Delivering the Buns Wendy’s OTM Implementation

1. Delivering the Buns Wendy’s OTM Implementation Phil Kilgore – Director Solutions Architecture Phil.Kilgore@Wendys.com October 2nd 2014 – OOW 2014

2. Agenda • Company Overiew – Price of Admission • Oracle Portfolio • Intro of Bakey, Challenges and Success Criteria • Oracle Transportation Manager - Phased Implementation • Lessions Learned • R12 upgrade experience • Next steps

3. The Wendy’s Company • 3rd Largest QSR Chain • 6500 Franchise and Company Restaurants • 39,000 Employees • Corporate Headquarters Dublin, Ohio

4. Wendy’s Oracle Portfolio • e-Business 12.1.3 • Demantra • Business Intelligence • SOA Suite 11G • WebLogic • EXADATA • Web Content Management • Web Center • Oracle Transportation Manager • SiteHub MDM

5. The New Bakery Company • Located Zanesville Ohio • 2 Bakeries producing 135 truck loads of buns weekly • 1 billion + buns annually • 53 Truck Fleet 18 trucks on road daily 6 days per week. • 100 - 120 routes per week from two Bakeries (shipping locations). Each route consists of 10-14 stops & 1000 miles. • 1470 deliveries weekly • 2900 Customers including other brands • Checkers, Rally’s, Generic Grocery Brands

6. The Bakery Challenges • Lack of accurate forecasting • Labor and Master scheduling • Invoicing, POs and Acknowledgements • Trucks and routes manually planned • Perpetual Inventory control • Timely data capture, recording and tracking • Reduce Transportation Costs • Use Perpetual Inventory and Cycle Counting • Electronic PO’s, Invoices, Acknowledgments • Efficient Use of Raw Materials • Real-Time Analysis Tools • Yield Optimization • Additional Automation

7. Success Criteria • Increase average trays per drop • Decrease number of annual deliveries per store • Reduction in time spent in planning process • Allow drivers to select route preferences • Reduce amount of product on-hand at time of next delivery.

8. Project Phases and Approach • Phase III – 2013 to July 2014 • Implement Cadec to OM Interface • Phase I – 2011 • Implement Demantra Forecasting • Load Bun Demand • Phase II – 2012 to January 2013 • Added Bakery Purpose to SiteHub • Develop Demantra to OM Interface • Develop OM to OTM Interface • Implement Advanced Pricing • Implement OTM • Develop OTM to OM/Cadec Interface

9. OTM Infrastructure Components • Oracle Transportation Manger Version 6.2.5 • BPEL & SOA WebLogic Cluster 10.3.6 for the Integration Between EBS OM and OTM • WebLogic 10.3.3 – Application Server • EXADATA – OTM Database Server • PC*Miler to Support Route Bulk Planning • Mileage Between Stops • Speed Limits • Road Construction & Closures • New Roads

10. OTM Infrastructure & Integration

11. Our Implementation Process

12. Pre-Requisites – Phase I – Forecasting Requirements • Implement Demantra Forecasting • Forecast at Raw Item Level for Bakery SKUs • Load Historical Bun Demand • Develop Initial Load Interface • Develop Core Data Refresh Procedure • Validate Demantra Results • Compare Forecast to Legacy Bakery System

13. Implementation – Phase II • SiteHub Configuration • Configuration of Demantra • Configuration of Oracle e-Business Suite (EBS) • Inventory Module • Implement Advanced Pricing Module • Order Management Module • Accounts Receivable Module • Installation and Configuration of Oracle Transportation Manager • Creation of Truck Loads • Truck Routing – PC*Miler • Creation of Delivery Tickets

14. SiteHub – Master Data Managment • Added Bakery Location Attributes • Latitude/Longitude • Needed for Route Planning in OTM • Route ID • Used in Demantra Worksheets • Used as “Ship With Group” in OTM • Delivery Ticket Type • Company, Franchise, Warehouse/Outside Customer • Delivery and Run Instructions • Freezer Information (Size Capacity etc)

15. Demantra • Create ETL to Process Planned Data to OM Module • Validates All Required Data is Entered • Validates All Data is Feasible • Create Order Actuals Interface • Sends Delivered and On-Hand Back From OM Module • Create Load Planning Worksheets • Route Master Worksheet • Restaurants, Products, Projections, Date • Input Days to Cover • Route Trailer Worksheets • One for Each Trailer Size (48’, 50’, & 53’) • Pick Warehouse, Delivery Date, & Export

16. EBS – Inventory, Advanced Pricing, & Order Management • Order Management • New Order Types • Shipping Methods • New Order Line Types • Accounts Receivable • OM to AR Interface for Bakery • Enable DFF on Invoices for Delivery Ticket ID • Inventory • Warehouses as Inventory Organizations • Create Items & Establish Inventory • Advanced Pricing • Price Lists • Line Modifiers • Zone Pricing • Surcharges

17. Infrastructure, Integrations, & Oracle Transportation Manager • Installed BPEL & SOA WebLogic Cluster 10.3.6 for the Integration Between OM and OTM • Standard BPEL interfaces delivery with EBS patch • Deploy to SOA • Installed PC*Miler to Support Route Bulk Planning • Mileage Between Stops • Speed Limits • Road Construction & Closures • New Roads • Installed Oracle Transportation Manager Version 6.2.5

18. Oracle Transportation Manager Configuration • Delivery Calendars • Defined Route ID, Delivery Ticket Type, Key Indicator, Run Instructions, & Store Instructions for Order Releases • Drivers and Power Units • Assigned Power Units to Drivers • Hours of Service Rules • Daily & Weekly Rules • Single & Team Driver Rules • Limits on Driving Hours & Activity Hours

19. Oracle Transportation Manager Configuration (Cont.) • Setup All Customers as Locations • Setup Regions to Support Denver CrossDock • ALL – US & Canada • Setup Depot Profiles • Allows Routes to be Planned to Return to Origin (Virtual Locations) • Setup Service Providers & Service Provider Profiles • Fleet • Common Carriers • Customer Pick-Up

20. Oracle Transportation Manager Configuration (Cont.) • Configure Integrations from OTM to OM and Cadec • Setup Document Manager, Web Services • Setup Out XML Profiles and External Systems • Customize Layouts & Screen Sets • Drivers, Power Units, Locations • Order Releases • Shipments

21. Implementation - Phase III – Truck Mounted Systems • Cadec is a Web Service • No Software Installation Needed • Routes, orders, instructions etc. pushed to Cadec truck units. • Installed Cadec Handheld Units in Trucks • Drivers Sign-On to Units and Pick Routes • Cadec Tells the Drivers Directions, Order of Stops, & Displays Items/Quantities to be Delivered at Each Stop

22. Truck Mounted Units

23. Mapping and Dashboards

24. Process Flow

25. Successes, Failures, & Lessons Learned

26. Success • Completed – Meeting and exceeding success criteria • By Business Agreed Upon Time • Within Budget and Scope • Configuration and Deployment Went Exactly as Planned with no Major Issues • Minimum number of Post Go-Live Issues • Mostly Business Process Issues • No Production Down Issues,

27. Lessons Learned • Business Rules and Alignment • Improved exploratory and documented exceptions • More Volume Testing • Identifies missed exceptions etc. • Volume Visibility • Once OTM was Live, Configuration Updated to Allow Further Visibility on Dispatch Board • Business Process Learning Curve • Training for Business Owners and Super Users • Super Users put Together Business Process Documentation and Desk Level Procedures

28. EBS R12 Upgrade – Issues & Hurdles • SOA Suite Upgraded From 10.1.3.5 to 11.1.1.6.0 • SOA Suite 11G required for R12 • Required EBS Patches to link R12 EBS to OTM • 1 Patch Required on 11g SOA Side • Big Hurdle – My Oracle Support Note: “Integrating Oracle E-Business Suite 12.1.3 with BPEL in SOA Suite 11g [ID 1070257.1]” • Gaps Around Required Security & Setting Up Against a RAC R12 Environment (ex. Making the SOA Connections Redundant)

29. What’s Next?

30. Next Steps • Implement Cadec Payroll for Fleet Drivers • More Accurately Track Hours of Service • Validate Miles Driven Equal Miles Planned; Have Visibility to Differences and Understand Why • Route Modelling • New Customers, New Regions • Switch to Dynamic Routing in OTM • Static routes: Pre-defined groupings of stores, delivery every store every time • Dynamic routes: Plan orders just for stores that need a delivery, let OTM determine the best way to group those stores into routes • Upgrade OTM to version latest release

31. Questions ?