Best Practice Shipment Management for Shippers IT-Process Recommendations for the Collaboration of Companies along the Supply Chain

Transcription

1 Best Practice Shipment Management for Shippers Version: 11/2016 IT-Process Recommendations for the Collaboration of Companies along the Supply Chain AXIT GmbH. A Siemens Company. Nachtweideweg Frankenthal.

2 Content Introduction...3 Business Case...4 Initial Situation & Requirements...4 Best Practice Description...5 Scope of the solution...5 Especially recommendable functions...6 Advantages...7 Success Factors for Implementation the Best Practice Methodology Integration Standardization Flexibility...9 List of Functions on this Best Practice Best Practice Shipment Management for Shippers 2

3 Introduction Saving knowledge in reference processes When configuring logistical processes, Information Technology (IT) must also work to find innovative solutions in the supply chain. One such solution includes company collaboration; a facet of supply-chain processes AXIT supports. With over 2,500 implemented supply chain management projects globally, AXIT provides innovative solutions to logistical problems that challenge companies worldwide. We recognize that most companies have the same logistic problems and have created reference templates that provide detailed flexible solutions to overcome them. Located in AXIT s state of the art development and research facilities in Germany and Poland, these templates contain information that will ease and simplify the supply chain process through collaboration. AXIT recommends companies reduce complexity, enable a stable supply chain, and promote smooth collaboration for all participants. Time is money, and efficiency saves time, so why overcomplicate your supply chain? With over 200,000 users, AXIT tackles the challenges in the operational management of logistical networks and offers a fast, efficient and easy to use alternative. One central Platform for all Participants Cross-company standardization of processes is only achieved when all participants look beyond the borders of their present in-house systems. That s why a central platform is needed which connects the heterogenic system worlds and the involved actors. All participants can location independent communicate with each other and exchange information. Services In order to use Best Practices ideally for the company, AXIT supports them with different services: Workshops help the participants to find the appropriate solution. Trainings accompany the roll-out of the solution and assure the correct usage. After the implementation, the Review-Workshops and consulting help the companies add useful extensions. Best Practice Shipment Management for Shippers 3

4 Business Case Initial Situation & Requirements A company distributes goods from several locations to a large number of customers. Depending on the company s transport requirements several forwarders are being used: e.g. for different shipment sizes (general cargo, partial and full truck loads, CEP shipments) or for different ways of transport (air, sea, rail, road). The processes for cooperation and the exchange of information with the forwarders can be arranged in different ways, depending on location and forwarder. Within the company many departments are affected by the logistical processes, so requirements to a system are comprehensive: The company s central logistics requires - central overviews, continuous transparency across all locations - and clear performance measurability, meaningful reports - central availability of validated shipment numbers, e.g. for tenders - standardized and harmonized processes instead of many individual solutions across locations The individual locations require easy and automated handling of communication with forwarders, i.e. - quick and cost-efficient integration of new forwarders - automated exchange of all required data - be able to give information quickly in case of problems; transparency on the shipment s progress - also they need a system which can flexibly map special requirements of individual locations The customer service center requires - easily accessible and current information on the shipment status and proactive information in case of problems IT requires - a system which can be implemented at low costs, which integrates easily with the existing system landscape and is easy to maintain The company s customers expect - Transparency and simple options to access their shipment information. They wish for a modern and innovative portfolio of functions. Best Practice Shipment Management for Shippers 4

5 Best Practice Description The AX4 Best Practice Shipment Management for Shippers offers the company a central solution for communication with various forwarders. The flow of information in shipment management is comprehensively mapped. The solution can be flexibly adapted to the locations various requirements. It thus replaces numerous individual solutions by a single standard. The Best Practice can be used for both distribution and procurement processes. It comes with smart and modern functions leading to a high degree of user satisfaction among the participants. Img.: Best Practice Overview Scope of the solution 1. Automated transmission of shipment data from the ERP system via flexible ways to the various forwarders. The service includes organizing and implementing the connection for all different forwarders and the monitoring of data flows. 2. Editing or enhancing of shipment data, e.g. bundling of delivery notes, validations, manual or automated adding of additional information or master data such as packaging material 3. Barcode label creation (cf. Best Practice Barcode Label Printing in the Shipping Process ) 4. Printing functions for necessary documents like loading lists, shipment documents or barcode labels 5. Flexible feedback options for tracking data by the forwarders: via web, interface or mobile devices 6. Central and web-based tracking overview on all shipments incl. search functions. Additionally: interface to ERP system for transmission of tracking data. 7. Comprehensive notification functions to pre-defined involved parties for certain events (e.g. late pick up, missing package ) 8. Control tower function with cross-company search functions and overviews for central logistics 9. Integration of the company s customers who can access their shipments status through their own web screens 10. Performance reports for employed forwarders (cf. AX4info Collect and analyze important KPIs ) Best Practice Shipment Management for Shippers 5

6 11. Functions for managing the solution by the company itself, e.g. user administration, changes of entry masks with AX4 Open 12. Combinable enhancements like freight cost calculation (cf. AX4info Billing ), time-slot management Highly recommended functions Automatic shipment pre-alert to consignee by incl. tracking link through which the individual shipment tracking data is shown Automated completion of shipment information by accessing master data (e.g. routings, packaging, transit times) Automated shipment consolidation according to pre-defined criteria (e.g. same day, same consignee) Exchange of documents (e.g. POD or customs documents) to avoid separate faxes Multi-level workflow for authorization of special transports Access to tracking information via smartphone Automated time-controlled agents check if status feedback has been received in time and in full and inform the customer accordingly Separate overviews e.g. for shipments with a delay or risk of delay Transit time control (target/actual) under consideration of public holidays Support for tenders through reports on shipment volumes, sizes, dimensions etc. Creation of individualized overviews for end users Decentralized maintenance of master data (e.g. updating of freight tariffs by forwarders or addresses and opening hours by suppliers and consignees) AX4 mobile: Being the mobile access to the logistics platform AX4, the app AX4 mobile offers a wide range of application possibilities. These can be individually configured under the menu point Mobile Profile in AX4 Open (cf. AX4info Use Cases for the AX4 mobile App ). Best Practice Shipment Management for Shippers 6

7 Advantages Reduction of administration costs per shipment (fewer manual efforts, fewer research for information): -0,50 / Shipment Time savings for integrating a new forwarder compared to a direct individual connection: -50 %. Already 2,000 forwarders are integrated with the AX4 network. Time savings when rolling out to a new location compared to locally implemented software as the solution can simply be copied: -70 % Efforts saved when integrating with ERP system compared to directly connecting forwarders to the ERP system: -50 % The error rate due to intransparent processes or the lack of access to information is clearly reduced Complexity is reduced Reliability in supply increases due to more stable processes, transparency and meaningful KPIs, timely information in case of problems Special transports are clearly reduced Higher degree of satisfaction with the company s customers due to integration with the flow of information No internal maintenance efforts for the system and organizational relief for IT due to outsourcing of forwarder integration Informative data pool leads to more qualified analysis results Savings in freight cost because of detailed tender documents (approx. 80 % of tender success lies in correct and comprehensive data on shipment volumes) Best Practice Shipment Management for Shippers 7

8 Success Factors for Implementation the Best Practice Methodology AXIT s best practices are always based on the same recommended methodology. It is based on three steps: 1. Easy and flexible INTEGRATION 2. STANDARDIZATION of processes 3. FLEXIBILITY to be able to adapt to changes in an agile and swift way Each of these steps includes direct advantages so it is not necessarily required to make all three steps to achieve improvements for the logistics provider and his customers. 1. Integration Easy and flexible integration of the ERP system without any additional programming on the customer s side Flexible connection variants to integrate the forwarders heterogeneous world and not accepting any exceptions (web account, interface, , smartphone) Easy connection of the company s customers (e.g. via interface, web account) Integration of individual company locations and also central departments like customer service, procurement, central logistics 2. Standardization via workflows: Across all locations the process for transmitting shipment and tracking data is standardized and follows the same course. Individual ways of transmitting shipment data by fax, or telephone have been eliminated. The completeness of the information that is delivered no longer varies depending on the respective forwarder s IT competence. The intermediary platform equalizes this. Standardization also means that tracking data which is reported back from the forwarders is translated into the company s central vocabulary. Like this it is avoided that for one and the same tracking status, e.g. delivered there are many different forwarders variants, e.g. dropped, clear receipt, transport ended etc. This kind of standardization into a harmonized vocabulary makes for an important prerequisite for later analysis of data. Best Practice Shipment Management for Shippers 8

9 ... via roles and rules: In this solution there are basically two different roles: the shipper and the forwarder. The roles are linked to the a.m. workflows. This way it is defined who can receive and view which data and who has to give which feedback. A good example for a system of rules in this case is Supply Chain Event Management (SCEM). When a negative status is sent SCEM triggers an notification to the shipper.... via standardized documents: The barcode labels or loading lists which are produced for the forwarders look identical across locations. Thus a forwarder working with multiple locations will receive standardized documents facilitating their further use. 3. Flexibility Flexibility by modular processes Flexibility is achieved by modularizing an overall process. It is split up into partial processes which can be flexibly combined with each other depending on the requirements. An example process is the transmission of shipment data. It includes the following process modules: Transmission of data via EDI or web or as a combination of both when data transmitted via EDI can be completed on the web Transmission of consolidated shipments as a loading list or individually Transmission of shipment data with delivery note items or without Transmission of pre-alerts and / or final data Another example is the process Routing of shipments to the forwarder, with the following modules: Routing is transmitted by the company along with the shipment data Routing is done only in AX4 Routing is done by manual allocation via web by customer s dispatcher Routing is done in case of several possible forwarders based on freight cost Flexibility by combination of product modules Flexibility is also supported by product modules which are part of the process or not, depending on the location, e.g. shipment management, tracking, SCEM, document upload, report, freight cost calculation. Flexibility by self-administration and configuration via AX4 Open Through AX4 Open the customer can manage and edit the AX4 solution by himself. Also this is part of the flexibility as changes can be implemented faster. Best Practice Shipment Management for Shippers 9

10 List of Functions on this Best Practice Img.: Best Practice Module Box Integration Web Account EDI - FTP, , HTTP, HTTPS, OFTP via TCP/IP, OFTP via ISDN, value added-service-bound communication ways (X 400- Telebox), SFTP, AS2 Shipment Upload - Upload shipment data via csv or text file - One-off creation of mappings to this by the AX4 user Web Service - inbound, outbound Mobile Devices - Smartphone & Tablet PC (via the app AX4 mobile ), Scanner Roles Shipper Logistics Provider Carrier Consignee (Sub-Contractor) Best Practice Shipment Management for Shippers 10

11 Shipment Management Shipment Transmission - Transmission of shipments via interface (from customer / to logistics provider) - Shipment upload - Shipment creation via web mask o Sub-position for entering article data o Validation of entered data after save action o Dangerous goods entry mask o Templates - Shipment delete, advice, release, cancel, edit - Pallet information o Entry mask for pallets o Pallet overviews with search function o Control Tower function: Search for partners stock Enter data on behalf of others Consolidation & Dispatch - Consolidate shipments - Consolidation via web mask o Consolidate several shipments to one manifest o Validation of entered data after save action - Manifest assignment o to transport mode o to pre, main and delivery carriage o to carrier Manifest Creation - Transmission of manifests via interface - Manifest create, delete, advice, release, cancel, edit Routing & Barcode Label - Creation of barcode labels for shipments - Storing of routings - Generation of barcode labels o via AX4 o via web service Overviews & Searches - Shipment and manifest overviews with search function - Creation of individual overviews based on overviews type Download of shipment and manifest data (csv, xml and Excel for overviews type 2.0) - Comment functionality for shipments Best Practice Shipment Management for Shippers 11

12 Tracking Transmission of tracking data from Logistics Provider Transmission of Tracking Data to Shipper - Transmission of tracking data via interface - Tracking status updates via web mask o with status/reason-combination o with check routines o with comments - Tracking status available on different levels: o Shipment o Shipment position o Manifest - Tracking information via Smartphone (add, view) - Anonymous tracking - Transmission of tracking data via interface Overviews & Searches - Tracking overview with search function and traffic light colors - Creation of individual overviews based on overviews type Download of tracking data - (Excel for overviews type 2.0) Additional Functions Print Documents - Print documents available for: order, call-off, delivery note, shipment, loading list, barcode label, pallet note, time-slot Electronic Data Folder - Upload of external documents (e.g. pdf, xls, jpg) and assigning to following levels: o Shipment o Manifest - Displayed in overviews - Anonymous access via link SCEM - Available for: Order, call-off, delivery note, shipment, manifest, tracking, uploaded documents (see electronic data folder) Master Data - Import of master data via interface o e.g. transit times, container master data (dimensions, weight, stacking factor) - Calculations based on master data (e.g. of pick-up date based on delivery date, transit tables and calendar) - Possibility for decentralized master data management Reports - Reports via (csv, xls, pdf) Best Practice Shipment Management for Shippers 12

13 AX4 Open (range of functions to be defined by project) Administration / Management - Administration of user, partner and master data Workflow Configuration - Definition of participants and their relation among themselves User Interface Configuration - Design of input dialogs and overviews with fields and colors Document Configuration - Design of print documents Integration Tools - Possibility to monitor the data flow Combinable Extensions Reports - Cube creation for transmission of data to the report module (done by AXIT) - Configuration and administration of reports - Presentation of reports in graphical form or table - Export of data (csv, xls, pdf) Billing - Master data o Storing of freight tariffs incl. versioning o Manual editing of stored tariffs o Storing of calculation routines - Create and visualize logics for freight cost calculation via drag & drop in the Calculation Designer - Freight cost calculation on shipment and manifest level - Manual selection of respective VAT rates for each invoice item - Freight cost information directly on shipment entry o Selection of available carriers and services based on freight costs - Automated freight cost calculation e.g. after shipment or manifest release and transmission to external systems - Entry mask for transport invoices - Transport invoice overview with search function - Creation of final invoice or credit note data for further transmission to the customers system (as csv or via EDI) Time-Slot Management - Definition of time-slots for delivery and pick-up - Link between time slot and shipment or manifest - Solutions for warehouse manager o Flexible creation for booking and reservation pages via AX4 o Creation of long-term reservations o Calendar overview also considering non-working days like plant vacations and weekends o Reports about ramps occupation - Solutions for forwarders o Free time-slots can be advised and booked o Individual entry of delivery data o Printing function for delivery or pick-up notes o Reports about ramps occupation Best Practice Shipment Management for Shippers 13

14 Published by AXIT GmbH A Siemens Company Nachtweideweg Frankenthal Contact Germany: info.germany@axit.de phone: +49 (0) Contact UK: info.uk@axit.de phone: Contact US: info.us@axit.de phone: Contact China: info.china@axit.de phone: For this and other best practices please visit: Best Practice Shipment Management for Shippers 14