Streamlining Home Delivery with Oracle Field Service

TCMOAUG

September 19, 2006

Presenters

 Mary Cheasick, Select Comfort  Robin Statz, Fujitsu Consulting

Agenda

 Select Comfort Corporation  Home Delivery Business Model  Technology Timeline  Oracle Solution  Advanced Scheduler  Oracle Order to Debrief Flow  Reports and Forms   Improvement Opportunities  Q&A

Select Comfort Corporation

What’s Your Sleep Number?

  Nation’s leading bed retailer 6 years running in annual report published by Furniture Today

  400+ company owned stores, website, direct marketing, Radisson hotels, and

partner retailers   More than 4 million people currently sleep on a Sleep Number bed

  More than 50,000 unsolicited testimonials received from Sleep Number® bed

owners across the country   2005 Revenue exceeded $690M. Goal is to reach $1 billion in revenue by 2007

  Building new corporate facility in Plymouth MN – open late 2007

  What’s our Motivation? To delight our customers by giving them a better night’s

sleep!

Home Delivery Business Model

Home Delivery Organization

 4 Area Managers §  2 in Plymouth; 2 Remote   35 Senior Technicians §  Remote work force  380 Home Delivery Technicians §  Remote work force – except for Plymouth  30 Schedulers, Leads  4 Routers  4 Regional Coordinators

Manufacturing and Logistics  Manufacturing Plants §  Irmo, South Carolina §  Salt Lake City, Utah  Cross Docks §  109 Third party docks §  Technicians pick up beds §  Company owned and rental trucks  Hub and Spoke §  EDI, Tracking, Inventory Control §  Los Angeles rollout completed

Area Manager Alignment

WEST Craig Shockency

612-281-1603 GREAT LAKES Tom Spadafora 630-692-6970

SOUTHEAST Jim Blanton 276-494-1065

CENTRAL STATES

Tom Anderson

651-503-4793

TRANSPORT ALLIANCE

Home Delivery Process Model

RETAIL ORDER

SERVICE REQUEST SCHEDULING ROUTING SCHEDULING

HOME DELIVERY FIELD OPS

STORE GENERATED

•  Customer Purchase

•  Sell Home Delivery

PLANT SHIPS BED TO 3RD PARTY

CROSS DOCK

•  Service Request and Task created in Field Service

FIRST CUSTOMER CONTACT

•  Confirm Order •  ID Unique

Requirements •  Capture Date

preference

BUILD EFFICIENT ROUTES

•  Visible to Scheduling in Oracle

•  Export to 3rd party routing software

•  Group & Route Orders

SECOND CUSTOMER

CONTACT

•  Set Appt date and time

DELIVER & INSTALL BED

•  Techs assigned Gearworks job •  Delivery

Confirmation •  Revenue

Recognized

Technology Timeline

HISTORICAL PERSPECTIVE

2003 2004 2005 2006

• Gearworks • Oracle Advanced Scheduler

• Technician Email

• Hub & Spoke

• Oracle Advanced Scheduler Proposed

• Oracle Time & Attendance

• Autofax • Fixed Day Scheduling § Oracle § MS Access

• Revenue Recognition

• RouteView • Oracle Field Service

• IVR • Payroll Phase I

• Manual Scheduling Process § Fax Paper § Excel

• Manual Routing § Maps § Pins

• No Reporting

Project Timeline

Field Service Selected

Field Service Rollout

11.5.9 Upgrade

Routing Vendor

Selection

Biscom Autofax

Gearworks Rollout

11.5.10 Upgrade

Advanced Scheduler

Live

SOLUTION CANDIDATES SOLUTION

Oracle

RouteView

UPS

GearWorks

FUNCTIONALITY GAPS •  Map visual capability •  GPS Tracking capability

•  PC Based Only •  Technical Architecture

•  Technical Architecture •  Limited Experience in

Dynamic Scheduling

•  Point Solution Only •  Augments Gaps in

Other Solutions

FUNCTIONALITY IDENTIFIED Enterprise Solution •  Field Service Management •  Route Optimization •  Full Integration with other

Business Apps

•  Routing •  GPS Tracking

•  Routing •  Scheduling •  Customer Service

•  Field Data Collection •  GPS Tracking •  Field Customer Facing

•  Signature Capture •  Tech Productivity •  Invoice Printing •  Bar Coding

RECOMMENDATION – Solution Map

ORDER

SCHEDULING

OracleManufacturedand Shipped

Order

OracleManufacturedand Shipped

Order

OracleManufacturedand Shipped

Order

Current SRM Original SRM2 Revised SRM2

Oracle ServiceRequest (Field

Service)

Oracle ServiceRequest (Field

Service)

Oracle ServiceRequest (Field

Service)

ROUTING Route Viewsoftware

Oracle Task(Field Service) --Fax/Email Docsto Technician

DISPATCH

EXECUTEDELIVERY

Techs route onpaper - manual

mapping tolocate stops

DATACOLLECTION

Tech calls IVR(SQL) - updates

Oracle FieldService

OracleAdvancedScheduler/

Navteq

Oracle Task(Field Service) --Fax/Email Docsto Technician

Tech receivesroute on paper

- manualmapping tolocate stops

Tech calls IVR(SQL) - updates

Oracle FieldService

OracleAdvancedScheduler/

Navteq

Oracle Task(Field

Service)

Tech receiveswork on NextelPhone; Driving

Directions

Tech completesjob on phone; GPS

Enabled; RealTime Updates to

HD and CS

Optimizeroute

EliminateFax &Paper

IncreasedCustomer

Satisfaction

Liveupdates

INTE

GR

ATI

ON

WIT

H T

RA

CIN

G A

ND

TR

AC

KIN

G

DrivingDirections

TechProductivity

Oracle Solution

Oracle Components   Territories – Postal Codes, Route Resources, Service Request

Owner   Employee Resources –Technicians, Schedulers, Routers   Party Resources - Routes   Roles – Field Service Representative, Field Service Dispatcher   Groups – For Service Request assignment   Service Requests – 8 Types based on order type and delivery

requirements   Statuses – used to age and prioritize requests   Tasks – align with Service Requests – applied via Task Templates   Calendars – generic and can be used across all markets   Shifts - generic and can be used across all markets

Territories - Service

Territory - Qualifiers Work distributed by postal code

Territory – Route Resource

Resource selected by Advanced Scheduler

Territory - Service Request Assignment Owner; Group on Service Request

Territory Trees – Route vs. Owner

Approximately 410 territory “zones” x 2 Approximately 550 Route resources (“trucks”)

Calendars and Shifts

Assign Resources to Calendars

Advanced Scheduler

Advanced Scheduler - Cost Mechanism

  Costs are related to your organization’s business rules for planning and allow the cost mechanism to compare the alternative options for scheduling.

  Uses a set of predefined constraints and associated costs

  Costs should not be read as financial cost, but more as ’penalty points.’

Finance Intelligent Optimization based on Constraints (time, travel, costs, competency)

Finance Window to Promise

Optimization based on Window of Time plus Constraints

Finance Auto-Assign Lowest Cost

Finance Assisted Dispatcher selects Resource, Scheduler completes

Finance Unassisted Dispatcher selects Resource and schedules

Finance Cost Mechanism

Finance Assignment Manager

Finance Geographic Component Qualified Resources

Finance Scheduler

Optimization Engine

Travel Time Penalty Points

Cost Related Constraint Descriptions•  Cost for not assigning preferred

resource•  Cost per day a task is planned after

received•  Cost per unit traveling distance •  Cost per minute traveling time •  Cost per minute a resource is working

overtime•  Cost per minute visiting too early •  Cost per minute too late

Scheduler Setup – Cost Mechanism

New Home Delivery Process

RETAIL ORDER

SERVICE REQUEST SCHEDULING ROUTING

HOME DELIVERY FIELD OPS

STORE GENERATED

•  Customer Purchase

•  Sell Home Delivery

PLANT SHIPS BED TO 3RD PARTY

CROSS DOCK

•  Service Request and Task created in Field Service

CONTACT CUSTOMER

•  Confirm Order •  ID Unique

Requirements •  Customer ready

to schedule delivery?

•  Schedule Advise produces 10 options

•  Select; Confirm; Assign Task

DELIVER & INSTALL BED

•  Techs assigned Gearworks job •  Delivery

Confirmation •  Revenue

Recognized

Advanced Scheduler

DISPATCH CENTER

•  Customer’s Choice

•  Optimize Route to reduce travel time and miles

•  Manifest created 48 hours prior to delivery

Oracle Order to Debrief Flow

Universal Work Queue

Distribute Work to Schedulers

Sort by Status and Aging

Service Request – confirm address; product

Task and Assignment Manager

Scheduling Options

Scheduling Advice – Intelligent Scheduling

Delivery Options – Selling Low Cost Option

Reports

 Forecast Report  Exceptions Report  Daily Snapshot  Dock Manifest

Exceptions Report

Forecast Report

Forms

 Fixed Day Calendar  Route Assignment

Custom form – Fixed Day Calendar

Custom Form – Resources for Fixed Day

Custom Form – Assigning Techs to Routes

Gearworks Etrace

 Oracle § Service Requests/Tasks;

Routes; Tech Assignments  Gearworks etrace § Access today’s work via PIN  Nextel § Service Provider §  Iden Network  Motorola i605 § Device Manufacturer

GPS (Global Positioning System)

  Speed   Route   Driving Directions   Stops – planned and

unplanned

Overview of Jobs

Each route will be sent to the Nextel handset based on the Route Pin. Once you login to etrace, all stops that are assigned to that Route will be downloaded to the handset.

Tech is notified of the number of jobs that have been assigned to his route. Tech selects the OK button.

All jobs are displayed in this menu, worker can select the job listed by scrolling or pressing the number associated with the job name.

Once the Tech selects OK, it will take him to the etrace main menu. Here select Jobs or Press 1 to view today’s delivery information.

Viewing Stop Details

When you select a job, you will see the job’s main menu. At this screen you can view the Details of the job, perform actions on the job, or obtain driving directions

The job details will display the information that you currently see on the Service Request detail.

New Jobs: 8 etrace

1. Jobs

2. Forms

3. Messages

4. Exit

Jobs

1. Swanson, Michelle

2. Escher, Chris

3. Doane, Earl

4. Vogel, Daryl Jodee

5. Pidgeon, Dr. Susan

Swanson, Michelle

1. Details

2. Status: Viewed

3. 2814 W 3rd. St Duluth, MN 55806

4. Contact: 2186282565

Swanson, Michelle Ref:276163 4234678

Sched: 8:00 am 12/30

Duration: 1 hour

Phone: 2186282565 SR: Home Delivery Request

Summary: 11221209930 SALE

HD Service Option: 16

Job Summary Menu

Swanson, Michelle 1.   Details

2.   Status: Viewed

3.   2814 W 3rd. St Duluth, MN 55806

4.   Contact: 2186282565

1.   Details provides you job information.

2.   Status is where you debrief your job.

3.   Address provides you with turn-by-turn driving directions.

4.   Contact is a hotlink to call the customer.

Improvement Opportunities

Improvement Opportunities

  Current Navteq Spatial Data   Applications Server   Route Optimization §  Balancing one call system against metrics

•  Stops per truck •  Miles per delivery •  Overtime

  Mapping Capabilities   User maintenance and training

Q&A

Contact Information

 Mary Cheasick, Select Comfort Corporation mary.cheasick@selectcomfort.com 763.551.7000

 Robin Statz, Fujitsu Consulting

rstatz@gr.com