Oracle’s product strategy head shares supply chain insights

As Oracle OpenWorld came to a close in San Francisco last week, we learned how that global brand expanded Oracle Supply chain Management (SCM) Cloud with new collaboration, integration, and digital assistant capabilities. They include the introduction of Oracle Business Network, a B2B network, and a new digital assistant for supply chain.

In an exclusive interview with Derek Gittoes, VP, Oracle SCM Product Strategy, we were also told that partnerships are a priority for Oracle’s supply chain strategy.

“In July, we announced a partnership with digital freight brokerage Loadsmart, which has made it possible for Oracle Transportation Management (OTM) Cloud customers to instantly review quotes and book truckloads with guaranteed capacity, saving significant time and money,” he said. “We are committed to expanding our network of partners to make the shipping process even more seamless for our customers.”

In this Q&A discussion, more details are revealed.

Supply Chain Management Review: Can you describe the strides made since partnering with Loadsmart?

Derek Gittoes: Partnering with Loadsmart has been a game-changer for many of our customers and we are seeing great adoption. What used to be a complicated process that limited carrier options to only those who customers had directly integrated with, is now a nearly instantaneous process that provides real-time visibility to truckload availability and costs. Our cutomers are seeing increased route efficiency, a reduction in “empty miles,” and reliable, guaranteed price quotes – all of which translate to time and money saved.
 
SCMR: What is the future of digital freight brokerage?

Gittoes: Transportation is an extremely expensive part of the supply chain, and any potential to reduce costs and increase efficiency is a no-brainer for shippers – which is why digital freight brokerage solutions are growing in popularity. The future of these services is tighter integration and more automation so an Oracle Transportation Management Cloud customer can orchestrate a highly agile and efficient transportation network where the system can automatically book, process and invoice shipments according to changes production and customer demand. Technologies such as artificial intelligence (AI), the Internet of Things (IoT) and blockchain will enable systems to learn from every user interaction, track and orchestrate shipments and initiate smart contracts to improve efficiency and accuracy. 

SCMR: What are the main obstacles to its progress?

Gittoes: The biggest obstacle to progress for digital freight brokers will likely be end user adoption. The B2B transportation sector has traditionally been slow to embrace innovation, with many companies still relying on phone and fax for day-to-day operations. Transportation professionals have become accustomed to these traditional processes and shifting to digital freight brokerage requires learning new systems. For this reason, we are trying to make the user experience as simple and seamless as possible, integrating it into OTM so there are no additional applications required.

SCMR: Any final observations?

Gittoes: Yes. I’d like to add that there is still looming fear around autonomous truck fleets, and some may see digitizing the freight brokerage process as another step towards complete industry automation. However, I would argue that this technology actually works in favor of truck drivers by removing inefficient “empty miles” to help them earn more and to reduce costs for shipping companies.