What is Oracle Transportation Management (OTM)?
Oracle Transportation Management (OTM) is an enterprise solution used to plan, execute, and optimize transportation across multiple modes such as ocean, rail, truck, and intermodal.
OTM helps organizations:
- Select the best carrier
- Optimize routes and costs
- Track shipments
- Manage freight payments
- Gain end-to-end transportation visibility
key Transportation Concepts in OTM
Intermodal Transportation
- Single-carrier intermodal: One carrier manages the full journey and subcontracts legs.
- Multi-carrier intermodal: Shipper manages multiple carriers for different legs.
OTM supports both models using multi-leg itineraries.
Ocean Transportation
OTM supports:
- VOCC – Vessel Owning Common Carriers (full containers)
- NVOCC – Consolidators for LCL shipments
- Vessel Charters – Dedicated vessel bookings
Ocean planning is driven by vessel schedules containing voyage, port, and timing details.
Rail Transportation
Rail is commonly used for:
- Bulk commodities
- Long-distance, cost-efficient transport
OTM supports rail concepts such as:
- SPLC codes
- Interchanges
- Linehaul and switching charges
Why OTM is Important
OTM allows companies to:
- Reduce transportation cost
- Improve delivery reliability
- Manage complex global shipments
- Improve compliance and auditability
Ocean Setup in OTM
- Define ports as locations
- Configure ocean lanes
- Load service schedules
- Assign carriers and rate records
- Enable split booking if required
Rail Setup in OTM
- Define SPLC locations
- Configure interchanges
- Set up rail rate offerings
- Model switching and absorption charges
- Assign commodity codes (STCC)
Execution Flow in OTM
- Order creation
- Shipment planning
- Carrier tendering
- Booking confirmation
- Execution milestones
- Freight settlement
Oracle Transportation Management is a strategic logistics platform that enables organizations to manage complex global transportation networks efficiently. By supporting multiple transportation modes, carrier models, and execution processes, OTM delivers:
- Reduced transportation costs
- Improved delivery performance
- Enhanced operational visibility
- Better carrier collaboration
- Strong compliance and audit controls
OTM is particularly valuable for organizations with international trade, high shipment volumes, and complex intermodal networks, enabling scalable and data-driven transportation decisions.
