TRANSPORTATION MANAGEMENT EXECUTION OVERVIEW& APPLICATIONGUIDE TME

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1 TRANSPORTATION MANAGEMENT EXECUTION OVERVIEW& APPLICATIONGUIDE

2 Contents Executive Overview: Role of Transportation Management in Business... 3 Agile Network Architecture & Technology Manufacturing Applications for Agile Network. 7 Distribution Applications for Agile Network. 10 3PL Applications for Agile Network. 12 Agile Network Platform.. 13 Solution Platform.. 13 Base System Agile Network View Agile Network Route Agile Network Export.. 13 Agile Network Supplier.. 13 Agile Network Hazmat Agile Network Office Agile Network Freight & Parcel Management Services Agile Network Freight Brokerage Services Summary of Capabilities & Benefits 14 Glossary of Terms.. 15 TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 2

3 Executive Overview: THE ROLE OF TRANSPORTATION MANAGEMENT IN BUSINESS Spending in the U.S. logistics and transportation industry totaled $1.33 trillion in 2012, and represented 8.5 percent of annual gross domestic product (GDP). Analysts expect industry investment to correlate with growth in the U.S. economy. The U.S. Freight Transportation Forecast that was compiled by the American Trucking Association (ATA) predicted major growth in the trucking industry by In 2010, the trucking sector accounted for 81 percent of the total revenue and 67 percent of tonnage for transportation companies. The forecast suggested that overall revenue for the industry will rise nearly 66 percent and tonnage will increase 24 percent by This forecast can be used as a guideline for supply chains to develop logistics strategies for the future. $1.33 TRILLION LOGISTICS & TRANSPORTATION INDUSTRY 8.5 % With this background it is imperative to understand that in today s business environment transportation management is more than getting trucks to your dock and goods delivered to your customer in a timely and cost effective manner. With just in time delivery, EDI and an extended supply chain companies must use a variety of carriers and transportation methods to ensure delivery is on time and on budget or face steep increases in costs. With ever shifting accessorial costs being charged by carriers today it is even more important that business has the ability to scour the marketplace for the best price and delivery times on a daily basis with the ability to audit the freight bills. The use of routing guides to ensure delivery and contain costs is important to a company shipping department more and more. Companies that do not use a Transportation Management System (TMS) will spend 10% more on transportation than their best practice competition. A transportation management system will be able to give companies the ability to select the best carrier for its truck load (TL), less than truck load (LTL) and parcel freight with minimum intervention by the shipping staff. A centralized platform used to collect and share data across the company, division or enterprise is essential to the supply chain to analyze transportation management data and reduce cost. With proper set up and using tools such as freight optimization companies should expect to reduce their spend by 5% to 15%. US GDP US DEPARNT OF COMMERCE 2012 Already a huge part of the US economy, logistics and transportation spending is set to increase 66% by 2022 TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 3

4 Executive Overview: THE ROLE OF TRANSPORTATION MANAGEMENT IN BUSINESS A modern TMS system will be able to connect a company s suppliers to the system and ERP so that shippers are getting the best price for their freight dollar while providing vital visibility to management. Audit and pay capabilities may be used to further drive down costs by reducing or eliminating manual processes. Freight auditing will reduce accessorial costs and the savings can be placed on the bottom line. While outsourcing TMS may seem a sensible approach, companies that do frequently regret the decision. According to the Council of Supply Chain Management Professionals (CSCMP) 55% of shippers complain about a lack of integration with order management systems, loss of visibility and a lack of timely invoice reconciliation when outsourcing. Distributors can gain by the use of a modern TMS system when they are shipping for a number of customers, big box retailers typically direct distributors to use their shippers and account codes. Without a fully featured TMS system, this work must be done during the shipping process adding cost and time to order processing. By using TMS, shippers and accounts codes may be used behind the scenes as orders are processed. This will also greatly aid in accounting accuracy for both parties further reducing costs and increasing margins. Document printing at the time of shipment as well as restricted party screening and address verification are also capabilities that TMS systems provide to cut down on costs even as early as the order entry process. The key to a successful TMS implementation is setting realistic goals and Key Performance Indicators (KPI) to track the progress of the TMS system and to allow management a view to the improvements made in both cost reduction and increased customer satisfaction. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 4

5 Agile Network ARCHITECTURE & TECHNOLOGY Agile Network is a single platform designed to manage all modes of transportation; mail, parcel and freight. Agile Network will scale to support companies from a single site to a multisite enterprise on a global basis. The Service Oriented Architecture (SOA) of Agile Network allows for the integration of disparate transportation services, this appeals to manufacturers, distributors and 3PL s who may have requirements for a number of transportation solutions within the business. Agile Network is deployed on a single server, behind a firewall in the company IT center. Authorized users from anywhere on the corporate network are now able to access Agile Network solutions using the ERP or where allowed, a standard Internet Explorer browser. The Agile Network Composer developer tools are included in the system and are used to adapt role-specific processes for personnel in order entry, shipping, finance and customer service. All employees share a single view of the most up-to-date transportation activity and costs. AUDIT & PAYMENT SERVICES 8 INVOICE RECONCILIATION 7 DELIVERY CONFIRMATION 6 TRACKING & TRACING ERP AP ERP AR 5 MANIFESTING & LABELING RETAIL LOCATIONS Certified Integrations ERP SHIP ERP Agile Network DISTRIBUTION CENTERS ERP WMS ERP PURCH 4 ERP OM PACK VERIFICATION 1 RATING & ROUTING 2 ADDRESS VALIDATION 3 EXPORT FILING VENDOR NETWORK + 5,000 MORE Agile Network optimizes performance throughout the supply chain TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 5

6 Agile Network ARCHITECTURE & TECHNOLOGY Agile Network is built on the.net framework which protects the investment a business makes in their TMS..Net may be programmed in any language which allows for deep integration with other applications; is a highly reliable framework thereby increasing uptime; requires less code than older frameworks which allows programmers to concentrate on the business logic. The.Net framework increases security for business as it includes an evidence based security system for protection in today s internet environment. The framework makes deployment and management of applications much faster and easier thereby reducing overall cost of ownership. The.NET framework makes advances with regards to application connection to mobile devices. Integrated support for standards such as HDML and WML mean that applications built on the.net Framework can target even cellular phones As the.net framework was designed for the Internet, the data access system was also designed with this in mind. ADO.NET, a significant rework of the ADO model, is designed for today's Webbased style of data access using XML and prepared for "disconnected" use with a high-speed local cache. The.Net framework is important to decision makers concerned about the long term protection of their TMS investment. The inherent features of a.net based TMS ensure that data protection in the internet environment is state of the art. The versatility in programming languages makes.net ideal for integration to most applications without extensive and expensive rewrites..net is a very reliable environment which reduces total cost of ownership of a.net framework application. As mobility becomes more important to business it is reassuring to know that a decision to purchase Agile Network is a solid one as the.net framework is fully supportive of this technology. Unlimited scalability with clustered servers High availability with automatic failover and back-up Unprecedented security Stateless web service supports seamless integration and extensibility Open source framework ensures transparent maintainability Object oriented program delivers speed High Availability Server Architecture High Availability Data Architecture High Availability Transaction Architecture TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 6

7 Manufacturing APPLICATIONS FOR AGILE NETWORK In a manufacturing environment shippers may have several differing requirements for delivering goods. To be able to respond to the varying shipping demands on the business a TMS solution must be capable of handling third party collect, dealing with last minute changes to a shipment, providing commercial invoices, handling Hazard Materials documentation and export documents in addition to ensuring that the shipment is freighted correctly and cost effectively. Manufacturers face shipping and freighting challenges that require a number of manual steps and decisions due to the nature of their shipments. Frequently shipments are on an irregular schedule and vary in size and destination causing the business to spend time making freighting decisions that may not be the most cost effective or ensure a timely delivery. Integration to the ERP system is a must to give management a complete view of the business and provide the ERP with the information needed to generate accurate reports and Key Performance Indicators. A manufacturer may have multiple releases of a particular contract requiring shipments over weeks or months. Securing the timeliest and cost effective method of shipment is important especially when on time delivery may mean a profit or loss on the order. By using a TMS system to streamline decision making and to shop for the best price and delivery time, manufactures can decrease risk and increase margin. Without the ability to observe their supply chain and quickly forecast stocking requirements many companies are forced to maintain excessive inventory levels. At the same time, the inability to specify inbound shipping activities may force companies to pay excessive freight charges. This lack of control may also prevent companies from having supplier s drop-ship direct to the customer. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 7

8 Manufacturing APPLICATIONS FOR AGILE NETWORK Once the shipment is made it is vital to be able to stay informed about its progress, a TMS with the capability of Agile Network View will adapt on-demand, role-specific views from disparate data sources. It will have the ability to enable supply chain stakeholders to match customers to orders, orders to shipments, shipments to cartons, cartons to line items and cartons to carriers for in-transit delivery status. A manufacturer may be using multiple carrier-provided systems for processing parcels, manually rating and preparing labels with bills of lading for LTL shipments. Only one of their parcel systems may be integrated with their Enterprise Resource Planning (ERP) system, this configuration lacks the ability to capture line item detail for shipment contents; international export document preparation would be completely manual. These disparate and inconsistent processes impacted delivery commitments, quality, and training challenges. With the lack of centralized transportation cost accounting, the company s accounts payable department will have a difficult time reconciling carrier invoices. They would find it difficult to determine if the rates and accessorial charges were accurate, and they could not easily associate costs with specific orders or general ledger accounts. Agile Network will integrate the systems to the ERP system. The interface is designed to handle automated parcel and LTL rating requests from purchasing and order entry. With Agile Network Route, the system is capable of applying complex business and logistics rules based on type of order, customer, product, time-in-transit, and destination. This ensures that manufactures meets their customer delivery expectations at the right price. If the shipment is bound for an international destination, Agile Network Export verifies tariffs codes and prints international export forms, including Commercial Invoices, Certificates of Origin, NAFTA and Shipper s Export Documents. Agile Network Export submits requests electronically to the U.S. Customs Service Automated Export Service (AESDirect) and retrieves Internal Transaction Number (ITN) numbers when the filing has been confirmed with US Customs. All forms are stored in digitized form in a central database in accordance with US Customs filing requirements. All costs, including duties, are returned back to ERP. Implementation of Agile Network Supplier will allow companies to transmit orders to their suppliers and ensure fulfillment and delivery, even drop ship, direct from the supplier on time and using the controls and reduced cost benefits of the Agile Network system. Perhaps best of all, Agile Network has a Freight Management Service option that will provide accounts payable with the ability to reconcile the expected shipping charge as calculated by the shipping system with actual charges imported from carrier invoices. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 8

9 Manufacturing APPLICATIONS FOR AGILE NETWORK This has enabled many companies to eliminate wasteful service selections, avoid accessorial charges, correct addresses and otherwise improve internal processes to control transportation costs. All transaction data, including digitized documentation, are stored in a central database and made available to users across the enterprise. With one shipping database for all locations and users, finance personnel are able to use Agile Network Manage to generate consolidated management reports to analyze costs, reconcile carrier invoices, allocate costs to product lines and take action on any variances that appear. Accounts receivable get PODs to support collections efforts. Customers Service Representatives (CSRs) are now able to search shipping status by any field, for any carriers. Agile Network View enables drill down from customer to order to shipment to carton to line item detail. CSRs can now provide customers with the information they need to ensure products arrive in time. Agile Network helps shippers close the loop on transportation planning and management MEASURE PLAN EXECUTE SETTLE Agile Network provides performance metrics and analytics required for planning Agile Network provides business rules and guides to optimize rating and routing Agile Network provides multi-carrier shipping and tracking capability to minimize cost and increase visibility Agile Network provides the tools to reconcile invoices, recover erroneous charges and pay carriers. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 9

10 Distribution APPLICATIONS FOR AGILE NETWORK Distributors may work with multiple overseas suppliers and dozens of domestic suppliers - using many different carriers in total - they want to find a way to streamline their shipping processes and contain the cost of both inbound and outbound freight. What they need is an automated, centralized system that will manage and contain those costs. The old approach involves manual processes such as using carrier-supplied systems and third party freight brokers. There is no method of comparing transportation options across multiple modes of delivery and no routing to determine the best cost or time in transit. In many cases shipping processes are conducted offline from the ERP application. When shipments are processed with disparate systems, distributors lack a central repository to store all transportation information. The result is that management lacks visibility and control of transportation costs and historical shipping information. Shipping system operators manually verify carton contents for multi-package shipments, a requirement for international shipping. Distributors frequently have customers who require the use of their own carrier account numbers. Customer Service Representatives (CSRs) are responsible for fielding questions from customers and field support representatives regarding order and shipment status. Tracking shipments requires searches on the ERP system, carrier websites and continuous calls into the shipping department for shipment status. CSRs need the ability to quickly answer customer questions with complete and most up-to-date information available. The Finance Department in many distributors lacks the controls necessary to account for and reconcile transportation costs. Distributors that pay for shipping costs find it is important to control these expenditures accurately and in a timely fashion. Dimensional charges, fuel, duties and other accessorial charges can increase shipping costs rapidly and frequently are not taken into account due to the timecritical nature of each shipment. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 10

11 Distribution APPLICATIONS FOR AGILE NETWORK Agile Network is a production shipping application which provides distribution warehouse personnel with the ability to automate weighing, carrier service selection, rating, carrier compliant labeling and Bills of Lading processing. Shippers scan in delivery numbers and Agile Network instantly accesses header and line item information from the ERP. Agile Network checks for dimensional weight requirements and accesses carton characteristics from a product database. Agile Network also verifies consignee account numbers to ensure proper billing. Once the shipment is processed, Agile Network updates the ERP with accurate carrier costs and tracking information. Agile Network provides manifesting of parcel, LTL, TL and fleet shipments. AgileRoute provides rating and routing of orders. Agile Network Audit controls the parcel life cycle process and is responsible for identifying late and lost shipments along with providing complete reconciliation of carrier invoices for improved financial processing and cost reduction. An Agile Network Freight deployment as the front-facing solution for the handling of all LTL and TL transactions will allow for the quoting, booking, tendering, delivery status and invoice reconciliation of those shipments. Distributors may want to take advantage of cost saving shipping programs like Endicia, SmartPost and SurePost; all of these options are available with Agile Network. Implementation of these lower cost options will further reduce transportation spend and increase margins for distributors. Agile Network provides 100% compatible access to more than 4,500 carrier services around the world TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 11

12 3PL APPLICATIONS FOR AGILE NETWORK 3PL s without the agility to access multiple carrier networks and choose optimal route will spend as much as 30% on unnecessary freight services. These same limitations also prevent companies from providing customers with immediate and accurate freight estimates. Agile Network Route works directly with more than 800 carriers to provide up-to-the-minute options for any shipment. A common requirement in the 3PL market is the need to create an individual manifest for each customer account that they service. This can be a very difficult and time consuming process for a 3PL which will be satisfied through the use of Additional Carrier Account Sets in the Agile Network system. The result is that the 3PL will be able to capture more business, eliminate manifest processing on multiple systems and increase profitability. With Agile Network Route shipping staff have the ability to scan cartons then evaluate accurate delivery time, date and charge information from multiple carriers before choosing an optimal route. To streamline handling Agile Network Route allows management to pre-assign carrier and routing options to particular customers, shipments and destinations. Agile Network Route works with Agile Network to automatically generate shipping labels and carrier pickup notifications. Routing rules and capabilities are easily extended across multiple locations to unify shipping procedures. Agile Network Supplier will provide vendors with automatic pack verification, carrier routing, labeling, and electronic tendering capabilities to control inbound shipments and illuminate the supply chain. With Agile Network Supplier management can access precise freight content and delivery data required to optimize stock levels. By integrating Agile Network Supplier with carrier networks and TMS services, management also gains control necessary to leverage carrier discounts. Using Agile Network Supplier vendors may easily comply with company procurement policies, work to minimize shipment processing errors and ensure that cartons are properly packed. Without multicarrier rating and routing capabilities, 3PLs spend up to 30% on unnecessary freight services TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 12

13 Agile Network MULTICARRIER SHIPPING PLATFORM Agile Network Base System is a full multi-modal TMS system. The base system includes domestic and international origin shipping for UPS and FedEx, Agile Network Manage, Agile Network View, address validation, UPS SurePost support and the Agile Network Composer. The system supports unlimited Pack Out stations and is designed to support installations from a single site to an enterprise. Supplier Agile Network Supplier fits today s global economy as manufacturers are becoming distributors and distributors are becoming order management experts. Either way, managing supply chain fulfillment is a very critical process. Supplier leverages the power of the Internet enabling suppliers to do direct fulfillment without the need to give up quality control. Hazmat Agile Network Hazmat enables shippers to manage hazardous material product descriptions and forms to ensure dangerous goods are properly classified, described, labeled, documented and tracked. Hazmat complies with DOT reporting regulations to facilitate the safe transport of hazardous material through interstate commerce. Hazmat is required to ship hazmat products through the Agile Network system. Export Agile Network Export automates the task of complying with federal regulation for international trade. Export simplifies compliance and helps shippers avoid sanctions, penalties, delays in customs and supply chain disruptions by providing a consistent process for controlling and monitoring export documentation as well as performing restricted party screening. Export is capable of performing AES ITN submittal and retrieval. Supplier Route View Route Agile Network Route is an application that optimizes the routing of shipments, it allows a business to give their customers accurate prices and delivery options for freight. Route will also simultaneously connect and evaluate multiple carrier options for accurate delivery time, date commitments and delivery charge information. Routing guides from customers may also be incorporated into Route. Office Hazmat Agile Network Export Manage TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 13

14 Agile Network MULTICARRIER SHIPPING PLATFORM View Agile Network View is included in the base system. View gives users visibility into the supply chain. View adapts on-demand, role-specific views from disparate data sources, enabling supply chain stakeholders to match customers to orders, orders to shipments, shipments to cartons, cartons to line items and cartons to carriers for intransit delivery status. Shipping documents and labels may also be reprinted from View. Manage Agile Network Manage is included in the system. Manage supplies analytical tools to giving users a single, complete picture of their transportation activity. Companies can measure carrier performance with customized carrier report cards. Users can select modes, carriers or groups of carriers and then compare, graph and report on performance trends. A subscription to a freight brokerage service is required to utilize Manage. Office Agile Network Office enables a company to process shipments from any desktop in the organization or remote site. No matter where you are, if you have a PC, printer and an internet connection, Office enables users to ship, label and track materials. With this TMS Solution shipping can be done simply, easily but with more cost-effective controls than ever before. Freight & Parcel Management Agile Network Freight and Parcel Management Services provide connectivity to 3rd party freight transportation management services including auditing and payment, load optimization, tendering, event management and advanced routing. These services can reduce transportation spend by 5-20%. Freight Brokerage Services Agile Network Freight Brokerage Services provides connectivity to 3rd party freight brokerage services including auditing and payment, automated rating, tendering, event management and advanced routing at significant discounts. Utilizing brokers can reduce transportation spend by 5-20%. Supplier Route View Office Hazmat Agile Network Export Manage TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 14

15 Agile Network SUMMARY OF CAPABILITIES & BENEFITS CRITICAL ISSUES REASONS AGILE NETWORK SOLUTION Rising Transportation Costs Lack of cost-effective decision support Inability to eliminate accessorial charges Poor transportation cost accountability Automate multi-carrier route optimization Accurate rate calculation and address verification Improve enterprise cost visibility and control Process Compliance Enforcement Complex compliance requirements Lack of expertise and training Inability to monitor/measure compliance Embed rules into automated compliance processes Adapt processes to simple, role-specific work flows Consolidate compliance process reporting Customer Service Optimization Inefficient order and shipment tracking Lack proactive exception alerts Excessive order fulfillment errors Composite view of order, shipment, line item, PODs Automate exception notifications, POD requests Eliminate operator intervention, validate details Inefficiency Redundant data entry and steps Multiple application operations Manual documentation Streamline information silos into unified work flows Share common view among stakeholders Automate manual tasks, eliminate data entry Rising Inventory Levels Poor visibility into stock on hand Unnecessary replenishments Inefficient returns dispositions Capture order, shipment, carton, line-item detail Enable supplier drop shipping, inbound visibility Facilitate customer returns, dispositions Reduce cost of Ownership Inflexible legacy solutions resist change Lack of control over solution configuration High cost of customized solutions Fast On Demand deployment, reduced time to benefit Drag and drop tools for role-specific work flows Leverage legacy investments, carrier technology Rising Transportation Costs Lack of cost-effective decision support Inability to eliminate accessorial charges Poor transportation cost accountability Automate multi-carrier route optimization Accurate rate calculation and address verification Improve enterprise cost visibility and control TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 15

16 A ACCESSORIAL CHARGES Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, and destination/delivery. ADVANCED CHARGE A charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee. AGGREGATE SHIPMENT Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment. AGILE NETWORK EXPORT Automates the task of complying with federal regulation for international trade. Shippers have a duty under Federal laws to exercise reasonable care and comply with complex regulatory mandates related to international export. Agile Network Export simplifies compliance and helps shippers avoid sanctions, penalties, delays in customs and supply chain disruptions by providing a consistent process for controlling and monitoring export documentation as well as performing restricted party screening. Agile Network Export is capable of performing AES ITN submittal and retrieval. AGILE NETWORK FREIGHT BROKERAGE SERVICES Provides connectivity to 3rd party freight brokerage services including auditing and payment, automated rating, tendering, event management and advanced routing at significant discounts. Utilizing brokers can reduce transportation spend by 5-20%. AGILE NETWORK FREIGHT AND PARCEL MANAGEMENT SERVICES Provides connectivity to 3rd party freight transportation management services including auditing and payment, load optimization, tendering, event management and advanced routing. These services can reduce transportation spend by 5-20%. AGILE NETWORK HAZMAT Enables shippers to manage hazardous material product descriptions and forms to ensure dangerous goods are properly classified, described, labeled, documented and tracked. Agile Network Hazmat complies with DOT reporting regulations to facilitate the safe transport of hazardous material through interstate commerce. Agile Network Hazmat is required to ship hazmat products through the Agile Network system. AGILE NETWORK MANAGE Is included in the base Agile Network system. Agile Network Manage supplies analytical tools to giving users a single, complete picture of their transportation activity. Companies can measure carrier performance with customized carrier report cards. Users can select modes, carriers or groups of carriers and then compare, graph and report on performance trends. A subscription to a freight brokerage service is required to utilize Agile Network Manage. AGILE NETWORK OFFICE Enables a company to process shipments from any desktop in the organization or remote site. No matter where you are, if you have a PC, printer and an internet connection, Agile Network Office enables users to ship, label and track materials. With this TMS Solution shipping can be done simply, easily but with more cost-effective controls than ever before. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 16

17 A AGILE NETWORK ROUTE Is an application that optimizes the routing of shipments, it allows a business to give their customers accurate prices and delivery options for freight. Agile Network Route will also simultaneously connect and evaluate multiple carrier options for accurate delivery time, date commitments and delivery charge information. Routing guides from customers may also be incorporated into Agile Network Route. AGILE NETWORK Enables organizations to automate medium to high volume multi-carrier shipment processing from multiple locations, including warehouses, mailrooms, offices, stores, and depots all from a single platform. Drop shipping from your supplier sites is suddenly possible. Even remote workers can all access multi-carrier shipping tailored to their specific use. Requires Pack Out Management and SQL database. AGILE NETWORK SUPPLIER Fits today s global economy as manufacturers are becoming distributors and distributors are becoming order management experts. Either way, managing supply chain fulfillment is a very critical process. Agile Network Supplier leverages the power of the Internet enabling suppliers to do direct fulfillment without the need to give up quality control. AGILE NETWORK VIEW Is included in the base Agile Network system. AgileView gives users visibility into the supply chain. Agile Network View adapts on-demand, role-specific views from disparate data sources, enabling supply chain stakeholders to match customers to orders, orders to shipments, shipments to cartons, cartons to line items and cartons to carriers for in-transit delivery status. Shipping documents and labels may also be reprinted from Agile Network View. AGREED VALUATION The value of a shipment agreed upon in order to secure a specific freight rate. AGREED WEIGHT The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in a certain number. ALTERNATIVE RATES PRIVILEGE To use the rate producing the lowest charge. ANY QUANTITY (A.Q.) Usually refers to a rating that applies to an article regardless of size or quantity. ARRIVAL NOTIFICATION Carrier notifies and schedules a delivery date and time with the receiver. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 17

18 B BACKHAUL To haul a shipment back over part of a route it has traveled. BILL OF LADING (B/L) Multi-use documents that are essential to conduct the day-to-day operations when transportation of supplies, materials, and personal property is required. These primary documents are used to procure freight and express transportation and Related services from commercial carriers, including freight forwarders. What must be stated in a Bill of Lading? The name and address of: the carrier (the shipping company responsible for transport) the shipper (the consignor/sender, or his agent) the consignee (the buyer or his agent) Places of departure and destination Description of the goods Instructions for the payment of freight (collect or prepaid) Place and date issued Any other information relative to the shipment BILL TO PARTY Customer designated as party paying for services. BILLED WEIGHT The weight shown in a waybill and freight bill, i.e., the invoiced weight. BLANKET RATE A rate applicable to or from a group of points. A special rate applicable to several different articles in a single shipment. BONDED FREIGHT Freight moving under a bond to U.S. Customs or Internal Revenue Service, and to be delivered only under stated conditions. BONDED WAREHOUSE Authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed. BOOKING ARRANGEMENTS with a carrier for the acceptance and carriage of freight; i.e., a space reservation. BOOKING NUMBER RESERVATION number used to secure equipment and act as a control number prior to completion of a B/L. BROKER A person who arranges for transportation of loads for a percentage of the revenue from the load. BROKERAGE FREIGHT Forwarder/broker compensation as specified by ocean tariff or contract. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 18

19 C CAR POOLING Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers. CARRIER Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes. CARTAGE Usually refers to intra city hauling on drays or trucks. CASH AGAINST DOCUMENTS (CAD) Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house. CASH IN ADVANCE (CIA) A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order. CASH WITH ORDER (CWO) A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller. CERTIFICATE OF ORIGIN A certified document showing the origin of goods; used in international commerce. CL Abbreviation for "Carload" and "Containerload". CLASS Refers to the Classification rating or number that specifically identifies the approximate size, value and difficulty of transporting a particular type of product that can be shipped by a carrier. CLEAN BILL OF LADING A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be "clean." COD Abbreviation for: Collect (cash) on Delivery. Carried on Docket (pricing). COMBINATION RATE A rate made up of two or more factors, separately published. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 19

20 C COMMERCIAL INVOICE Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment. COMMODITY Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical. COMMON CARRIER A transportation company which provides service to the general public at published rates. CONFIRMED LETTER OF CREDIT A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults. CONNECTING CARRIER A carrier which has a direct physical connection with, or forms a link between two or more carriers. CONSIGNEE A person or company to whom commodities are shipped. CONSOLIDATION Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees. CONSOLIDATOR A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full carload (FCL) rates, and savings are passed on to shippers. CONTAINER A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8'0" or 8'6" in width, and 8'6" or 9'6" in height. CONTAINER LOAD A load sufficient in size to fill a container either by cubic measurement or by weight. CONTAINER MANIFEST Document showing contents and loading sequence of a container. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 20

21 C CONTAINER POOL An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required. CONTRABAND Cargo that is prohibited. CONTRACT CARRIER Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation. CUSTOMHOUSE A government office where duties are paid, import documents filed, etc., on foreign shipments. CUSTOMHOUSE BROKER A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer). CUSTOMS Government agency charged with enforcing the rules passed to protect the country's import and export revenues. CUSTOMS BONDED WAREHOUSE A warehouse authorized by Customs to receive duty-free merchandise. CUSTOMS ENTRY All countries require that the importer make a declaration on incoming foreign goods. The importer then normally pays a duty on the imported merchandise. CUSTOMS INVOICE A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller's commercial invoice. CUT-OFF TIME The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship. D D&H Abbreviation for "Dangerous and Hazardous" cargo. DECLARED VALUE To receive a lower rate a shipper declares a lower than actual value for a shipment. Similar to released value. Declared value is for a complete shipment whereas released value is for each piece in a shipment. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 21

22 D DEFICIT WEIGHT The weight by which a shipment is less than the minimum weight. DELIVERY INSTRUCTIONS Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order. DELIVERY RECEIPT (DR) A document which evidences delivery of a shipment. Same as POD. DEPOT Container freight station or a designated area where empty containers can be picked up or dropped off. DESTINATION The place where carrier actually turns over cargo to consignee or his agent. DESTINATION CONTROL STATEMENTS Various statements that the U.S. government requires to be displayed on export shipments. The statements specify the authorized destinations. DOCK For land transportation, A loading or unloading platform at an industrial location or carrier terminal. DOCK RECEIPT A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading. DOOR-TO-DOOR The through transportation of a container or trailer and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate. DRAYAGE Charge made for local hauling by dray or truck. Same as Cartage. DUNNAGE Term used to described material used for the securing of freight TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 22

23 E EDI Abbreviation for "Electronic Data Interface." Generic term for transmission of transactional data between computer systems. EDI is typically via a batched transmission, usually conforming to consistent standards. ENDORSEMENT A legal signature usually placed on the reverse of a draft; signifies transfer of rights from the holder to another party. ENTRY CUSTOMS Documents required for clearing an import shipment for entry into the general commerce of a country. EQUALIZATION A monetary allowance to the customer for picking up or delivering at a point other than the destination shown on the bill of lading. This provision is covered by tariff publication. ETA Estimated time of arrival. EXPORT DEC Contraction for "Shipper's Export Declaration." EXPORT Shipment of goods to a foreign country. EXPORT DECLARATION A government document declaring designated goods to be shipped out of the country. To be completed by the exporter and filed with the U.S. Government. EXPORT LICENSE A government document which permits the "Licensee" to engage in the export of designated goods to certain destinations. F EXPORT RATE A rate published on traffic moving from an interior point to a port for transshipment to a foreign country. FOB See Free On Board. See also Terms of Sale, FOB. FOB FREIGHT ALLOWED The same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by A like amount. FOB FREIGHT PREPAID The same as FOB named inland carrier, except the seller pays the Freight charges of the inland carrier. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 23

24 F FCL Abbreviation for "Full Container Load." FREE ALONGSIDE (FAS) The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment. See Terms of Sale. FREE ON BOARD (FOB - U.S. DOMESTIC USE) Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point. Also means the point at which title to the goods passes from seller to buyer. FREE ON BOARD (INT'L USE) See Terms of Sale. FREE SALE CERTIFICATE The U.S. government does not issue certificates of free sale. However, the Food and Drug Administration, Silver Spring, Maryland, will issue, upon request, a letter of comment to the U.S. manufacturers whose products are subject to the Federal Food, Drug and Cosmetic Act or other acts administered by the agency. The letter can take the place of the certificate. FREIGHT Refers to either the cargo carried or the charges assessed for carriage of the cargo. FREIGHT BILL A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially. An Invoice. FREIGHT FORWARDER A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation. FUEL SURCHARGE (FSC) An additional charge to the customer to make up for an increase in fuel prices. G GROSS WEIGHT Entire weight of goods, packaging and freight car or container, ready for shipment. Generally, 80,000 pounds maximum container, cargo and tractor for highway transport. GROUPAGE A consolidation service, putting small shipments into containers for shipment. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 24

25 H I HAZ MAT An industry abbreviation for "Hazardous Material." HUNDREDWEIGHT A unit of weight arrived at by dividing the actual weight by 100. Hundredweight (also called CWT) is a standard presentation of LTL carrier rates. IMPORT To receive goods from a foreign country. IMPORT LICENSE A document required and issued by some national governments authorizing the importation of goods. INCENTIVE RATE A lower-than-usual tariff rate assessed because a shipper offers a greater volume than specified in the tariff. The incentive rate is assessed for that portion exceeding the normal volume. INDEMNITY BOND An agreement to hold a carrier harmless with regard to a liability. INLAND CARRIER A transportation line that hauls export or import traffic between ports and inland points. INSPECTION CERTIFICATE A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments. INSIDE DELIVERY When a driver is required to go beyond the front door or loading dock to pick up or deliver a load rather than remaining in his/her truck or on the loading dock. INTERCHANGE POINT A location where one carrier delivers freight to another carrier. INTERLINE FREIGHT Freight moving from origin to destination over the Freight lines of two or more transportation carriers. INTERMODAL Used to denote movements of cargo containers interchangeably between transport modes, i.e., motor, water, and air carriers, and where the equipment is compatible within the multiple systems. INVOICE An itemized list of goods shipped to a buyer, stating quantities, prices, shipping charges, etc. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 25

26 J K L JIT Abbreviation for "Just In Time." In this method of inventory control, warehousing is minimal or nonexistent; the container is the movable warehouse and must arrive "just in time;" not too early or too late. JOINT RATE A rate applicable from a point on one transportation line to a point on another line, made by agreement and published in a single tariff by all transportation lines over which the rate applies. KNOWN LOSS A loss discovered before or at the time of delivery of a shipment. LADING Refers to the freight shipped; the contents of a shipment. LANDED COST The total cost of a good to a buyer, including the cost of transportation. LCL Abbreviation for "Less than Container Load." The quantity of freight which is less than that required for the application of a container load rate. Loose Freight. LTL Less Than Truckload Also known as LCL. Is an acronym for Less-Than-Load, meaning cargo that is not of the quantity to require an entire truckload (TL) by itself. Typically, an LTL shipment ranges from 100 lbs. to 20,000 lbs. LETTER OF INDEMNITY In order to obtain the clean bill of lading, the shipper signs a letter of indemnity to the carrier on the basis of which may be obtained the clean bill of lading, although the dock or mate's receipt showed that the shipment was damaged or in bad condition. LICENSES Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. Various types issued for export (general, validated) and import as mandated by government(s). LINE-HAUL Transportation from one city to another as differentiated from local switching service. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 26

27 L M LOCAL CARGO Cargo delivered to/from the carrier where origin/destination of the cargo is in the local area. LOGISTICS Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements. MANIFEST Document that lists in detail all the bills of lading issued by a carrier or its agent or master for a specific voyage or trip. A detailed summary of the total cargo of a vessel or trailer. MASTER INBOUND U.S. Customs' automated program under AMS. It allows for electronic reporting of inbound (foreign) cargoes in the U.S. MINIMUM BILL OF LADING A clause in a Bill of lading which specifies the least charge that the carrier will make for issuing a lading. The charge may be a definite sum or the current charge per ton for any specified quantity. MINIMUM CHARGE The lowest charge that can be assessed to transport a shipment. MIXED CONTAINER LOAD A container load of different articles in a single consignment. MULTIMODAL Synonymous for all practical purposes with "Intermodal." N NET TARE WEIGHT The weight of an empty cargo-carrying piece of equipment plus any fixtures permanently attached. NET WEIGHT Weight of the goods alone without any immediate wrappings, e.g., the weight of the contents of a tin can without the weight of the can. TRANSPORTATION MANAGEMENT SYSTEMS OVERVIEW & APPLICATION GUIDE 27