking, quicker through put time in warehouse

Less damages through better stacking and loading

Send load result to the receiver in advance by email

Graphical views / prints of loading list

Feasibility check

Load Optimization – features

Stackability matrix

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ORTEC Transport & DistributionOptimization of Transports

Optimization of tripsTrip sheets, KPI reports

Real-time controls and checksLead times, ETACosts (per hour, km, kg, pallet, etc.)Capacity (in pallets, kg, m3, m2, etc.)EU-legislation, driving time directive

DispatchingOverview of entire planningInteractive map with high level of detail. Track & Trace

Operational PlanningOperational Planning

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ORTECTransport & Distribution

Planning processInformation flow in planning process

TMS/ ERP Mobile device

Orderentry

Invoice

Actions

Realization

ActionsPlanning/ dispatch

RecalculationPlanning/ dispatch

Status

Pre plan/ time table

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Data management system

Contains all elements needed for building a planEvery object is also available for import and exportImport/export is real-timeUses a relational multi-user database (SQLserver)Supports GEO-coding facilities

MainApplication

Server

ClientPCs

DatabaseServer

SchedulerServers

MapServers

GeocodingServers

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Software Deployment

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ORTECTransport & Distribution

Division A Division B Division C

DepartmentsDepartmentsDepartmentsDepartmentsDepartmentsDepartments

DepartmentsDepartmentsDepartments

DepartmentsDepartmentsUsersDepartmentsDepartmentsUsers

DepartmentsDepartmentsUsers

Organizational Structure

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ORTEC Transport & DistributionThe Graphical User InterfaceThe Graphical User Interface

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Basic planning elements

Transport ordersConsist of 2 tasks; 1 pickup, 1 deliverCan consist of more transports A – BCan be split for the purposes of Cross-dockingCan contain sub order informationCan have an unlimited amount of capacity requirements

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Basic planning elements

ResourcesDriversTrucksTrailers

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Basic planning elements

Trips – Trip ActionsFlexible definition of this concept

trips, shifts, routes, transportsSeveral ways to generate shifts

using templates, the Trip Wizard, the Transport Wizard

coupling of resourcestraveling pickup – deliverywaiting

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Key functionalities

Depot 1

Depot 2

Multi-depot pickup & delivery (select best depot)Reloading or consolidation at additional depotMultiple trips per day, multi-day planningMultiple vehicle start pointsProduct – depot restrictions, product – vehicle restrictions, time dependent stock per product per depotTime windows, priorities (must go / may go orders)Merchant deliveries (variable start and delivery points)Mixed pick-up & delivery, collections, returns, etc.Subcontractor Tariff ManagementReports...

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Planning modes

Manual planningUsing drag & drop you can

assign transport orders to existing trips.Template rollout

You can create trips by rolling out predefined trip templates.

Automatic planningAssign orders to resource

combinations.Optimize routes according to

predefined criteriaRespect restrictions -

constraints

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Graphical User Interface (advanced)

The Map view

The Planboard(Gantt chart view)

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ORTEC GEO info

Blocking of roads by weight, height, hazardous materials, goods, special governmental requirements, etc.Detailed traffic jams of road segments, regions

Detailed localisation (street segment) & computation time / distance (seconds / meters)Detailed track & trace, all options possible

Operational PlanningOperational Planning

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ORTEC Logistics – Geocoding

Filter data by using predefined search & match pathsSelect best match according to predefined criteriaCalculate SCORE according to predefined

weights on the search variables

Geocoding Strategy

Supports:

Fully automatic localization

Assisted manual localization (visual)

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Scenarios and KPI reports

Configurable column totals provide direct insight

Scenario planning

Compare KPI’s using (graphical) reports

Scenarios and KPI Reports

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Communication schemes

Orders

Realizations

Realizations

Appointments

Routes

Track & Trace

Reporting

ERP System

IntegrationIntegration

Load status

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ORTEC Business Intelligence

Advanced querying and reportingNo Db-model knowledge requiredEnd user can easily create new reportsBoth operational database and data warehouse

Integrated ReportingIntegrated Reporting

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ORTEC

Efficiency – Effectiveness:Less km (cost reduction)Less plannersHigher capacity usageMore reliable deliveries

Abstract case:500 trucks100,000 km per truck per yearAssumed costs: 75,000 EUR (75 ct / km) per truck (incl. driver)

When saving only 5% on operational costsThis means: more than 1.5 Mio EUR!!

Return on InvestmentReturn on Investment

Truck

Driver

Diesel

Truck

Driver

Diesel

Old New