Area 1 – Artificial Intelligence (AI) & Machine Learning (ML)
Oracle continues to invest in disruptive technology. I was particularly focused on AI and ML-based decision-making and use during optimization.
Last year JBF scored Oracle a 3 out of 5 in this area on the JBF sentiment rating. While we would always like more, we are seeing AI & ML beginning to be utilized in key OTM functions. Predictive ETA can now be utilized during OTM’s planning and execution. Users will also be able to configure a machine learning model (no code, no scientist needed) that will self-improve based on historical and recent data.
The actionable machine learning predictions aid in the decision-making during planning based on history in the lane (carrier, origin/destination, date/season, etc.). During execution, the model will show a prediction reliability. This is based on the historical average prediction accuracy of the ML model on that lane at the tracking location.
Naturally the closer the tracking event locations get to the final destination the higher the prediction accuracy. While this last piece is an addition to the strategy roadmap shown last year, it still leaves much to be desired.
Actionable Machine Learning Prediction Output
The Oracle Digital Assistant (ODA) for logistics is one of the most practical uses of AI/ML that every OTM shop should be utilizing. Simple voice or text commands can retrieve order or shipment status and the ODA platform is extensible utilizing REST APIs to access all business objects (invoices, orders, shipments, etc.)
Oracle Logistics Digital Assistant demo
View the Oracle Logistics Digital Assistant demo here.
Additional areas Oracle is applying AI/ML:
- Order Routing and Order Consolidation - Determines the desirability of orders consolidating in same shipment; ensures orders follow user-preferred route.
- Data Anomaly/Outlier Detection - Analyze data as received or entered by a user: screen for anomalies & potential errors in real-time. For example, an invoice from a particular carrier in a lane is typically $1400 and the system receives an invoice from the carrier for $14,000. Instead of sending this through the entire process to be rejected, the system can flag this upfront so it can be addressed immediately.
- Document Extraction - Convert documents into data for ingestion and avoid effort & errors from manual entry. While OCR has been around for a while Oracle is adding an additional layer of intelligence to recognize and capture key data elements.
- Product Classification - Reduce user effort & errors in identifying the correct classification codes (e.g., HS codes).
We are excited by the announcement of Oracle’s partnership with Cohere, a leading generative AI company. Our hope is this will speed up the rate of meaningful AI in OTM.
Area 2 – Optimizing Carrier Costs – Digital Broker Integration
As promised at last year’s SIG, Oracle delivered on the integration of digital freight brokers during both planning and execution in their last release which include Uber Freight, Convoy, Surge Transportation, and LoadSmart.
Given the gap between spot and contract rate in the last year this capability will enable shippers to drive even more savings if they choose to use this feature proactively. The days of digital brokers and Spot being a “Hail Mary” last resort are gone. Combining the use of digital brokers, spot market, and OTM’s step tendering enables shippers to deploy an array of strategies to ensure they get the best rate for their freight while still managing their carrier capacity commitments.
The flexibility to include digital brokers during planning or execution will be key for many shippers, especially if they have a large number of orders to plan. It is important to understand that utilizing this feature during planning will increase the optimization time due to the API calls to the digital brokers.
Other improvements include:
- Service provider tender constraints for equipment and special services
- Reason code capture if the lowest spot is not chosen
- Ability for spot carriers to enter per mile rate rather than just a fixed rate
- Capture additional reference data from spot carriers during the bid process
Area 3 – UX & Workbench Enhancements
One of the most impressive items was the UX and Workbench enhancements. There have been UX and Workbench enhancements in the last 3 releases. The incredible amount of flexibility and personalization includes:
Ability to create advanced Workbench layout
- Layout Display - Compact, Super Compact
- Inline edit and mass update with action checks
- Configure windows (lists, charts, maps, graphs) and size each individually
- Drag and drop, multi-select, filtered Set for Action Selection
The possibilities are endless and once you create your custom Workbench for the various tasks, you just save them as favorites.
Next Generation Workbench
Source: Oracle Product Strategy Presentation; © 2023 Oracle and/or its affiliates
Area 4 – Dock Scheduling
While Oracle has made some improvements to its dock scheduling module, we would like to see more intelligence built in to suggest appointment times based on estimated delivery/pickup times. In fairness to Oracle, they are beginning to close the gap compared to the most robust appointment scheduling applications available.
In recent releases they have added:
- Improved Gantt appointment view
- Multiple appointment support (for multiple commodities, dry door, refer door, etc.)
- Flexibility to set appointment at any specific time – not just on the quarter or half hour
- Appointment scheduling cut-off times – carrier must schedule appointment X number of days or hours before delivery day
- Includes drag-and-drop features in the appointment scheduling UI
We are also encouraged by Oracle’s participation in the Scheduling Standards Consortium (SSC). This initiative is in its infancy but is a good start to begin chipping away at the painfully manual process of appointment scheduling.
Area 5 – Global Trade Management & International Capabilities
Most of the Tier 1 TMS platforms started with a very US or North American focus and expanded into NA import/export as their client base expanded. Oracle has done a better job than most expanding international shipping capabilities to move beyond NA import/export and work towards a true anywhere-to-anywhere model and they continue to invest in international capabilities and Global Trade Management.
This year’s improvements include the integration of P44 Ocean Voyage Schedules, Trade Agreement Qualification enhancements, Usability, and restricted party screening enhancements but the biggest improvement is Trade Incentive Programs support. Oracle GTM can now support Duty Deferral & Drawbacks, Bonded Warehouses, and Temporary Import Programs.
Trade Incentive Programs for Oracle Global Trade Management Cloud
Source: Oracle Product Development Presentation; © 2023 Oracle and/or its affiliates
Oracle is also beginning to utilize AI/ML to assist with product classification and document understanding for data ingestion as mentioned above. Additional capabilities on the roadmap include expanding trade incentive program support (Foreign Trade Zone, Manufacturing under IMMEX, Manufacturing drawback) and additional trade agreement qualifications.
