2014 ANNUAL
CONFERENCE
& EXHIBITION
Planning Your Next
IT & Finance Move
June 16-18
Lincolnshire
Marriott Resort
Lincolnshire, IL
Reference
Architecture Provides
Super Highway
Of Efficiency for
Trucking & Logistics
Maja Tibbling -- Conway
Annie Sparrow -- Estes
Sundar Swaminathan -- Oracle
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Agenda
 Reference Architecture Workgroup Update
 Why Reference Architecture and What Does It Involve?
 Reference Architecture For TL
 Reference Architecture for LTL
 Reference Architecture for Trucking and Logistics
 Reference Architecture in Action
– Conway
– Estes
 Next Steps With Reference Architecture
 Q&A
What You Get When You DO NOT Have a Plan….
What You Get When You DO Have a Plan!
Forces Impacting Trucking and Logistics
Market Trends
 Continued growth of full truckload
 Continued growth of intermodal
 Expansion into third party logistics
and other service lines
 Emerging model of owner operators
Customer Expectations
Your Trucking and Logistics Enterprise
People






Time-definite services
Real-time visibility to orders
Value-added services
Capacity
Pricing
Electronic collaboration
Process
Technology
Regulatory Environment





EOBRs, HOS, CSA
Driver safety
Driver training
Driver recruitment
CDL monitoring
Technology Trends
 Telematics: Load assignments,
order tracking,
 Driver logs/Driver safety/in-cab
videos
 Mobile, Social, Big Data
(Driver/Vehicle monitoring)
 Process integration across the
enterprise
 Service-oriented architecture
Trucking Industry Reference Architecture: What is it?
It is a Framework for People, Process and Technology in the Trucking and Logistics
Industry
• A layered blueprint for the industry –
business capabilities, business
processes, solutions, information,
technology, and interactions
• The genome of the trucking industry
• Product neutral
• Applies to enterprises large and small
• A guide, not a prescription
• No one company creates it by
themselves
• Provides accumulated knowledge
The Layers In A Reference Architecture
Interaction: Interactions internal /external in the trucking/logistics industry ecosystem
Business Capabilities: Core capabilities that support the trucking/logistics industry
Business Processes:
Solutions:
Processes enabling capabilities
Tools, applications, integrations enabling business processes
Information:
Entities generated and events triggered by business processes, which enable
capabilities and drive business processes
Technology: Provides the physical infrastructure (i.e. hardware, middleware and systems
software, databases, etc) for operating the solution and information layer
Enterprise Architecture
• Proactively and holistically
leads enterprise responses to
disruptive forces
• Recommends policy changes
and projects to achieve target
business outcomes.
• Used to steer decision making
toward the evolution of the
future state architecture.
• Translates business vision
and strategy into effective
enterprise change
• Describes the enterprise's
future state and enables its
evolution toward desired
business vision and outcomes
Reference Architecture to Enterprise Architecture
•
•
•
Reference
Architecture is an
industry blueprint
Enterprise
Architecture is your
company blueprint
Reference
Architecture serves
as a guideline to
compare to …
Start with the Reference
Architecture for a car
Define the concept for your car
Add your options that make it your car
Select the parts that meet your needs
Enjoy your car
Reference Architecture For Truckload Carriers
Key Capabilities, Processes, Solutions
Interaction
Layer
Business
Capabilities
Layer
Business
Process
Layer
Business
Solutions
Layer
Information
Layer
Technology
Layer
Customer Portal /
Company Website
Supplier Portal
Direct
Phone
Mobile
Fax
B2B/EDI
Messaging
Social
Sales
Order Mgt
Transportation Planning
Financial Mgt.
Safety & Regulatory
Marketing
Pricing/Rating
Transportation Execution
Human Resources
IT Management
Contact-toContract
Quote-toCash
Order-toDelivery
Source-toSettle
Hire-toRetire
Financial Balanceand-Control
Order
Management
Transportation
Management
Customer Relationship
Management
Human Resource
Management
Equip/Maintenance
Management
Carrier
Management
Fuel
Management
Pricing, Contracting and
Rating
Financial
Management
Safety, Regulatory,
and Compliance
Customer
Identity and
Access Mgt.
Order
Content Mgt.
Shipment
Enterprise
Service Bus
Asset
Servers and
Storage Systems
Supplier/Service
Provider
Databases and Data
Warehouses
Employee
B2B
Email
Portals
S
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c
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r
i
t
y
M
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n
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o
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M
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t
Reference Architecture For LTL Carriers
Key Capabilities, Processes, Solutions
Interaction
Layer
Business
Capabilities
Layer
Business
Process
Layer
Business
Solutions
Layer
Information
Layer
Technology
Layer
Customer Portal /
Company Website
Supplier Portal
Direct
Phone
Mobile
Fax
B2B/EDI
Messaging
Social
Sales
Order Mgt
Transportation Planning
Financial Mgt.
Carrier Rel. Mgt.
Marketing
Pricing/Rating
Transportation Execution
Human Resources
IT Management
Contact-toContract
Quote-toCash
Order-toDelivery
Source-toSettle
Hire-toRetire
Financial Balanceand-Control
Order
Management
Transportation
Management
Customer Relationship
Management
Supplier
Management
Human Resource
Management
Carrier
Management
Cross Dock
Management
Freight Payment and
Audit
B2B Trading Partner
Management
Financial
Management
Customer
Identity and
Access Mgt.
Order/Bill of
Lading
Content Mgt.
Shipment
Enterprise
Service Bus
Equipment
Servers and
Storage Systems
Supplier/Service
Provider
Databases and Data
Warehouses
Tariff
B2B
Email
Portals
S
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c
u
r
i
t
y
M
o
n
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o
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M
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Reference Architecture For Trucking and Logistics
Key Capabilities, Processes, Solutions
Interaction
Layer
Business
Capabilities
Layer
Business
Process
Layer
Business
Solutions
Layer
Information
Layer
Technology
Layer
Customer Portal /
Company Website
Supplier Portal
Direct
Phone
Mobile
Fax
B2B/EDI
Messaging
Social
Sales
Order Mgt
Transportation Planning
Financial Mgt.
Lead Logistics Mgt.
Marketing
Trade Mgt
Transportation Execution
Human Resources
IT Management
Contact-toContract
Contractto-Go Live
Order
Management
Transportation
Management
Customer Relationship
Management
Human Resource
Management
Trade
Management
Supplier
Management
Carrier
Management
Supply Chain
Optimization
Financial
Management
Supply Chain Visibility
and Event Mgt.
Customer
Identity and
Access Mgt.
Order
Content Mgt.
Quote-toCash
Source-toSettle
Shipment
Enterprise
Service Bus
Asset
Servers and
Storage Systems
Hire-toRetire
Financial Balanceand-Control
Supplier/Service
Provider
Databases and Data
Warehouses
Employee
B2B
Email
Portals
S
e
c
u
r
i
t
y
M
o
n
i
t
o
r
i
n
g
M
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t
Developing the Next Level of Detail
Decomposing Key Processes
Manage Opportunities and Leads
Manage Sales Cycle
Contact to Contract
Manage Pricing and Contracts
Manage Accounts
Onboard Customer
Generate Quotes
Manage Orders
Quote-to-Cash
Move Freight (Order to Delivery)
Invoice Customer
Manage Payments and Collections
Developing the Next Level of Detail
Decomposing Key Business Capabilities
Analyze Past Business
Model Costs
Analyze Existing Contracts
Analyze Full Network Capacity
Create Pricing
Pricing and Rating
Analyze Shipping Trends
Audit System Setup
Audit Pricing
Audit Contracts for Compliance
Maintain Rating Engine
Rate Freight Bills
Apply Rates to Freight Bills
Audit Rates
Enabling Common Understanding of Terms Used
Defining Key Terms
Process
Description
Manage
Opportunities and
Leads
This includes all the work from lead generation through opportunity
creation.
Manage Sales Cycle
This includes all work done through the entire sales process from
opportunity creation to winning the business.
Manage Pricing and
Contracts
This includes all the work from initial bid pricing to contract creation and
maintenance once the business is won.
Manage Accounts
This includes all the work involved in retaining and expanding services
delivered to customer.
Onboard Customer
This is the one-time setup work done when a new customer is won. This
includes master data and any B2B setup.
Agenda
 Reference Architecture Workgroup Update
 Why Reference Architecture and What Does It Involve?
 Reference Architecture For TL
 Reference Architecture for LTL
 Reference Architecture for Trucking and Logistics
 Reference Architecture in Action
– Conway
– Estes
 Next Steps With Reference Architecture
 Q&A
About Con-way
About Con-way
Delivering Value – Business Perspective
Time to Market for New or Changed Functionality
Quality
Customers Get What they Want
Ability to Compete with New Products
Quick Exploitation of Market Opportunities
Speedy Course Corrections
Ability to Incorporate Beneficial Business-Driven Technologies
2
3
Delivering Value – IT Perspective
Ease of Development
Skills Retention
Controlled Technical Diversity
Reuse of Software Assets
Leverage of Infrastructure and Tools
Ease of Maintenance
Reliability
Scalability
Ability to adopt new technologies and
evolve with the times
Reduced impact of change
IT Challenges – Collision Course
How do we enable the
business strategy?
How do we make the right
technical investment
decisions?
Without a Plan, This Could be the IT Future!
Reference Architecture in Action at Con-way – A Menlo Case Study
Strategy – Improve Win Rate and Profit Margin
on Transportation Projects
• Objective - Define and deliver strategic
solution for end to end global transportation
management.
Reference Architecture in Action at Con-way – A Menlo Case Study
The Road We Followed – Major Mileposts
Assess
Current
State
• Define Capabilities
• Rate Current Capabilities – VOB
• Rate Current Capabilities – VOC
• Value Stream Maps by Customer
Define
Future
State
• Competitive Analysis
• Define Future State Value Stream Maps
• Define Transportation Product Offerings
Select
Solution
• Create RFP from Drilldown on Capabilities
• Define non-functional requirements to
support future state
• Weight capabilities according to their
importance to the future state
Reference Architecture in Action at Con-way – A Menlo Case Study
Assess
Current
State
Define Capabilities
Reference Architecture in Action at Con-way – A Menlo Case Study
Assess
Current
State
Trans Capabilities
Freight Payment & Audit
Freight Payment & Audit
Freight Payment & Audit
Freight Payment & Audit
Freight Payment & Audit
Freight Payment & Audit
Freight Payment & Audit
• Rate Current Capabilities – VOB
• Rate Current Capabilities – VOC
Trans Industry Activities
Auto Pay
Booking Resolution
Carrier Invoicing
Carrier Payment Inquiry
Customer Invoicing
Freight Payment & Audit
Invoice Reconciliation
On-line Carrier Invoice
Freight Payment & Audit Reconciliation
Menlo
#
#
#
#
#
#
#
#
CustomerA CustomerB
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
Reference Architecture in Action at Con-way – A Menlo Case Study
Assess
Current
State
Value Stream Maps by Customer
Reference Architecture in Action at Con-way – A Menlo Case Study
Define
Future
State
Competitive Analysis
Reference Architecture in Action at Con-way – A Menlo Case Study
Define
Future
State
Define Future State Value Stream
Maps
Reference Architecture in Action at Con-way – A Menlo Case Study
Define
Future
State
A
D
G
B
E
H
Define Transportation Product
Offerings
C
Modified
Optional
A
E
G
I
F
F
I
Capabilities
Product
e.g. Freight Audit and Payment
e.g. Automotive Transportation Offering
Custom Built
Reference Architecture in Action at Con-way – A Menlo Case Study
Select
Solution
Activity ID
Requirement ID
Micro VSM
Create RFP from Drilldown on
Capabilities
VSM ID
Process ID
Micro VSM Process
VSM4
TP02
698
92 Transportation Planning
Manage Orders
Activity
Generate Orders from
Forecast or Schedule
VSM4
VSM4
VSM4
VSM4
VSM4
TP02
TP02
TP02
TP02
TP02
699
700
701
702
703
93 Transportation Planning
94 Transportation Planning
95 Transportation Planning
96 Transportation Planning
97 Transportation Planning
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Receive Orders
Receive Orders
Receive Orders
Receive Orders
Receive Orders
VSM4
TP02
704
98 Transportation Planning
Manage Orders
Receive Orders
VSM4
VSM4
VSM4
VSM4
VSM4
VSM4
TP02
TP02
TP02
TP02
TP02
TP02
705
706
707
708
709
710
99 Transportation Planning
100 Transportation Planning
101 Transportation Planning
102 Transportation Planning
103 Transportation Planning
104 Transportation Planning
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Receive Orders
Receive Orders
Receive Orders
Receive Orders
Receive Orders
Receive Orders
VSM4
VSM4
VSM4
VSM4
VSM4
VSM4
TP02
TP02
TP02
TP02
TP02
TP02
711
712
713
714
715
716
105 Transportation Planning
106 Transportation Planning
107 Transportation Planning
108 Transportation Planning
109 Transportation Planning
110 Transportation Planning
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Manage Orders
Cancel Order
Cancel Order
Cancel Order
Cancel Order
Cancel Order
Cancel Order
Business Requirement
Generate Orders from Forecast or Schedule
Receive order
Orders can be inbound, outbound, transfer, return,
Upload orders by spreadsheet
Enter order
Receive forecast order
Match firm inbound order to forecast order
Acknowledge
receipt
(success
or failure)and
Receive orderorder
elements
required
for domestic
international transportation
Get Party and Location info for shipment hand-off to
Get Partner Party and Location info for MWW
Identify MWW contract for Consignee on PO.
Specify MWW services contracted for this Consignee
Link MWW services scope to physical move (route
Receive Order cancellation
Determine whether transportation order can be
Cancel transportation order
Cancel planned transportation order
Cancel unplanned transportation order
Ignore Order (In some cases clients send us orders that
Reference Architecture in Action at Con-way – A Menlo Case Study
Select
Solution
Define non-functional
requirements to support future
state
Functional Configurability
Security
Functional Configuration
SOA and Integration
Globalization
Support
Implementation
System Configuration
Performance and Stability
System Management
Pricing
Training
Regulatory Compliance
User Experience
Saas
Vendor and Software Profile
Reference Architecture in Action at Con-way – A Menlo Case Study
Select
Solution
Capability
Client Relations
Management
Carrier Relations Mgt
Supply Chain Design
Transportation Planning
Transportation Execution
Freight Payment and
Audit
Freight Accounts
Receivable
Materials Management
# of
Qs
Weight and score capabilities and
processes according to their
importance to the future state
Max Vendor Vendor Vendor Vendor Vendor
Avg Weight Score
1
2
3
4
5
22
50
5
83
41
2.2
1.8
2.8
2.3
2.3
144
273
42
567
285
83
52
334
147
16
45
17
37
130
63
156
19
248
245
95
163
28
382
118
68
73
16
229
126
20
2
120
99
9
36
89
57
10
46
2
2.3
60
315
30
15
100
29
168
21
209
Reference Architecture in Action at Con-way – A Menlo Case
Study
Select the best go forward solution to meet the
business’ strategic objectives!
So… How Would a Transportation Industry Standard Reference
Architecture Have Helped Con-way and Menlo?
• The Business Capabilities breakdown structure
would have been defined already.
– Many hours of analysis, collaboration, travel, etc.
were spent creating the list that drove much of
our strategic process steps. There were 5 core
team member dedicated to this effort.
• Strawman Processes would have been defined
which together with the capabilities would
have helped us with how to represent our
current state VSMs.
Agenda
 Reference Architecture Workgroup Update
 Why Reference Architecture and What Does It Involve?
 Reference Architecture For TL
 Reference Architecture for LTL
 Reference Architecture for Trucking and Logistics
 Reference Architecture in Action
– Conway
– Estes
 Next Steps With Reference Architecture
 Q&A
Reference Architecture In Action - Estes
Capabilities Modeling at Estes
• Use Capabilities for
Setting Context
and Establishing a
Common Language
System A
System B
Equipment Maintenance
System C
System D
Capabilities Modeling at Estes
Practice Maturity
Distinctive Leader - Set apart from the pack
Industry Leader - Same things as the competition, but better
Industry Average - Same as everyone else
Rudimentary
Technology Contribution
Differentiator - Differentiates us from the competition
Sustain - Keeps us on Par with everyone else
Limiting - Allows us to provide some of the capabilites, but not all
Obstacle - Prevents us from moving forward
Enter Orders
Pickup & Delivery
Handle Freight
Transport Freight
OS&D
Audit Freight
Create Invoices
Track Bills & Invoices
Collect Revenue
Correct Bills
Audit Bills
Model Costs
Create Pricing
Audit Pricing
Understand Markets
Understand Customer
Sell Services
Provide Information
Service Partners
Create Customer Pricing
Service Claims
Maintain Customers
Manage Back Office
Manage Facilities
Service Fleet
Manage Partners
Te chn
ology
Co n t
ri buti
on
ice M
aturi t
y
Prac t
gic Va
Strate
Move Freight
Manage
Revenue
Service
Market Establish
Customers Services Pricing
Strategic Value
Capability delivers something that contributes value to the customer
Capability supports the existance of other capabilities the customer might not see
Bread & Butter Capabilites you need to have in place in order to
function in general
Capabilities
Administer
Business
– Strategic Value
– Business Practice Maturity
– Technology Contribution
lue
• Use Capabilities for System-Independent
Evaluation of Change
Reference Architecture in Action
• Summarize Investments
Reference Architecture in Action
• Compare Strategic Priorities to Investments
Reference Architecture in Action
• Compare Current State Portfolio with Future
State Capabilities and Investments
Business Process Modeling via Capabilities
• Map processes through High-Level Capabilities
to show:
• Interdependence
of Capabilities
• Ownership
Intersections
Understanding Costs via Capabilities
• Capability Summaries used in conjunction
with Process Modeling create Total Cost to
Serve for a given high level business process
= Total Cost
per High Level
Process
Agenda
 Reference Architecture Workgroup Update
 Why Reference Architecture and What Does It Involve?
 Reference Architecture For TL
 Reference Architecture for LTL
 Reference Architecture for Trucking and Logistics
 Reference Architecture in Action
– Conway
– Estes
 Next Steps With Reference Architecture
 Q&A
The Road Ahead…
Next Steps for the Reference Architecture Effort
 Create a secure website on the ATA ITLC portal to share deliverables from the
workgroup
 Deploy reference architecture assets as they are developed for review, and
feedback from the broader ITLC community.
 Key Deliverables for 2014-2015:







Reference Architecture Initiative Overview Presentation
Reference Architect Layers
Architecture on a page (Truckload)
Architecture on a page (LTL)
Architecture on a page (Trucking and Logistics)
L1/L2 Business Process Decomposition (Truckload)
Definitions for Key Terms
Thank You For
Your Attention!
Questions?
Maja Tibbling
Con-way, Inc.
Tibbling.maja@con-way.com
Annie Sparrow
Estes-Express
Annie.sparrow@estes-express.com
Sundar Swaminathan
Oracle
sundar.swaminathan@oracle.com